TAS-Dniprovagonmash LLC (DVM, Kamianske, Dnipro region), a major Ukrainian railcar manufacturer controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-June 2024 with a net profit of UAH 18.85 million, three times less than in the same period in 2023.
According to the company’s interim reports, published on Tuesday in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), its net income in the first half of the year increased by 37.8% to UAH 796.47 million.
The company reduced its gross profit by 3% to UAH 78.4 million, earning UAH 26.44 million in operating profit (2.2 times less).
As reported, in the first quarter of this year, TAS Dneprovagonmash reduced its net profit by 5.2 times compared to the same period in 2023, to UAH 7.17 million, with a 4.4% decrease in revenue to UAH 379.24 million.
Thus, in the second quarter of 2014, the company reduced its net profit by 44% year-on-year to UAH 11.68 million, while net revenue increased by 30.4% to UAH 417.22 million.
In April-June, the plant’s production capacity was utilized by 22%, and the equipment utilization rate was 26%,
The report notes that in the second quarter of 2024, the plant produced 140 freight cars (177 units in the first quarter), which accounted for 23% of the total Ukrainian production (28% in the first quarter). Its main competitors include Kryukiv Carriage Works, Karpaty Railcar Plant, and Ukrzaliznytsia plants.
The average selling price of a freight car is UAH 2.215 million. Key customers: “TAS Poltavagon, MTB Bank, TAS Logistic, and Tecom Leasing.
According to the company, exports for this period amounted to UAH 3.4 million (0.8% of sales in the second quarter).
As noted in the report, TAS Dneprovagonmash’s annual budget for 2024 provides for the supply of 26 units of products to the European market.
“In the second quarter of 2024, the freight base of railway logistics in Ukraine showed an upward trend – +2%, or +0.9 million tons, compared to the first quarter of 2024 and +27.3%, or +9.8 million tons, compared to the same period in 2023. This, in turn, contributed to an increase in demand for newly built freight cars,” the statement said.
At the same time, the company continues to note the presence of factors restraining the dynamics of car building, in particular massive shelling, the abolition of restrictions on the maximum service life of cars in 2021, and an increase in the rolling stock turnover due to the lack of traction rolling stock at Ukrzaliznytsia.
“However, in general, in the second quarter, the production of freight rolling stock by Ukrainian enterprises tended to grow. The work of the Ukrainian Corridor (transport – IF-U), namely the Black Sea routes, remains a key factor in the growth of cargo turnover and the formation of demand for freight cars,” the document states.
As reported, at the beginning of 2023, TAS Group became a strategic investor in the TransAnt GmbH railcar building joint venture of Austrian Voestalpine and ÖBB Rail Cargo with a 40% stake, and in the spring of 2024 it became the majority owner of TransAnt, increasing its stake to 61%.
According to the company, in the second quarter of 2024, it shipped platform cars as part of the project.
This year, the company intends to invest UAH 100.2 million in the development of the European direction (for the purchase of equipment).
As reported, the company produced 378 freight cars in 2023 (including for the EU market), which is 34.8% less than in 2022, while sales decreased by 40.6% to 370 units. Revenue decreased by 2.8% to UAH 1 billion 77 million, while net profit increased slightly to UAH 49.2 million.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and pharmacy, as well as industry, real estate, and venture capital projects.
