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Public Joint-Stock Company Ukrzaliznytsia (Ukrainian Railways) posted UAH 103.1 million, or US$4 million, in net profit in January-June 2017 (H1) against UAH 3.8 billion, or US$146 million, in net loss year-over-year (y-o-y), according to Ukrzaliznytsia CEO Wojciech Balczun.
"In the first half of 2017, freight transportation by the company and its operations excellence continued to grow compared to the same period of the previous year. The company, as was the case in the previous five months of 2017, posted profit, reporting UAH 103.1 million against UAH 3.794 billion in loss y-o-y," Balczun wrote on Facebook on July 5.
He also noted that revenue from transportation over the period under review grew by 14%, or UAH 4 billion (US$153 million) compared to the first half of 2016.
Ukrzaliznytsia's earnings before interest, taxes, depreciation, and amortization, or EBITDA, stood at UAH 8.7 billion ($334 million), while EBITDA margin accounted for 23.93%.
Balczun also said that financial results from freight transportation in H1 2017 was estimated at UAH 7.2 billion ($276 million). The company transported 166.1 million tonnes of cargo, which was 2.2% up y-o-y. Losses from passenger transportation amounted to UAH 5.4 billion ($207 million), which was UAH 1.3 billion ($49.9 million) up y-o-y.
Read alsoUkrzaliznytsia to launch direct rail service between Ukraine and BulgariaAs UNIAN reported earlier, Ukrzaliznytsia's press service in late June announced that the contract with the company's CEO Balczun was formally considered to be extended until June 9, 2019.
Ukraine's Infrastructure Minister Volodymyr Omelyan has repeatedly accused Balczun of incompetence and slow reforms in the company since late 2016. In addition, the minister said that the formal extension of the contract with Balczun contradicts the laws of Ukraine. Moreover, he called Ukrzaliznytsia's statement on the extension of the contract with the CEO as "his (Balczun's) and the company's agony."
Omelyan has repeatedly stated that Ukrzaliznytsia CEO's will be dismissed after the government has heard a report on Balczun's activities.
Ukraine's Prime Minister Volodymyr Groysman in early July declared the need to immediately change management of the country's largest state companies, including Ukrzaliznytsia.
Balczun was appointed Ukrzaliznytsia CEO under a Cabinet order dated April 20, 2016, following an open contest.