- The Cabinet of Ministers of Ukraine approved the consolidated financial plan of “Ukrainian Railway” for 2017
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The Cabinet of Ministers of Ukraine approved the consolidated financial plan of “Ukrainian Railway” for 2017
According to the approved financial plan, Ukrainian Railway plans to finish the year 2017 with USD 2.4 mn of net profit. Payments to the state will increase by 12% y/y to USD 654 mn. The Company expects USD 3,099 mn of total revenue, particularly USD 2,417 mn from the cargo transportation, while the total expenses are planned to grow by 3.9% y/y to USD 3,097 mn due to increased costs on repairs of railcars, on raw materials and salaries. Meanwhile, the total amount of USD 615 mn of capital investments planned to be made, while in 2016 the Company invested USD 265 mn. For the first eight months of 2017, the Company has already made nearly USD 192 mn (UAH 5 bn) of capital investments, compared to the USD 96.2 mn (UAH 2.5 bn) for the same period in 2016.
According to this financial plan, Ukrainian Railway decided to increase profits by the cost optimization on the most loaded cargo transportation directions through the enhanced amount of investments made into the railway infrastructure. These investments are supposed to be paid off as a result of increased cargo turnover in combination with the transportation tariffs growth.
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