CZ/SK verze

PKP CARGO Reports Financial Growth Amidst Market Challenges

PKP CARGO Reports Financial Growth Amidst Market Challenges
photo: PKP CARGO, RAILTARGET Archive/PKP CARGO Reports Financial Growth Amidst Market Challenges
31 / 08 / 2023

Despite facing substantial challenges from fluctuating global coal markets and geopolitical tensions, PKP CARGO, Poland’s state-owned rail freight operator, reported robust financial results for the first half of 2023.

The company generated PLN 2,899.5 million in revenue—an 18.3% year-over-year increase. Additionally, it managed to flip a PLN 42.4 million loss from last year into a net profit of PLN 109.7 million. According to Dariusz Seliga, President of PKP CARGO, although the performance showed seasonality, especially in the aggregates and construction materials segment, the company is optimistic about the growth potential in the upcoming months.

Despite a reduced overall cargo volume, particularly in hard coal and construction materials, the company's EBITDA result skyrocketed by 64.5%, reaching PLN 611.2 million. These numbers highlight PKP CARGO's resilience amidst changing market dynamics. A drop in electricity production from hard coal affected the volume of coal transport. Similarly, high prices of construction materials led to a temporary shutdown by one of its major clients in February 2023. In terms of intermodal transport, the ongoing Russia-Ukraine conflict has put significant pressure on the sector, leading contractors to explore road and sea transport alternatives. Despite these challenges, Seliga underlined that the company aims to diversify its business and focus on maintaining profitability.

Looking ahead, PKP CARGO has its eyes set on the opening of its multimodal terminal in Zduńska Wola-Karsznice in Q4 2023. This flagship investment, worth over PLN 128 million, is slated to have a handling capacity of 500,000 multimodal units annually. The terminal, which will be equipped with state-of-the-art technology, aims to rejuvenate the rail transport offer in the region. "The location at the most critical point connecting the New Silk Road with the Three Seas region... makes the investment fully meet the current requirements of the industry," said President Seliga.

This latest financial disclosure not only signals a turn-around for PKP CARGO but also outlines its strategic aims amidst a rapidly changing economic and geopolitical landscape. The numbers suggest that the company is not merely surviving these turbulent times but positioning itself for new avenues of growth.

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