Ukrainian Railways — Strengthens profitability in 3Q21
According to state rail monopoly Ukrainian Railways’ (RAILUA) CFO Ivan Yuryk, the company has been gradually improving its bottom line this year. Based on YTD monthly data he provided, RAILUA recovered from heavy losses in 1Q21 (UAH 693m in January, UAH 534m in February and UAH 448m in March) to marginal profitability in 2Q21 (profits of UAH 35m in April, UAH 39m in May and UAH 192m in June) and a much more evident rebound in recent months (net income of UAH 110m profit in July, UAH 507m in August and UAH 322m in September). Thus, the YTD net loss shrank to UAH 470m ($17m) in 9M21 from UAH 1,408m in 1H21, with the company planning to become profitable on a full-year basis. The main drivers included higher cargo transportation volumes (i.e. agricultural exports), the initial positive effect of cargo tariff hikes, sales of non-core assets, efforts to maintain the railcar market share, and debt portfolio optimization.