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PKP CARGO Group publishes results after the first half of 2022: How're global tendencies affect financial and operational results?

PKP CARGO Group publishes results after the first half of 2022: How're global tendencies affect financial and operational results?
photo: Archive/PKP CARGO Group publishes results after the first half of 2022: How're global tendencies affect financial and operational results?
29 / 08 / 2022

An improvement in the leading financial indicators and an increase in freight transport compared to 2021 - this is how the financial and operational results of PKP CARGO Group achieved in the first half of 2022 can be summarised in a nutshell.

An official stock exchange report presenting PKP CARGO Group's financial and operational results in the first half of this year was published on August 26. It shows that revenue from contracts with customers amounted to PLN 2 billion 451.5 million. It represents an increase of 20 per cent (PLN 405.5 million) compared to the first half of 2021.

Other financial indicators of the Group are also higher - year-on-year. EBIDTA reached PLN 371.5 million, i.e. it was as much as 64 per cent higher (nearly PLN 145 million) than in the previous year. The second quarter of this year was particularly successful in this respect when PKP CARGO Group generated EBIDTA of PLN 219.1 million. Operating profit (EBIT) in January-June this year amounted to PLN 6.1 million, while a year ago, it was a loss of over PLN 128 million. The positive EBIT is due to the second quarter when it amounted to PLN 37.6 million.

The Group closed the first half of 2022 with a net loss of - PLN 42.4 million. It is still a much better result than in the same period of 2021 when the loss reached PLN 130 million. It is worth noting at this point that in the second quarter of 2022, PKP CARGO Group closed with a profit of 5.2 million PLN.

PKP CARGO trains carried 51 million tonnes of freight in the first half of this year, almost 2.5 million tonnes more than a year ago. Traditionally, transport is dominated by hard coal (25.5 million tonnes) and aggregates and construction materials (10 million tonnes). Further positions in the structure of transports are occupied by: intermodal transports, metals and ores, and chemical products.

Dariusz Seliga, President of PKP CARGO S.A., admitted that the improvement of PKP CARGO Group's results in relation to 2021 in the situation of a very difficult macroeconomic and political environment is a success. "Especially the second quarter, which we closed with a profit, was successful, even in the situation of the implementation of salary increases negotiated with the social side. It is a major success, as we managed to combine the achievement of business objectives with the working conditions improvement. Both goals are equally important, as without the involvement of employees the economic success of PKP CARGO Group is impossible," said Dariusz Seliga.

President Seliga pointed out that PKP CARGO Group's operations were mainly affected by the Russian war in Ukraine in the first half of the year. It is because Russia's aggression against Ukraine has harmed the Polish and European economies, as it has aggravated the energy crisis, which we can see in the form of very high prices of energy carriers. It, in turn, fuels inflation and weakens the growth rate of certain sectors of the economy. In addition, as Dariusz Seliga explains, high energy and fuel prices have increased the costs of PKP CARGO's operations, and for this reason, some commercial agreements have had to be renegotiated.

PKP CARGO's operations were also affected by the imposition of EU sanctions on Russia and Belarus. "They have significantly disrupted the domestic and international supply chain and led to a decrease in the flow of goods transported from the eastern direction. We have stopped carrying coal, timber and chemical, and petrochemical products from these two countries. At the same time, there was a decrease in cargo transported between China and Poland and the EU, as some shippers transferred their cargoes to ships due to the war," summarised president Dariusz Seliga.

In the second half of the year, the biggest challenge for PKP CARGO will be the realisation of increased coal shipments from Polish ports. Raw material from Australia, South Africa or Colombia is to replace coal previously imported from Russia mainly by road. "We have an adequate number of coal cars and locomotives to carry out these transports. There should also be no problems providing traction teams," says Dariusz Seliga. "We will also make every effort to fulfil all other contracts with customers for the transport of cargo, despite the priority task, which is now to provide winter fuel for Polish families," stresses President Seliga.

The head of PKP CARGO hopes that despite the difficult economic situation in Poland and Europe, the Group will manage to maintain positive trends, and the whole year 2022 will close with much better financial results than the previous one.


Source: PKP CARGO Press Releases