Georgian Railway: financial achievements and prospects against the background of global investments

The Georgian Railway (GZhD) presented its financial results for the first nine months of 2023, showing a net profit of 102.6 million lari. Despite a decrease of 63.2% compared to the same period last year, the company demonstrated sustainability and strategic development.

One of the key factors that influenced the decrease in profits was the strengthening of the national currency, which reduced the total debt of GZHD in lari. This financial aspect was reflected in the report as income in the amount of GEL 126.5 million. It is important to note that this year the company did not profit from the exchange rate difference, unlike the previous period.

The operating income of GZHD decreased to 481 million lari, which is 10 million lari less than in the previous year. However, a variety of sectors have become sources of income, including rail transportation, cargo handling, logistics services, cross-border charges for wagon services, wagon rentals and passenger transportation.

Despite the reduction in operating income, payroll expenses increased by 21.4%, reaching 175.7 million lari. The company continues to invest in its staff, ensuring stability and professionalism.

According to the financial report, the assets of GZHD amount to GEL 2.5 billion, and liabilities - GEL 1.4 billion. The largest liabilities are 7-year Eurobonds worth $500 million issued in 2021. The refinancing of Eurobonds has helped to significantly reduce borrowing costs.

An important step for GZHD was the placement of green bonds on the London Stock Exchange, which allowed reducing the interest rate from 7.75% to 4%. This is the first time in the history of Georgia when a transport company issued such bonds, which brought significant savings to the company - more than $ 100 million.

The state-owned company JSC "Georgian Railway" continues to play a key role in the country's transport infrastructure, providing rail transportation of goods and passengers, as well as contributing to the development of transit routes through Georgia. Taking into account investments in new projects, GZHD remains an important player in the market and strives for sustainable development in the context of global transport and investment trends.