CZ/SK verze

CFR Marfă’s Losses Escalate to EUR 27 Million Amid Rising Operating Expenses

CFR Marfă’s Losses Escalate to EUR 27 Million Amid Rising Operating Expenses
photo: Club Feroviar / Public domain/CFR Marfă diesel locomotive
07 / 10 / 2024

CFR Marfă, Romania’s state-owned rail freight carrier, has reported a significant rise in losses for the first six months of 2024.

The company’s half-yearly accounting report shows a net turnover of EUR 72 million, slightly higher than the same period in 2023. However, operating losses have surged by more than 50%, driven largely by escalating operating expenses. In total, the company’s losses reached around EUR 27 million, a nearly 70% increase compared to the first half of 2023.

A key factor behind the growing losses is the increase in personnel costs, which rose by 36%, partly due to the application of the Railway Staff Regulations, which mandated wage increases. Despite these wage hikes, CFR Marfă has not been expanding its workforce; in fact, its employee count dropped slightly from 3,278 to 3,223 between June 2023 and June 2024. Additionally, the sale of rolling stock at only 25% of inventory values, conducted by ANAF on behalf of CFR Marfă, has further impacted the company’s financial health.

The growing losses are part of a broader financial struggle for CFR Marfă. The company, which ended 2023 with a loss of over EUR 46 million, is still grappling with the state aid it received during a failed privatization attempt in 2013. The European Commission has mandated that this aid be repaid, adding to the company’s mounting financial woes.

Source: CFR Marfă; Club Feroviar

Tags