Globaltrans First Half 2008 Earnings Announcement

Globaltrans Investment PLC (“Globaltrans” or together with its consolidated subsidiaries the “Group”), Russia’s largest privately owned freight rail operator, today announces its operating and financial results[1] for the six months ended 30 June 2008.

Financial Highlights

  • Adjusted Revenue[2] increased 30% on 1H2007 figures to US$219 million;
  • Adjusted EBITDA[3] rose 56% to US$117 million; Adjusted EBITDA margin increased to 53% from 44% in 1H2007;
  • Operating profit up 69% to US$98.7 million;
  • Profit for the period nearly doubled, up 97% to US$65 million;
  • Improved financing capacity and moderate leverage with Net debt decreased to US$284 million; Net Debt / Adjusted EBITDA ratio of 1.2x calculated on an annualised basis[4].

Operating Highlights

  • Empty run ratio[6] for gondola cars improved to 19% in 1H2008 vs. 24% in 1H2007;
  • Freight rail turnover[5] increased 11% to 32.6 bn tonnes-km in 1H2008 vs. 29.2 bn tonnes-km in 1H2007;
  • High margin class[7] 3 cargoes accounted for 48% of Adjusted Revenue[2] in 1H2008 as against 39% in 1H2007;
  • Average price per trip[8] increased 32% to USD 812.2;
  • Rolling stock purchases proceeding in line with full year targets – 76% of annual plan met as of 1 September 2008.


Commenting on the first half results, Sergey Maltsev, CEO of Globaltrans, said:
“We are delighted to present our 2008 first half results, which demonstrate that we are delivering on our promises made during the IPO this spring, achieving increasing levels of profitability while continuing to invest for the future. Our strategy of expanding our presence in high margin business segments and our focus on improving operational efficiency and rigorous cost control mean that we are well-positioned to enhance our leadership among Russia’s private rail freight operators”.

[1] Operating and financial results includes information taken from management accounts and Interim financial information for the six months ended 30 June 2008 prepared in accordance with EU IFRS (which has been subject to review by PricewaterhouseCoopers, but not audited).
[2] Adjusted Revenue defined as “revenue from railway transportation – operators services” less “infrastructure and locomotive tariff” of “loaded trips”.
[3] Adjusted EBITDA represents EBITDA less gains from sale of joint ventures, gain from sale of subsidiaries, recognised deferred gains, net foreign exchange gains/(losses), other gains and share of profit of joint venture.
[4] Annualized Adjusted EBITDA derived by multiplying the Adjusted EBITDA of the first half of the respective year by two.
[5] Freight rail turnover calculated as tonnage of freight carried multiplied by distance carried, measured in tonne-kilometres.
[6] Empty run ratio is calculated as total empty trips in kilometres divided by total ‘‘loaded trips’’ in kilometres.
[7] Tariff 10-01 differentiates between three classes of cargo—Classes 1, 2 and 3. Class 3 (which includes ferrous metals and scrap metal) attracts the highest prices and Class 1 (which includes iron ore and coal) the lowest. Oil and oil products belong to cargo Class 2.
[8] Average price trip (USD) is calculated as Adjusted Revenue divided by total number of loaded trips during the relevant period.

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 and the second largest freight rail operator in Russia by number of rolling stock operated (after Russian Railways and its subsidiaries). The Group provides rail freight transport and logistics services, as well as certain ancillary services to large industrial customers and medium-size corporate customers in Russia and carries customers’ cargos to destinations in Russia and Ukraine.

The Group’s business model is based on its extensive and varied 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, and its utilisation of advanced destination management and route optimisation, which reduces “empty runs” and maximises the efficient commercial utilisation of the Group’s rolling stock.  For more information on Globaltrans, visit

Some of the information in this press release 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.