Operating expenses helped push down Q2 profit 28% year-over-year for Brazilian rail operator MRS Logistica, according to the company's Q2 release.
MRS reported a 94.4mn-real (US$53.9mn) profit in Q2 compared to 131mn reais in 2Q09. In the same period, net revenues increased 14.8% to 600mn reais from 523mn reais, but Ebitda was down 12.3% to 248mn reais from 283mn reais.
Operational expenses contributed to the drop, the company said, mainly from a 27.2mn-real provision advised by MRS legal consultants to cover costs related to the Rio de Janeiro ICMS debt relief.
Handling of the company's main transported product, iron ore, increased 24% to 26Mt from 21Mt. Exports represented the brunt of the total at 22.3Mt, according to the release.
MRS Logistica was founded in 1996, and operates the southeastern federal railroad network connecting Rio de Janeiro, Minas Gerais and Sao Paulo states.
The firm transports iron ore, steel, coal and coke, cement, bauxite and agricultural products, among others.
The company has 1,643km of railway that connects to Sepetiba port in Rio de Janeiro state and Santos port in Sao Paulo state.