Exec: Russian Railways cuts invest plan to 4.8–6 tln rbl till ‘25

MOSCOW, Oct 8 (PRIME) -- Russian Railways has reduced the plan for own investments until 2025 to 4.8–6.0 trillion rubles from 7 trillion rubles, First Deputy CEO Vadim Mikhailov told reporters during a briefing on of the long-term strategy of the company on Monday.

The target net profit forecast in 2025 was cut to 116–245 billion rubles from 282 billion rubles. Under the conservative forecast, the net profit will amount to 116 billion rubles.

According to Mikhailov, Russian Railways is discussing growth of tariffs in accordance with the producer price index rise, not in line with inflation, with the Federal Antimonopoly Service.

Russian Railways has reduced the forecast for annual growth of loading to 2.4–3.6% from 3.8%. Cargo transportation will increase by 4.4% under the target forecast.

Russian Railways can establish its own trucking company until 2025 to raise income, the official said. “This is a very promising segment. I think that this is a very good thing that will allow the company to raise profitability. This is included in the plan until 2025,” Mikhailov said.

Purchase of minority stakes in ports is not ruled out, he said.

Mikhailov also said, denying an earlier media report, that Russian Railways has not abandoned a plan to build a bridge connecting the Sakhalin Island with continental Russia and is in the process of pre-engineering.

Russian Railways plans to earn 38 billion rubles from the sale of affiliates, excluding a 50% plus two shares in Transcontainer. The board of directors will discuss the sale of a part of the Russian Railways’ stake in logistic company Gefco in three months.

The company can place a pilot issue of green bonds in 2018, the official also said.

(66.6270 rubles – U.S. $1)

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