JSC “Ukrainian Railways” publishes its Consolidated Financial Statements for 6 months of 2021
The gradual reduction in quarantine restrictions in the first half of 2021, together with the spread of vaccinations, boosted the economic activity of enterprises and raised the level of business expectations, despite the emergence of new strains of the coronavirus.
The transport industry demonstrated growth, in particular, freight turnover increased by 1.7% compared to the same period in 2020, and the total passenger turnover increased by 21.1%. At the same time, the freight turnover of railway transport in January-June 2021 was 2.4% more than in the same period in 2020. In turn, the rail passenger turnover increased by 49.5% in the first half of 2021 compared to the first half of 2020, when rail passenger transportation was suspended in March-May 2020. Due to the increased traffic volumes, the Group ensured growth in sales revenue and improved operating results in the first half of 2021. Operating income increased by UAH 1.4 billion (by 4%), while operating expenses decreased by UAH 0.5 billion (by 1%). EBITDA increased by UAH 1.5 billion (by 50%) and EBITDA margin in the first half of 2021 increased to 12.1% compared to 8.5% at the end of the first half of last year.
For the six months ended June 30, 2021 and 2020, rail freight turnover amounted to about 78.8% and 79.3%, respectively, of the total freight traffic in Ukraine (except pipeline transport).
The management of JSC “Ukrainian Railways” continues to develop and implement measures to optimize operating costs, personnel costs, in particular, by reducing the Company's management staff, and introduces initiatives in the field of personnel management to increase the level of employee performance and develop plans to optimize non-core assets of the Company in order to attract additional cash.
The measures implemented are designed to improve financial results and ensure a sufficient level of cash receipts from the Group's core services for timely and full servicing of its financial obligations, and are a key factor in ensuring the sustainability of the Group's operations in the foreseeable future.
The financial statements for the first half of 2021 is available at the following link.