Ukrainian Railways estimates 2019 profit at UAH 2.5-3 bln

The net profit of
Ukrainian Railways is estimated at UAH 2.5-3.0 bln in 2019, Interfax-Ukraine
reported on Jan. 23 citing the company’s CEO Yevgen Kravtsov. According to the
company’s financial plan for 2019, it should have generated net revenue of UAH
102.7 bln, EBITDA of UAH 25.1 bln and net profit of UAH 4.5 bln (up 22x yoy).
In 1H19, the company reported UAH 1.1 bln of net profit, up 2.3x yoy.

Alexander Paraschiy: The company’s 2019 profit estimate implies that it under-performed its
annual financial plan. Nevertheless, it’s the best financial result in the
company’s history. The company will remain among the least leveraged in
Ukraine’s fixed income universe based on the 2019 results, with net debt to
EBITDA ratio remaining below 2.0x, we estimate. We confirm our neutral view on
RAILUA bonds.