Globaltrans

Globaltrans Group of Companies is the largest private railway operator in Russia in terms of the number of rolling stock units and the second operator after Russian Railways and its subsidiaries.

Globaltrans companies provide their customers with a full range of transportation services from cargo transportation to a comprehensive solution to logistics problems. The group's extensive cargo transportation geography includes all the main industrial regions of Russia, the main customers are the largest industrial companies in various sectors of the Russian economy.

In May 2008, Globaltrans was the first on the Russian rail market to list on the London Stock Exchange.

Performance indicators

2023: Profit growth by 55% to 38.6 billion rubles

At the end of 2023, the Russian railway operator Globaltrans earned 38.6 billion rubles in net profit, which is 55% more than a year ago. The company's revenue during this time rose by 11% and amounted to 104.7 billion rubles. These are given in the reporting under IFRS, which the group published on April 8, 2024.

A significant increase in profit in 2023 at Globaltrans was associated with earnings from the sale of a share in Spacecom's rental subsidiary, an increase in profit from exchange rate differences in financial operations, as well as the lack of significant impairment of rolling stock, which was in 2022.

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From the materials of Globaltrans it also follows that in 2023, the group's adjusted revenue increased by 7%, compared to 2022 and amounted to 87.4 billion rubles. Adjusted EBITDA increased by 6% to 52.3 billion rubles.

The company's free cash flow in 2023 reached 25.8 billion rubles against 14.8 billion rubles a year earlier. According to the results of 2023, the group's capital expenditures almost halved - to 10.1 billion rubles, which, as indicated in the message of the railway operator, reflects a conservative approach to investments in a situation of high prices for new cars.

The empty gondola mileage ratio fell to 36% in 2023, the lowest in more than 10 years. The total empty mileage coefficient (for all types of cars) at the end of 2023 decreased to 45% from 50% a year earlier. Freight turnover (including the attracted fleet) decreased by 2% year-on-year due to changes in logistics and the preservation of infrastructure restrictions on the railway network. The average cost of loaded shipment increased by 10%, while the average number of loaded shipments per carriage decreased by 5%.^[1]

2022: Revenue growth by 29% to RUR 94.47 billion

The revenue of the transport company Globaltrans in 2022 reached 94.47 billion rubles, which is 29% more than a year earlier (73.15 billion rubles). Net profit in comparison with these periods rose by 65% - from 15.1 billion to 24.92 billion rubles. Such data were published at the end of March 2023.

According to Globaltrans, the company's cargo turnover in 2022 decreased by 8% compared to the result of 2021. The company attributed the drop in cargo turnover to a change in supply chains and demand instability. At the same time, in the segment of tanks, the indicator increased by 7% as a result of changes in logistics routes.

The company's cargo turnover in 2022 decreased by 8%

The company notes that it managed to successfully adjust its logistics and demonstrate an improvement in the empty mileage ratio for gondola cars to 41% (2021 - 44%). The total empty mileage ratio (for all types of rolling stock) improved to 50% (2021 - 51%).

According to Globaltrans, the company's investments in expanding the fleet and acquiring assets (including point purchases of new gondola cars and tanks, as well as the acquisition of the remaining 40% in BTS) increased 6 times in 2022, as a result of which total capital expenditures including M&A amounted to 20.2 billion rubles. Net debt decreased to 4.6 billion rubles at the end of 2022. Further decrease in debt burden: net debt to adjusted EBITDA at 0.1x (at the end of 2021 - 0.6x).

The Globaltrans fleet as of the end of 2022 has more than 66 thousand units of rolling stock, 94% of the total fleet is owned. The fleet is based on universal gondola cars for transporting a wide range of bulk goods (69% of the total fleet) and tanks for oil products and oil (28% of the total fleet). Globaltrans also operates its own fleet of mainline locomotives, the group's locomotive fleet has 71 units.^[2]

2015

The net profit of the railway operator Globaltrans according to international financial reporting standards (IFRS) in 2015 increased 7.5 times to 4.3 billion rubles. Revenue for the reporting period decreased by 1% and amounted to 68.2 billion rubles (in 2014 - 68.7 billion rubles).

History

2024

Re-registration of the company in Abu Dhabi

On March 15, 2024, the Russian railway operator Globaltrans announced a change in registration from Cyprus to Abu Dhabi. At the same time, the company plans to keep the listing on the London and Moscow exchanges.

The decision to start the process of redomicitation from Cyprus to the free economic zone (FEZ) of Abu Dhabi Global Market was made at an extraordinary general meeting of shareholders on July 16, 2023 by a majority vote. The change of registration will give Globaltrans opportunities to pay dividends. The move procedure was initiated in August 2023.

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The company has officially received a license from the Abu Dhabi Global Market Registration Authority in confirmation of the successful completion of the redomicitation process from Cyprus to the Abu Dhabi Global Market economic zone from February 26, 2024, Globaltrans said in an official statement.

The company's charter in an updated version and the new composition of the board of directors, which were approved by shareholders at an extraordinary general meeting on August 16, 2023, entered into force. After the redomication, the accounting of Globaltrans shares will be organized electronically in accordance with the requirements of Abu Dhabi Global Market (previously the accounting was carried out in paper form).

It is also reported that the investment company Aqniet Capital LLP, registered and doing business in Kazakhstan, increased its stake in Globaltrans by 0.5% to 26.69%. Together with packages totalling 5.43% in respect of which binding acquisition agreements have been entered into and notarized power of attorney has been issued with respect to related voting rights, Aqniet as of early February 2024 controls 32.12% of Globaltrans' voting shares and will hold 32.12% of the issued share capital. The beneficial owner of Aqniet is Kairat Itemgenov, a businessman and entrepreneur who has successfully developed a number of large projects in various sectors of the economy in Kazakhstan.^[3]

Businessman from Kazakhstan bought 26.2% of Globaltrans

On January 15, 2024, it became known that Kazakhstani investor Kairat Itemgenov acquired 26.2% in the Russian company Globaltrans, specializing in freight rail transportation. There is no information on the value of the transaction as of the specified date.

Globaltrans Investment PLC reportedly entered into an agreement with investment firm Aqniet Capital LLP, of which Itemgenov is the beneficiary. This company acquired in full the shares of the three main shareholders of Globaltrans - Nikita Mishin, Konstantin Nikolaev and Sergey Maltsev, which they owned through Onyx Investments Ltd, Mapple Valley Investments Ltd and Goldriver Resources Ltd, respectively.

Kazakhstani investor Kairat Itemgenov acquired 26.2% in the Russian company Globaltrans

Maltsev, who holds the position of chairman of the board of directors of Globaltrans, said that after the sale of his stake, he intends to remain in the company and be nominated to the board after the completion of the redomication to the free economic zone of Abu Dhabi Global Market.

In the future, as noted by the Kommersant newspaper, two other agreed transactions will be closed on the acquisition by Aqniet Capital LLP of the share of Alexander Yeliseyev and another unrelated shareholder. After that, Itemgenov's participation in Globaltrans will reach 31.6%. Only one of the founders of the company, Andrei Filatov, who owns an 11.5% stake through Marigold Investments, does not leave the capital of Globaltrans. Approximately 56% of the company's capital is free float.

Businessman Itemgenov over the past 25 years (by the beginning of 2024) has successfully developed a number of large projects in various sectors of the economy in Kazakhstan. Its key businesses include one of the largest pharmacy chains in the republic - Europharma, several assets in the hotel sector, the logistics company Satti Logistics, which manages a fleet of its own trucks and vans, and KBI Energy, a large specialized design and installation organization in the energy sector.^[4]

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