Globaltrans First Half 2009 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 six months ended 30 June 2009.

Operationa highlights

  • Globaltrans significantly outperformed the market demonstrating a 4% decrease in Freight Rail Turnover over 1H 2008 to 31.2* billion tonnes-km in 1H 2009 compared to a c. 21% decrease reported for the overall Russian freight rail market(1) over the same period.
  • Strong relationships with key clients, premium quality service and the large share of its universal (gondola) fleet allowed Globaltrans to maintain volumes by switching between cargoes on the back of a depressed market environment. Globaltrans’ market share in ferrous metals and coal within the overall volume(1) of Russian freight rail transportation increased from c. 11% to c. 16% and from c. 1% to c. 2% respectively in 1H 2009 compared to the same period of the previous year.
  • Pricing of operator services remained relatively flat in RUR terms with Average Price per Trip increasing by 1% in RUR terms(2) while decreasing by 27% in USD terms over 1H 2008 to USD 590.2*. The decrease in USD terms is attributable to significant depreciation of the Russian Ruble against the US Dollar for the period.
  • Operational efficiency was affected by the economic downturn resulting in the Total Empty Run Ratio increasing from 36%* to 63%* driven by an increase in the Empty Run Ratio for gondola (open top) cars to 54%*. Empty Run Costs increased by 16% in USD terms in 1H 2009 (and by 62% in RUR terms(2)) over 1H 2008 to USD 45.6* million in 1H 2009.

 Financial highlights

  • As the majority of the revenue and costs of Globaltrans are denominated in Russian Rubles, the financial performance of 1H 2009 reported in USD terms was significantly affected by a 39% depreciation of the average exchange rate of the Russian Ruble against the US Dollar for the period(3).
  • Net Revenue from Operation of Rolling Stock was down by 5% in RUR terms(2) and by 32% in USD terms to USD 149.2* million compared to 1H 2008.
  • Supported by recent acquisitions, the leasing business performed well with revenue from operating leasing up 2% in USD terms to USD 31.0 million in 1H 2009.
  • Adjusted Revenue decreased by 28% to USD 180.2* million in 1H 2009 compared to 1H 2008.
  • Total cost of sales, selling and marketing costs and administrative expenses decreased by 31% to USD 162.0 million in 1H 2009 compared to 1H 2008.
  • Adjusted EBITDA was down by 42% to USD 74.6* million in 1H 2009 compared to 1H 2008.
  • Net Debt to LTM Adjusted EBITDA was maintained at 1.7x* as of 30 June 2009, while the share of borrowings denominated in Russian Rubles increased from 13%* to 24%*.

Commenting on the interim results for the first six months of 2009, Sergey Maltsev, CEO of Globaltrans, said:
“In the fist six months of 2009 Globaltrans managed to deliver a strong operational and financial performance despite the weak economic environment. Our long-term relationships with clients and premium service, along with the large share of the universal fleet enabled us to maintain volumes by switching between cargoes and to outperform the overall Russian freight rail market.

Our financial performance, reported in USD terms, is largely affected by the depreciation of the Russian Ruble against the US Dollar. Operational efficiency was hit by the economic downturn; however our recent acquisitions supported our performance with stable revenues in US Dollars. Our financial stability is reflected in our solid cash flow enabling us to service our debts whilst maintaining comfortable leverage ratios.

I am optimistic about the opportunities for Globaltrans once the Russian economy starts to recover. At this point, we will be able to improve operational efficiency by decreasing Empty Runs, which translates into a decrease in associated costs along with converting empty trips into loaded ones so generating additional revenue”.


All financial information presented in this announcement is derived from the Consolidated condensed interim financial information of Globaltrans Investment PLC for the six months ended 30 June 2009 prepared in accordance with International Financial Reporting Standards as adopted by the European Union applicable to interim financial reporting (International Accounting Standard 34 "Interim Financial Reporting"). External auditors’ report on the review of Consolidated condensed interim financial information of Globaltrans Investment PLC for the six months ended 30 June 2009 is available on the Globaltrans corporate website ( and at the registered office of Globaltrans.

In addition, management has elected to present certain non-IFRS financial and operational information which is unaudited and derived from management accounts; such information itself being marked in this announcement with an asterisk {*}.

[1] Figures for overall Russian freight rail turnover (measured in tonnes kilometers) and transportation volume (measured in tons) derived from the Federal State Statistics Service of Russian Federation (

[2] Figures demonstrated in RUR terms are presented only for informational purposes and derived from management accounts.

[3] In the first six months of 2009 the average exchange rate of the Russian Ruble against the US Dollar depreciated by c.39% compared to the same period of the previous year: 23.92 for 1H 2008; 33.27 for 1H 2009; calculations based on the data derived from the Central Bank of Russian Federation (

In December 2008 Globaltrans acquired from its parent entity (Transportation Investments Holding Limited) controlling stakes in AS Spacecom and AS Intopex Trans. In accordance with the Group’s accounting policies, the acquisition of both companies has been accounted for as a common control transaction using the predecessor basis of accounting. Under this method financial statements of the acquirees are included in the consolidated financial statements on the assumption that the Group (in such a composition) was in existence for all periods presented, consequently necessary changes have been made to the Consolidated condensed interim financial information of Globaltrans Investment PLC for the six months ended 30 June 2008.

Additional materials

Analyst and investor conference call
On Tuesday, 1 September 2009, Sergey Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial Officer will hold an analyst and investor conference call at 10:00 UK time to discuss the financial and operational results for the period. There will also be a webcast of the call, available through the Globaltrans website ( Please note that this will be a listen-only facility.

Conference call details are as follows:

To participate in the conference call, please dial one of the following numbers and ask to be put through to the "Globaltrans" call:

UK toll free: 0808 109 0700
International: +44 20 3003 2666

Please note that this event will be consecutively translated, therefore all participants will hear both languages.

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

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

Globaltrans Investment PLC together with its subsidiaries (“Globaltrans” or the “Group”) is the largest private freight rail operator in Russia by the size of owned rolling stock fleet (based on publicly available information) and the first and only to have international listing.

Globaltrans Investment PLC is incorporated in Cyprus and operates through its subsidiaries in Russia, Ukraine and Estonia. The Group provides freight rail transportation, railcar leasing, and associated services to large industrial and medium sized corporate customers. It carries customers’ cargoes to more than 25,000 destinations in Russia and Ukraine. Globaltrans’ rolling stock fleet is one of the most modern in Russia with 26,967 railcars of average age of 4.1 years as of the end of 2008.

In 2008 the Group’s freight rail turnover totaled 61.7 billion tonnes-km with 33.3 million tonnes of freight transported. In 2008 Globaltrans recorded revenue of USD 660.9 million with adjusted EBITDA amounting to USD 250.3 million.

Globaltrans’ global depositary receipts are listed on the Main Market of the London Stock Exchange under the ticker GLTR since May 2008.

To learn more on Globaltrans, please visit

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.