Russian Railways posts RAS net profit in H1.

By bne IntelliNews August 17, 2010
State-run railroad monopoly Russian Railways (RZD) posted RAS net profit of RUB 58.5bn (USD 1.92bn) in Jan-June 2010 vs. net loss of RUB 13.7bn for the same period of the last year, press service of the company announced. Earlier head of the company Vladimir Yakunin saw net profit at more than RUB 20bn in H1/10. The net profit in the reporting period is attributed to recovered economic activity and resulting rise in volumes of unloaded cargo (up by 12% y/y to 585mn tons), as well as continued efforts of cutting operating costs (expenses growing by 7.8% in H1/10 vs. 20% growth in revenues). However, in H1/10 state subsidies amounted to RUB 11.8bn and as much as RUB 19.3bn of net profit are due to market revaluation of one of RZD subsidiaries capital. As announced recently by EconMin, RZD is going to receive state support of RUB 75bn in 2011 vs. previously planned RUB 50bn, which is the amount granted this year. Russian Railways is 100% owned by the government.

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