The big carriage works in Ukraine – Dneprovagonmash JSC (DVM, Kamenskoe, Dnepropetrovsk region), controlled by the financial-industrial group “TAS” of businessman Sergey Tigipko, sold 623 cars in 2022, which is by 35%, or 162 more than in 2021.
According to the unconsolidated 2022 non-consolidated financial statements of the company, published by the National Securities and Stock Market Commission (NSCM), the production of cars increased by 21%, or 100 more cars – up to 577 cars.
DVM net profit for the last year increased by 77.3% up to UAH 1 bln 108.7 mln and net profit amounted to UAH 48.64 mln against a loss of UAH 111.3 mln.
According to the information in the report, on April 20 this year the shareholders’ meeting of DVM decided not to pay dividends for 2022.
Last year the plant received UAH 130.64 mln of gross profit against a loss of UAH 38.17 mln in 2021. The operating profit amounted to 51.12 mln hryvnia against a loss of 115.8 mln hryvnia.
According to the report, the entire net profit in 2022 was obtained from the sale of freight cars (the average selling price of a car is UAH 1.78 mln). UAH 31.9 mln (2.9% of sales) were exported.
According to the company, Metinvest SMZ (Kyiv), Interpipe Ukraine (Dnipro), Dneprospetsstal (Zaporizhia), Azovmash (Kyiv), Kramatorsk Steel Rolling Plant, and UPEC Trading (Kharkiv) were the main suppliers of raw materials and supplies for DVM in 2022.
It should be noted that over the year the prices of axles rose by 87.9%, sheets by 42%, bent section by 27.5%, bearings by half, and car clutches by 30.8%.
The plant estimates its share in the total volume of railcars production in Ukraine at 22%. Among its competitors, it singles out Kryukiv Railcar Plant, DMZ Karpaty, and Popasna Car Repair Plant.
At the same time DVM states that Russian aggression has radically changed the cargo base of rail logistics in Ukraine, as a result of which freight traffic has fallen by more than half, and the largest share of reductions has occurred in cargoes for the MMC, fuel-energy complex, and construction.
In addition, the drop in demand for railcars, according to DVM, is dictated, among other things, by the lack of traction rolling stock at Ukrzaliznytsia due to its depreciation, the presence of used Russian railcars with an expired service life and transit railcars, which remained in Ukraine after February 24, 2022, and the increased period of rotation of rolling stock.
The report notes that DVM is not planning a significant expansion of production and reconstruction this year, but intends to further diversify into manufacturing of steel structures for domestic and foreign consumers.
“Dneprovagonmash is one of Ukraine’s leading enterprises in design and production of freight cars. Its annual production capacity is 9 thnd cars.
According to the report, by early 2023, the company employed 876 people, while the wage fund decreased by 33.54 mln hryvnia to 118.42 mln hryvnia due to a reduction in the number of employees and the work in idle mode and part-time work.
As reported, according to consolidated statements of DVM (including indicators of subsidiary Steelzavod) net income in 2022 increased 1.9 times compared with 2021 to UAH 1 billion 107.5 million, net profit reached UAH 32.7 million compared with a loss of UAH 1323.5 million for the previous year.
In 2021 DVM decreased its freight car output by 39.2% to 477 cars, and its sales decreased by 44% to 461 cars. In total, 1.9 th. cars were produced in Ukraine.
TAS Group was founded in 1998 by businessman Sergei Tigipko. Its business interests include financial sector (banking and insurance) and pharmacy, industry, real estate, venture projects.
Tigipko told Forbes Ukraine in late 2022 that DVM produces 70 freight cars per month and is preparing to localize production in Austria.
