Russian Railways posts RAS net profit in H1.

By bne IntelliNews August 2, 2010
State-run railroad monopoly Russian Railways (RZD) posted net RAS profit of more than RUB 20bn (USD 662bn) in Jan-June 2010 vs. net loss of RUB 13.7bn for the same period of last year, company's head Vladimir Yakunin announced. However, given RZD Q1/10 RAS reports showing RUB 38.24bn net profit, Q2/10 runs into a net loss of about RUB 18bn. Company's revenues in H1/10 rose by 20% y/y to RUB 581bn in H1/10. Yakunin attributed improved financials to growth of revenues from cargo transportation and effective cost management. As reported, revenues from cargo transportation accounting for about 80% of RZD earnings is targeted at about RUB 900bn in 2010 and 2011. State support for RZD is going to amount to RUB 50bn in 2010, the same as in 2009. However, as recently announced by 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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