Despite the covid and other world issues, Operail, the Estonian state freight rail company had the best results in its history

Despite the covid and other world issues, Operail, the Estonian state freight rail company had the best results in its history

The international rail company AS Operail closed the year 2021 successfully: the group’s revenue increased to 73 million euros, which is a 12 percent increase compared to the previous year. Thanks to added freight volumes and improved work efficiency, the group’s EBITDA increased to 17.2 million euros, which is an impressive 16 percent increase compared to the previous year.

The group’s net profit without extraordinary items was nearly four million euros, which is a 43% increase compared to the previous year. Taking into account the extraordinary items, which in 2021 included a write-down of assets, the group made a loss of five million euros.

“We are glad to conclude that we have been on the right course so far and that we have achieved the best EBITDA result in the group’s history. The key contributor here was the wagon lease business line,” said Raul Toomsalu, Chairman of the Management Board at Operail.

In 2021, the Operail Group underwent preparations for privatization, which generated the need for restructuring within the group. As a result of this process, all individual business lines at Operail (freight transport in Estonia, freight transport in Finland, lease of rolling stock, maintenance, and repair of rolling stock) are legally separated.

The container freight volume in Estonia increased to 56 429 TEU, which is 26% more than the previous year. Freight transport in Finland had its first full year of operation, during which we transported a total of one million tons of goods in Finland. In the wagon lease department, 94% of wagons were covered by contracts by the end of 2021. In 2021, the group invested a total of 13.7 million euros.

As for 2022, Operail has welcomed the year in complicated circumstances. The war that broke out in Ukraine in February hurt the group’s operations. The management board of AS Operail is taking steps to find replacements for sanctioned transport and to direct rental wagons away from high-risk regions.

“Despite the unexpected events at the beginning of the year and an economic environment that quickly became challenging throughout Europe, I am convinced that the group will successfully adjust to the circumstances and that Operail continues to be the leading rail expert in Estonia, as well as a trustworthy partner to its clients,” assured Raul Toomsalu.

Operail is an international transport and logistics company, whose main business lines include freight transport, construction and repair of locomotives, and lease of rolling stock. The company employs nearly 500 people in Estonia and Finland. In addition to the parent company AS Operail, Operail Group includes the wagon lease companies AS Operail Leasing and Operail Leasing Finland Oy, Finnish rail transport company Operail Finland Oy, and the locomotive construction and repair company Operail Repairs OÜ.

Join Our Circle of Insiders: Receive the Weekly Digest That Keeps You Ahead!

Not using RAILVIS Platform yet?

Rent a wagon, sell a locomotive, find a container, convert free capacity to profit. The RAILVIS Platform is the tool you need. It's faster, better organized, and more secure than email or phone calls.

Try RAILVIS Railway Marketplace
RAILVIS screenshot