FESCO announces its operational and consolidated IFRS results for FY 2015
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
