OREANDA-NEWS. September 01, 2011. Globaltrans has released strong 1H11 IFRS results, exceeding both our estimates and Bloomberg consensus, reported the press-centre of ATON.
 
According to our calculations 9% (out of 16%) of the revenue difference is attributable to a higher-than-expected cargo turnover (57.5bn tkm vs Aton’s estimate of 52.8bn tkm), which looks encouraging given the weak results of the railway industry in Russia in 1H11. The rest of the difference is attributable to transportation tariffs and the rouble exchange rate that we used in our model.
 
EBITDA margin was close to our estimate and Bloomberg consensus, while at the same time slightly below the margin reported in 2H10 (43%). We see the reason for this minor decline in a higher share of railcars in the operating lease.               
 
We also note that the results release is to be followed by a conference call with the company’s management at 17:00 Moscow time (14:00 London time). We believe the conference call will be of greater interest to investors than the financial results as we expect management to comment on its Freight One acquisition plans, which have attracted a great deal of attention recently. We also expect management to comment on the current market situation, further fleet expansion and liberalisation of locomotive traction.