Home / Central Europe & Baltic States Rail Data & News / PKP CARGO Group posts PLN 156 million net profit in H1 2015

PKP CARGO Group posts PLN 156 million net profit in H1 2015

PKP CARGO Group has registered a net profit of PLN 156 million and PLN 2.1 billion in revenues, in the first half of 2015. The financial results for the first half-year are better than the market expectations.

In the first half-year, in the annual perspective the international traffic of the company increased by 136 percent, reaching almost 3 million tons. PKP CARGO trains run, among others, to the ports of the North Sea, the Netherlands, Germany, Austria and Hungary, as well as Czech Republic and to Slovakia.

The development of PKP CARGO on foreign markets is supported by the acquisition of AWT. Transaction finalized in May 2015 is substantially reflected also in company’s financial result, bringing PKP CARGO a profit on a bargain purchase in the amount of PLN 140 million confirmed by expert auditors. This means that PKP CARGO bought AWT for a price lower than the evaluation of assets of the company taken over would indicate. The synergies are mainly a better organization of transport process and effective use of the rolling stock, mutual repairs and inspections of cars and locomotives, as well as joint commercial actions in the region of South-Eastern and South Europe.

Aiming at the improvement in financial effectiveness, PKP CARGO Group still reduces operating costs. The voluntary leave programs conducted in the first half of 2015 will bring savings at the level of at least PLN 120 million annually. The company’s operations costs in the first half of 2015 decreased by 5 percent in the annual perspective – to PLN 1.83 billion.

PKP CARGO prepares a new strategy of operation for 2016-2020. The company will concentrate on international development and continuation of initiated consolidation processes of different business areas with particular focus on forwarding and terminal operations. The reorganisation of structures of sales in the Group will improve acquisition of and customer service, both in the domestic and international market. The sale of all transport – logistic services provided by PKP CARGO Group will be handled by the PS Trade Trans company, led by a new president, Twan Steenweg, a specialist in the field of logistics with 25 years of the international experience.

In spite of a difficult market, in the first half-year, PKP CARGO Group improved traffic results. In the annual perspective, the transported mass increased by 2 percent and the traffic work by 0.3 percent. International traffic strongly increased. In H1, PKP CARGO transported outside of Poland nearly 2.9 million tons of goods (increase by 136 percent year-to-year), performing 380 million tkm (increase by 88 percent year-to-year). At the same time to the previous year the traffic in the country remained at a similar level. The traffic counted by mass, amounted to 49.3 million tons (decrease by 1 percent year-to-year) and with traffic work 13.38 billion tkm (decrease by 1 percent year-to-year).

At the end of June, the share of PKP CARGO Group in the market of freight service in Poland amounted to 56.1 percent in traffic work, hence it remained at an unchanged level.


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