UTair swings to IFRS net profit of 2.3 bln rubles in 2015 from net loss of 61.7 bln rubles in 2014
KHANTY-MANSIISK. May 4 (Interfax) - Russian airline UTair posted a net profit of 2.274 billion rubles in 2015 compared with a net loss of 61.659 billion rubles in 2014, the company said in IFRS financials.
Revenue fell to 70.347 billion rubles from 76.59 billion rubles, including 68.875 billion rubles from passenger transport and helicopter services, down from 74.69 billion rubles.
UTair had negative equity of 10.75 billion rubles as of December 31, 2015, compared with negative 43.556 billion rubles a year earlier.
The operating profit was 5.035 billion rubles in 2015 compared with an operating loss of 10.853 billion rubles in 2014.
UTair has 15.262 billion rubles in overdue loans as of year-end and 5.372 billion rubles in overdue leasing payments.
However, it has received approval from all creditor banks to restructure financial debt.
Declining demand pushed UTair to the brink of bankruptcy in 2014 and lawsuits filed by creditors began piling up. In the summer of 2014, UTair announced a cost-cutting program that aimed to reduce administrative headcount, optimize the route map and reduce passenger servicing times.
UTair concluded a debt restructuring deal in December 2015. The deal was structured as two syndicated loans totaling 42.6 billion rubles and two bond issues of about 13.3 billion rubles.
UTair-Helicopter Services and UTair-Leasing are the guarantors, as is a pool of UTair group assets; 50% of the seven-year loan is guaranteed by the state, under a state guarantee agreement signed on December 24, 2015.
The syndicate of lenders consists of 11 banks, including Sberbank of Russia , which is the loan agent.
UTair Group includes companies operating fixed-wing aircraft and helicopters and maintenance and servicing enterprises. The Surgutneftegas nongovernmental pension fund owns a 62.56% stake in the core enterprise, UTair. The company has over 70 aircraft in its fleet. Its main hub is Moscow's Vnukovo International Airport.