Globaltrans Full Year 2008 Financial Results Announcement

Globaltrans Investment PLC (“Globaltrans” or together with its consolidated subsidiaries the “Group”; LSE ticker: GLTR), today announces its financial and operational results for the year ended 31 December 2008.

Financial Highlights

  • Net Revenue from Operation of Rolling Stock up 23% to USD 433.9* million;
  • Revenue from operating lease of rolling stock up 29% to USD 66.7 million;
  • Operating profit up 43% to USD 207.8 million;
  • Adjusted EBITDA up 41% to USD 250.3* million;
  • Profit for the year up 5% to USD 97.4 million;
  • ROCE increased to 24%* from 19%* in 2007;
  • Significant deleveraging, with Net Debt to Adjusted EBITDA ratio improving to 1.3x* from 2.9x* in 2007;
  • Cash and cash equivalents as of the end of 2008 at USD 111.6 million, with short term debt falling due in 2009 of USD 124.3 million (including accrued interest of USD 6.5* million as of the end of 2008).

Operational Highlights

  • Strengthened business portfolio with share of railcars leased out (under operating leases) increasing to c. 22*% of the Rolling Stock Fleet; and share of rail tank cars increasing to c. 38*% of Rolling Stock Fleet;
  • Freight Rail Turnover remained stable, recording 1% growth to 61.7* billion tonnes-km compared to 2007;
  • Average Price per Trip up 32% to USD 816.0* compared to 2007;
  • Empty Run Ratio for gondola cars averaged 32%* compared to 21%* in 2007 following an outstanding 19%* at H1 2008;
  • Empty Run Costs up 5% to USD 86.7* million compared to 2007.


Commenting on the full year results, Sergey Maltsev, CEO of Globaltrans, said:
“I am proud to present this set of full year results, which we have been able to achieve despite the challenging market environment towards the end of 2008. Thanks to the flexibility of our business model, we were able to position ourselves well in response to the changing conditions, diversifying our operations and minimising the impact of the economic downturn on our performance. Our strong operating and financial performance over the year has allowed us to start 2009 in good shape; we are comfortable with our debt levels, which continue to decline, and I am confident that our continuing efforts to control costs and further improve efficiency will provide a solid foundation for further development in the year to come.”

Additional Materials

Sergey Maltsev, CEO and Alexander Shenets, CFO presented and hosted Investor webcast and conference call. To listen to the webcast, please click here. For other information, please see the list below.

Globaltrans Investor Relations
Priit Pedaja
Mikhail Perestyuk
+357 25 503 153 

Citigate Dewe Rogerson                                   
David Westover
Agnes Riousse
+44 20 7638 9571

Globaltrans is Russia’s largest privately owned freight rail operator by size of owned rolling stock fleet. As of the end of 2008 the Group’s rolling stock fleet owned and leased under finance and operating leases amounted to 26,967 railcars.

The Group provides freight rail transport, rolling stock leasing and logistics services, as well as certain ancillary services to large industrial customers and medium-size clients in Russia and carries customers’ cargos to destinations in Russia and Ukraine. In 2008, the Group expanded its geographical footprint with the establishment of an operating subsidiary in Ukraine and through acquiring two companies which render railcar leasing services to the markets of Russia and Kazakhstan.

The Group’s business model is based on its extensive and flexible modern rolling stock fleet, strong customer focus and sophisticated logistics know-how, which enable it to provide complex rail transportation and logistics solutions tailored to the needs of its customers.

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as expect, believe, anticipate, estimate, intend, will, could, may or might the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.