BAKU, Azerbaijan, December 25
By Tamilla Mammadova – Trend:
Freight transportation, the largest revenue category for Georgian Railways (GR) contributing to 64 percent of GR’s 9M2020 revenue, was down 7 percent year-on-year in 9M2020, Trend reports via Georgian Galt&Taggart analytics company.
Sharp drop (-16.8 percent year-on-year) in 3Q2020 revenue was the main reason behind the overall decline of the segment, as drop in 1H2020 was marginal, just 2 percent year-on-year.
In 1H2020, transportation volumes by rail have remained steady, while slight declines in revenue were associated to the lower tariffs applied. After growing by 10.1 percent year-on-year in 1Q2020 and 5.1 percent year-on-year in 2Q2020, freight cargo transported by GR dropped 7.3 percent year-on-year in 3Q2020.
After growing by a significant 20 percent year-on-year in 1H2020, transit cargo transported by GR dropped in 3Q2020 by 12.7 percent year-on-year to 1.1 million tons.
Exported and imported cargo volumes also declined in 3Q2020, related to COVID-19 recession.
Due to lari’s 6.6 percent depreciation against the US dollar during 9M2020, GR recognized large FX loss ($61.9 million), which dragged the company’s bottom line to a negative $38.5 million in 9M2020.
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