Operail’s profit increase: freight transport plays a major role
The operating profit of the Operail Group in the first quarter of 2021 increased by more than 30%, reaching 1.4 million euros compared to the same period last year; EBITDA increased by as much as 34% to 4.4 million euros. The turnover of the group reached 18.3 million euros, showing a 14% increase.
The increase in the volume of freight transport plays a major role in the significant growth of the financial results of the international transport and logistics company. “In the first three months of the year, we transported a total of 3.4 million tonnes of goods in both Estonia and Finland – we increased the volume by 35% compared to the previous year. This was an excellent result,” said Raul Toomsalu, Chairman of the Management Board of Operail.
By product groups, mineral fuels and fertilisers showed a growth trend. “We have been able to transport more than 1.1 million tonnes per month on average – this is a very good indicator that ensures the sustainability of our freight transport. As a new product, we started transporting coal in Finland,” said Toomsalu. The increased freight volume has increased the transport revenues of Operail by more than 40% to 11.9 million euros in the first quarter.
Although the rental income of wagons decreased by 10% compared to the same period last year to 3.4 million euros, according to Toomsalu, the wagon classes purchased have withstood the decrease in trade caused by the coronavirus well and a decrease in price pressure can be expected. “A small part of the semi-wagon fleet had no use in the first quarter, but now suitable renters have been found for them and the revenue base is recovering. We plan to expand the wagon fleet.”
At the end of the first quarter of 2021, the Operail Group had rented more than 2,100 wagons – Operail had rented more than 1,000 wagons, Operail Leasing more than 900 wagons, and Operail Leasing Finland more than 190 wagons.
In addition to the parent company AS Operail, the Operail Group also includes AS Operail Leasing and subsidiaries in Finland – Operail Finland Oy and Operail Leasing Finland Oy. The company employs almost 600 people in Estonia and Finland.
