Bruce Barnard, Special Correspondent | Sep 04, 2012 12:17PM EDT
Globaltrans profit stalled in the first half of the year as the increased borrowings by the Russian rail freight operator to finance expansion offset improved operating results.
The company, listed on the London Stock Exchange, made a profit of $159.5 million in the six months to June 30 compared with $159.3 million in the year earlier period as revenue grew 7 percent to $967.5 million.
Adjusted earnings before interest, tax, depreciation and amortization, jumped 28 percent to $328.6 million in the first six months.
Globaltrans said it took delivery of 10,000 new railcars so far this year and has integrated the railcar unit of iron ore miner Metalloinvest it bought in April for $540 million.
The company, which raised $520 million from a share sale in July to fund its expansion program, said it plans to take advantage of the liberalization of the Russian rail freight sector to make further acquisitions.
“Given the structural changes set to continue in our industry, our plans for growth remain in place, supported by the proceeds from our share offering in July,” Globaltrans CEO Sergey Maltsev said.
“Capitalizing on the strength of our business model, which combines a large modern fleet, excellent execution and resilience, we are well-positioned to capture growth opportunities present in the developing Russian freight rail industry.”
Contact Bruce Barnard at brucebarnard47@hotmail.com.
