The Railways will receive more dividends from its subsidiaries in 2017 – Bulletin

2017 subsidiaries and dependent companies of Russian Railways will earn 26 billion rubles of net profit, but the monopoly will pay dividends only 18% of this amount, the financial plan of Russian Railways (“Vedomosti” has read the document, it was confirmed by two people familiar with the materials). In 2015, payments amounted to 2.9 billion RUB Data for 2016 yet.

the monopoly in 2017 should be in accordance with the law to pay the government 50% of net profit (under RAS or IFRS, depending on the maximum value). According to the plan the net profit of Russian Railways over the next year will amount to RUB 10 billion At the end of 2018, Russian Railways hopes to receive from their subsidiaries 5.1 billion rubles of dividends in total profits of these companies at 25.7 billion.

Part of the subsidiaries have restrictions on the payment of dividends: the size of net assets is less than authorised capital, explains the representative of the Russian Railways. Some companies have in addition to the Railways of other shareholders. The decision on the unconditional payment of dividends to shareholders can be accepted only in societies with the share of RZD in the Charter capital more than 50%, i.e. subsidiaries, he says. In affiliates due to the lack of a controlling stake in the final decision on dividends is taken by the main shareholder, adds the representative of the Russian Railways.

2012-2014 for dividends went up to 90% of net profit of subsidiaries in 2015 and 2016 – up to 95% of net profit. Key subsidiaries on the payment of dividends was further directed undistributed profit of past years, like the source.

Dividends Gefco

French operator Gefco has directed on payment of dividends to shareholders 100% of its profit for 2015, which amounted to 29.2 million euros. 75% of Russian Railways. “The main objective of Gefco for a short period we put up a stronger presence on the domestic market and coordination with other logistics assets of the holding”, – said in July the President of Russian Railways Oleg Belozerov.

the Most profitable subsidiary of Russian Railways in 2017 will be the Federal passenger company (FPC), Federal freight company(FGK), Gefco and TransContainer.

FPC in 2017 will receive the 7.1 billion net profit, EBITDA will amount to more than RUB 27 billion a profit will get a FPC through zero VAT on passenger transport, which the government adopted in 2017, said General Director of “Infoline – Analytics” Mikhail Burmistrov. The General Director of the research Institute of railway transport Pavel Ivankin doubt that FPC will receive a profit: “the Activities of FPC is unprofitable and is supported by state subsidies. To achieve such results should significantly increase the fare, not only in the deregulated segment (SV, coupe), but also in an adjustable segment (reserved seat, General)”.

Net profit of Federal freight will reach a record 3.6 billion rubles (2015 ended with a loss of 8.5 billion rubles), EBITDA of RUB 10.7 billion “FGC at the end of 2016 will reach break-even, and in 2017 will increase profits by optimizing costs and increasing efficiency,” says a person close to the PGA. The financial results may be affected by the growing shortage of rolling stock, the situation which in 2017 will become aggravated, adds the source, “Vedomosti”. The income from freight transportation will amount to 81 billion rubles.

Financial plan of the PGA in 2017 formed on the basis of a realistic forecast of profitability of the operation of rolling stock: in the Park of gondola cars in average 950 RUB. without VAT per day, covered wagons – 700 RUB / day, platforms – 900 RUB / day, tank – 750 RUB / day, Burmistrov considers. The PGA will continue to enhance financial flexibility through the use of leaseback schemes and the possible sale of non-core assets, stimulates investment activities in the sector of innovative gondola cars, experts say.

Logistics company Gefco will finish 2017 with a net profit of 7.3 billion rubles., EBITDA – RUB 15.7 billion Net profit “the TransContainer” will exceed 3 billion roubles and EBITDA of the company will amount to 7.9 billion RUB From Gefco has unmet competence in Russia, which could enable them to achieve their results, says Ivankin.