Interim 2015 Results

Globaltrans Investment PLC (the “Company” and together with its consolidated subsidiaries “Globaltrans” or the “Group”), (LSE ticker: GLTR) today announces its financial and operational results for the six months ended 30 June 2015 (“H1 2015”).

The presentation currency of the Group’s consolidated financial statements was changed from US Dollars (“USD”) to Russian Roubles (“RUB”) effective from the results for the year ending 31 December 2014. The Company believes that the presentation of financial results in RUB, which is the functional currency of the Company as well as its Cypriot and Russian subsidiaries, provides greater transparency in the light of recent volatility of the RUB exchange rate and provides shareholders with a more accurate reflection of the Company’s underlying performance. In accordance with relevant accounting standards, comparative financial information for the six months ended 30 June 2014 (“H1 2014”) is provided in RUB.

Certain financial information which is derived from the management accounts is marked in this announcement with an asterisk {*}. Information (non-GAAP and operational measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions thereto are provided at the end of this announcement.

Given the deterioration of the macroeconomic and industry conditions over the course of 2014, the Group’s financial results for the first half of 2015 show a decline compared to the prior comparative period. However, over the 12 months to the end of June 2015, the Group’s financial performance has been generally steady. In order to provide greater clarity, sequential comparisons of first half 2015 to second half 2014 are provided in addition to the usual year-on-year comparisons.

Financial highlights

  • The Group’s Adjusted Revenue decreased 4% year on year to RUB 20,838 million* in the first six months of 2015 due to the 2% year-on-year decline in Net Revenue from Operation of Rolling Stock and a decline in revenues from auxiliary operations. Compared to the second half of 2014 the Group’s Adjusted Revenue rose by 3%, primarily driven by the increase in Freight Rail Turnover.
  • Strong cost control enabled the Group to mitigate the impact of inflation in the period with Total Operating Cash Costs increasing 5% year on year to RUB 12,786 million* (up 7% compared to H2 2014). Excluding Empty Run Costs[1], Total Operating Cash Costs increased only 2% year on year (up 1% compared to H2 2014).
  • Adjusted EBITDA declined 14% year on year to RUB 8,192 million* (up 1% compared to H2 2014); Adjusted EBITDA Margin stood at 39%* compared to 44%* for the same period in the prior year (H2 2014: 40%*).
  • The Group continued to generate solid Free Cash Flow of RUB 5,495 million* in the first six months of 2015, a decline of 14% year on year (down 1% compared to H2 2014).
  • Profit for the period was RUB 2,656 million, a decline of 28% year on year, reflecting a decrease in Operating profit and an increase in Net finance costs. Compared to H2 2014[2] Profit for the period was down 1%.
  • The Group continued to deleverage reducing Net Debt 16% to RUB 19,973 million* compared to the end of 2014. The Net Debt to Adjusted EBITDA ratio for the previous twelve months as of 30 June 2015 improved to 1.2x*. The percentage of RUB denominated debt increased to almost 100%, while the share of debt with fixed interest rate remained at 90%* as of 30 June 2015.

Operational highlights

  • Continued growth in business volumes was achieved as the Group’s Freight Rail Turnover (including Engaged Fleet) rose 4% year on year to 83.6 billion tonnes-km[3] (up 6% compared to H2 2014). Market Share was maintained at 8.3%. All railcars were fully deployed.
  • Average Price per Trip remained unchanged year on year at RUB 27,992 (H1 2014: 27,973) primarily reflecting the solid performance of the rail tank car segment in contrast to the continued weak pricing environment in the gondola car segment.
  • Operational efficiency was maintained with Empty Run Ratio for gondola cars up slightly at 40%, compared to 38% in the first half of 2014, on the back of increased transportation of coal, which logistically generally requires higher Empty Runs. Total Empty Run Ratio increased to 53% compared to 51% for the same period in the prior year.
  • All service contracts continued to work well with 63% of Net Revenue from Operation of Rolling Stock in the first six months of 2015 contributed by long-term contracts with Globaltrans’ largest three clients (Rosneft, MMK and Metalloinvest).


Sergey Maltsev, CEO of Globaltrans Investment PLC, said:
“Globaltrans continued to operate in difficult economic and market conditions in the first half of 2015 marked by a weak pricing environment, increased inflation and high interest rates. Against this backdrop, the Group produced a respectable set of operational and financial results. We increased business volumes and maintained strong cost control, enabling us to mitigate inflation pressures and deliver a steady first half performance compared to the second half of last year. I am particularly pleased to report that the Group’s Adjusted EBITDA and Free Cash Flow remained stable over the last 12 months.

The decision taken earlier this year to prioritise debt repayment enabled us to pay down borrowings during the period of highly elevated interest rates. Currently we have an almost 100% RUB-denominated credit portfolio and have achieved a well-balanced maturity profile.

As we head into the latter part of the year, despite the slight decline of gondola supply in the market, we expect business conditions to remain challenging. However, Globaltrans has a strong business model and solid capital position, as well as a proven management team able to navigate such difficult times and capitalize on attractive market opportunities that may arise.”


Analyst and investor conference call

The release of the Group’s financial and operational results will be accompanied by an analyst and investor conference call hosted by Sergey Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial Officer.

Date: Tuesday, 1 September 2015
Time: 13.00 London / 8.00 New York (EDT) / 15.00 Moscow

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 (0) 20 3003 2666

As there will be simultaneous translation for the first part of the call (slide presentation), you should state whether you prefer to listen in English or Russian. During the Q&A session, all participants will hear both languages.

There will also be a webcast of the call available through the Globaltrans website ( Please note that this will be a listen-only facility.

Globaltrans Investor Relations
Mikhail Perestyuk / Daria Plotnikova
+357 25 328 860

For international media
Lightship Consulting
Laura Gilbert
+44 7799 413351

Globaltrans is a leading private freight rail transportation group with operations in Russia, the CIS and the Baltic countries. The Group’s main business is the provision of freight rail transportation services. Globaltrans provides services to more than 500 customers and its key customers include a number of large Russian industrial groups in the metals and mining and the oil products and oil sectors.

The Group has a Total Fleet of about 66 thousand units of rolling stock with an average age of 9.1 years. Universal gondola cars and rail tank cars constitute the backbone of the Group’s fleet. More than 90% of the Total Fleet is owned by the Group. In the first six months of 2015, the Group’s Freight Rail Turnover (including Engaged Fleet) was 83.6 billion tonnes-km. The Group’s Market Share was 8.3% of overall Russian freight rail transportation volumes.

Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed on the Main Market of the London Stock Exchange since May 2008. Globaltrans was the first freight rail transportation group with operations in Russia to have an international listing.

To learn more about 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.

[1] RZD regulated tariffs (including tariffs for the traction of empty railcars) were indexed by 10% from January 2015.

[2] Profit for the period for H2 2014 excludes the impact of the impairment of goodwill in the amount of RUB 5,828 million related to acquisitions of captive rail operators completed in 2012 and 2013 (the impairment primarily reflected the increased cost of capital in Russia, deterioration of economic conditions, as well as the continued weak pricing environment in the gondola car segment).

[3] The Group’s Freight Rail Turnover (excluding Engaged Fleet) was up 2% year on year (up 8% compared to H2 2014).