Results of Lithuanian Railways for the year 2017: a decisive turning point
One of the largest railway companies in Europe and in Lithuania has been facing a decline for the past five years and, finally, after becoming unprofitable in the year 2016 has managed to turn their operation around in the previous year. Lithuanian Railways Corporate Group earned a net profit of 27 million euros.
The group saw a one-tenth increase in freight transportation, 5 percent increase in passenger transportation, 9 percent decrease in running costs and 11 percent higher income. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by two and a half time. Said results were recorded in the audited report of Lithuanian Railways Corporate Group for the year 2017.
During the presentation of audit results on Monday, Director-General of Lithuanian Railways Mantas Bartuška said, "It was a difficult year for changes; however, the change programme launched in the year 2017 helped us earn higher profits and manage the costs of the Group. Lithuanian Railways started to conduct their operations in a more efficient manner, all of the key figures saw an increase. Even though, the competitive environment remains harsh and complicated to this day, in the year 2017 we were able to create a sound framework for increasing our results. We will strive for the year 2018 that we are entering with a long-term strategy to be no less successful for Lithuanian Railways Corporate Group".
This marked a first for the company, as the results of Lithuanian Railways Corporate Group were audited in accordance with International Financial Reporting Standards (IFRS). The decisions to shift towards the recommended accounting standard of Economic Cooperation and Development (OECD) was adopted at the start of the previous year.
In total, Lithuanian Railways Corporate Group earned 448 million EUR in income, i.e., an 11 percent increase as compared to the year 2016. Meanwhile the costs of the group saw a significant decrease and accounted for 412 million EUR or a 9 percent decrease as compared to the year 2016. EBITDA figure for the year 2017 was 155.6 million EUR and 63.1 million EUR for the year 2016.
As seen from the data of the audit report, Lithuanian Railways Corporate Group earned a net profit of 27 million EUR in the year 2017.
In 2017, Lithuanian Railways transported 52.6 million tons of freight, of which 15.5 tons were transported within Lithuania and 37.1 tons within the international space. Majority of freight transported in the year 2017 includes chemical and mineral fertilisers, oil and oil products, grain, construction material and other cargo.
Recorded increase of 10.5 percent in freight transportation for the year 2017 allowed Lithuanian Railways to move to the 7th place within the European Union and become the leading company within the Baltic region.
Compared to the results for the year 2016, the company saw an increase of 5 percent in passenger transportation as well. In the year 2017, the company transported 4.7 million passengers. New services, combined route "Seaside express", increase in travel comfort encouraged passengers to travel by train more often.
Local routes were the most popular destinations (83 percent of all transported passengers) of which the most popular routes were Vilnius Kaunas (35 percent), Vilnius-Klaipeda (14 percent), Vilnius-Ignalina-Turmantas (13 percent).