FESCO Transportation Group (the “Group” or “FESCO”) announces its operating and financial results for the year 2022. The Group also informs that all audit procedures in relation to consolidated financial statements according to international standards for the year 2022 have been completed. Full version of statements with notes is published on www.fesco.ru, section To Shareholders and Investors.
Operating and financial results of the Group compared to 2021
As per results of 2022, due to launch of new services, increase of the fleet of fitting platforms and containers FESCO has become the largest logistics operator in the Russian Far East:
- volumes of international shipments increased by 19% and amounted to 342 thousand TEU;
- volumes of intermodal transportations increased by 9% and amounted to 507 thousand TEU;
- volumes of refrigerated cargo transportations increased by 50% and amounted to 17 thousand TEU;
- the Group has maintained the volumes of general cargo transshipment and leadership in container transshipment. Transshipment of containers in Commercial Port of Vladivostok (CPV) increased by 11 thousand TEU due to development of its own multimodal transportations and attracting additional operators to replace those that left the Russian market. As a result, the volume of cargo transshipment in CPV reached a record level – 13.4 million tons.
In 2022 FESCO demonstrated record financial performance:
- revenue of the Group has increased by 43% and constituted 162 639 million rubles;
- EBITDA has increased 1.5 times and amounted to 71 483 million rubles;
- “Net debt / EBITDA” indicator demonstrated a historically low level of 0.04х as of 31.12.2022.
The Group continued to increase its assets in order to expand the geography of transportations and to develop new services:
- transport fleet was replenished with seven new vessels, including five vessels under management, as well as contracts for acquisition of four container vessels to develop coastal, foreign trade and special transportations were concluded;
- container fleet was increased by 31% and reached a record level of 83 298 units;
- the fleet of fitting platforms was replenished with 1 989 units of 80-foot platforms.
Operating results of the Group:
| Indicator of | 2021 год | 2022 год | YOY Change, % |
| Container transshipment in CPV (thousand TEU) | 757 | 768 | 1 |
| General cargo and oil products transshipment in CPV (thousand tons) | 5 195 | 5 138 | (1) |
| Intermodal transportations (thousand TEU) | 465 | 507 | 9 |
| International sea transportations (thousand TEU) | 288 | 342 | 19 |
| Coastal shipments (thousand TEU) | 81 | 84 | 4 |
Financial performance of the Group:
| Indicator of, mil RUB | 2021 года | 2022 года | YOY Change, % |
| Revenue | 113 709 | 162 639 | 43 |
| EBITDA 1 | 47 474 | 71 483 | 51 |
| EBITDA margin, % | 42 | 44 | 2 п.п. |
Consolidated debt of the Group
| Indicator of, mil RUB | 31.12.2021 | EBITDA | 31.12.2022 | EBITDA |
| (Monetary means | (11 068) | (0,2х) | (30 677) | (0,4х) |
| Loans and lease obligations 2 | 34 010 | 0,7х | 33 308 | 0,5х |
| Short-term | 3 639 | 4 133 | ||
| Long-term | 30 371 | 29 175 | ||
| Total net debt | 22 942 | 0,5х | 2 631 | 0,04х |
Net debt as of December 31, 2022, decreased from 22 942 million rubles to 2 631 million rubles compared to end of 2021.
Obligations of the Group:
- 30 610 million rubles under credits and loans
- 2 698 million rubles under lease agreements
IMPORTANT NOTE
In this information message, the term FESCO means FAR-EASTERN SHIPPING COMPANY PLC.
Terms “FESCO Group”, “FESCO”, “Group”, “Company” refer to FESCO and legal entities under its direct and/or indirect control (controlled entities).
This information message is not intended to be and does not constitute an investment recommendation. This information message is not an offer and cannot be interpreted as an offer or an obligation to sell or issue (and is not part of such offer or obligation) securities of FESCO or any of its subsidiaries in any jurisdiction, as well as an inducement, recommendation, obligation or invitation to subscribe or otherwise purchase securities of FESCO or any of its subsidiaries in any jurisdiction, and cannot be interpreted as an advertisement of securities of FESCO or any of its subsidiaries in any jurisdiction or as an incentive to carry out investment activities in any jurisdiction.
Information provided in this information message has been prepared on the basis of management reports of the Group. These data do not contain sufficient information to be considered a complete set of financial statements. Indicators given in this information message have not been audited.
ABOUT FESCO GROUP
FESCO Transportation Group – is one of the largest private transport and logistics companies in Russia with assets in the field of port, railway and integrated logistics business. Diversified portfolio of assets of FESCO allows to carry out door-to-door delivery of cargo and control all stages of the intermodal transport chain. The Group owns Commercial Port of Vladivostok, railway operators Transgarant, Dalreftrans, operator of fitting platforms Russkaya troyka. FESCO operates inland container terminals in Novosibirsk, Khabarovsk and Tomsk. The Group manages more than 135 thousand TEU, the fleet of fitting platforms exceeds 10 thousand units. Fleet under management of the Group includes 33 transport vessels, which mainly carry out transportations on own sea lines.
Main shareholders of FESCO with indirect ownership are: Andrey Severilov – 23.8% of shares, Mikhail Rabinovich – 26.5%, Ziyavudin Magomedov – 32.5%. About 17% of shares are owned by other shareholders or are in free circulation.
1 EBITDA is calculated as operating profit excluding depreciation, impairment and the result of disposal of assets and one-time expenses and takes into account the impact of IFRS 16.
2 Lease obligations do not take into account obligations under lease agreements, which until January 1, 2019 was recognized as operating prior to entry into force of IFRS 16, therefore, adjusted EBITDA is also used to calculate coefficients without taking into account impact of the effect of applying IFRS 16.