The total net profit of Freight One increased by 8% as compared to 2019
Freight One has presented its financial results for 2020 according to the International Financial Reporting Standards (IFRS).
The company's revenue has amounted to 81.2 billion rubles, while EBITDA has been 34.5 billion rubles. The influence of the market conditions has been partially set off by measures aimed at improving the efficiency of the car fleet management and reducing costs. The company has also continued on its course toward the improvement of its service standards and the strengthening of its relationships with key customers, both within the existing service contracts and by concluding new ones.
The net profit subject to the total income from the disposal of oil and petrol tank cars has amounted to 26.2 billion rubles versus 24.2 billion rubles in 2019.
The company has generated a positive free cash flow of 12.8 billion rubles.
The revenue and expense figures do not take into account the results from the operation of oil and petrol tanks - the transaction aimed at selling the tanks for oil and oil products was completed in March 2020. Indicators for this business segment are shown in a separate section of the financial statements as discontinued operations.
Freight One’s CEO Sergey Karataev comments,
“Against the backdrop of the COVID-19 pandemic, and the decrease in traffic volumes and rates on the railroad car operation market by the end of 2020, Freight One has shown positive results, increasing its market share and cargo turnover by 6%, to 289 billion tkm.
The existing long-term contracts with partners, the service programs being developed and the increased performance of the fleet, including an increase in the productivity of open cars, have allowed the impact of current market trends to be minimized and the profitability of the business to be maintained.
As part of improving services performed to our customers, last year we revised some business processes to speed up our general cooperation, improved the quality of the supplied rolling stock, and expanded functions of current digital services. In addition, we have invested 6.7 billion rubles in the renewal of the car fleet and increased the number of cars involved in operating lease.”