State funding for Russian Railways to be cut by 24% in 2011.

By bne IntelliNews December 13, 2010
State rail monopoly is going to have state funding cut by 24% to RUB 89bn (USD 2.87bn) in 2011, company announced. Company's total investment program for 2011 stands at RUB 349bn. State funding for the company in 2011-2013 is going to amount to RUB 157.5bn, including RUB 67bn in 2012 and RUB 0.5bn in 2013. To remind, IFRS net profit of Russian Railways almost doubled y/y to RUB 152.2bn 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. He provided no comparison, but this is more than twice as much as H1/09 IFRS net profit of RUB 22.6bn. Russian Railways is 100% owned by the government. The company is planning to raise up to RUB 100bn 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.
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