OREANDA-NEWS. August 19, 2010. In 1H2010 Russian Railways recorded a net profit of 58.485 billion roubles under Russian Accounting Standards (IFRS). This compares to a loss of 13.7 billion roubles in the same period in 2009, reported the press-centre of Russian Railways.

The positive financial result was due to the recovery the Russian economy in the first six months. Shipping volumes on the entire rail network for the period amounted to 584.6 million tonnes, an increase of 12.2% on the same period in 2009.

Russian Railways also continued to implement measures to reduce production costs. In particular, the Company’s revenues from its main operating activities were up 20.4% on the same period in 2009 and totalled 581.7 billion roubles, while expenditures increased by only 7.8% to 511.8 billion roubles.

Government subsidies in IH2010 related to tariff regulation, fees and charges on freight shipments amounted to 11.8 billion roubles.

In addition, part of the net profit, amounting to 19.28 billion roubles, came from the difference between the market and book values of property contributed to the authorised capital of the Federal Passenger Company.

In 2009 earnings at Russian Railways were 1.501 trillion billion roubles and net profit was 14.4 billion roubles.