Ukrzaliznytsia posts profit in Q1 2024 - head of board
JSC Ukrzaliznytsia operated with a profit in January-March 2024, chairman of the board Yevhen Liaschenko said at a meeting with journalists, but did not specify its specific size.
According to the presentation made at the meeting, in 2023 the net profit of Ukrzaliznytsia amounted to UAH 5 billion.
Among the key factors that had a positive impact on the financial results of Ukrzaliznytsia, the presentation indicates an increase in income from passenger transportation due to an increase in passenger turnover by 11% (up by UAH 1.42 billion), a decrease in costs for materials and repairs, thanks to saving measures, including the use of old materials (up by UAH 4.81 billion), a more stable than initially expected hryvnia exchange rate (more by UAH 4.53 billion) and restoration of the usefulness of assets in the de-occupied territories (up by UAH 1.88 billion).
In addition, the cancellation of the obligation to pay land tax for objects in the occupied territories (plus UAH 690 million), the reduction in the land tax rate due to work on re-registration of land plots (plus UAH 550 million), and the increase in income from auxiliary activities had a positive impact : security services – by 25% and passenger services – by 24% (plus UAH 527 million).
At the same time, the financial performance of Ukrzaliznytsia was negatively impacted by a decrease in income from freight transportation in 2023, due to the temporary suspension of the grain corridor and conventional restrictions on the export of agricultural products to the EU (down by UAH 8.57 billion), as well as an increase in wages to avoid personnel outflow (down by UAH 3.41 billion).
According to Liaschenko, Ukrzaliznytsia transferred 50% of the profits received in 2023 to the state budget in the form of dividends.
The board of directors of Ukrzaliznytsia also indicated that the company, at its own expense, continues to restore infrastructure that was damaged as a result of Russian attacks. In addition, as one of the largest electricity distribution operators, it has invested in the protection of substations and critical energy infrastructure.
