Globaltrans Profit Jumps In First Half

Globaltrans Investment, the country's biggest privately owned freight rail operator, said Monday that its first-half net profit almost doubled to $65 million from $33 million in the same period last year.

Globaltrans, which raised around $450 million in a London initial public offering in April this year, said in a statement that revenue rose 14 percent to $318.3 million, while the cost of sales fell 3 percent to $196.2 million.

"Our strategy of expanding our presence in high-margin business segments and our focus on improving operational efficiency and rigorous cost control mean that we are well positioned to enhance our leadership among Russia's private rail freight operators," chief executive Sergei Maltsev said.

Earnings before interest, taxation, depreciation and amortization, adjusted for one-off gains, rose 56 percent to $117 million, while the company's adjusted EBITDA margin improved to 53 percent from 44 percent a year ago.

The company said it maintained its leading position within the country's private freight rail transportation sector as its rolling stock fleet increased to 21,613 railcars as of June 30, including 18,165 railcars of the company-owned rolling stock.

Globaltrans is Russia's second-largest freight rail operator behind state-controlled Russian Railways. In 2007, it accounted for 27 percent of the country's ferrous-metal shipments by rail, according to AntantaPioglobal.

(Reuters, MT)