OREANDA-NEWS. According to International Accounting Standards (IAS), consolidated revenues of the holding in 2006 were 877.9 billion roubles, an increase of 17.2% compared to the previous year, the Russian Railways press service announced.

Revenues from cargo and passenger transportation increased by 113.0 billion roubles, up 16.6% on 2005. Operating costs in 2006 were 684.7 billion roubles, an increase of 11.4% compared to 2005. Operating profits (after payments from federal and local budgets to compensate for losses) in 2006 were 194.7 billion roubles, an increase of 43.7% compared to the previous year. OIBDA (Operating Income before Depreciation and Amortisation) in 2006 was 257.5 billion roubles, an increase of 26.7% compared to 2005. The OIBDA-consolidated revenues ratio in 2006 was 29.3%. Tax on profit was 63.4 billion roubles, an increase of 43.4% in the comparison since 2005 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) in 2006 was 273.0 billion roubles, up 31.6% on 2005. The EBITDA-consolidated revenues ratio in 2006 was 31.1%. EBIT (Earnings Before Interest and Taxes) in 2006 was 210.2 billion roubles, up 49.8% compared to 2005. The EBITDA-consolidated revenues ratio in 2006 was 23.9%.Consolidated net profit in 2006 was 139.8 billion roubles. Profitability ratios were up in 2006 compared to 2005.Return on sales (by net profit) increased by 3.8% in comparison with the previous year to 15.9%, while return on equity (on net profit, i.e., taking into account the effect of previously recognized losses from depreciation) in 2006 was 12%, 3.4% more than in 2005.The financial stability of Russian Railways is characterised by high cash flows from operations.
Net cash flows from operations in 2006 amounted to 239 billion roubles, most of which were directed at financing the investment activity amounting to 215 billion roubles, but also to interest payments and the recovery of short-term loans (net outflow on financial activity was 19 billion roubles). Cash resources and cash equivalents showed a net increase of 5..2 billion roubles. In 2006, net capital expenditures amounted to 209 billion roubles.

Russian Railways' financial results in 2006 reflect the successful restructuring of the Company and reforming of the rail sector in general.