Financial and operating results of FESCO Transportation Group for 2021

03 April 2022
FESCO Transportation Group (“FESCO”, the “Group”) announces its operating and financial results for twelve months ended on December 31, 2021. The Group also informs that all audit procedures regarding 2021 IFRS consolidated financial statements have been completed. Full version of financial statements with notes is published on, section Investor Relations.
Financial and operating results of the Group

In 2021, FESCO Transportation Group improved its key operating and financial indicators and set new records in its activities, in particular:

achieved record volumes of cargo transshipment in Commercial Port of Vladivostok (hereinafter – “CPV”) in the amount of 13.3 million tons, including a record container turnover of 757 thousand TEU;

reached EBITDA in the amount of 47 474 million rubles, which is almost 4 times higher than the level of 2020;

refinanced obligations to VTB Bank (PJSC) with annual uniform repayment for a period up to 2027, changed currency structure of debt in favor of rubles;

reached a record low «Net debt to EBITDA» ratio of 0.5x as of December 31, 2021. In comparison to the same date of 2020, the indicator has been reduced by 5.6 times. International and Russian credit ratings have been improved to levels “B+” with a stable forecast and “BBB-“ with a stable forecast, respectively;

continued to increase assets:

  1. fleet of the Group has been replenished with three vessels – FESCO Olga, FESCO Yanina, FESCO Sofia;
  2. container fleet in operation has been increased to a record 109 thousand TEU;
  3. the fleet of fitting platforms has been replenished with 1 286 units of 80-ft platforms.

Operating results of the Group:

Indicator 2020 2021 Alteration, %
Container transshipment in CPV (thousand TEU) 672 757 13
General cargo and oil products transshipment in CPV (thousand tons) 4 972 5 584 12
Intermodal transportations (thousand TEU) 393 465 18
International marine transportations (thousand TEU) 293 284 (3)
Coastal shipments (thousand TEU) 80 81 1
  • Total cargo turnover of CPV in tons increased by 16% compared to 2020.
  • Intermodal transportations volumes increased by 18% compared to 2020 and amounted to 465 thousand TEU by developing the geography of transportations, increasing container fleet and the fleet of fitting platforms.
  • Total volumes on marine arm of multimodal transportations are maintained at the level of year 2020 despite market restrictions caused by imbalance of supply chains due to COVID-19 crisis.

Financial and operating performance by divisions

Liner and Logistics Division

    Financial performance
  • Revenue grew to RUB 46 586 million (up 23% YoY), driven by an increase in intermodal transportation volumes and the international trade shipping rates.
  • EBITDA reached RUB 3 270 million (up 42% YoY).
    Operating performance
  • Intermodal transportation volume reached 393 thousand TEU (up 14% YoY), mainly due to launching new regular services, project transportation and expanding the portfolio of customers.
  • International maritime transportation volume reached 293 thousand TEU (up 17% YoY). The growth was driven by the management's policy for attracting customers from the traditional transportation routes through the Deep Sea over to the routes going via the ports of the Far East.
  • Domestic maritime transportation volume amounted to 80 thousand TEU (up 3% YoY). The growth is driven by the capacity increase of the Group’s main services.

Port Division

    Financial performance
  • Revenue went up to RUB 16 326 million (up 6% YoY), mainly driven by the changes in turnover and rates, especially in transshipment of import and export cargoes.
  • EBITDA amounted to RUB 7 416 million (up 9% YoY).
    Operating performance
  • In 2020, the Group took the first place in container turnover in Russia with the record-breaking turnover of 672 442 TEU (up 8% YoY).

Rail Division

    Financial performance
  • Revenue decreased to RUB 5 340 million (down 35% YoY). During 2020, the management gradually implemented the program of selling the non-core assets and expanding the park of fitting platforms. The key stages of the program in 2020 were the withdrawal from the segment of grain transportation in hopper cars and the sale of a 100% share in TransGrain LLC.
  • EBITDA amounted to RUB 1 939 million (down 46% YoY).
    Operating performance
  • Railway container transportation volumes increased to 471 thousand TEU (up 21% YoY) mainly due to the fleet of fitting platforms expanding within the program for the specialized rolling-stock fleet development.
  • Shipments by box cars rose to 17 917 units (up 9% YoY).

