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International Internet Magazine. Baltic States news & analytics Saturday, 20.07.2019, 17:15

Estonian state-owned rail cargo operator Operail nets EUR 2.6 mln in 3 months

BC, Tallinn, 14.05.2019.Print version
The Estonian state-owned international logistics and transport company AS Operail earned a net profit of 2.6 mln euros in the first three months of 2019, double the amount netted by the company in the same period a year ago, informed LETA/BNS.

Raul Toomsalu, CEO of Operail, said that wagon rental business was the main source of profit for the company in the first quarter of the year.

"Our revenue from wagon rental increased by 655 compared to last year, amounting to 2.9 mln euros in the first quarter of this year. The growth of the wagon rental business is based on extensive demand and limited supply, which has increased the rental prices," Toomsalu said.

Operail and its subsidiary Operail Leasing currently have nearly 2,100 wagons on lease to other operators.

Freight carried by the company in the first quarter of 2019 amounted to 3.6 mln tons, 2% less than in the same period a year ago.

"Our calculations show that if we carry more than a million tons a month, we earn a reasonable profit on the transport volume. We have managed to overcome the downturn of a few years ago and continued last year's trend with regard to railway freight transport," said Toomsalu. 

The CEO also said that Operail is concerned about the ongoing confusion with infrastructure fees and the high rates of the fee levied in Estonia compared to its neighbors, which makes it difficult for the company to make necessary investments.

He also observed that compared to the first quarter of the previous year, the volumes of liquid mineral fuels and fertilizers transported have been growing, while oil shale and solid mineral fuels have experienced a decline.

Operail's operating income in the first three months of the year grew by 2% year over year to more than 18.5 mln euros. The group's EBITDA was 4.3 mln euros, up from 2.9 mln euros in the first three months of 2018.

Operail is an Estonian state-owned railway company whose main areas of activity include freight transport, the repair and construction of locomotives and carriages, and rolling stock rental. The company employs more than 700 people.

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