After eleven months of 2011, net sales revenues of PKP CARGO reached 4.62 billion PLN, compared to 4.18 billion PLN a year earlier. This represents an increase of 10.6 percent. During the same period, the company’s operating costs increased by only 3.5 percent, from 4.14 billion PLN to 4.28 billion PLN. As a result, the company generated a record sales result of 342.2 million PLN (41 million PLN after 11 months of 2010), an operating result of 278.7 million PLN (48 million PLN a year earlier), and a net result of 226.4 million PLN, compared to 45 million PLN a year ago.
– We are pleased that the record financial result we will achieve in the entire year 2011 is mainly the effect of revenue growth, and not just a reduction in operating costs, although we still have large reserves in this area and will certainly continue the policy of optimizing our resources, says Wojciech Balczun, CEO of PKP CARGO. – It is also worth remembering that PKP CARGO will record by far the highest net profit in its history despite financing a voluntary redundancy program worth almost 90 million PLN in the first half of the year, as well as paying out a record-high one-off bonus to all employees on the occasion of the company’s jubilee.
The financial results of the entire PKP CARGO LOGISTICS group after 11 months of the year are equally optimistic. The total net result of the 11 rolling stock companies amounted to 5.4 million PLN, and that of the four logistics and forwarding companies (CL Małaszewicze, CL Medyka – Żurawica, Cargosped, PKP CARGO Service) – 25 million PLN. To this must be added 8.4 million PLN of net profit achieved by PS Trade Trans. This means that the consolidated net profit of PKP CARGO LOGISTICS after eleven months of 2011 amounts to over 265 million PLN.
Transport plan exceeded
– Growth in transport is no longer an end in itself for PKP CARGO. Fortunately, we have moved away from the “mass dogma” cultivated a few years ago. We want to transport as much cargo as possible, but it is more important that the transport operations generate a satisfactory margin, argues CEO Balczun.
This does not change the fact that in terms of transport in 2011, PKP CARGO has something to be proud of. Already around the middle of the year, it became clear that the transport plan for this year approved by the company’s management board would be significantly exceeded. A new forecast was prepared at the level of 128.4 million tons. Everything indicates that this forecast will also be exceeded, this time slightly. After 11 months, PKP CARGO has already transported over 120 million tons of goods this year. This is 9 percent more than in the corresponding period of 2010 and 0.3 percent more than the aforementioned forecast, which was raised in the second half of the year, predicts. One of the main reasons for such good transport results is the so-called aggregate boom associated with the acceleration of road and motorway construction, which has been ongoing since the beginning of the year. The year-on-year growth in the transport of stone, gravel, and lime amounted to almost 52 percent, while coal transport remained at a practically unchanged level. As a result, the share of aggregates in PKP CARGO’s transport increased from 17.3 percent to 24.1 percent.
Investments are growing
In the period January – November 2011, PKP CARGO’s capital expenditures amounted to a total of 438.3 million PLN, compared to 325.2 million PLN a year earlier. This is an increase of almost 35 percent, and by the end of the year, expenditures should increase further to a level of even 550-600 million PLN.
The largest part of these funds was allocated to the purchase and modernization of rolling stock, including the purchase of 380 universal Eanos series coal wagons and the modernization of 64 locomotives, including 25 electric locomotives (ET22 and EU07 series) and 39 diesel locomotives (SU45 series with a change of series to ST45, ST44, and SM42). The PKP CARGO management board decided to modernize diesel rolling stock first, because this ensures the fastest return on investment – each modernized diesel locomotive brings immediate savings on fuel and engine oil. An example of an extremely efficiently finalized investment was also the purchase of a Siemens Eurosprinter ES64F4 locomotive. The record pace of all arrangements and work meant that the locomotive was handed over for acceptance the day after the contract was signed. The new locomotive is used to service transport contracts on international routes, mainly on the Czech market. In addition, nearly 39 million PLN was allocated to capital investments, over 35 million PLN to real estate-related investments, and 43.5 million PLN to other investment purposes, with particular emphasis on IT spending.
PKP CARGO is growing stronger abroad
The year 2011 is marked by the strengthening of PKP CARGO’s position in neighboring markets. Thanks to obtaining the relevant safety certificates in part B, the company launched its first independent transport operations in the Czech Republic as early as 2010, and in the spring of 2011, independent transport operations also started in Germany and Slovakia. Currently, PKP CARGO controls over 5 percent of the rail freight market in the Czech Republic and is launching further connections in Germany. Recently, in transit through the entire territory of Germany, on the Tychy – Frankfurt/Oder – Aachen West route (near the border with Belgium). The company is actively looking for further foreign contracts and is also applying for safety certificates in other countries. In the near future, PKP CARGO should receive a certificate enabling the implementation of independent transport operations in Austria, and procedures related to obtaining certificates in the Netherlands, Hungary, and Belgium are also underway.
– Ultimately, we want to offer our customers independent transport along the main transport corridors in Europe, announces Wojciech Balczun.