Željeznice FBiH Profit in 2018 Reaches a Record 19 Million KM

SARAJEVO, (Patria) - The operating profit before interest, taxes, and amortization (EBITDA) of the Public Company Željeznice Federacije BiH in 2018 amounts to 19,027,649 KM, while in 2017 it was 18,966,858 KM, the Railways announced.

The company's operating income in 2018 amounts to 115,638,989 KM, which is 2,236,752 KM higher than in 2017, when it was 113,402,237 KM.

“The record operating profit result we achieved last year is primarily due to the workers and is proof of the company's correct business policy. We have restored pride to railway workers and at the same time met all business objectives while maintaining a trend of strong growth and development. Željeznice Federacije BiH is the backbone of development and will remain so in the future,” said Enis Džafić, General Director of JP Željeznice FBiH.

Operating expenses in 2018 amount to 96,611,340 KM, which is 2,175,961 KM higher than in 2017, when they were 94,435,379 KM.

Growth in Freight and Passenger Transport

“In 2018, we transported 9,120,000 tons of goods, which is 247,000 tons more than in 2017, when 8,873,000 tons of goods were transported, resulting in an increase in revenue from freight transport of 6 million KM,” said Džafić.

In passenger transport, Željeznice FBiH transported 413,471 passengers in 2018, an increase of 58,368 passengers compared to 2017.

“If we compare the two-year period of 2018 (413,471) – 2016 (258,000), the number of passengers transported is higher by 155,471 passengers, representing an increase of 60 percent. Revenue generated in 2018 in passenger transport is 450,000.00 KM higher. The opening of the new Sarajevo-Bihać line also contributed to the increase in the number of passengers transported in 2018,” said Džafić.

In the structure of operating income for 2018, Željeznice FBiH had the largest increase in revenue from freight and passenger transport, amounting to 6.45 million KM, while the largest decrease in operating income was from services provided on the railway line, amounting to 5.6 million KM.

In the structure of operating expenses for 2018, the company had the largest increase in expenses for electricity and fuel consumption for train traction, maintenance of locomotives, wagons, track machinery, and railway infrastructure maintenance, amounting to 3.1 million KM.

The largest decrease in operating expenses in 2018 compared to 2017 was achieved by Željeznice FBiH due to a reduction in employee costs by 1.2 million KM.

The number of employees in 2018 is 131 less than in 2017. In the past three years, the number of employees who left the company (retirement, death, mutual termination of contract) is 624. In the last three years, 62 employees have been hired (former employees of Gredelj-Revom Dobošnica). We have settled the work seniority for all employees who left the company, totaling approximately 25 million KM.

The most significant investments we realized in 2018 are: Electrification of the Una railway line Bihać - Bosanska Otoka 47 km. Installation of optical cable (64 fibers) and three telephone exchanges, Sarajevo – Čapljina - state border. Procurement of two road-rail excavators with all attachments. Procurement and installation of the "Alića Han" railway crossing (Ilijaš). Procurement of an automatic washing system for locomotives and wagons.

Reduced Main Debt to the Tax Administration of FBiH and Paid Low-Floor Electric Multiple Unit to Končar-Električna Vozila Company

The General Director of Željeznice FBiH emphasized that the achieved results have enabled the company to regularly settle not only current obligations but also obligations incurred in previous periods.

According to public funds for taxes and contributions, 37.2 million KM was paid in 2018. Of this amount, 28.6 million KM relates to current obligations, and 8.6 million KM relates to obligations from previous years (period from 2001 to 2016), thus continuing the trend of reducing the main debt to the Tax Administration of FBiH.

For comparison, the main debt to the Tax Administration of FBiH was reduced by 5.5 million KM last year, which has not happened in the last 25 years.

Credit obligations incurred in 2010 are also regularly settled. In this year, 10 million KM was paid towards the debt on account of loans.

Also, in 2018, a portion of the debt to Končar-električna vozila company amounting to 12.6 million KM was paid, which was incurred under the 2008 contract for the procurement of an electric multiple unit and the revitalization of electric locomotives.

In order to further improve operations and modernize JP ŽFBiH d.o.o. Sarajevo, the full application of the legal regulations governing the operations of JP ŽFBiH d.o.o. Sarajevo is necessary, namely: the Law on Railways of FBiH, the Law on Financing Railway Infrastructure and Co-financing of Passenger and Combined Transport, and the Law on Financial Consolidation of JP ŽFBiH d.o.o. Sarajevo, the company announced.