Kazakhstan Temir Zholy NSE (KAZAKHSTAN): structure of income and expenses General information, history, licenses

/IRBIS, July 11, 01/ - The following is a brief data of structure of income and expenses of Kazakhstan Temir Zholy NSE (Astana) composed on the basis of conclusion of Kazakhstan Stock Exchange Listing committee (KASE). The data is published due to admittance of second issue inscribed coupon bonds of the company (KZ2EUY03A368, $100, $30m, July 10.01 - July 10.04, semiannual coupon at 8.0% APR) to the official list of the KASE securities under category "A" and due to holding on June 12 the auction of primary floatation of those securities in trade system. The management of Kazakhstan Temir Zholy NSE is liable for the reliability of the information presented by the KASE Listing commission. The cargo transportation ratio of aggregate income of Kazakhstan Temir Zholy NSE is approximately 82-85%, the passenger transportation - 9-12% and 4-6% is of other activity. Last year the operating income was KZT123.2bn,higher at 31% against 1999. In 1999 income decreased to 41%. INCOME In 2000 Cargo transportation income increased at 34.7% against 1999 and totaled KZT104.7bn. The decline of cargo transportation income was due to decrease of cargo turnover in 1999 and non perspective discount of rates for significant shippers. In 1999 the income of transit transportation increased at 10.9% respective to previous year. In 2000 there was a positive dynamic of income of transit cargo transportation and by results of 2000 the income of transit cargo transportation increased at 40.6% respectively to 1999. COMPARATIVE DATA OF TRANSPORTATION DYNAMIC IN PERIOD 1998-2000 (IN KZT M IF ANOTHER CURRENCY NOT INDICATED) ----------------------------------------------------------------------- 1998 1999 1999 2000 2000 Type of transportation against against 1998, % 1999, % ---------------------------- -------- -------- ------- -------- ------- Cargo transportation (domestic+export+ import) 61,293.0 52,885.6 86.3 86,987.3 164.5 Transit cargo transportation 11,049.9 12,259.3 110.9 17,241.2 140.6 Passenger carriage 10,260.7 8,758.5 85.4 11,650.3 112.4 ----------------------------------------------------------------------- In 2000 The income of passenger carriage increased at 12.4% against 1999. In 1999 we could observe the decrease if passenger carriage to 43.6% against 1998. The main influence upon the decrease was artificial decline of rates for passenger carriage and the shortage of passenger turnover. The significant decrease of purchasing power of residents was the main factor influenced the decrease of passenger turnover in 1999 against 1998. The forbid for Kyrgiz and Uzbek transit railways during several weeks reasoned the decrease of turnover as well. It took place due to debts of railways authorities of Kyrgizstan and Uzbekistan. Since the beginning of 2001 rates for passenger carriage in tenge calculation increased at 7%. OPERATIONAL EXPENSES Since 1998 the management of Kazakhstan Temir Zholy NSE conducts the program of operational expenses shortage. In 1999 operational expenses of company decreased at 49.5% from KZT88,972.9 m in 1998 to KZT60,624.4 m in 1999. It was due to use of available equipment instead of purchasing a new one. In 2000 operational expenses of Kazakhstan Temir Zholy NSE increased at 19.5% respectively to 1999. In 2000 over 86% of operational expenses of Kazakhstan Temir Zholy NSE totaled 30.6%-staff expenses, 41.03%-expenses for fuel power and services, 14,54-depreciation expenses In 2000 Expenses for materials and services increased at 59% respective to 1999 after its decrease in 1999 to 65% by 1998. The main factors reasoned the increase of this article in 1998 were growth of expenses for complete repair, prices for material sources, fuel and energy and growth of repairing works caused by new spare parts used in repairing works. Sharp decrease of expenses in 1999 was caused by stricter control over the budget, 50-70% shortage of complete and engine house repairing works increase of intervals between repairing works of rolling stock, decrease of expenses for materials due to reconstruction of depreciated spare parts, more economic fuel and energy use. Depreciation. In 2000 expenses for depreciation increased up to KZT7,549.1 m or 1.7% respective to 1999 (KZT7,417.7 m) in 1999 increased up to KZT7,417.7 m or 0.9% by 1998 (KZT7,317.7 m). In 1998 Kazakhstan Temir Zholy NSE realized the program of writing off old ad non effecting rolling stocks, equipment and other materials.