PRESS: Russia-led UTLC may triple capital by 2025

MOSCOW, Nov 10 (PRIME) -- United Transport and Logistics Company (UTLC) of Russia, Belarus, and Kazakhstan may more than triple its capital by 2025, business daily Vedomosti reported Thursday citing the company’s development strategy sent to its shareholders for approval.

In 2014, Russian Railways, which holds 99.84% in UTLC, contributed 50% in container shipping company TransContainer and 100% in Russian Railways Logistics into UTLC, but in 2016 decided to divest the assets. In 2016–2017, UTLC will be a company without assets and will focus on providing transit traffic services, according to the document. Its cargo traffic is planned at 86,100 twenty-foot equivalent units (TEUs) in 2016, 137,500 TEUs in 2017 and is projected to jump to 1 million TEUs by 2025.

UTLC may receive a net profit of U.S. $5.1 million, revenue of $11.56 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2016. In 2017, its net profit is planned at $25.5 million, revenue is projected to soar to $40.5 million, and EBITDA will reach $31.2 million.

In 2018–2020, UTLC will consider buying innovative assets and cooperating with the Transport-Logistics Center.

If shareholders decide to leave UTLC without assets, the company’s revenue will amount to $55.8 million in 2025, EBITDA will stand at $44.1 million, and capital will be $392.4 million. In this case, the shareholders may receive $114.47 million in dividends. If the shareholders decide to buy up to 50% of assets and invest in the Transport-Logistics Center, UTLC’s revenue may reach $88.97 million in 2025, EBITDA may grow to $66.95 million, and net profit to $49.2 million. In this case, the company’s capital will amount to $596 million, its current value stands at $169 million. The shareholders will thus receive $93.53 million by 2025, the daily said.

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