Russian Railways mulls placing USD 300-600mn eurobonds next year.

By bne IntelliNews December 8, 2010
State monopoly Russian Railways mulls placing USD 300-600mn eurobonds next year, Pavel Ilyichyov, deputy director of the company's financial department, has announced. The company also announced that it had increased its forecast for the growth of its cargo shipments in 2010 to 9.0% y/y from 7.5% projected earlier. Russian Railways expects its passenger traffic to decrease more than 9% y/y in 2010 due to a significant drop in suburban passenger traffic by around 28%. As reported, IFRS net profit of Russian Railways almost doubled y/y to RUB 152.2bn (USD 4.9mn) in 2009 vs. RUB 76.4bn seen in 2008. Revenues decreased by 4% y/y to RUB 1.15tn, out of which revenues from cargo transportation stood at RUB 844bn (down by 6% y/y) and revenues from passenger transportation at RUB 166.7bn (up by 3% y/y). Operating expenses (less state subsidies) went down by 8.2% y/y to RUB 1tn last year, while EBITDA jumped 51% y/y to RUB 330bn. It was also announced by the head of the company Vadim Milkhailov, that RZD's net IFRS profit in H1/10 is estimated at RUB 58.5bn. Russian Railways is 100% owned by the government.

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