OREANDA-NEWS. February 28, 2011. The Russian Railways group of companies increased net profit under International Financial Reporting Standards (IFRS) to 110.49 billion roubles in the first half of 2010, reported the press-centre of Russian Railways.    

Operating profit at the Russian Railways group before subsidies from the federal and local budgets in IH 2010 increased by 2.5 times to 119.05 billion roubles.

EBITDA amounted to 204.76 billion roubles, an increase of 85%. EBITDA margin rose to 31% from 21% in IH 2009 due to increasing revenue from traffic, increased subsidies from the federal and local budgets and the continuing work to optimise costs.

"One of the priority tasks facing Russian Railways during the reporting period was to ensure a stable financial performance in an unstable macroeconomic environment. We met this task by consistently implementing measures to reduce operating costs while increasing traffic volumes in the first half of 2010 by 13.5%. In particular, we increased revenues by 22% to USD650.97 billion roubles, while holding the Group’s operating costs to 531.92 billion roubles, an increase of just 10%. Government support for the Company during the crisis also played a significant role," said Vadim Mikhailov, Senior Vice-President at Russian Railways, when commenting on the IH2010 results.

The consolidated financial statements of the Russian Railways group of companies according to International Financial Reporting Standards (IFRS) takes into accounts the figures from all subsidiaries and associated companies – over 170 companies in all.