OREANDA-NEWS. May 19, 2008. In 2007, Russian Railways increased revenues from sales by 14.,% compared to the previous year to 975,590 billion roubles and net profit by 3,1 times, based on Russian Accounting Standards (RAS), reported the press-centre of Russian Railways.

The Company earned a net profit of 84,495 billion roubles, an increase of 3,1 times compared to 2006.

A large part of the net profit resulted from the increased value of property in the charter capital of the Company’s subsidiaries above its book value. Most of this increase resulted in turn from the creation of the First Freight Company.

Earnings increased largely due to higher freight shipments, which rose by 2,6% to 1,344 billion tons.

The Company’s revenues from freight last year amounted to 754,947 billion roubles, 14,7% higher than the comparable figure in 2006. Revenue from long-distance passenger services was 109,356 billion roubles, an increase of 18,8%, while suburban traffic fell by 8,8% on 2006 to 20,077 billion roubles.

Expenditures from Russian Railways’ main operations during the year amounted to 895,361 billion roubles. The Company’s losses from long-distance passenger services increased by 7,4% to 22,7939 billion roubles and from suburban services by 26,4% to 27,725 billion roubles. Total losses from passenger transport in 2007 amounted to 50,519 billion roubles.

Russian Railways expects 2008 revenues to exceed 1 trillion roubles.