Ukrzaliznytsia estimates its warfare losses at UAH 0.3 bln

Обзоры по компаниям и отраслям 24.07.2014 Ukraine’s railway monopoly Ukrzaliznytsia (RAILUA, UZ) estimated that total losses from damage to its infrastructure in the Donbas war zone are close to UAH 300 mln, according to its July 23 press release. The total cost of recovery of damaged sites that UZ experts have already inspected is close to UAH 210 mln, though some of these sites have not yet been inspected. Last week, the monopoly also reported its 1H14 freight turnover statistics, which looked rather positive given the turmoil in the easternmost regions. In particular, the entity reported it transported 206 mmt of goods in 1H14, or 1.2% less yoy. Transportation of goods for export increased 4.6% yoy to 71 mmt, while internal deliveries fell 3.9% yoy to 103 mmt. The volume of transited goods fell 8.0% yoy to 16 mmt in 1H14. Alexander Paraschiy: Ukrzaliznytsia’s war-inflicted losses look far better than they could have been, given that about 130 sites have been reportedly damaged. The total estimated damages, thus far, account for just 2.7% of the monopoly’s combined 2013 EBITDA. Another UZ bright spot is no serious decline in freight transportation (the entity’s only profit-making division), though it will certainly result in falling operating profit in 1H14. Yet we expect the decline will be single-digit only.