PKP Cargo estimates that in the first half of this year it recorded a net loss of PLN 453.1 million, the company reported in a stock exchange report on Tuesday. PKP Cargo is in the process of group layoffs, which began on August 14 and are to last until the end of October. Up to 30 percent of employees, or up to 4,142 employees, are to leave the company.
As reported by the group, the financial results achieved by PKP Cargo in the first half of 2024 were significantly influenced by the impairment tests of PKP Cargo and PKP Cargotabor assets carried out as at 30 June 2024.
“The main indications of a possible impairment of assets of both companies were lower than expected financial results achieved in the first half of 2024, which resulted in a significant deterioration of their liquidity situation. The results of the tests carried out indicate an impairment of fixed assets of PKP Cargo in the amount of PLN 179.3 million and PKP Cargotabor in the amount of PLN 74.6 million,” the release reads.
PKO Cargo results for the first half of 2024
The company will present the final data on the achieved results in the consolidated report for the first half of 2024, which will be published on September 30, 2024.
For the first quarter of 2024, PKP Cargo's consolidated revenues reached PLN 1,180.7 million, and the net loss amounted to PLN 118.1 million.
The EBITDA result is estimated at PLN 237 million and the EBIT loss at PLN 463.2 million.
Company restructuring
PKP Cargo is in the process of mass layoffs, which began on August 14 and are to last until the end of October. Up to 30 percent of its employees, or 4,142, are to leave the company.
According to data from the Office of Rail Transport, PKP Cargo's share in the rail market by weight of transported goods fell in the period January – July 2024 to 27.51% from 31.88% in the same period a year earlier. In 2022, in the period from January to the end of July, PKP Cargo's share in the market of transported goods by weight was 35.93%.
On July 25 this year, the District Court in Warsaw opened the restructuring proceedings of PKP Cargo, in which it decided to open the restructuring proceedings of the debtor – PKP Cargo.
PKP Cargo is the largest rail freight carrier in Poland. As the PKP Cargo Group, it offers logistics services, combining rail, road and sea transport. It provides independent freight transport in Poland and Czech, Slovakia, German, Austria, Netherlands, Hungarian, Lithuania and SloveniaThe largest single shareholder of PKP Cargo is PKP SA, which holds 33.01 percent of shares.
Main image source: Shutterstock