Interim 2021 Results and Approval of Interim and Special Interim Dividends

Globaltrans Investment PLC (the “Company” and together with its consolidated subsidiaries “Globaltrans” or the “Group”), (LSE/MOEX ticker: GLTR) today announces its financial and operational results for the six months ended 30 June 2021 along with approval of interim and special interim dividends.

In this announcement, the Group has used certain measures not recognised by EU IFRS or IFRS (referred to as “non-IFRS measures”) as supplemental measures of the Group’s operating performance. The management believes that these non-IFRS measures provide valuable information to readers, because they enable them to focus more directly on the underlying day-to-day performance of the Group’s business. The Company also reports certain operational information to illustrate the changes in the Group’s operational and financial performance during the reporting periods. Certain financial information which is derived from the management accounts is marked in this announcement with an asterisk {*}. Information (non-IFRS financial and operating measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions are provided at the end of this announcement. Reconciliations of the non-IFRS measures to the closest EU IFRS measures are included in the body of this announcement. The presentational currency of the Group’s financial results is the Russian rouble (“RUB”).


Strong bulk market momentum, solid Free Cash Flow generation and robust financial profile support dividend capacity

  • Financial results remained under pressure as anticipated with weak gondola pricing for much of H1 2021.
  • Overall Russian freight rail turnover bounced back up 5.2% year on year in H1 2021, nearing 2019 levels.
  • Substantial improvement in gondola market pricing was seen in late Q2 and in July-August due to ongoing bulk market recovery.
  • Three key service contracts extended including 5-year contract with Rosneft.
  • Free Cash Flow remained solid at RUB 4.2 billion supported by low expansion CAPEX.
  • Net Debt was relatively stable with first-half Net Debt to LTM Adjusted EBITDA[1] at 1.2x compared to 1.0x at end 2020.
  • Sale of Group’s 60% stake in SyntezRail agreed for RUB 1.1 billion in cash representing a return on investments for the Group of around 3.8x.
  • Due to strengthening dividend capacity, above-target interim dividends approved of RUB 4.0 billion (RUB 22.50 per share/GDR) and final dividend target set at RUB 5.0 billion (about RUB 27.97 per share/GDR), a 25% increase on interim dividend level, subject to no significant adverse changes.

Commenting on Globaltrans’ first-half 2021 results, CEO Valery Shpakov said:

“As expected, weak gondola pricing conditions remained for much of the first half putting our financial results under pressure. However, continued momentum in the bulk cargo market supported an improvement in gondola rates toward the end of the second quarter that has carried through into the summer months. Alongside our solid Free Cash Flow and robust financial profile, this shift has enabled the Board to approve interim dividends above our initial outlook and to target final dividends exceeding the level approved for the interims. I am satisfied with what we have achieved so far and believe Globaltrans is well positioned to capitalise on the positive trends we are seeing as we progress through the year.”


Solid Free Cash Flow, ongoing cost control and robust financial profile

  • Revenue down 9% year on year to RUB 32.1 billion. Adjusted Revenue fell 14% year on year to RUB 24.8 billion as solid pricing in the oil and oil products segment only partially offset weak gondola pricing.
  • Total Operating Cash Costs were again held steady rising just 1% year on year in the first half of 2021.
  • Adjusted EBITDA was down 29% year on year to RUB 10.4 billion. Profit for the period decreased 41% year on year to RUB 4.2 billion.
  • Solid Free Cash Flow of RUB 4.2 billion, down 40% year on year, was impacted by a decline in cash generated from operations and the greater weighting of maintenance CAPEX toward the first half, supported by reduced expansion CAPEX and lower tax paid.
  • Total CAPEX rose 19% year on year to RUB 4.0 billion with maintenance CAPEX up 44% year on year reflecting a high level of repairs during H1 2021 while expansion CAPEX was cut 45% year on year. The full-year 2021 Total CAPEX target is unchanged at about RUB 7 billion, which is broadly in line with the full-year 2020 Total CAPEX level.
  • Net Debt was relatively stable, up 3% compared to the end of 2020 with Net Debt to LTM Adjusted EBITDA at a comfortable 1.2x vs. 1.0x at end 2020.


