Ukrainian Railway

The state rail monopoly Ukrainian Railways (RAILUA) reported a sharp deterioration in its 1H25 results, with revenues down 13% h-o-h to $1.1bn (-23% y-o-y), EBITDA dropping 33% h-o-h to $57m (-83% y-o-y), and a net loss of $177m vs. a $81m profit in 1H24. Cash fell 51% h-o-h to $151m, while total debt rose 6% h-o-h to $1.5bn, pushing net debt up 23% to $1.4bn and lifting Net Debt/LTM EBITDA to 7.8x from 2.6x in 2024. The company disclosed a breach of certain covenants under a UAH 6.9bn (c.$163m) non-current loan but said it obtained a waiver from the lender.

Ukrainian Railways (RAILUA), the state rail monopoly, has drafted a recovery plan now under government review that foresees freight-tariff increases, cost reductions and new revenue streams. CEO Oleksandr Pertsovskyi warned that, absent approval, the company would require UAH30bn ($728m) in state support next year to cover low tariffs, repairs and debt service. Regarding approaching Eurobond maturities, the CEO said “we do not have the economic basis to pay all these interest rates and the principal, but it is essential for us to work with the market in a transparent and predictable manner.”