ČD Cargo achieved a profit before tax (EBT) according to International Accounting Standards (IFRS) of CZK 214 million (8,7 million euros) in the first half of 2022. Thus far, the company has managed to maintain a positive operating result in the first half of this year, despite unprecedented growth in almost all cost inputs and several negative impacts resulting from the ongoing war conflict in Ukraine.
The freight segment, consisting of the results of ČD Cargo and its subsidiaries, contributed a profit after tax (EAT) of CZK 126 million (5,2 million euros) to the consolidated result of the ČD Group. In the first half of this year, the ČD Cargo Group transported a total of 32.5 million tonnes of goods under its license, i.e. 1.4 million tonnes more year-on-year.
"I am satisfied with the transport volumes for the first half of the year and they met our expectations. Unfortunately, the decline in shipments for the automotive industry, which is in recession, continues for the time being. However, growth in other commodities has offset this decline. In particular, shipments of lignite, for which we have not seen the end of the heating season due to the energy crisis, have increased and we are shipping more and more. Fuel and metallurgical shipments also showed a positive trend. Combined transport also seems to be slowly stabilizing after the coronavirus pandemic, which is very important for the railway," adds Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo.
Participation in joint transports under the ČD Cargo brand abroad, especially in Austria, Germany, Poland, Slovakia, and Hungary, contributed to maintaining a positive economic result despite the dramatic increase in costs. Expansion is also continuing through the youngest subsidiary, ČD Cargo Adria, which focuses on the Balkans.
"We have had another very challenging period in which we have passed with honor, but unfortunately the more difficult one is still ahead of us. With some nervousness, we are looking forward to the second half of the year, and especially to next year, which, in terms of further dramatic growth in cost inputs, may mark a major turning point for the entire rail freight transport segment, and not only for it. We are also very seriously concerned about the first signs of cooling demand from steelmakers, which we see as another indicator of a decline in the performance of the entire economy, not only in the Czech Republic but at least in the European region. Despite all negative factors, we want to play a key role in the rail freight transport market in the future and we are ready to continue our cooperation with all our customers and suppliers and to overcome this difficult period together," adds Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo.
