Russian Railways IFRS net profit down by 66% y/y in H1/09.

By bne IntelliNews March 16, 2010
IFRS net profit of Russian Railways (RZD) went down by 66% y/y to RUB 22.55bn (USD 767mn) in H1/2009, the company announced. Revenues decreased by 7.6% y/y to RUB 532bn, while operating expenses (less state subsidies) more than halved  y/y to RUB 47.39bn in the reporting period. If the state subsidies are taken into account, operational profit of RZD in H1/09 stands at RUB 64.75bn vs. RUB 108bn in H1/08. To remind, IFRS net profit of RZD went down by 47% y/y to RUB 76.4bn in 2008. As reported, state support for RZD is going to amount to RUB 50bn in 2010, the same as in 2009. However, as recently announced by the head of the state rail monopoly Vladimir Yakunin, RZD might need another RUB 400bn in state support for the period of 2010-2015. The funds would be necessary for realizing the investment program for the coming 6 years. Investment program of RZD for 2010 stands at RUB 270.5bn, main priorities being development and renewal of infrastructure on main transit and export-oriented directions. Russian Railways is 100% owned by the government.

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