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Revenues of Georgian Railway up by 3.8%

Transport Materials 21 December 2019 11:55 (UTC +04:00)
Revenues of Georgian Railway up by 3.8%

BAKU, Azerbaijan, December 21

By Tamilla Mammadova – Trend:

Revenues of JSC Georgian Railway (GR) increased by 3.8 percent year-on-year to $131.1 million in nine months of 2019, Trend reports referring to Georgian investment company Galt & Taggart.

As reported, this increase was mostly driven by higher freight transportation revenue ($81.2 million) reflecting growth in dry cargo volumes (+17.5 percent year-on-year to $48.4 million).

From January through September 2019, operating expenses declined by 16.2 percent year-on-year to $95.7 million, mostly due to lower depreciation expenses.

Despite better operating performance, the bottom line was negative $23 million in nine months of 2019 caused by lari-depreciation related non-cash Foreign Exchange (FX) loss ($45 million) and impairment loss on trade receivable ($8.1 million).

In the reporting period, freight transportation, the largest revenue category for GR, continued growth in third quarter of 2019, with revenue up by 14.4 percent year-on-year to $81.2 million.

Notably, surge in dry cargo transportation (up by 17.5 percent year-on-year to $48.4 million) had the largest effect on the overall cargo transportation revenues. Freight handling also increased, up by 10.8 percent year-on-year to $16.8 million.

On the downside, logistic service revenues dropped by 34.6 percent year-on-year to $13.9 million and freight car rental revenue also declined by 5.6 percent year-on-year to $7 million.

Meanwhile, passenger traffic revenue increased by one percent year-on-year (though up by 12.8 percent year-on-year in lari) in nine months of 2019. Other revenues, accounting for just 2.3 percent of total, were up by 27 percent year-on-year to $3 million due to increased sales of materials and scrap.

In nine months of 2019 the operating expenses were down by 16.2 percent year-on-year to $95.7 million, as depreciation expenses reduced. At the end of 2018, reduction in asset-based due to the significant impairment loss recognition reduced GR’s depreciation expenses by 34.4 percent year-on-years to $23.4 million.

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