In the first six months of 2018, international logistics and transport firm Operail has significantly exceeded the financial indicators of the previous year and is securely on the way to profitability.
“In the first six months of this year, we have improved on the income figures of the same period from last year, and we have turned a loss of 1.8 million euros into profits of almost five million euros,” said Chairman of the Operail Board, Raul Toomsalu, releasing the financial results. The Group’s EBITDA has increased fivefold compared with the previous year, reaching 7.8 million euros.
According to Toomsalu, one of the reasons for the positive financial indicators is the investments made in the previous year, which have proven to be highly profitable: “We see how last year’s decisions and investments to develop the wagon rental business line is paying off more and more each month.” Toomsalu’s statement is supported by figures as well: compared with the same period last year, Operail’s wagon rental revenue has grown by 171%, meaning an increase to 3.81 million euros.
The strong results are also supported by freight revenues that have grown by 55% over the previous period to almost 25 million euros. “We have increased freight volumes by 44% and have moved almost seven million tonnes in the first six months,” explained Toomsalu. More than half of the freight volumes transported were made up of the mineral fuel and fertilizer product groups; there was also significant growth in container freight carriage during the first half of the year.
The Chairman of the board added that the positive figures were in part a result of the change in the company’s philosopy. “It is clear that we are no longer just freight carriers. We have a wider view of the railway and in the last year, we have vigorously developed our other business lines—namely wagon and locomotive rental and rolling stock repair. The change in our business name over the summer clearly also supports our efforts to provide our customers more than just freight carriage.”
According to Toomsalu, Operail is also changing the way it communicates with its clients: “We want to be a partner for our clients that thinks and provides prompt responses for various logistical situations. Here, we have a long way to go, but today’s positive financial results confirm that we are moving in the right direction.”
Operail is an Estonian state-owned railway company whose primary areas of business are freight carriage, locomotive and wagon repair and construction, and rolling stock rental. The company employs 670 people.