Shipping Division

    Financial performance
  • Revenue grew to RUB 3 338 million (up 3% YoY) mainly as a result of adding new multi-purpose vessels to the fleet and successfully completing the expedition to Antarctica for supply of the Indian research stations.
  • EBITDA amounted to RUB 1 005 million (up 29% YoY).
    Operating performance
  • Total operating vessel-day volume amounted to 6 478 (down 10% YoY).


    Financial performance
  • Revenue amounted to RUB 841 million (down 29% YoY). The decline was mainly driven by the introduction of new environmental requirements for the transition to low-sulfur marine fuel, as well as the growth of bunkering on an agency basis instead of the oil products sales.
  • EBITDA amounted to RUB 12 million (down 85% YoY).
    Operating performance
  • Bunkering volume declined to 67 thousand tonnes (down 1% YoY).

Financial performance by divisions

Indicator 2019 2020 Change, %
Liner and Logistics Division
Revenue 37 944 46 586 23
EBITDA 2 309 3 270 42
EBITDA margin 6% 7% 1 pp
Port Division
Revenue 15 409 16 326 6
EBITDA 6 787 7 416 9
EBITDA margin 44% 45% 1
Rail Division
Revenue 8 232 5 340 (35)
EBITDA 3 596 1 939 (46)
EBITDA margin 44% 36% (7 pp)
Shipping Division
Revenue 3 245 3 338 3
EBITDA 776 1 005 29
EBITDA margin 24% 30% 6 pp
Bunkering Division
Revenue 1 191 841 (29)
EBITDA 83 12 (85)
EBITDA margin 7% 1% (6)

The Group’s consolidated debt as of 31 December 2020

  • Net debt/ EBITDA ratio:
    • (excluding IFRS 16 impact) declined from 3.7х as of 31.12.2019 to 2.8х as of 31.12.2020
  • The Group’s RUB-denominated consolidated debt declined to RUB 33 692 million (down 17% YoY).
  • (на 17% ниже уровня 2019 года).
  • The Group’s liabilities:
    • RUB 31 732 million in loans
    • RUB 1 960 million in lease liabilities
    31.12.2019 EBITDA 31.12.2020 EBITDA
    Indicator, RUB m
    (Cash and cash equivalents) (1 232) (0,1х) (4 140) (0,4х)
    Debt obligations and finance lease liabilities, including [3] 39 294 3,4х 33 692 3,2х
    Short-term 6 659 8 484
    Long-term 32 635 25 208
    Net Debt 38 063 3,3х 29 552 2,8х

    Key еvents subsequent to the reporting date

    In April 2021, FESCO signed a loan agreement with VTB Bank in the amount of RUB 25.8 billion (USD 323 million) to refinance its current liabilities. The received funds are directed to repay the main part of the current financial debt to VTB Bank. As a result of the transaction, the Group received more comfortable debt service conditions: decrease of the interest rates, changes in the currency composition of the debt that will ensure the natural hedging of foreign exchange risks, extension of the maturity dates for the principal debt repayment up to and including 2027and reduction of the amount of quarterly payment.

    [1] Total number of days in which the vessel was available for operation, excluding downtime due to the vessel's overhaul, upgrade, dry docking, and specialized or intermediate maintenance.

    [2] EBITDA is calculated as operating profit net of amortisation, depreciation, and the impact of asset write-offs and one-off expense, and includes the impact of IFRS 16.

    [3] Lease liabilities do not include the liabilities, where until 1 January 2019 the lease was considered operating before IFRS 16 came into force, so to calculate ratios, adjusted EBITDA excluding the impact of the IFRS 16 adoption is also used.