Bulgarian Railways Continue to Accumulate Losses

Politics » DOMESTIC | May 21, 2018, Monday // 12:35| Views: | Comments: 0
Bulgaria: Bulgarian Railways Continue to Accumulate Losses pik.bg

Bulgarian State Railways continues to report losses and fail to record even a modest positive result. This show the reports of the companies from the railway for the first three months of the year.

BDZ "Passenger Transport" is hard to make its service more attractive and to make more people use the train instead of choosing their cars or bus. However, there is an improvement. The January-March financial result recorded a loss of BGN 250 thousand, with a reported loss of BGN 3,352 million for the same period in 2017 or an improvement of BGN 3,102 million. In addition, the revenues also come from the fees the company collects for the use of locomotives, an increase in depreciation revenues, and so on.

The first three months of the year ended with negative results and BDZ "Freight Transport" reported a loss of BGN 2,726 million. This financial result compared to the same period of the previous year was improved by BGN 449,000, which is to some extent due to the increase in freight revenue.

The data for the whole period of 2017 shows that the Bulgarian State Railways ended with a loss of BGN 8.2 million last year. In comparison, the reported loss in 2016 was BGN 20.2 million. However, according to the company's financial statement, this is mainly due to the reduced costs of impairment of receivables, the sale of properties such as Bankya's holiday home and others.

The National Railway Infrastructure Company (NRIC) is not an exception. The company ended the first three months with a loss of BGN 25 million, with a loss on the business plan of BGN 22 million and reported for the same period in 2017 loss of BGN 21.9 million, shows the NRIC report. The company ended in 2017 with an accounting loss of BGN 50.6 million, and in 2016 it was BGN 28.2 million.

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