UWC’s Consolidated Financial Results for 1H 2019

PJSC «Research and production corporation «United Wagon Company» («RPC UWC», the Holding Company or the Company) (MOEX: UWGN), Russia’s largest manufacturer of freight cars, reports its IFRS consolidated financial results for 1H 2019.

Key indicators over the reporting period:

  • UWC’s consolidated revenue decreased by 7% to RUB 29.8 billion compared to 1H 2018
  • The Holding’s EBITDA grew 44% to RUB 7.3 billion compared to 1H 2018
  • UWC received a total of RUB 1.9 billion of the net profit in 1H 2019


The consolidated revenue decreased as sales of railcars to third parties fell from 97% in 1H 2018 to 66% in the reporting period. The fall was triggered by leaseback transactions carried out with GTLK. Under this contract, a total of 3.3 thousand railcars were delivered to GTLK over the first 6 months of 2019 to be subsequently transferred to the UWC’s leasing entity for financial lease. The sales revenue that stood at RUB 10.4 billion was eliminated when calculating the Company’s consolidated profits to be recorded as intersegment revenue in Adjustments and Exclusions, which reduced the indicator.

The Production segment revenue grew 27% to RUB 36.2 billion, as a result of higher railcar selling prices and increases in the sales of specialized, more expensive rolling stock, and components.

The Lease segment earned 10% more of revenue hitting RUB 3.8 billion. The average fleet size over the six months grew 2.2% year-over-year subject to renovation of the Company’s own railcar fleet, while over 2018 the Company sold 2.2 thousand railcars from its own fleet and disposed entirely of old gondola cars mounted on 23.5 tf bogies. The positive revenue performance was due to lease rates going up, in line with the market trend.

EBITDA grew due to costs of production decreasing and increasing share of the Production segment in the consolidated results.

The Production EBITDA grew 138% to RUB 6.4 billion.

In the reporting period, the Lease EBITDA was RUB 2.7 billion showing a decrease of 7% year-over-year triggered by growing commercial, general and administrative expenses.

At the end of the reporting period, the Company’s Net Profit was RUB 1.9 billion compared to a loss of RUB 3.1 billion in 1H 2018.

IN 1H 2019, the Company’s financial income grew to RUB 3.8 billion propped up by a reversal of the provision for future losses on issued loans for a total of RUB 1.8 billion, and amendment of the leaseback contracts with GTLK, the effect of such amendment was assessed at RUB 930 million.

The Company’s total capital investments used to purchase equipment, fixtures of leased property, and carry out works to enhance its production capacity, for the first six months of 2019, stood at RUB 1,172 million, while for the same period of 2018 the figure was RUB 950 million.