Above-target interim dividends and strong final dividend target

  • Improving dividend capacity compared to the outlook at the beginning of the year due to a substantial recovery in gondola market pricing, solid Free Cash Flow generation and robust financial profile.
  • Interim 2021 regular and special dividends above the previously announced target were approved - RUB 4.0 billion (RUB 22.50 per share/GDR) in total, equating to 123% of Attributable Free Cash Flow for the first six months of 2021. The GDRs will be marked as ex-dividend on 3 September 2021 (as set by London Stock Exchange)[2].
  • A strong final 2021 dividend target has been established, representing a 25% increase on the approved interim dividends, of RUB 5.0 billion (about RUB 27.97 per share/GDR) subject to no significant adverse changes. Payment is expected in April-May 2022.


Gondola rates starting to recover on back of strong bulk market momentum; tank car rates solid

  • Globaltrans’ Freight Rail Turnover retreated 4% year on year to H1 2019 levels primarily due to weather-related delays at main ports and congestion at key client facilities impacting the gondola segment with the average number of loaded trips per gondola down 6% year on year. Continued sluggish demand in the oil products and oil segment.
  • Gondola rates were depressed through much of the first half of 2021, leading to a 12% year-on-year decline in Globaltrans’ Average Price per Trip despite solid pricing conditions in the oil products and oil segment. Ongoing bulk market recovery is driving up gondola rates which were improving in May-August 2021, although Globaltrans' pricing is less volatile due to its high share of large service contracts.
  • Leased-in Fleet, which provides flexibility to meet demand fluctuations, was expanded in the gondola segment by 1.2 thousand units to about 1.4 thousand units[3] (representing about 3% of Globaltrans’ total gondola fleet) reflecting growing demand for Globaltrans’ services.
  • Pricing conditions in the oil products and oil segment remained solid although recovery in demand was sluggish; the number of leased-in tank cars more than halved to about 1.3 thousand units to reflect this.

Operational efficiency maintained

  • The Empty Run Ratio for gondola cars remained elevated but was stable year on year at 46% reflecting continued adjustments to cargo and client mix due to the impact of the COVID-19 pandemic.
  • Total Empty Run Ratio (for all types of rolling stock) was unchanged year on year at 52%.
  • Share of Empty Run Kilometers paid by Globaltrans was at 100% (H1 2020: 99%) due to changed cargo mix and gondola segment headwinds.

Client relationships remain strong; three key service contracts successfully extended, including 5-year Rosneft extension

  • Strong portfolio of service contracts with superior clients contributed 63% of Net Revenue from Operation of Rolling Stock in the first six months of 2021.
  • These long-term service contracts provide for better volume visibility and lower pricing volatility and enable logistical efficiencies.
  • Three key service contracts successfully extended over the past 12 months:
    • Rosneft for five years to the end of March 2026.
    • MMK for a further two years until the end of September 2024.
    • Metalloinvest for one year until the end of 2021.
  • Relationships with other key clients strengthened: one-year contract signed with EVRAZ at end 2020 following an increase in business volumes while relationships expanded with NefteKhimService, Kuzbasskaya Toplivnaya Company and National Non-Metallic Company.


Profitable sale agreed for stake in successful niche, non-core business that strengthens balance sheet and supports dividend capacity

  • Successful operator of specialised containers established in 2014[4], with few synergies and limited potential for further value growth.
  • Sale agreed of Globaltrans’ 60% stake in SyntezRail for RUB 1.1 billion in cash to three of Globaltrans’ founders[5].
  • Transaction represents a return on investments for the Group of around 3.8x, normalised EV/EBITDA multiple of around 6.8x[6].
  • Impact from deleveraging along with transaction proceeds account for around 12% of the Group’s Net Debt[7].
  • Transaction was unanimously approved by the independent and non-interested Board members. Fairness opinion from the financial point of view was conducted by Ernst & Young. The transaction is expected to close by year end.


