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01/04/19 12:07

Poor freight affects FS Italiane financial results

A 18 million revenues downturn in 2018 and 128 million Euro maxi-depreciation in Mercitalia Logistics was reported

Ferrovie dello Stato group celebrates an excellent 2018, although cargo sector continues ailing despite having launched Mercitalia Logistics project.

However, operating results exceeded 10 billion Euro, reaching 12.1 billion (+30% versus 2017), Ebitda stands at 2.5 billion, with 20.5% Ebitda Margin, while Ebit reached 714 million Euro and net result at December 31st recorded 559 million (+1.3% versus 2017).

The latter result would exceed 30% increase if cutting non-recurring operations.

Evaluating data (transport soared by 4%), 2018 financial results shows that last year cargo and logistic business recorded negative results and sales showed 18 million decrease.

Still according to financial report, on April 10th, 2018 Ferrovie dello Stato Italiane Spa granted  Mercitalia Rail Srl an intercompany loan for purchasing 40 new electric locos.

“Maximum loan stands at 114.4 million Euro and will see three installments, by resolution of the board of directors on October 26th 2017, to issue two intercompany loans to Mercitalia Rail Srl and Tx Logistik AG.  At December 2018, 32.6 million loan was used”.

Furthermore, in late 2018 Unicredit granted 6.2 million Euro to Mercitalia Rail Srl for fitting 61 locos with ERTMS system.

“Bank loan is followed by not refundable fund – by the European Commission, within CEF-T Blending 2017 tender – seemingly 50% of the envisaged costs (12.3 million Euro) of the project”, illustrates the financial report.

“Year 2018 recorded 101 million Euro negative results, - 130 million Euro versus 2017, following impairment of participations, required by the negative results recorded by Polo Mercitalia group (Mercitalia Rail Srl and TX Logistic AG, both participated by Mercitalia Logistics)”.

FS Italiane illustrates that “budget forecast was affected by occasional events which in fact will not hurt  future business trend (particularly the enduring shut down and substantial accidents and strikes which disrupted railway service in some remarkable European countries consequently affecting international transport) and particularly the tough economic situation.

Finally, FS Italiane announced a significant depreciation recorded on Mercitalia Logistics Spa participations (128 million Euro).

The group helmed by Gianfranco Battisti announced Mercitalia new business plan targets “1 billion Euro soaring revenues in cargo sector and over 1.5 billion in 2023 allocating 1 billion investments in 5 years”. Setting positive Ebit in 2019 while break-even will come in  2020.

Nicola Capuzzo

TAG : Railways
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