Russian Railways has posted positive 2013 results but investors are unlikely to be impressed over a net profit of $1 billion, which is almost a third of its 2012 figure.

      According to its IFRS statement, the Group’s total revenues increased 14.4 percent year-on-year to 1,762.8 billion rubles from 1,540.3 billion rubles in 2012. The key drivers of revenue growth in 2013 were the consolidation of the logistic company GEFCO and higher revenues in the passenger segment. GEFCO’s revenue amounted to 168.9 billion rubles for the year 2013.

      Revenues from passenger transportation were up 7.1 percent thanks to a higher passenger turnover and tariff indexation. Freight revenues rose 1 percent, compared with 2012, on the back of a lower average yield of freight rail transportation.

      Operating costs grew by 17.8 percent in the reporting period to 1,689.9 billion rubles versus 1,434.3 billion rubles a year before.

      Depreciation and amortization costs increased 8.44 percent from 193.6 billion rubles in 2012 to 210 billion rubles in 2013 reflecting the commission of new assets.

      The Group’s EBITDA totaled 332.9 billion rubles in 2013 compared with 356.3 billion rubles a year before. EBITDA margin was at 20.4 percent, which is in line with the Company’s forecasts.

      The Group’s net profit amounted to 36.7 billion rubles in 2013 against 93.7 billion rubles in 2012. Russian Railways blame the plunge on unfavorable economic conditions and a lower yield of freight transportation services due to higher share of low-yield cargos in rail freight turnover.