The government approved the financial plan of Ukrainian Railways for 2024

The Cabinet of Ministers has approved the financial plan of Ukrainian Railways (UZ) for 2024. According to the document, next year UZ plans to generate revenue of UAH 103.2 billion, including net income from the sale of products (goods, works, services) of UAH 98.6 billion. This is stated in the press service of UZ.

«The financial plan for 2024 does not envisage raising funds from the state budget, the priority of which is to finance the country’s defense capability. Our task will continue to be to ensure stable transportation of passengers and cargo in wartime and to finance the necessary investments to maintain and restore the railway infrastructure at our own expense and with funds raised from international financial institutions,» said Yevhen Liashchenko, Chairman of the Board of UZ.

The planned amount of payments to the state and local budgets in 2024 is set at UAH 24 billion, which is 5% more than expected this year.

Total expenses are planned at UAH 115.8 billion. In particular, the cost of goods sold is expected to increase by 13%, mainly due to higher salaries for employees and higher electricity tariffs. EBITDA is expected to reach UAH 11.8 billion.

In 2024, UZ expects revenue from freight transportation to reach UAH 80.1 billion and from passenger transportation to reach UAH 9.3 billion.

According to Yevhen Liashchenko, the financial plan was formed and submitted for consideration in the third quarter, when the work of ports was completely blocked.

«We have already developed our proposals to break even. In particular, given the trend of the previous two months of this year, we have made a more optimistic forecast for freight transportation. We are also planning to unify tariffs: make them more transparent and bring them in line with the European model. We continue to work on cost optimization,» he explained.

According to the financial plan, UZ expects losses of UAH 12.6 billion in 2024, which will be covered by the developed plan to break even.

Next year, UZ plans to utilize capital investments of UAH 38 billion. The funds will be used to restore infrastructure damaged by the enemy and to build cross-border connections with EU countries.

As GMK Center reported earlier, in 2022 Ukrainian Railways reduced transportation of iron and manganese ore by 59.2% compared to 2021 – up to 41.7 million tons. Volumes of transportation of ferrous metals last year decreased by 57.8% y/y – to 9.2 million tons. In total, during the year UZ transported 150.6 million tons of cargo, which is 52.1% less compared to 2021.