Russian Railways to raise RUB 100bn from selling stakes in 30 subsidiaries.

By bne IntelliNews February 18, 2010
As announced by the head of the state rail monopoly Russian Railways (RZD) Vladimir Yakunin, the company is planning to raise RUB 100bn (USD 3.32bn) from its subsidiaries until 2012. RZD plans to sell stakes in about 30 companies, the largest assets being 50% minus two shares in First Cargo Company and 35% minus two shares in TransContainer, as well as 50% minus two shares stakes in companies such as Elteza, RZD Stroy, RemPutMash and others. To remind, in the end of January Moody's Investors Service confirmed Baa1 rating of state-run railroad monopoly Russian Railways (RZD), while upgrading its outlook to Stable from Negative. Agency attributed the upgrade of the outlook to its increased confidence that government support program is compensating for the consequences of the crisis on the railroad industry. Moody's also notes company's successful and timely adjustment to the new market conditions, namely cutting its investment program by 30% to RUB 176bn and cost-cutting measures enabling RZD to save extra RUB 188bn. Company posted net profit of RUB 35.14bn in Jan-Sep 2009, down by 10% y/y. To remind, in H1/09 company suffered a net loss of RUB 13.7bn vs. RAS net profit of RUB 27.3bn in H1/08. In Jan-Sep RZD revenues went down by 7.2% to RUB 778bn. RAS net profit of RZD in 2008 amounted to RUB 13.4bn vs. net profit of RUB 84.5bn in 2007. Russian Railways is 100% owned by the government.

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