Belarusian Railway
State Association «Belarusian Railway»
UNP: 100088574 · 17 Lenin St., 220030 Minsk
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 1 200 225 | 968 939 |
| Intangible assets | 13 701 | 7 994 |
| Investments in long-term assets | 33 535 | 82 441 |
| Long-term financial investments | 13 849 | 13 856 |
| Deferred tax assets | 38 321 | 37 145 |
| Long-term receivables | 822 | 1 020 |
| Other long-term assets | 30 201 | 222 391 |
| Total Section I (long-term assets) | 1 330 654 | 1 333 786 |
| Inventories | 4 766 | 5 208 |
| Deferred expenses | 161 007 | 102 529 |
| VAT on acquired goods, works, services | 85 888 | 71 183 |
| Short-term receivables | 1 793 008 | 1 708 917 |
| Short-term financial investments | 32 091 | 41 780 |
| Cash and cash equivalents | 72 884 | 81 063 |
| Total Section II (short-term assets) | 2 149 644 | 2 010 680 |
| BALANCE (assets) | 3 480 298 | 3 344 466 |
| Charter capital | 0 | 0 |
| Additional capital | 319 286 | 227 634 |
| Retained earnings (uncovered loss) | -328 623 | -233 922 |
| Total Section III (equity) | -9 337 | -6 288 |
| Long-term loans and borrowings | 1 842 256 | 1 567 518 |
| Long-term lease liabilities | 392 014 | 369 214 |
| 0 | 11 814 | |
| Deferred income | 17 722 | 172 235 |
| Total Section IV (long-term liabilities) | 2 252 086 | 2 120 899 |
| Short-term loans and borrowings | 249 873 | 62 085 |
| Current portion of long-term liabilities | 324 020 | 569 141 |
| Short-term payables | 663 147 | 515 220 |
| — on lease payments | 225 678 | 123 805 |
| Deferred income | 509 | 83 409 |
| Total Section V (short-term liabilities) | 1 237 549 | 1 229 855 |
| BALANCE (equity and liabilities) | 3 480 298 | 3 344 466 |
Computed metrics
Integrity checks
Checks passed: 1 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Equity -9,337k BYN (-6,288 in 2022) — negative for a second year
- K1_sos = -0.623 vs norm >0.2 — long-term assets fully debt-financed
- Net loss 3rd year running: -127.7m (2022) → -94.9m (2023) → directional -120m (1H 2024)
- Uncovered loss grew from -233.9m to -328.6m (+40.5%) — accumulation continues
- Finance-activity expense 669m (+23.8% YoY): FX losses 487m + interest 116m (+78.6%)
- Long-term borrowings up +17.5% (1.57m → 1.84m)
- K1_current formally OK (1.737), but 83% of current assets = receivables 1.79m
- Short-term lease payments in payables 226m (+82.3% YoY from 124m)
- K3_revenue +44.5% YoY — significant growth under sanctions
- K2_sales 27.9% — operational efficiency
- Profit from sales up 8.8x (11.2m → 98.6m) on 1.44x revenue growth
- Income from stakes in subsidiaries 19.9m — holding structure is working
- 1H 2024 directional: profit from sales 47m (1H 2023: 19m, +145% YoY) — positive operating momentum continues
Recommendation
BZD (Belarusian Railway) is a natural monopoly over the railway infrastructure of the Republic of Belarus, a state association subordinate to the Ministry of Transport and Communications. Balance-sheet value BYN 3.48bn, 2023 revenue BYN 353m (+44.5% over 2022), a net loss for the third year running (−BYN 94.9m in 2023). The picture diverges along two planes: operationally the business is healthy and improving (sales margin 27.9%, profit from sales grew 8.8×); financially it is critically weak (negative equity −BYN 9.3m, accumulated uncovered loss −BYN 328.6m, long-term loans +17.5% over the year, financing-activity expenses of BYN 669m of which exchange differences BYN 487m and interest BYN 116m).
Recommendation: Restructuring — financial, not operational. Restructuring of the debt portfolio and reduction of currency exposure, while preserving state ownership and operational continuity. Privatization of the infrastructure core is not applicable (a national-level natural monopoly); liquidation is not applicable (critical infrastructure).
Confidence: MEDIUM_LOW. The source is the 2023 annual report (FY-2, as of the 2026 pilot); FY-1 (the 2024 annual) is not yet published on epfr. Semi-annual 1H 2024 data (available in a separate file, P&L) is used as a directional indicator — the positive operating dynamics are confirmed, and the half-year net loss is already −BYN 120m (will exceed the 2023 annual). Additionally: for state associations, F3 (changes in equity) and F4 (cash flow) are structurally absent on epfr — this is a feature of state-association reporting, not a data defect. Of the 6 cross-form sanity checks, 1 is possible (the balance equation — passed).
### Why restructuring
By the typological rule: monopolies primary → privatization and liquidation are struck out structurally. Restructuring + state_investment remain.
State_investment is considered as a supplement but not the main recommendation, because operationally the business is healthy and growing without additional investment: revenue +44.5%, profit from sales ×8.8 over the year. The problem is not a shortage of capital for operations — the problem is in the structure of existing obligations (long-term loans of BYN 1.84bn + currency exposure lead to BYN 669m of financing-activity expenses against revenue of 353m). Injecting more capital without restructuring the old debt = aggravating the problem.
Restructuring in the BNR 2.0 concept for BZD means:
1. Debt-portfolio restructuring — refinancing the BYN 1.84bn of long-term loans with the goal of lowering the interest rate (current interest of 115.9M = 6.3% of the average book value of the debt, ≈ 7–8% effective rate). Possible instruments: state guarantees, issuance of infrastructure bonds upon political stabilization, restructuring through state-participated banks on concessional terms.
2. Reduction of currency exposure — the bulk of the debt, on indirect signs, is FX-denominated (exchange differences produce a −53M effect on the net result). Restructuring toward local currency or hedging.
3. Preservation of operational continuity — no cuts to the network, services, or jobs. BNR 2.0 social protection (15% of shares / 80% of jobs) for BZD should be interpreted as a commitment to preserve all jobs in depots, hubs, and repair plants. Given the city-forming character for several cities — this is especially important.
4. State ownership is preserved — BZD is not in the privatization scope. This is consistent with international practice (DB, SNCF, ÖBB, JR — all mixed or fully state-owned).
### Health_score 0.55 — calculation and interpretation
Health_score on a 0–2 scale (per the project methodology). Rough orientation:
- 0.0–0.7: Critical
- 0.7–1.0: Distressed
- 1.0–1.2: Stable
- 1.2–2.0: Strategic
Calculation for BZD (approximate):
- Base rate of the operating part (sales K2 0.28, K3_revenue +0.44, profit from sales) → ≈ 1.2
- Financial adjustment (negative equity, persistent net loss, debt-expense ratio) → −0.65
- Total ≈ 0.55, falling into Critical
Qualifier: "leaning recoverable critical" — BZD differs from a case where the operating base is destroyed. Recoverability exists, but it requires financial intervention. This qualifier describes cases where operating indicators are positive while capital and bottom-line profitability are negative (the "operationally healthy, financially in crisis" pattern).