BAKU, Azerbaijan, June 9
By Tamilla Mammadova – Trend:
The 2020 turned out to be a challenging year for Georgian Railways (GR), as GR’s top line declined by 9.7 percent year-on-year to $157.4 million despite growth in freight cargo transportation volumes, Trend reports via the Galt & Taggart investment bank.
As reported, main revenue category - freight transportation - which made up by 65 percent of the total amount, was down 1.5 percent year-on-year to $101.8 million in 2020.
The decline was mostly due to lower tariffs and changes in product and direction mix as transportation volumes posted a positive 1.9 percent year-on-year growth in 2020.
Passenger traffic revenue was hit hard during the COVID-19 pandemic, as due to the COVID-19 related restrictions the transportation services were halted for the most of the year.
Passenger traffic revenue dropped to $3.6 million in 2020 from $11 million in 2019.
Freight transportation, largest revenue category, was down 1.5 percent year-on-year despite increase in transportation volumes (+1.9 percent year-on-year to 11.1 million tons). The decline was recorded in both liquid and dry cargo categories.
Freight car rental revenue, which makes up 5 percent of total, also declined in 2020, down 23.5 percent year-on-year to $7.4 million.
Passenger revenue came under significant pressure in 2020, with revenue dropping by 67.4 percent year-on-year to $3.6 million as rail services were halted for the most of the year.
GR’s operating expenses (excluding the PPE impairment) declined 9.3 percent year-on-year to $116.4 million in 2020. The decline was mostly driven by lower depreciation and amortization expenses. Furthermore, lari’s depreciation against the US dollar in 2020 also decreased operating expenses.
In May 2021, Georgian Railway mandated international investment banks to refinance its outstanding $500 million, 7.75 percent, Eurobond maturing in 2022.
The refinancing will take place in June, 2021.
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