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EVR Cargo’s year 2017 results better than expected

The group’s earnings before interest, taxation, depreciation & amortisation (EBITDA) in the 2017 financial year totalled 5.5 million euros, while the losses amounted to about 1.1 million euros, which is almost one million euros less than predicted. In the first four months of 2018 the net profit earned was about 2 million euros.

The predicted loss for the 2017 financial year was over 2 million euros. The reduction in the cargo volume in Latvia and Russia’s partial re-routing of export goods via Finland resulted in lower haulage revenue. The raised fuel excise duty in February 2017 and the growing wage demands affected expenditure.

“We were under immense pressure, yet managed to finish the year with a much smaller loss than predicted. Strong developments in our three main business directions – haulage, carriage rental and rolling stock repairs – have maintained our profitability since November. Thanks to the new goods and container cargo we have enjoyed a steady haulage volume increase from the second half of last year. We commenced domestic haulage, having delivered over 15,000 tons of gravel for corporate customers, and are now testing a container train on the Tartu-Muuga-Tartu route with considerable clientele interest,” said Raul Toomsalu, Chairman of the Management Board of EVR Cargo.

The primary cargo types in 2017 were similar to the previous periods: Estonian transit fertilisers, mineral fuels and Estonian-produce oil shale. The haulage volume on the Estonian railways in 2017 was also similar to that in 2016.

2017 saw increased demand for railway carriage rent. By the end of the financial year the group rented out approximately 1,500 carriages, which is 71% more than in 2016. “Focusing on carriage rental has been justified and proceeding as planned. We predict that the demand for this service will increase this year too,” noted Raul Toomsalu.

“Our staff have played an important part. The personnel’s loyalty and diligence have helped us become profitable. But we must pay more attention both to the speed and quality of customer service. We strive to be a good partner with simple and clear communication,” added Raul Toomsalu.

EVR Cargo is a leading Estonian railway company whose main areas of operations are carrying goods, constructing and repairing locomotives and railway carriages, and renting out carriages. The company employs 670 people.

(Source: http://www.evrcargo.ee/evr-cargo-2017-aasta-tulemus-oodatust-parem/?lang=en)

25.05.2018

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