FESCO Transportation Group (MOEX: FESH) announces its operational and consolidated IFRS results for FY 2015.
Highlights
— The uncertain economic environment, foreign exchange rate fluctuations, economic sanctions and a slowdown in domestic consumption negatively impacted transportation volumes and the financial results of the Company
— The Group is focused on strengthening relationship with direct accounts and extending presence in new business segments to generate incremental revenue and maintain profitability
— The Group has implemented the cost optimization program planned for 2015. The total benefit accounted for $55 million. The cost optimization effort continues in 2016
— Moreover, FESCO reduced capital expenditures by more than 70% to maintenance-only levels to provide the necessary support for day-to-day operations without any loss of quality and safety
Operational Overview
— FESCO port and liner container volumes decreased due to unfavorable market conditions, as well as lower trading with foreign partners in Russia:
○ Container handling at VMTP decreased by 32.8% YoY, to 345.0 thousand TEU
○ Export-import liner volumes decreased by 27.8% YoY to 309.0 thousand TEU
○ Intermodal transportation decreased by 30.7% YoY to 179.3 thousand TEU
— General cargo volumes at the port decreased by 11.7% YoY to 2,027.8 thousand tons
— Rail container transportation declined by 14.3% YoY to 278.8 thousand TEU due to the low operational results from “Russkaya Troyka” which declined by 26%, while “Transgarant” container transportation declined by 5%. Rail cargo load declined by 3% YoY to 19.4 million tons.
Group Operational Results
|
|
2014 |
2015 |
YoY Dynamics |
|
Intermodal freight transportation (TEU) |
258 621,0 |
179 300,0 |
(30,7%) |
|
Export-import sea container trade (TEU) |
428 137,0 |
309 047,0 |
(27,8%) |
|
Domestic sea container trade (TEU) |
65 187,0 |
59 862,0 |
(8,2%) |
|
VMTP container throughput (TEU) |
513 481,0 |
345 029,0 |
(32,8%) |
|
VMTP general cargo throughput (thousand tons) |
2 296,6 |
2 027,8 |
(11,7%) |
|
Rail container transportation (`000 TEU), including |
325,4 |
278,8 |
(14,3%) |
|
✓ “Transgarant” |
184,1 |
174,6 |
(5%) |
|
✓ “Russkaya Troyka” |
141,3 |
104,2 |
(26%) |
|
Rail cargo load (million tons) |
20,0 |
19,4 |
(3,0%) |
|
Rail cargo turnover (billion ton-kilometers) |
32,9 |
34,0 |
3,3% |
Financial Overview
Group’s financial results were affected by the negative economic growth rate, decline in transportation volumes and purchasing power, as well as RUB depreciation. As a result, the Group’s consolidated revenue decreased by 38.5% YoY to $688 m. Operating expenses were reduced by 39.2% to $500 m. Gross profit before depreciation and amortization went down by 36.5% to $188 m. Administration expenses amounted to $80 m, which is 37.5% less than year before.
FESCO Consolidated Financial Position
Group total debt reduced by $206 m to $910 m, out of which $137 m are repayable within next twelve months.