Russian Railways Announced FY2011 IFRS Results
OREANDA-NEWS. September 03, 2012. The annual consolidated financial statements of Russian Railways and its subsidiaries ("Group") prepared in accordance with International Financial Reporting Standards comprise the financial results of over 150 subsidiaries and 170 associated companies, reported the press-centre of RZD.
The Group’s total 2011 revenues increased by 9 percent to 1,481 billion roubles from 1,356 billion roubles in 2010. The increase in revenue was driven mainly by an 8% increase in freight turnover (5.7% growth excluding empty runs) and tariff indexation amounting to 8%.
To mitigate the impact of the world financial crisis, the Group initiated a number of crisis-management measures and costs reduction programmes in 2009, including postponing certain costs. These measures were completed in 2011, resulting in a 20% year-on-year growth of operational expenses or 1,360 billion roubles in 2011. This increase was attributable to the following key factors:
Increased repairs, upgrades to existing infrastructure and additional expenses related to the increase of passenger train speeds and a resulting total increase in material, repair and maintenance expenses totalling 58.0 billion roubles;
Higher social tax payments of 36 billion roubles following an increase in the effective rate of insurance payments in accordance with Federal law No. 212-FZ dated 07.24.2009;
Increased fuel and electricity expenses amounting to 29.2 billion roubles in line with the general rise of prices in Russia and increased consumption due to turnover growth.
In 2011, the Group generated EBITDA of 356 billion roubles, 23% less than in 2010, with an EBITDA margin of 24% (34% for 2010). This is in line with management expectations and reflects normal EBITDA margins for the Group’s business.
The Group’s net profit in the reporting period declined by 12% compared to 2010 and amounted to 183 billion roubles (2010 - 208 billion roubles). Profit from asset disposals made a significant contribution to net profit in 2011 (mainly the 75% minus 2 shares in Freight One), which are not included in EBITDA.
The Net Debt to EBITDA ratio of 0.56x for 2011 remained flat from the end of 2010.
The Group’s capital investments in 2011 increased by 17% to 484 billion roubles following increased investments in infrastructure development projects.
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Open Joint Stock Company Russian Railways was created on 1 October 2003 pursuant to Russian Government Decree No. 585 "On the foundation of Open joint Stock Company Russian Railways" dated 18 September 2003. The Company is 100% owned by the Russian Government.
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