UWC Group's IFRS net losses in H1 fall due to low impact of exchange rate differences (Part 2
MOSCOW. Aug 29 (Interfax) - The net losses of United Wagon Company Group to International Financial Reporting Standards (IFRS) fell by 62% year-on-year in H1 2016 to 1.995 billion rubles, UWC said in its report.
In January-June 2015 this figure amounted to 5.144 billion rubles. Pretax losses fell by 70% to 1.6 billion rubles. "Losses were formed mainly due to non-monetary spending on amortization and interest spending on credits and obligations. [Their] decline was attributable to the significant increase in operating profit. In addition, in 2015 losses from exchange rate differences made a substantial contribution, unlike 2016," UWC said in a statement.
Consolidated revenue rose 38% to 23.5 billion rubles, in the first place in connection with its increase in the wagon use segment (by 3.2-fold to 6.4 billion rubles due to the significant expansion of the fleet of the Vostok1520 transport company, the increase in productivity of railcars under management and an increase in rates) and income from the sales of railcars to other parties.
UWC's EBITDA rose in H1 by 82% to 5 billion rubles (with an increase in all business segments), EBITDA margin rose by 5.2 percentage points to 21.4% (the group connects this with operational effectiveness due to the reduction of cost of sales for production, an increase in capacity, an increase orders and an increase in the turnover of the fleet.
