Israel Railways reports first-ever profit

Israel Railways train  picture: Eyal Yitzhar
Israel Railways train picture: Eyal Yitzhar

The company carried a record 35 million passengers in January-September 2014.

Israel-Israel Railways finished the first nine months of 2014 with a NIS 143.8 million profit from current activities, according to the company's third quarter reports. This is the first time since the company was founded in 2003 that the company reached black ink. 35 million passenger journeys were made during this period, 8% more than in the corresponding period last year.

Ahead of the company's upcoming bond issue, Israel Railways can boast of an impressive performance: 4.7 passenger journeys in December 2014, the highest monthly figure in the company's history. The company's revenue from passenger train operations totaled NIS 522 million in the third quarter, up NIS 43 million, compared with the corresponding quarter in 2013.

Revenue from cargo trains also grew, reaching NIS 129 million in the third quarter, up NIS 23 million, compared with the third quarter of 2013.

Several days ago, Israel Railways submitted to the Israel Securities Authority a draft prospectus for a NIS 1 billion bond issue in 2015. By government decision, a total of up to NIS 2 billion in bonds will be issued over the next two year for investment in development of railway infrastructure, as part of a NIS 30 billion development budget extending to 2020.

Israel Railways CEO Boaz Tzafrir said, "Business thinking, managerial attention, cost cutting, and substantial investment in service are increasing the number of passengers and cargoes and increasing profits. As a company committed to the passengers, Israel Railways will invest its profits in further improvement of service for its customers."

Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Israel Railways train  picture: Eyal Yitzhar
Israel Railways train picture: Eyal Yitzhar
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