PJSC Ukrzaliznytsia received UAH 271 million of net profit in January-March 2018, which is 20 times more than in the first quarter of 2017, acting chairman of the company Yevhen Kravtsov has said, when presenting the report of the company’s work for the first quarter of 2018 at a government meeting in Kyiv.
“For the first quarter of 2018, all the main financial and economic indicators of Ukrzaliznytsia were fulfilled and overfulfilled in accordance with the financial plan. In terms of net profit, in the first quarter we received UAH 271 million of net profit, which is 20 times more than in the first quarter of 2017 and 2.5 times more than for the entire 2017. Revenues grew by almost 20%, by UAH 2.5 billion. Capital investments were 20% overfulfilled. Capital investments in the first quarter were three times more than in the first quarter of 2017,” he said.
According to Kravtsov, in the first quarter Ukrzaliznytsia paid UAH 1 billion more taxes than for the same period of 2017.
He also said that 62% of capital investments were used for rolling stock renewal, another 13% for the program of priority capital projects in infrastructure. In January-March 2018 more than 3,000 wagons were repaired, including 1,230 purchased and newly built and 1,892 overhauled cars.
In general, according to Kravtsov, over the first quarter more than 12% of the Ukrzaliznytsia car fleet was updated. Also, the number of freight locomotives was increased by 25 units, while 29 passenger carriages underwent capital modernization.
The Ukrainian government has posted the conditions for tenders to select independent members of supervisory board of Ukrzaliznytsia and Ukrenergo on its website. The documents for participating in the tender can be submitted before May 14. The tender will start on May 21, and its results will be published on the government’s website before July 3, 2018.
Candidates for an independent member of the supervisory board of Ukrzaliznytsia should have at least 10 years’ period of service in senior positions in companies or in the civil service, in particular in such areas as railway transportation, finance, engineering, accounting and audit, management, business administration or jurisprudence, but not limited to them; have an impeccable business reputation; fluent in Ukrainian or English.
In addition, the applicant must not be (including during the previous five years) a founder, shareholder, head, member of the supervisory board, an employee or a representative of a person to which Ukraine applies personal, special economic or other restrictive measures (sanctions), and also do not have a significant business relationship with this person. Candidates must have one or several professional competencies in the following areas: strategic management, rail transport, operational efficiency, finance and audit, corporate governance, compliance and risk management, international relations.
The similar requirements are put forward to the candidates for the position of independent member of the Ukrenergo: no less than ten years of experience in senior positions in companies or in the civil service in the electricity sector, regulation of energy markets, finance, accounting, engineering, management, business administration or law.
Potential members of the supervisory board of Ukrenergo must meet the criteria of independence in accordance with the requirements of the legislation of Ukraine and the EU, pay to the position at least 30 working days a year, be fluent in Ukrainian or English, have a basic understanding of the laws regulating the scope of activities of Ukrenergo and the EU energy market, trends and prospects of the industry.
Key competencies of the candidates for the position of a member of Ukrenergo’s supervisory board are the following: strategic management; management of the power transmission system; competitive electricity market; operational efficiency; finance and audit; corporate governance; compliance and risk management.
The advantage will be the experience of working in supervisory boards, international companies and international markets, the experience of attracting investors and experience in managing transformational processes and complex projects of organizational change.
The European Bank for Reconstruction and Development (EBRD) could sign one more agreement with public joint-stock company Ukrzaliznytsia in 2018 to provide funds to buy wagons. An Interfax-Ukraine correspondent has reported that Deputy Director of the EBRD for Ukraine Marina Petrov gave the information at the Ukrainian Infrastructure Forum 2018 in Kyiv.
“We hope that in the near term we will sign one more deal on the purchase of wagons,” she said, not specifying the details of the future agreement.
Petrov also said that the annual total volume of lending in the infrastructure area of Ukraine by the EBRD is up to EUR 300 million.
“We expect that EUR 150-300 million, which we usually make in the transport sector a year, we would make this year,” Petrov said.
As reported, Ukrzaliznytsia seeks to buy around 9,000 new wagons in 2018, including 5,180 from third parties. 3,400 out of 5,180 wagons to be bought from third parties some will be bought using the planned loan of the EBRD.
Public joint-stock company Ukrzaliznytsia tentatively saw UAH 20 million of profit in January and February 2018, the company’s press service has reported.
The press service said that revenue from transportation totaled UAH 12 billion, which is UAH 1.3 million or 12.2% more than a year ago.
In January and February 2018, freight flow grew by 1.6% of the target and passenger flow – by 5.2% year-over-year.
“The upward pace in the financial performance of Ukrzaliznytsia in the first months of 2018 was achieved thanks to well-coordinated work of the team, constructive relations with customers and government support of the industry,” acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said.
According to the report, among other things, one of the strategic tasks for the industry is capital investments in the renewal of fixed assets. So, in the two months of 2018, at own expense, almost UAH 1.7 billion of capital investments were made, which is 2.5-fold more than in the same period of 2017. This includes more than UAH 94 million sent to the construction of the Beskydsky tunnel. Another UAH 304.2 million was allocated for modernization and UAH 156.7 million for capital repairs.