BAKU, Azerbaijan, December 21
By Tamilla Mammadova – Trend:
Dry cargo transportation revenues of JSC Georgian Railways (GR) increased by 17.5 percent year-on-year to $48.4 million from January through September 2019, with ore and sugar being the largest contributors, Trend reports with reference to Georgian investment company Galt & Taggart.
As reported, dry cargo transportation growth both in volume and value had the largest impact on overall freight transportation revenues.
Construction and industrial freight transportation also improved in nine months of 2019.
Ferrous metals, grain, and chemicals and fertilizers together accounting for 17.7 percent of dry cargo transportation revenue, were the only categories that declined in the reporting period, down by 7.1 percent year-on-year to $8.5 million.
Notably, dry cargo growth accelerated in third quarter.
Liquid cargo revenue grew by 9.7 percent year-on-year to $32.8 million solely driven by increased oil products transportation. Oil products transportation revenue increased due to higher tariffs charged, as transported volumes decreased by 6.9 percent year-on-year in nine months of 2019.
After the third consecutive year of decline in crude oil transportation, the value has dropped to $0.1 million in nine months of 2019 compared to $9.1 million in nine months of 2016.
Cash flow from operating activities decreased by 8.7 percent year-on-year to $59 million in nine months of 2019. This decline was entirely related to the lari’s depreciation in the reporting period, as in lari terms it increased slightly (2.1 percent year-on-year).
GR invested $21.5 million in the main line modernization project, while cash flows from financing activities remained stable at $41.1 million (interest on Eurobond).
Overall, cash balance declined by $7.2 million and stood at $82.8 million as of September 2019.
Revenue of JSC Georgian Railway (GR) increased by 3.8 percent year-on-year to $131.1 million in nine months of 2019.
Fitch affirmed GR’s rating at BB- with stable outlook in November 2019, while S&P Global revised its positive outlook to developing and affirmed B+ in September 2019.
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