"Market developments are positive for the industry. Large industrial companies are outsourcing rail transportation requirements," Chief Financial Officer Alexander Shenets said.
The outlook came as Globaltrans reported a 40 percent rise in 2011 profit to $317.2 million, ahead of expectations, while hiking full year dividend payments to $0.64 per share, up from $0.37 a share in 2010.
UBS analysts had been expecting net income of $254 million, which they said was in line with consensus.
Globaltrans global depositary receipts have climbed 20 percent in the year to date.
The Russian market grew 8 percent in the first quarter, the company said.
"The expectation of the company is for market growth to be stable .. roughly 8 percent for the rest of the year," Chief Executive Sergey Maltsev said, adding that the forecast made him optimistic for the group's prospects in 2012.
Consolidation Talks
Globaltrans, which raised cash via a secondary share offer to buy a controlling stake in BaltTransServis in 2009, said it was still on the look out for acquisitions despite pulling out of the $4 billion auction for control of state-owned Freight One late last year.
"There are talks about consolidation around but making forecasts .. would be premature," CEO Maltsev said.
Globaltrans' ability to make acquisitions was boosted last year by the lowering of its net debt pile by 32 percent to $258.4 million.
It said earlier this week it had agreed to buy nearly 10,000 new railcars for delivery in 2012, its target for the year. The purchases will be funded from borrowings and its own cash reserves.
"Our net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio is quite low. We still have the ability to borrow money to finance our capex plans, but of course we have different instruments in our portfolio," said CFO Shenets, adding that a return to capital markets could not be ruled out.
Globaltrans is just over 50 percent owned by private infrastructure group N-Trans, which also co-owns recently floated firms Global Ports and road and bridge builder Mostotrest. (Reuters)
