OPERAIL MAKES IT THROUGH

vious year. However, after accounting for the revaluation of assets, Operail incurred a net loss of €16 millions.

Raul Toomsalu, the Chairman of the Management Board, shed light on the factors contributing to this mixed financial outcome. He attributed the substantial decrease in goods transported in Estonia to the outbreak of war and the subsequent imposition of sanctions in 2022. The adverse effects of these circumstances were further compounded by the prohibition on Russian cargo, which came into effect in January 2023, adversely impacting both the company and its asset valuation. Nevertheless, Toomsalu emphasised that despite these challenges, Operail fared commendably at the operational level, with the losses primarily stemming from the necessary revaluations prompted by the aforementioned factors.

In addition to the aforementioned setbacks, Operail faced additional financial burdens. The company incurred expenses totaling one million euros higher than usual, primarily attributable to redundancies and advisory costs related to the sale of wagons and the Finnish business. These unforeseen expenditures added to the intricacies of an already arduous period for the railway conglomerate.

Despite the hurdles faced, Operail's performance, with- in the context of the exceptionally demanding economic climate, is a testament to the company's resilience and resourcefulness. As they forge ahead, Operail will need to recalibrate its strategies and explore new avenues for growth, leaving behind a chapter that once constituted their core lines of business.

“However, these are good financial results in extremely difficult circumstances, as both turnover and EBITDA remained strong, but this is thanks to the non-strategic business lines that were still in place last year and which Operail no longer operates this year,” Toomsalu noted.

In Q1 2023, Operail sold its last leased wagons and its freight transport subsidiary in Finland.

EBITDA or operating profit before depreciation and amortisation of the divested business lines, such as rental of wagons and Finnish freight transport in 2022, amounted to €11 million in the reporting period, while net profit before the revaluation of assets amounted to €4 million. The remaining business lines had an EBITDA of –1 million euros and a net loss of €10 million in 2022.

“This year, Operail will only be able to continue with Estonian rail freight transport as a loss-making business thanks to the proceeds from the sale of profitable busi-