Croatian state-owned rail infrastructure manager, HZ Infrastruktura reported a HRK 60.6 million (EUR 8 million) net profit for 2015. It is an important growth considering that 2013 a HRK 838 million (EUR 111 million) loss was registered. The company’s revenue in 2015 reached HRK 1.37 bn and expenditures HRK 1.31 bn.
For the future, HZ Infrastruktura intents to direct the positive cash flow towards infrastructure maintenance activities and also to lower operating expenses.
“We are very satisfied with the achievements of the last year, they represent the result of the work of all HZ Infrastruktura employees and therefore congratulate everybody. Better inventory management, cost reductions in acquisition and elimination of unnecessary costs are some of the key reasons for the profit realised”, said Zeljko Kopčić, HZ Infrastruktura member of the Board.
In May 2015, HZ Infrastruktura signed a EUR 79 million loan agreement with the International Bank for Reconstruction and Development (World Bank), of which HRK 230 million were used to refinance existing debts to commercial banks. Considering that previous loans to commercial banks were contracted at interest rates of about 5 percent and the current interest rate on the World Bank loan is 0.44 per cent, significant savings on financing costs are expected in the forthcoming period.
HZ Infrastruktura carried out investment worth HRK 457 million in developing rail infrastructure in 2015. After several years of decline, a slight increase in the total volume of traffic in passenger and freight transport was recorded.
In 2016, the company will continue to focus on the implementation of savings in the operational business and the maximum intensification of work on projects co-financed by EU. Also, the share of maintenance in total costs will be increased.