Overall freight rail market recovery is continuing in Russia with freight turnover moving back in line with H1 2019

  • Overall Russian freight rail turnover rose 5.2% year on year in the first six months of 2021, approaching the level of H1 2019 (0.3% lower)[8].
  • Recovery continued in July with overall freight rail turnover up 3.6% year on year and up 1.9% vs. July 2019.

Non-oil (bulk) cargo volumes are driving the recovery with gondola rates improving

  • Non-oil (bulk) cargo volumes rose 5.7% year on year, exceeding pre-COVID levels (up 1.4% on H1 2019).
  • Market rates in the gondola segment remained weak through much of the first half of 2021 but with substantial improvement in late Q2 as well as in July-August.
  • Market-wide net additions of gondolas were low, decreasing about 34% year on year to about 6.5 thousand units in H1 2021 (+1% compared to the end of 2020)[9].

Oil products and oil segment recovery still lags behind due to impact of COVID-19 and OPEC+ limits.

  • Overall Russian freight rail volumes in this segment declined 0.4% year on year in the first six months of 2021 and were 7.4% below H1 2019 levels reflecting the ongoing impact from COVID-19 and continued OPEC+ crude oil production limits.
  • Market-wide net additions of oil products and oil tank cars at about 3.1 thousand units (+2% compared to the end of 2020)[10].
  • Solid railcar operator’s rates in the tank car segment were sustained.


Improving gondola pricing, certain cost pressures intensifying

  • Demand continued to recover in July 2021 with overall Russian freight rail turnover up 3.6% year on year (+1.9% vs. July 2019).
  • Improving overall market pricing in the gondola segment; Globaltrans' pricing is less volatile due to high share of large service contracts.
  • Further expansion of Globaltrans’ leased-in gondola fleet subject to demand for the Group’s services.
  • Sustained solid operator’s rates in the tank car segment with overall market volume recovery still lagging behind.
  • Cost pressures intensifying, specifically for spare parts and repairs reflecting higher steel prices, however Globaltrans’ annual Total CAPEX target remains unchanged.

Solid industry fundamentals underpin long-term outlook

  • Rail remains one of the greenest forms of freight transport and is the key strategic transport connecting Russia and global markets contributing about 88% of overall Russian freight turnover in H1 2021 excluding pipelines.
  • Strong export demand for key bulk commodities along with recovering internal demand is driving rail volumes.
  • Addressing the congested Far East rail infrastructure is a key focus of the government and Russian Railways (“RZD”) with about 17% more throughput capacity delivered in 2018-2020 and an additional expansion of about 26% targeted by the end of 2024.


The disclosure materials along with the selection of historical operational and financial information are available on Globaltrans’ corporate website (


The release of the Group’s financial and operational results will be accompanied by an analyst and investor conference call hosted by Valery Shpakov, CEO and Alexander Shenets, CFO.

Date: Tuesday, 31 August 2021
Time: 13.00 London / 15.00 Moscow / 08.00 New York (EDT)

To participate in the conference call please dial one of the following numbers:

UK toll free:      0808 109 0701
International:    +44 33 0551 0211
Russia:             +7 495 249 9842

Please use the following pin numbers to select your preferred language for the call:

English: 0793568#
Russian: 0310184#

There will be a simultaneous translation for the first part of the call (slide presentation), with both English and Russian available using the pin numbers provided above. 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 Russian media
Anna Vostrukhova
+357 25 328 863

For international media
Lightship Consulting
Laura Gilbert
+44 7799 413351

Globaltrans Investment PLC (“Company” and together with its consolidated subsidiaries “Globaltrans” or the “Group”) is a leading freight rail transportation group with subsidiary operations across Russia, the CIS and the Baltic countries.

The Company was founded in 2004 by a group of entrepreneurs who combined their freight rail businesses under the single brand Globaltrans. These founders remain key shareholders of the Group.

Throughout its years of operation, the Company has pursued a prudent approach to investment, expanding its fleet both by means of organic growth and through the acquisition of other rail operators. Globaltrans’ total fleet is currently almost three times larger than it was at the time of the Company’s IPO in 2008.

The Group’s dividend policy establishes a transparent and straightforward approach to the payment of dividends and is supported by a long history of delivering attractive shareholder remuneration.

