PKP CARGO near break even after three quarters of 2022

Revenue from contracts with customers of PLN 3,815 million, EBITDA of PLN 649 million and a net loss of PLN 5 million: these are the main financial results of the PKP CARGO group after three quarters of 2022. These results are much better than those achieved in the same period in 2021. Railway Supply magazine writes about this with reference to Nakolei.

This means that revenue increased by 21% year on year, and EBIDTA was higher by 65%. At the same time, the loss of the PKP CARGO group is as much as PLN 149 million less. Only in the third quarter, revenue increased by 24% year on year – up to PLN 1 billion 363 million. The group also recorded a net profit of PLN 38 million in this period, while a year ago there was still a loss of PLN 24 million. At the same time, the dynamics of expenses (almost 13% in three quarters) is lower than the growth in income.

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The decrease in transport performance was mainly in the intermodal segment and chemicals, while the increase was recorded in solid and liquid fuels, as well as metals and ores, as well as aggregates and building materials. The situation with coal is interesting. True, for 3 quarters of this year coal transportation is 2.7% lower by weight (33 million tons) than in the corresponding period of 2021, but the freight turnover increased by as much as 1 billion tkm and amounted to 6.7 billion tkm.

On the one hand, energy is gradually moving away from coal, which was only slightly slowed down by the war in Ukraine. But at the same time, due to the EU embargo on Russian coal, the direction of transportation of coal, which we carry from ports to recipients in the interior of the country, has changed. This is reflected in increased transport productivity and average haul distance.

On the other hand, in the case of intermodal transport, there was a decrease in both weight and transport characteristics compared to 2021 data. The first indicator decreased from 7.4 million tons to 6.8 million tons (by 7.6%), and the second – from 3.42 billion tkm to 2.96 billion tkm (by more than 13%). This is mainly the result of reduced traffic on the New Silk Road after the start of the war in Ukraine, as well as a reduction in the capacity of railroads from seaports, where coal transportation is a priority.

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