RZD Group Announces Results of 1H2012 According to IFRS
OREANDA-NEWS. January 15, 2013. The consolidated financial statements of the Russian Railways’ Group of companies according to International Financial Reporting Standards (IFRS) includes the figures of more than 150 subsidiaries and 170 associated companies, reported the press-centre of Russian Railways.
In 1H 2012, the Holding’s revenues increased by 5% to 745 billion roubles from 710 billion roubles in H1 2011.
The relative increase in revenues was largely due to a 4.3% increase in freight turnover and the 6% annual indexation of freight rates, thus helping to compensate for the effects of deconsolidating Freight One, which accounted for 7.6% or 54 billion roubles of the holding company’s revenues in the first half of 2011.
In the first half of 2012, the Holding successfully controlled operating costs. In the reporting period, costs increased by 2.7% from 641 billion roubles in 1H 2011 to 658 billion roubles in 1H 2012, well below the 5% rise in revenues in the same period.
As a result, the Holding’s operating profit (before federal and local subsidies) was 86 billion roubles, up from 69 billion roubles in 1H 2011.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 13% compared to the corresponding period in 2011 and amounted to 211 billion roubles.
The EBITDA margin was 28%, up from 26% in 1H 2011.
Net profit was 74 billion roubles, 11% more than the 67 billion roubles recorded in 1H 2011.
The ratio of the Holding’s net debt to EBITDA during the 12 months preceding the reporting date of 30 June 2012 was 0.75, compared to 0.56 at 31 December 2011.
The ratio of EBITDA to net interest expense (including capitalized interest) increased to 19.4 by reducing the cost of borrowed capital and increasing interest income.
The Holding’s capital investments in 1H 2012 increased by 11% to 215 billion roubles from 194 billion roubles in the first 6 months of 2011.
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