RSS
Infrastructure: CFR SA announces losses of over 955 million lei for 2023, almost 910% higher than in 2022
CFR SA, the administrator of railway infrastructure, estimates losses of 955.436 million lei for the ongoing year, 909% higher than the one recorded in 2022, according to the motivation accompanying the draft Government Decision approving the income and expense budget for 2023 of the National Railway Company CFR SA, subordinated to the Ministry of Transports and Infrastructure (MTI).
“The gross result programed for 2023 is negative – losses of 955,436.44 thousand lei. The estimated loss for 2023 is higher by 909.67%, that is 860,807.54 thousand lei, than the one recorded on December 31, 2022 as follows: reducing incomes from transfers to maintain railway infrastructure by 14.12%, an amount of 265,689.30 thousand lei against the results of 2022; the increase of personnel expenses by 32.49%, an amount of 656,782.46 thousand lei, as a result of salary increases according to provisions of law 195/2020 as of July 1, 2023; the increase of stock expenses (energy, water and fuel) by 24.06%, an amount of 82,724.83 thousand lei compared to those of 2022; the increase of expenses with other services made by third parties by 19.22%, the amount of 54,837 thousand lei,” according to the document issued for public consultation on Friday.
CFR SA is managing the public railway infrastructure according to a specific, devoted law, with incomes established by legal regulaitons and fixed administration and functioning expenses.
CFR SA designed total expenses of 5.29 billion lei for 2023, on the rise against those made in 2022 by 4.12%, an amount of 209.547 million lei. As structure, exploitation incomes of 5.155 billion lei have a share of 97.44%, while financial incomes of 135.212 million lei have a share of 2.56% of overall incomes.
Exploitation incomes were programed on the rise by 4.16% against the ones obtained in 2022, an amount of 205.648 million lei.
The business figure of 1.155 billion lei was scheduled on the rise by 10.38% (+108.621 million lei) compared to the one obtained in 2022 and represents 22.40% of total explotation incomes.
“The amount obtained from the tax for using railway infrastructure (TUI) is the main income the company gets from offering access to all goods and passenger railway transport operators, based on access contracts signed. The value scheduled for 2023 is 965,300 thousand lei, higher by 11.82% than the one obtainedin 2022 and represents 18.73% of all exploitation incomes”, the motivation shows.
Incomes of 1.616 billion lei from subsidies and exploitation transfers related to the net business figure represent the contribution of the state budget to financing expenses for maintenance, functioning and repair of public railway instrastructure owned by the state and administered by the company.
Incomes from transfers for maintenance and functioning/exploitation of public railway infrastructure in 2023 were planned on a dropping trend by 14.12%, an amount of 265.689 million lei, compared to the ones obtained in 2022, with a share of 31.36% of overall explotation incomes . They are used mainly to pay obligations to the general consolidated state budget, ensuring expenses established by law for the maintenance and functioning of the public railway infrastructure and ensuring expenses established by service contracts.
“Budget allocations provided for CFR SA in the state budget law for 2023, no.368/19.12.2022, do not fully cover the payment of company obligations to the state budget, salaries needed for maintenance and exploitation activities for rails and installations, for the full payment of obligations to the general consolidate budget for salaries of personnel working in rail maintenance and repair sections, installations, and equipment. In order to cover the application of law 195/7.09.2020 on the status of railway personne an additional amount of 1,616,261 thousand lei in 2023 which was allocated by law 368/2022- the state budget law for 2023, with 373.343 thousand lei: 598 thousand lei for payment of obligations to the state budget, 745 thousand lei for payment of salaries for personnel working in railway maintenance, repairs”, according to the document.
The indicator “Other exploitation incomes”of 2.329 billion lei was scheduled for 2023 on the rise by 17.7% compared to 2022, an amount of 350.464 million lei, and has a share of 45.18% of total exploitation incomes.
In the category “other exploitation incomes”, incomes from subsidies for investments, of 2.263 billion lei were scheduled on the rise by 22.13%, an amount of 409.963 million lei, compared to 2022.
Financial incomes for 2023 were scheduled on the rise by 2.97% to 135.212 million lei.
Total expenses of 6.245 billion lei were established according to concrete activities from purchse of goods and services programs, for carrying out activities based on real payment possibilitie, investment and equipping programs, to the limit of their legal financing sources, reconsidering salary expenses and mandate expenses.
Total expenses were planned on the rise by 20.68%, an amount of 1.07 billion lei. In the structure of overall expenses, exploitation expenses of 6.115 billion lei, hold a share of 97.92%, while financial expenses of 130.137 million lei have a share of 2.08%.
Exploitation expenses were scheduled on the rise by 21.22% - that is 1.071 million lei, compared to 2022.
Of all exploitation expenses, goods and services hold a share of 15.87% (970.818 million lei, +5.78%), while staff expenses of 2.678 billion lei have a share of 43.8%.
Personnel expenses were schedules on the rise by 28.30%, 590.716 million lei, compared to 2022. Salary expenses of 2.589 billion lei, were estimated on the rise by 28.63%, an amount of 576.193 million lei against the amount approved in the income and expense budget rectified in 2022.
Salary increase expenses are based on the takeover by CFR SA of 2,239 employees from Electrificare CFR SA.
“The value of salary expenses of 1,952,619.02 thousand lei in 2022, does not exceed the value of salary expenses approved in the rectified income and expense budget of 2022 of 2,012,761.10 thousand lei,” the document shows.
Sources needed to finance institutions in 2023 – 3.434 billion lei, were scheduled on the rise by 51.05% - 1.161 billion lei, compared to 2022.
Investment sources for 2023 will come from : proper sources (960,610 lei), budget allocations for investments (162 million lei), state budget and foreign grants (133.355 million lei), of which: projects with financing from foreign grants, programs from the cohesion fund (1.378 billion lei), projects with financing from foreign grants, within the National Recovery and Resilience Program (1.470 billion lei), projects approved in the Mechanism for European Interconnection (148.643 million lei).
At the same time, CFR SA estimates that delayed payments of 310 million lei, will double and will grow by 293.66 million lei compared to 2022. Reasons for this estimation are: non payment of delayed debts from CFR Marfa and CFR Calatori until the end of 2023; insufficient allocation from the state budget of amounts needed for maintenance and exploitation of public railway infrastructure against financing needs; the gross negative result of the company; overall income increase index, scheduled for 2023, against 2022 is 4.12%, while the growth index of total expenses programed for 2023 is 20.72%.
“At the end of 2022, the company recorded unpaid debts of 1,473,345.43 thousand lei, of which: CFR Marfa SA (69.57%), 1,024,943.84 thousand lei and CFR Calatori (7.42%), 109.384,07 thousand lei. In 2023, SNTFM CFR Marfa SA continues the procedure of arrengement with creditors, approved by Bucharest Court in 2020, a fact which made impossible to estimate the value of debts to be paid by this company,” a motivation document shows.