Estonian Operail reverses H1 loss to EUR 5 mln profit

"In the first six months of this year we surpassed the profit indicator for the same period last year and turned the loss of 1.8 mln euros into a profit of almost 5 mln euros," Operail CEO Raul Toomsalu said

Toomsalu said that the positive indicators were attributable in part to the investments made last year, which have proved very profitable.

"We can see the decisions and investments made in the last financial year in developing the business of freight car rent pay back more and more each new month," the CEO said.

Operail's income from the rent of freight cars in the first six months of the year totaled 3.8 mln euros, 171% more than in the same period last year.

Strong performance indicators are underpinned also by income from freight traffic, which grew by 55% to almost 25 mln euros. Freight shipment volume grew 44 percent to almost 7 mln tons.

Mineral fuels and fertilizers accounted for more than half of the cargoes shipped, and also container shipments increased significantly.

The CEO said that the reasons behind the good performance included a change in the company's mentality.

"It is clear that we are no longer solely a cargo transport company. We see the railway more broadly and have been developing also other business lines over the past year -- rent of engines and freight cars and repair of rolling stock. The change in the business name executed this summer definitely supports our aspirations to offer more to our clients than just cargo shipment," he said.

Operail, which used EVR Cargo as its business name until June this year, has been operating as a standalone company after breaking away from the state-owned company Estonian Railways in 2012. Operail employs a workforce of 670.