Globaltrans global depositary receipts (GDRs) have been traded on the Main Market of the London Stock Exchange (ticker symbol: GLTR) since May 2008 and on the Level One quotation list of the Moscow Exchange since October 2020 (ticker symbol: GLTR).

Due to its vast logistics capabilities, the Group is able to efficiently manage industrial cargo flows, transporting metallurgical cargoes, oil products and oil, coal, construction materials and petrochemicals. The Group serves a broad range of clients in Russia and the CIS including some of Russia’s leading companies.

Globaltrans has a total fleet (including owned and leased in under finance and operating leases of about 72 thousand units as of the end of the first half of 2021, of which about 95% are owned by the Company. The core of the fleet is universal gondola cars used for a broad range of bulk cargoes (65% of total fleet) and tank cars for transporting oil products and oil (26% of total fleet). In addition, the Group operates specialised containers and the flat cars to transport them. Globaltrans also manages its own fleet of mainline locomotives with 71 units that mostly provide traction for its block trains.

The Group’s logistics management principally aims to provide reliable services, responding promptly and flexibly to customer needs, while achieving a good level of profitability for the business. The main component of the Group’s centralised logistics system is its single dispatching centre that monitors every aspect of Globaltrans’ fleet operation. By effectively managing shipments and routes, Globaltrans ensures high utilisation of its fleet and achieves maximum productivity and quality of service.

To learn more about Globaltrans, please visit

Information contained in this announcement concerning Globaltrans Investment PLC, a company organised and existing under the laws of Cyprus (the “Company” and together with its consolidated subsidiaries “Globaltrans” or the “Group”) is for general information purposes only. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee the accuracy or completeness of such information.

This announcement may contain 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”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, Globaltrans’ results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that Globaltrans’ actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which Globaltrans operates may differ materially from those described in or suggested by the forward-looking statements contained in this announcement. In addition, even if Globaltrans’ results of operations, financial condition, liquidity, prospects, growth strategies and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in future periods. The Company does not intend to update this announcement or reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause actual results to differ materially from those contained in forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market changes in the Russian freight rail market, as well as many of the risks specifically related to Globaltrans and its operations. No reliance may be placed for any purposes whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness.

[1] Adjusted EBITDA for the last twelve months.

[2] The GDRs (Global Depositary Receipts) will be marked as ex-dividend on 3 September 2021 (as set by London Stock Exchange). The shareholder dividend record date is set as 7 September 2021. Dividends will be paid in US dollars in the total amount of about 30.46692 US cents per one ordinary share/GDR not later than 10 September 2021 with conversion from Russian roubles executed at the average of the official exchange rates of the Central Bank of Russia for the three business days in Russia from 27 to 31 August 2021 inclusive (1 USD: 73.8506 RUB). Holders of GDRs will receive the dividend approximately three business days after the payment date.

[3] As of 30 June 2021 compared to the end of 2020.

[4] SyntezRail was established in 2014 from scratch, focused on the transportation of petrochemicals and high-grade steel. Owned fleet of 3,214 specialised containers as of 30 June 2021. Adjusted EBITDA for the twelve months to 30 June 2021 of RUB 435 million*, Net Debt of RUB 2,331 million* at 30 June 2021 (excluding the impact of IFRS 16).

[5] Side Pears Holdings Limited (beneficially owned by Nikita Mishin), Waterose Investments Limited (beneficially owned by Konstantin Nikolaev) and Mattinsen Hill Ltd (beneficially owned by Sergey Maltsev).

[6] Based on estimated financial results of SyntezRail for 2021, normalised assuming that all 500 new specialised containers delivered year to date were operational from 1 January 2021 and excluding the impact of IFRS 16.

[7] As of 30 June 2021.

[8] Overall Russian transportation volumes increased 4.6% year on year (-0.2% vs. H1 2019).

[9] Estimated by the Company. Net change in Russia’s overall fleet of gondola cars as of 30 June 2021 compared to the end of 2020.

[10] Estimated by the Company. Net change in Russia’s overall fleet of oil products and oil tank cars as of 30 June 2021 compared to the end of 2020.