Company’s operating expenses totalled RUB 208.7 billion in the reporting period, up 2.2% on 2012 and 9.1% on 2011.
Carriage costs in 2013 totalled RUB 194.0 billion, up 2.1% on 2012
Payroll costs totalled RUB 28.7 billion or 97.3% of the previous year’s level. A RUB 0.1 billion reduction was due to a decrease in the volume of the actual work performed.
Materials costs stood at RUB 6.0 billion or 101.8% of the previous year’s level. This modest rise in materials costs, compared to the one experience by industrial enterprises, was kept to a minimum through a decrease in the number and price of maintenance work requiring uncoupling (in 2013, 16,377 passenger cars were uncoupled, down 13.2% compared to the previous year).
Fuel and electricity costs totalled RUB 1.1 billion or 96.7% against 2012. The cost reduction was achieved through the implementation of a programme of fuel and electricity consumption optimisation.
Other materials costs amounted to RUB 24.4 billion or 107.4% against 2012. This increase in the costs was due to an increase in the number of cars under overhaul by 737 units or RUB 1.29 billion.
Depreciation costs totalled RUB 13.3 billion or 96.2% of the previous year’s level. A RUB 0.4 billion reduction was due to shutdown and conservation of facilities not involved in carriage activities.
Other costs stood at RUB 112.8 billion or 103.3% of the previous year’s level, including:
The key factors of the reduction in other costs was a decrease in car mileage by 3.7%, train mileage by 3.2% and the number of trips by 7.0% on 2012 levels.
National passenger service costs totalled RUB 154.5 billion or 102.9% on 2012; baggage, cargo and mail transportation costs stood at RUB 10.3 billion (96.6% on 2012); international service costs reached RUB 29.2 billion (100.3% on 2012).
Other sales costs in 2013 totalled RUB 14.7 billion, up 3.6% on 2012 and up 11.2% on 2011. The increase was due to a rise in demand for non-carriage services in trains.
With passenger numbers declining dramatically, the Company implemented a number of cost optimisation measures to keep passenger service costs down at 18.1 roubles per 10 km travelled by a passenger.
Actual fixed asset overhaul costs in 2013 totalled RUB 10.1 billion, a 5.2% increase on 2012.
Passenger car repairs, both in car depots and at car repair facilities, accounted for the greatest part of the overhaul programme. In 2013, 3,930 cars were overhauled at a cost of RUB 9.4 billion (115.9% as compared to 2012 levels).
Production facility overhaul costs in 2013 stood at RUB 0.6 billion (44.6% of the figure reached in 2012).
The net effect of the cost optimisation measures taken in 2013 was RUB 6.3 billion.
The cost reduction was achieved through:
The optimisation measures allowed the Company to keep the cost down when the volume of work declined and achieve a positive financial result amidst lack of subsidies.
In 2013, the Company continued to implement a range of measures to ensure the required level of labour productivity amidst declining demand and the need to replace passenger train attendants recruited through outstaffing arrangements.
With the volume of service in decline (93.8% on 2012), the Company managed to keep the labour productivity at the previous year’s level (100.1%) by bringing the number of passenger train attendants in compliance with the volume of work that need to do (a reduction by 2,054 persons (4.8%) alongside a reduction of 2,752 persons (8.1%) in the number of staff not involved in passenger serving en route.
Average monthly pay of employees involved in carriage operations increased by 6.6% compared to the previous year’s level, totalling 32,689 roubles.
Adjusted to the consumer price index (6.8%), the purchasing power of the wages remained at the previous year’s level.