Fully state-owned Georgian Railway reported 9M12 financial results. Revenues remained flat at US$ 213mn. The company’s adjusted EBITDA (excluding Batumi Tower disposal and other nonrecurring items) also remained largely flat at US$ 116mn. GR reported 82% y/y decrease in net income to US$ 15mn due to US$ 21mn one-off cost related to disposal of Batumi Tower and reversal of net finance income to net finance cost of US$ 28mn as of 9M12. Georgian Railway remains compliant with debt covenants; however the company performance was below our expectations.