Ukrzaliznytsia: UAH 11.9 billion of net loss in 2020

At the end of 2019, Ukrzaliznytsia JSC received 2.99 billion UAH of net profit – 2020 11.9 billion UAH of net loss, informs railway magazine Railway Supply with reference to the GMK Center.

Ukrzaliznytsia

The main reason is a decrease in income from passenger and freight traffic and fluctuations in exchange rate differences

“The unprofitable result was obtained as a result of the simultaneous impact on the industry of a number of negative factors caused by the spread of the COVID-19 pandemic,” UZ reports.

The results of 2020 were significantly affected by a decrease in income from freight and passenger traffic compared to 2019 – by 10.3% and 58.3%, respectively.

Ukrzaliznytsia has paid 3.8 billion UAH of land tax

In addition, the result was negatively affected by significant fluctuations in exchange rate differences. As a result, there was a net loss from exchange rate differences in the amount of UAH 5.5 billion against UAH 4.3 billion of net profit in 2019.

“Measures to prevent the spread of the pandemic, which have been actively implemented since March 2020, have led to a decrease in demand for the transportation of goods, the suspension of passenger traffic and, accordingly, to a decrease in the income of society. UZ is developing measures to improve financial performance and ensure recovery from the effects of the pandemic as soon as possible, ”the railway operator stated.

In 2021 UZ intends to increase its revenue from cargo transportation by 10% compared to 2020 – up to UAH 72 billion. By the end of the year, the railway operator plans to transport 314 million tons of cargo, which is almost 3% more than in 2020.

At the end of 2020, Ukrzaliznytsia reduced cargo transportation by 2.3% compared to 2019, to 305.4 million tons. Ore transportation increased by 6.9%, to 79.9 million tons, and ferrous metals fell by 4.2%, to 20.5 million tons.

As a reminder, Ukrzaliznytsia increased its net profit by 14.7 times in 2019 – up to UAH 2.99 billion (in 2018 – UAH 203.85 million); EBITDA by 6% – up to UAH 17.3 billion. At the same time, income from the sale of services and products increased by 8.4% – to UAH 90.4 billion.

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