GFR: Operating profit margin to rise 5%

Freight company Grup Feroviar Roman (Romanian Railway Group), the most important freight company in the private sector, has budgeted a 15.9% EBITDA margin, against 10% last year. Grup Feroviar Roman is a part of the Grampet group, controlled by businessman Gruia Stoica, alongside companies such as Reva Simeria, Turist Semenic and Remar Pascani. The upward trend of the profit comes after the company derived turnover worth 84-86 million euros this year, up around 50% against 2006. “The increase of our fleet, the new clients, as well as the higher volume of transportation services provided to already existing clients, have contributed to this growth,” said Ion Garoseanu, vice-president of the company. Among the company’s clients are Petrom, Lafarge, Holcim, Mittal Steel, Shell Gas, Conpet and Compania Nationala a Huilei. Grup Feroviar Roman derives the bulk of its turnover (around 97%) from domestic railway freight, but the share held by international transport will reach around 10% within the next two or three years. A factor behind the rise of the share of international transport will be the development of the two companies in Hungary and Bulgaria, in which GFR holds majority stakes.