Renfe made public this Monday the results preliminary closing of 2022, this result has not managed to recover results, mainly due to the impact of the rise in energy prices and the drop in passenger traffic, which still suffers in the first quarter, years as a result of the recovery of cases produced by Omicron variants.
The Ministry of Transportation company said that these two factors They caused pre-tax losses of €108.6 million last year.
The company argues that the cost of energy traction is 630.1 million euros, 277.4 million more than in 2021, so this cost item increases by 78.6%.
The specific weight of energy costs, which In 2021 they accounted for 11% of operating costs of Renfe, the main consumer of electricity in Spain, amounted to 16.4% of operating costs totals and represents the item with the highest expense in the income statement, only surpassed by royalties and personal expenses.
The income statement was also shaken by the impact of the fifth wave of the new coronavirus. Test revenue from ticket sales in the first quarter were a lower 21.3% as expected and the Group's results in that period were much worse than in the other three quarters (95 million losses from January to March compared to 13 million from April to December).
If the two special effects were considered in isolation, the company could have achieved a positive result for the full year without quantifying the forecast.
Income improvement
On the positive side, Renfe's results improve thanks to traffic data 3,788 million euros, 844.8 million more than the previous year, 28.7% more.
The figure is in line with the numbers registered until November
The income of Renfe Viajeros, the main driving force of the group, increase by 43.5%, while Goods, the second subsidiary, also improves 15.7% in this sense.
Including other income, gross sales of Renfe amounts to 4,127 million euros, 27.5% more than in 2021.
Intermediate results are essential to obtain profits, the last year closed on the ground was in 2019, with a total profit of 86 million euros (compared to 120 million euros in 2018) and similar income of about 4,000 million euros.
Conclusion
Renfe, the leading railway company in Spain, has suffered a severe economic blow due to the rise in energy prices and the effects of Omicron.
The company reported a loss of 108 million dollars in 2022, which will have long-term implications for your operations.
This significant loss could result in Renfe have to make drastic changes to your business model business and operations.
They may be forced to introduce cost-cutting measures, such as reducing staff, cutting routes or increase ticket prices.
This could result in reduced services for customers, which will likely affect customer satisfaction.
The long-term implications of this financial loss remain to be seen, but it is clear that Renfe must take action if it hopes to remain profitable in the future.
They must find ways to reduce costs while still providing efficient service or risk losing even more money in the future.