02.Sep .2021 11:30

Georgian Railway Suffered A loss Of 32 MLN GEL This Year

Georgian Railway Suffered A loss Of 32 MLN GEL This Year
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JSC "Georgian Railway" has published the financial report for 1Q21. According to the document, the company suffered a loss of GEL 32 million this year.

As of the financial report, the company received revenue of 277.6 million GEL in January-June, which was 32.3 million GEL more compared to the previous year. Revenue growth was due to the shipment increase, as the company served cargo of 6 million tons in Q1, which was 0.5 million tons more compared to 2020.

However, this amount was not enough to cover the company's own expenses.

The document reads that financial expenses were the main expenses for the railway instead of the operating expenses, which amounted to 184.6 million GEL in the first 6 months of 2021. For comparison, financial expenses were 121 million GEL less in the last year.
As for the operating expenses of the company, the Railway transferred salaries of 84.6 million GEL to its 12,500 employees in the first 6 months of 2021.

The volume of electricity and other operating expenses amounted to 21.6 million GEL. The company's "other expenses" were 46 million GEL. At the same time, the volume of railway assets depreciated by GEL 35 million.

This year, the Georgian Railway refinanced debt of $ 500 million taken in 2012. The company’s bonds were traded at 4% on the London Stock Exchange.

100%-shareholder of Georgian railway is the Partnership Fund, which in turn is owned by the state. In 2020, the company's revenue amounted to 489.4 million GEL, which was 0.3% less than in 2019. At the same time, in 2020, the company's loss amounted to 164.6 million GEL. In 2019, the loss was 5.6 million GEL.

The company gained the largest profit in 2011, which amounted to 174 million GEL. However, Georgian Railway suffered the largest loss of 716 million in 2018. The main reason for the deterioration of financial indicators was the decline in freight traffic in recent years.

In 2012, the volume of cargo transported by the railways amounted to 20.1 million tons, while the amount of cargo turnover decreased every year from 2013 to 2018. In 2018, cargo turnover was reduced to 10 million tons. However, transit flows began resumption from 2019 and at first, it amounted to 10.9 million tons, and it equaled to 11.1 million tons in 2020.