SNCF: record net loss of 12 billion euros – The Point

On Monday, the SNCF, which must publish its annual results this week announced that it would need to undertake a depreciation of its assets over 12 billion euros in 2015. The group accounts should suddenly record a net loss record close to 12 billion euros for the year. This impairment of assets, made on the basis of a simulation of what they will be worth in 15 years will be $ 9.6 billion for SNCF network (rail infrastructure), from 2.2 billion euros Mobility SNCF (trains) and 450 million euros for the stations. thus the value of Network Password 43000000000-33000000000 after evaluation of Auditors.

The group sought reassurance, however, noting that it was “not a euro exit crates” and that it “in no way compromised cash or investment capacity.” The depreciation in the value of assets SNCF Mobility, which is equivalent to that of the TGV, is explained partly by “the traffic forecasting declines due to rising competition from other modes of transportation such as carpooling, low cost airline, or the bus, “said a spokesman for the group. “The other half is related to the effect of the contract TGV Tours-Bordeaux, where we explained that we were going to lose money, which resets the value of balance sheet perspective oars” added the spokesman.

consolidated results

Since the entry into force of the railway reform on 1 July 2015, the SNCF publishes for the first time the consolidated results, which include those of SNCF SNCF Network and Mobility. This consolidation has resulted in harmonizing the projections of activity and traffic, so revenue of the group. “This reconciliation, plus the fact that the economic context has not been getting better in recent months, has led us to make a technical readjustment leads us to spend an accounting depreciation,” said the spokesman, ensuring however operating results are not them “not affected”. “In Network, we are faced with a public monopoly that does not have the same profitability targets as a normal business and that, accounting standards do not render account,” says the spokesman, adding that the value of the assets may well be “revised upwards in a year,” which has already been the case in the past.

the group recorded a net operating profit of 377 million euros 2015. “We have enjoyed growth of our turnover by 5%, and 1% at constant scope, despite the context, which is not easy,” said the spokesman. The turnover was mainly driven by international markets, up 10%, including Keolis subsidiaries (urban transport), Geodis (logistics) and Systra (engineering). The TGV traffic is also growing by 0.5% for 2015. The debt amounts it 42 billion for SNCF network and about 8 billion for SNCF Mobility.