UWC’s Operating Results for 1Q 2019
PJSC “Research and production corporation “United Wagon Company” (“UWC”, the Holding or the Company) (MOEX: UWGN), Russia’s largest manufacturer of freight cars1, reports its operating results for 1Q 2019.
In 1Q 2019, the Company manufactured a total of 5 thousand railcars, 20% higher than in 1Q 2018. The growth was due to larger production of specialized rolling stock. The number of hopper cars produced grew by 49% YoY to 1.6 thousand units, with their share in the production pattern reaching 31%. The production of tank cars was up by 58% to 243 units in the reporting quarter, 5% of the total production. The production of other types of specialized railcars (flat and box cars, etc.) in 1Q grew by 56% to 721 units, with their share in the production pattern growing to 14%. At the same time, as the market has been gradually switching to specialised rolling stock, the share of gondola cars in the production decreased to 50% to account for 2.5 thousand units.
In the reporting quarter, UWC certified a six-axle articulated LPG tank car mounted on 25-tf bogies. Therefore, at the end of the reporting quarter, the company had a total of 58 certified railcar models.
In 1Q, 3.7 thousand railcars (78% of the rolling stock sold in the reporting quarter) were sold to third parties. The largest deliveries were made to GTLK (gondola cars and flat cars), Rusagrotrans (hopper cars), Kronospan (timber flat cars), EuroChem (hopper cars), VTB Leasing (hopper cars). These companies acquired a total of 3.4 thousand railcars from the Holding. Other deliveries were made to NPO Azot (tank cars), Kuchuksulphate (box cars), TEXOL Group (Kazakhstan, tank cars) and other customers. Over the 3 months, the rolling stock made by UWC was acquired by a total of 20 companies.
The fleet owned and leased by UWC increased by 8% over the previous quarter, reaching to 12.9 thousand railcars. The increase was due to 1 thousand railcars delivered to GTLK being leased to UWC’s leasing entity. In line with the leaseback transaction entered into 2H 2018, the Holding sold 117 railcars from its own fleet to Gazprombank Leasing in the reporting quarter. Gazprombank Leasing received a total of 11.2 thousand railcars from the Holding under this transaction.
At the end of 1Q 2019, the fleet size managed by the shipping company UNICON 1520 remained unchanged compared to the preceding quarter: 1.1 thousand tank containers, 585 flat cars and 78 tank cars. Shipments over the quarter totalled 111.1 thousand tons, soared by 125% over the figures of 1Q 2018 and by 11% compared to the previous quarter.
There were no changes to the number or structure of UWC’s service centre network in the reporting quarter. At the end of the reporting quarter, the service centre network included a total of 72 car repair facilities with 17 centres of the top category.
1 As stated by INFOLine-Analytics: http://infoline.spb.ru/news/index.php?news=158952