Georgian Railway JSC. Short Performance Overview 31 March 2012

Transcription

1 Georgian Railway JSC Short Performance Overview 31 March 2012

2 Georgian Railway: Revenue and Profitability Revenue GEL, mm In Q revenue increased by 2.3% compared to the same period of previous year driven by increase in freight car rental revenue Q Q1 Other Passenger Freight EBITDA GEL, mm 38.9% 50.5% 54.6% 46.4% 57.3% Q Q1 EBITDA in Q increased by 26.4% to GEL 60.6 m compared to the same period of previous year. EBITDA Margin increased to 57.3% in Q from 46.4% in Q EBITDA EBITDA margin Exchange Rate History (Period Averages) Q1 USD/GEL CHF/GEL

3 Revenue and Other Income Breakdown Revenue Freight Transportation % 75.2 Freight handling % 14.0 Freight car rental % 8.4 Passenger transportation % 3.2 Other revenue % 2.6 Total Revenue % Revenue from Freight transportation decreased due to the decrease in liquid cargo volumes and lack of availability of rolling stock to the Company as well as adverse weather conditions. The decrease in liquid cargo volumes was partially offset by the reduction of volumebased discounts offered by the Company for the transportation of oil and oil products. The increase in Freight car rental revenue was due to the increased usage of company owned railcars by other railways as a result of an agreement for the rental of 200 dry cargo railcars to Ukrainian railway. The increase in revenue from passenger transportation was caused by the overall growth in Country s economy, as well as severe weather conditions which resulted in difficulties in road transportation and, in turn, increased demand for rail transportation. Other Income Income from continuing operations % 2.0 Gain on sale of subsidiaries % 0.0 Other income:other % 2.0 Total Other Income % 4.0 Increase in Other income was primarily due to the increase in revenue from accrued penalties on creditors and non-operating income. 3

4 Breakdown of expenses Electricity and Materials Used Electricity % 8.5 Materials % 1.8 Fuel % 2.4 Total % 12.7 The decrease in cost of electricity, materials and fuel used in the three-months period ended 31 March 2012, as compared to the same period of 2011, was principally due to the Company entering into an agreement for purchase of electricity for a fixed price with Energo Pro Georgia in September This was only partially offset by the increase in cost of materials, as a result of increased internal repairs. Other Expenses Taxes other than income tax % 4.2 Freight car rental % 5.6 Security % 1.9 Repair and maintenance % 3.7 Write off of CIP % 4.1 Other % 1.0 Total % 20.5 The decrease in Company s other expenses was mainly caused by the Company identifying impairment indicators leading to a write-off of several items of the Company s construction in progress, whereas no such indicators were identified during the three-months period ended 31 March 2012 and a decrease in repair and maintenance cost as the Company performed a greater portion of repairs by itself rather than external repairs. 4

5 5 Georgian Railway: Income Statement 000 GEL Q Q Revenue 105, % 103,396 Other income 5, % 3,989 Payroll expenses -23, % -26,310 Depreciation and amortization expenses -24, % -23,034 Electricity and materials used -12, % -12,669 Other expenses -14, % -20,464 Results from operating activities 35, % 24,908 Finance income 10, % 10,869 Finance costs -6, % -1,515 Net finance income/(costs) 3, % 9,354 Profit before income tax 39, % 34,262 Income tax expense -6, % -5,719 Net Profit 33, % 28,543 Net profit of the company amounted to GEL 33.1 m for the period ended 31 March 2012 compared to GEL 28.5 m for the same period of previous year. Revenues increased by 2.3% due to growth in fright car rental revenue by 65.0%. Expenses excluding depreciation decreased by 14.4% mainly due to decrease in payroll expenses, which was caused by the decrease in number of employees, and decrease in write-off of non-current assets. Finance income for the three months period ended 31 March 2012 was principally due to the foreign exchange gain of GEL 6.4 m and interest income of GEL 4.0 m. The income was partially offset by provisionsof GEL 6.5 m made on doubtful debts. Income tax expense increased by 15.7%, which was due to the increased profit. EBITDA 60, % 47,942