Georgian Railway posted a 13.2% YoY increase in its revenues in 1H 2021 in GEL terms (+3.3% YoY in USD terms due to the GEL depreciation). The net finance loss improved by 9.5% YoY, resulting in a net loss of GEL 32.0mln in 1H 2021, a 51.3% YoY improvement, - according to TBC Capital report.
As of the document, Georgian Railway’s overall freight transportation tariff decreased by 7.2% in 1H 2021 in USD terms. Georgian Railway’s containerized cargo throughput saw a 4.8% YoY decrease. The decline in containerized cargo can be explained by a 225% increase in global transportation prices. The recent decline in World Container Index provides positive outlook for future railway containerized cargo.
Georgian Railway posted a 12.3% YoY increase in its revenues in 1H 2021 in GEL terms (+2.6% YoY in USD terms due to the GEL depreciation). Due to the GEL fluctuations against foreign currencies, the net finance loss improved by 9.5% YoY in the same period, resulting in a net loss of GEL 32.0mln in 1H 2021, a 51.3% annual improvement.
Georgian Railway’s operating performance saw a 28.4% YoY increase, with EBITDA standing at GEL 128.7mln in 1H 2021. While the largest operating expense category, employee benefits expenses, remained relatively unchanged in Q1 2021, posting a minor, 2% YoY increase, other expenses posted noticeable annual increase in the same period (+42% YoY), resulting in a 6% YoY increase in Georgian Railway’s operating expenses.
Despite the COVID-19 related mobility restrictions in Q1 2021, the largest decline was observed in the freight car rental category at -40% YoY in 1H 2021. Despite a 7.2% YoY decline in Georgian Railway’s overall freight transportation tariff in USD terms, a noticeable increase in total transported cargo (+10.1% YoY) resulted in a 3.3% YoY increase in revenues in USD terms. Regardless a significant 21.7% decrease in tariff, transportation of oil products, the largest revenue generating category in freight transportation, posted a 27.9% YoY increase in 1H 2020 in USD terms.
Georgian Railway’s cargo transportation posted a 10.1% YoY growth in 1H 2021 in tons, attributable to a 46.3% YoY increase in oil & oil products, outweighing the declines in most other major product categories. In terms of destinations, all categories have posted growths in 1H 2021 with the exception of import, the second largest destination category, posting a 12.0% YoY decline in the same period.
Georgian Railway decreased its containerized cargo throughput by -4.8% YoY, which, compared to the 225% increase in the Composite World Container Index over the same period is a better than expected result. A slight downward trend observed in the first week of September in the container index provides positive outlook for further containerized cargo.
