It is reported that the Russian Railways Group increased its revenue under International Financial Reporting Standards in 2008 by 18.3% from the 2007 level to RUB 1.202670 trillion.
Revenue from freight transportation totaled RUB 887.270 billion up by 15.4% and from passenger transportation RUB 162.312 billion up by 15.2%. Operational expenses totaled RUB 1.88765 trillion up by 33% from 2007 including salaries and social and social expenditure at RUB 518.674 billion up by 43.7%, purchase of materials, renovations and servicing of fixed assets at RUB 217.780 billion up by 16.3%, fuel at RUB 70.771 billion up by 42.8% and electricity at RUB 66.586 billion up by 18%.
Mr Vadim Mikhailov Senior Vice President of RZD said the group’s pre-tax profit was RUB 125.81 billion down by 42%, EBITDA was RUB 218.778 billion, and net profit was RUB 76.420 billion down by 47%. RZD paid RUB 48.661 billion in taxes in 2008. During 2008, RZD experienced stable growth in income in the main areas of its operations. The company steadily improved the efficiency of operational processes.
However, obligations taken on during 2007 to index employee salaries, and the provision of social support to railway workers, significantly increased outlays on personnel. In addition, the growth in fuel prices at the end of 2008 had an impact on operational expenditure. As a result, the group’s net profit declined from the 2007 level. This is also due to the reduction in cargo transportation during the fourth quarter of 2008, which caused a contraction in income, and the negative revaluation of the company’s foreign currency-denominated debt due to the devaluation of the ruble.
RZD’s revenue in 2008 according to Russian Accounting Standards totaled RUB 1.1017 trillion up by 12.9% from 2007 and net profit was RUB 13.4 billion.
