Ukrzaliznytsia plans to end year with UAH 2.5 billion loss

Ukrzaliznytsia forecasts a net loss at the end of the year at the level of UAH 1.5-2.5 billion without government support.

This is stated in the company's presentation to creditors on the website of the Irish Stock Exchange, Forbes reports.

The report states that Ukrzaliznytsia ended 2023 with a profit of UAH 4.9 billion.

EBITDA decreased from UAH 6.6 billion in the first quarter of 2024 to the projected UAH 1 billion in October-December 2024.

It is noted that among the main reasons is a sharp drop in the transportation of key cargoes: grain (-24%), iron ore (-12%), coal (-17%) in the second half of 2024 compared to the number of transportations in the first half of the year.

The company predicts that in July-December, freight turnover will decrease by approximately 8% compared to the first half of the year.

Due to the increase in the cost of electricity by 166%, diesel - by 110%, and spare parts - by 217%, the company's expenses have increased significantly.

Ukrzaliznytsia has appealed to creditors with a request to vote to revise the terms of repayment of two series of bonds: for USD 594.9 million at 8.250%, which the company must repay in 2026, and for USD 300 million at 7.875% with a maturity date in 2028.

As Ukrainian News Agency earlier reported, Ukrzaliznytsia has appealed to Eurobond holders with a request to postpone coupon payments due in January and July 2025 to 2026.

In early December, the supervisory board of the Ukrzaliznytsia joint-stock company approved proposals to change state-regulated tariffs for freight transportation by 37%.