FESCO posts H1 2014 results
FESCO Transportation Group provides a trading update with the operational and consolidated financial results as per IFRS for the three month and six month periods ended June 30, 2014.
In 1H2014, the Group continued to increase its container transportation and handling volumes securing the leadership position in Russian Far East by container shipping via sea lines and import container throughput at Port
Container throughput at Port increased by 8.4% YoY in 1H2014 strongly outperforming the Far East market, with the Port of Vladivostok market share in import container handling reaching 41%
Despite the container volumes growth the Group’s financial results experienced downward pressure from RUB devaluation and decreased rates and tariffs. In 1H2014, Group’s consolidated revenue in USD declined by 8.0% YoY to $513.1m. Consolidated revenue in RUB grew by 3.5% YoY to RUB 17,947m. 1H2014 EBITDA reached $68.3m, down 31.3% YoY
The Group continued the optimization of its vessels and railcars fleet
The Group announced acquisition of an inland container terminal in Novosibirsk for total consideration of $8m
Total cash spend for CAPEX in 1H2014 (including $2.4m paid as advance for terminal in Novosibirsk) remains at relatively low level amounting to $36.3m in 1H2014. Net cash CAPEX after proceeds from disposal of fixed assets equals to $27.3m
Container throughput in 1H2014 up by 8.4% YoY with import container throughput growth of 11.2% YoY
Significant growth of 20.4% YoY in general cargo throughput volumes with ferrous metals growth of 50% YoY in 1H2014
In 1H2014, revenue in RUB increased by 2.6% YoY with EBITDA in RUB decreased by 2.3% YoY. Revenue and EBITDA in USD decreased by 8.5% YoY and 12.3% YoY respectively due to RUB devaluation
The liberalization of customs procedures in 2Q2014 resulted in decrease in average container tariffs by 16.5%YoY in USD (driven by lower revenue from storage and auxiliary services) and contributed to relative weakening of Port performance in the short term
Shipping Division demonstrated 16.0% YoY growth of revenue and positive EBITDA of $2.9m in 1H2014 due to positive result from icebreakers and profitable contracts with the third party
Bunkering business contributed $70.9m to the Group’s revenue and $6.2m to the Group’s EBITDA in 1H2014