8 Oct, 2021
Georgian Railway – 1H 2021 Update
- Fitch Ratings affirmed its BB- long-term issuer credit rating for Georgian Railway in August 2021 but revised the Negative Outlook to Stable, mainly due to the revision of Georgia’s sovereign outlook.
- Georgian Railway posted a 13.2% YoY increase in its revenues in 1H 2021 in GEL terms (+3.3% YoY in USD terms due to the GEL depreciation).
- The net finance loss improved by 9.5% YoY, resulting in a net loss of GEL 32.0mln in 1H 2021, a 51.3% YoY improvement.
- Georgian Railway’s overall freight transportation tariff decreased by 7.2% in 1H 2021 in USD terms.
- Georgian Railway’s containerized cargo throughput saw a 4.8% YoY decrease. The decline in containerized cargo can be explained by a 225% increase in global transportation prices.
- The recent decline in World Container Index provides positive outlook for future railway containerized cargo.