PKP Cargo and transport minister found guilty of a decline in the share price of the company – it is the previous management, which bought Czech railway carrier ATW . During the year, the course lost two-thirds of the value and financial results for the first quarter of this year are fatal. Previous government companies argue that the purchase AWT was a good investment.
PKP Cargo bought 80 percent. shares in the company Advanced World Transport, the second largest rail freight carrier in the Czech Republic, at the end of December 2014. The value of transactions reached 103.2 million euros, or about 450 million zł. The then president of PKP Cargo Adam Pruwin said then that the Czech Republic is for the carrier gateway to the south of Europe, also emphasized as an important market for PKP Cargo is the Czech Republic. PKP Cargo boasted that the AWT Group is one of the largest private rail freight operators in Europe and the second largest carrier in the Czech Republic, with nearly 10 percent market share. In 2013, the Group AWT transported 12 million tons of goods and achieved 282 million euros of revenue.
The transaction will test the service?
It was not long year and a half of these events, and the situation it looks a little different. First of all, the main customer AWT, which OKD mining company, fell into financial trouble, which ended with the conclusion of the bankruptcy of the company. AWT itself – according to those declared by the board of PKP Cargo – no financial problems. But it does not bother nor the minister of infrastructure, or the authorities of PKP Cargo in criticizing the entire transaction.
– have followed you, respected Government Platform and the Polish Peasant Party -u before buying the company AWT by PKP Cargo. And what happened? The company AWT was purchased. (…) Today we have a situation here that the main contracting AWT declared bankruptcy. This document is a Czech court. Today, not only the Polish government, not only Poles, but also the shareholders have a problem. If you ever say that PKP Cargo shares fell after the Law and Justice covered governments to Strike firmly in the chest. I think that the issue of the purchase of AWT check the relevant departments, because although respected, although called for, spent 460 million zł for the purchase of the company. Probably the money has been wasted – said Infrastructure Minister Andrzej Adamczyk, uttering his part of the audit rule of PO-PSL.
– Minister linked the decline in the share price PKP Cargo with the purchase of AWT. I told the truth. Any decision related to the AWT immediately resulted in a decrease in the exchange rate – said Monday the president of PKP Cargo Maciej Libiszewski asked about this statement Adamczyk.
With such a placing things did not agree, however, on condition of anonymity former member of the supervisory board of PKP Cargo. – Market very well received transaction, which was a pillar of the growth strategy outside Polish, continued by the current management. The share price after the announcement of the purchase increased by ten percent to nearly 90 zł per share – said in an interview with money.pl. – The decline in the share price PKP Cargo to about 34 zł initiated requests regarding union. Further rises. Previous board for it disagreed as well assessed the stock exchange investors. It is worth noting that since the change of the board of the company’s value fell by nearly 2 billion zł – he added.
PKP Cargo on a big minus
According to the announced on Monday the company’s results for the first quarter of 2016 with revenues of 1.03 billion zł (an increase of 15 per cent. year-on-year) and capital expenditures 185 million zł, the company recorded a loss of 66 million zł. In the first quarter of 2015. Was 22 million zł profit. EBITDA fell year on year by 40 per cent., To 81 million zł. According to the Board of PKP Cargo guilty weaker results include warm winter, falling transportation across the country and growing competition. – These results are not the best, but that does not mean that we surrender – says CEO Libiszewski. The company’s management announced that in the coming months will focus on cost optimization. President Libiszewski announced an inventory of activities carried out by previous managements.
Yes changed share price PKP Cargo for the last year
Former member of the supervisory board where else sees the cause of the poor performance of PKP Cargo. – Previous management, in addition to investments in the development of PKP Cargo, very guarded costs. Present, the price of social peace, withdrew most of the savings that were made in previous years. For example, restored closed the plant in Jaslo, which is not economically justified, but it is demanded by the trade unions – explains.
PKP war. Pricing
Expert of the transport market and the president of the foundation ProKolej Jakub Majewski believes that linking the depreciation of the company kupieniemATW this abuse. – It seems that it is still too early to somehow she could clearly compromise the course and outcome of PKP Cargo. But I agree with the minister Adamczyk, there is a problem with this transaction. Mainly so that you do not really know what Cargo bought the company. It was not about the entrance to the Czech market, for PKP Cargo has already had a permit, which allowed him to self-realization of transport in the Czech Republic. There was also about the camp, because that PKP Cargo has happened in excess. The only justification was to buy the company for its main customer, which is a coal producer. Only no one took into account that the situation of the coal market in the Czech Republic may be even worse than in Poland – suggests the expert.
In his opinion, the company’s poor performance is a result of its trade policy, which is already a long time. – Carrier for years led the price war. To the extent that applying for a contract extension presented calculations by several dozen percent lower than their own proposals of a year or two years earlier. It looked like he fought with himself. It was enough to swing any on the market, so these calculations ran over and there was no more of them down, because the margins and so were the traces – draws attention.
As explained in an interview with money.pl board member of PKP Cargo for. financial Arkadiusz Olewnik, margins in the first quarter. They were actually lower than in the first three months of 2015., but it is higher than in all of last year. – Now slowly we turn this level – he added.
By Majewski very well happen that PKP Cargo is quoted. – Shareholders very clearly shows what they think of the commercial policy of PKP Cargo. Who knows, maybe if management stopped at any price to fight for the largest market share and gave up some contracts, for which the company does not make money or earn very little, this course may have begun to grow – emphasizes the expert.
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