Ukrainian Railways board fires acting CEO, media report

The supervisory board of state railway monopoly
Ukrainian Railways (RAILUA) has removed Željko Marček from the position of
acting CEO, the epravda.com.ua news site reported on Apr. 2, citing its
anonymous sources. Marček was appointed as acting CEO in February
after the resignation of Yevhen Kravtsov in late January.
The company’s website does not contain any information about changes in top
management. Railway trade unions have complained about Marček’s decisions to
freeze social payments to employees, according to Interfax-Ukraine.

In late March, the biz.liga.net news site reported
that Ukrainian Railways will generate UAH 6-10 bln losses in 1H20, referring to
Marček’s comments. As of today, such comments have been removed. In other news,
an adviser to Infrastructure Minister Viktor Dovhan wrote in his blog on
biz.liga.net on Apr. 3 that the revenue of Ukrainian Railways will be short of
plan by UAH 8.4 bln and UAH 3.3 bln from freight and passenger transportation,
respectively, in 1H20.

Alexander Paraschiy: Based on
the information provided by Dovhan, we estimate that Ukrainian Railways EBITDA
could fall by 30%-50% in 1H20, depending on the scope of its cost cutting. Its
1H20 net loss could reach UAH 3-4 bln, we estimate, which is much better than
Marček estimated. While the company might face some liquidity troubles in the
coming months, we are sure the government will support the state company if it
faces any needs, as it did a year ago (providing the necessary refinancing for the repayment of its March 2019
Eurobond tranches).