The PKP CARGO Group worked out PLN 65,4 million of net profit with revenue on the level of PLN 4,8 billion and remained the market leader in Poland regarding the transported volume and transport performance. The result was influenced by numerous external conditions, such as strong economic slowdown and settling the Employee Guarantee Pact. Excluding one-time effects the PKP CARGO Group remained one of the most profitable carriers in Europe (EBITDA on the level of 14%). The Company is well prepared to use the opportunities which stem from large-scale investments in infrastructure modernization in Poland and international expansion, mainly in Central and Eastern Europe.
The PKP CARGO Group remained in 2013 an unquestionable market leader in Poland far as transport performance (59% market share) and transported volume (49% market share) are concerned.
As a result of economic slowdown the volume of the transported mass decreased by 2% a year, to 114,4 million tons of load and the transport performance came up to 30,1 billion tonokilometers, which means an increase by 2% a year. The higher index of transport performance is a result of longer average way of goods transport. It was due to higher number of transports of coal to sea ports and ores from sea ports to steel works in Central Europe.
As far as basic segments of the PKP CARGO Group activity are concerned, in 2013 coal transport increased (by 18% yty) and ores and metals (by 14% yty). The transport of aggregates and construction materials decreased due to delays in infrastructural investments and unfavourable weather conditions in 2013 (by 15% yty) and intermodal (16% yty) as a resut of slowdown in the motorcar industry (decrease in global demand for cars and car parts).
– In the conditions of economic slowdown and one-time costs of executing Employee Guarantee Pact we confirmed the potential of the PKP CARGO Group to generate profits, which is outstanding in the industry in Poland and in Europe. Consequently, we maintain the leading position on the Polish market and are able to efficiently expand in Europe and develop steadily. We realize the strategy presented during our stock market debut, which assumes increasing efficiency and full use of the railway investment boom, which should bring back competitiveness of this industry in Poland. All the activies of the Group in this area are done with the benefit for the economy, railway industry, the PKP CARGO Group, its employees and shareholders – says Adam Purwin, C.E.O. of PKP CARGO S.A.
LOWER COSTS, FREE CASH
Revenue on the consolidated level came up to PLN 4,8 billion against PLN 5,17 billion in 2012. Operational costs decreased by 3% besides the effect of one-time settlement of privatization bonus which impacts the result on the Group level by PLN 209 million.
The Employee Guarantee Pact signed in September with 13 trade union centers assumed one-time payment of privatization bonus for employees of the PKP CARGO Group in the form of employee. The employees could sign up for it till the end of February. 99,8% of employees of PKP CARGO S.A. and 99,9% of the entitled employees of subsidiaries took part in it.
The second important one-time event which influences the level of revenue in 2013 was the return of penalty fee imposed by UOKIK on PKP CARGO S.A. in 2009 (the influence on revenue was PLN 46 million net).
The result on the level of EBITDA profit, corrected by important one-time events came up to PLN 662 million (14% less than in 2012) and the net profit was PLN 189 million net (against 267 million net in 2012). The uncorrected values, coming directly from financial reports were PLN 499 million for EBITDA profit and PLN 65 million for net profit.
– The strengths of the PKP CARGO Group are the ability to lower operational costs, which in the situation of decreased revenues resulting from economic slowdown allows us to retain high profitability of our business. We gradually lower exploitation costs due to renegotiating the contract with power suppplier, better parameters of fuel usage or lowering infrastructure access fees. We keep a very good cashflow situation in the company which allows us to consider expansion in Poland and abroad by takeovers and mergers – says Grzegorz Kiczmachowski, managing director, C.F.O. of the PKP CARGO Group.