Operational and Financial Results for FY 2015

29 April 2016

FESCO Transportation Group (MOEX: FESH) announces its operational and consolidated IFRS results for FY 2015.


— 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



YoY Dynamics 

Intermodal freight transportation (TEU) 

258 621,0

179 300,0


Export-import sea container trade (TEU)

428 137,0

309 047,0


Domestic sea container trade (TEU)

65 187,0

59 862,0


VMTP container throughput (TEU) 

513 481,0

345 029,0


VMTP general cargo throughput (thousand tons)

2 296,6

2 027,8


Rail container transportation (`000 TEU), including 




             ✓ “Transgarant”




             ✓ “Russkaya Troyka”




Rail cargo load (million tons) 




Rail cargo turnover (billion ton-kilometers) 




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.