Ukrzaliznytsia JSC operated with a profit in January-March 2024. This was announced by Chairman of the Board of UZ Evgeniy Lyashchenko at a meeting with journalists, but did not specify its specific size, Interfax-Ukraine reports.
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According to the presentation presented at the meeting, in 2023 the net profit of Ukrzaliznytsia amounted to UAH 5 billion.
Positive impact on financial performance
Among the key factors that positively influenced the financial results of UZ, the presentation noted:
- income from passenger transportation, which increased due to an increase in passenger turnover by 11% (+1.42 billion UAH), a decrease in costs for materials and repairs due to cost-saving measures, in particular the use of old burnt materials (+4.81 billion UAH), more stable, than initially expected, the hryvnia exchange rate (+4.53 billion UAH), restoration of the usefulness of assets in the de-occupied territories (+1.88 billion UAH), cancellation of the obligation to pay land tax for objects in the occupied territories (+0.69 billion UAH), reduction in the land tax rate due to work on re-registration of land plots (+0.55 billion UAH), increase in income from auxiliary activities: security services – by 25% and passenger services – by 24% (+527 million UAH).
Negative impact on financial performance
At the same time, the financial performance of Ukrzaliznytsia was negatively impacted by a decrease in income from freight transportation in 2023, due to the temporary suspension of the grain corridor and conventional restrictions for the export of agricultural products to the EU (-8.57 billion UAH), as well as an increase in wages to avoid the outflow of personnel (-3.41 billion UAH).
Half of the profit goes to the state
According to Lyashchenko, Ukrzaliznytsia transferred 50% of the profits received in 2023 to the state budget in the form of dividends.
The Chairman of the Board of Ukrzaliznytsia also noted that the company, using its own funds, continues to restore infrastructure that is damaged due to Russian attacks. In addition, as one of the largest electricity distribution operators, it has invested in the protection of substations and critical energy infrastructure.
