28 Aug 2018 14:19

Globaltrans IFRS net profit grows 47% to in H1 on higher sales, cost-cutting

MOSCOW. Aug 28 (Interfax) - Globaltrans boosted net profit to International Financial Reporting Standards (IFRS) 47% year-on-year to 9.8 billion rubles in the first half of 2018, the rail freight transportation group said in a report.

This was above the 9.1 billion rubles that analysts from investment banks and companies predicted in a consensus forecast for Interfax.

Total revenue grew 14% to 43.4 billion rubles, and adjusted revenue and rose 19% to 30.1 billion rubles, "supported by strong market conditions." The analysts forecast adjusted revenue of 29 billion rubles.

The company said it maintained "excellent cost discipline," with total operating cash costs up "only 2% year on year despite ongoing cost pressures." Operating profit rose 42% to 13.6 billion rubles.

"Strict cost control alongside strong revenue growth drove adjusted EBITDA margin expansion to 55% and a 37% year-on-year increase in adjusted EBITDA to 16.5 billion rubles," Globaltrans said. The analysts forecast 15.2 billion rubles in adjusted EBITDA.

The group acquired 1,202 gondola cars, 300 petrochemical tank containers and 300 flat cars in H1 2018. Despite significant capex involved, free cash flow rose 6% to 8.6 billion rubles due mainly, the company said, to higher cash generated from operations. Attributable cash flow rose 5% to 7.5 billion rubles.

Globaltrans specializes in shipping metallurgical freight, oil products, construction freight and coal. It had around 67,000 units of rolling stock - mostly gondola and tank cars, and most of them owned - at end-2017. One company founder, Konstantin Nikolayev owns 11.2%, other founders Nikita Mishin and Andrei Filatov each own 11.5% of shares, and Alexander Yeliseyev, a non-executive director, holds 6.2% of shares, board chairman and strategy director Sergei Maltsev owns 4.6% and the free float is 54.9%.