Ukrzaliznytsia is wholly owned by the state / Photo from UNIAN
The railway operator considerably boosted capital investment last year.
Ukrzaliznytsia, which operates Ukraine's railways, has reported it has become profitable again as its 2017 profit under an audited report was UAH 100 million, or US$3.83 million.
"One of the best international audit firms has confirmed this right course and implementation of a strategy to reform Ukrzaliznytsia," Acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov wrote on Facebook, citing a report by E&Y. "We're reaching a new level of economic stability. Losses in 2016 were estimated at UAH 7.3 billion [US$280 million], today our profit is UAH 100 million. In 2017, the company's financial results improved by UAH 7.4 billion [US$283.8 million]."
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Ukrzaliznytsia's earnings before interest, taxes, depreciation and amortization (EBITDA) rose by UAH 390 million (US$14.95 million), he said.
"This is an analytical indicator that is equal to the amount of profit before deduction of interest, payment of taxes and depreciation. The figure has reached UAH 20.6 billion (US$790 million), which positively influences the perception of the company in the western financial markets," Kravtsov said.
In his words, Ukrzaliznytsia also significantly increased capital investment in 2017, to UAH 10.9 billion, or US$418 million.
"This is more than by half. Thanks to this, the company modernized more rolling stock and bought more equipment in the past four years," Kravtsov added.
UNIAN memo. Ukrzaliznytsia is a public joint-stock company wholly owned by the state. It is on the list of companies that are not subject to privatization. It accounts for 82% of freight transportation and about 50% of passenger transportation by all types of transport. It ranks fourth in terms of fright transportation in Eurasia, following the railways of China, Russia, and India.