In 2018, Russian Railways Group’s total revenues increased by 7.2% compared to the previous year and amounted to RUB 2,413 billion (USD 37.26 billion).
The company says that the main growth engine was the increase of revenue from cargo transport and infrastructure access that grew by 5.6% in 2018 and amounted to RUB 1,531 billion (USD 23.64 billion). The growth is mainly driven by the increase of freight turnover by 4.2% and tariff indexation.
Logistics revenues increased by 14.2% to RUB 394 billion (USD 6 billion) due to higher volumes of services provided by logistics companies of the group as well as due to positive effect from translation of foreign currencies nominated revenues into rubles.
Passenger revenues also increased by 5.4% up to RUB 251 billion (USD 3.87 billion) due to 5.2% volume gain of passenger turnover as a result of marketing initiatives and increase of high-speed transport revenues.
The group’s operating costs, excluding loss on impairment of property, plant and equipment and intangible assets, for the year 2018 amounted to RUB 2,161 billion (USD 33.37 billion). Major drivers of costs’ growth were increase in freight turnover, increase of repairs costs and substantial growth of diesel fuel prices.
Group’s EBITDA for the year 2018 increased by 6.4 % compared to the same period last year up to RUB 527 billion (USD 8.14 billion). In 2018, the group’s income amounted to RUB 35.4 billion (USD 546.67 million).
The total value of the capital investments increased from RUB 529 billion (USD 8 billion) to RUB 617 billion (USD 9.5 billion), in 2018. The increase is mainly attributable to renewal of locomotives for improvement of effectiveness and safety of transport, growth of carrying capacity and security of railway infrastructure. Also, RZD continues the implementation of infrastructure projects such as the modernisation of Baikal-Amur and Trans-Siberian railways, the development of Central railway node, the modernisation of railway access to Azov-Chernomorskyi basin, and the complex reconstruction of Mejdurechensk-Tayshet line.