• Home
  • News
  • FESCO posts its operational and financial results for the 1Q ended March 31, 2016
  • 2016 May 31 17:47

    FESCO posts its operational and financial results for the 1Q ended March 31, 2016

    FESCO Transportation Group (MOEX: FESH) announces its operational and consolidated IFRS results for three-month period ended March 31, 2016.

    Highlights

    • Russia’s ongoing economic downturn, the current global geopolitical challenges and increasing competition in the freight market continued to negatively affect FESCO’s operational results in 1Q 2016

    • In general, the transportation market in the Russian Far East demonstrated negative trends in 1Q 2016. Container transportation volumes decreased while general cargo transportation volumes slightly improved

    • In 1Q 2016, the Group continued to implement cost optimization measurers, including further production and administrative cost savings as well as sale and renting out of non-core assets

    • In March 2016, Transgarant signed an agreement with NefteTransService group for the long-term operating lease of 6,085 gondola cars. The agreement is intended to help the Group optimize costs and provide an additional source of revenue

    • In April 2016, the Group announced that in light of the current macroeconomic environment the Group’s debt restructuring is necessary. FESCO is in the process of negotiating with holders of its Eurobonds and Rouble bonds, and other lenders    

    Operational Overview

    • FESCO port and liner container volumes declined due to unfavorable market conditions, as well as decreased trade turnover with foreign partners in Russia:    
         • Container handling volumes at VMTP decreased by 21.6% YoY to 70.6 thousand TEU 
         • Export-import liner volumes decreased by 26.6% YoY to 62.2 thousand TEU
         • Intermodal transportation volumes decreased by 28.4% YoY to 33.1 thousand TEU

    • General cargo volumes at VMTP increased by 7.0% YoY to 596.8 thousand tons

    • Rail container transportation volumes declined by 16.7% YoY to 63.4 thousand TEU. Rail cargo load declined by 6.4% YoY to 4.4 million tons  

    Group Operational Results


    1Q 2015

    1Q 2016

    YoY Dynamics

    Intermodal freight transportation (TEU)

    46,225

    33,119

    (28.4%)

    Export-import sea container trade (TEU)

    84,797

    62,236

    (26.6%)

    Domestic sea container trade (TEU)

    13,092

    10,816

    (17.4%)

    VMTP container throughput (TEU)

    90,117

    70,630

    (21.6%)

    VMTP general cargo throughput (thousand tons)

    557.7

    596.8

    7.0%

    Rail container transportation  («RusskayaTroyka» and «Transgarant») (TEU)

    76,182

    63,441

    (16.7%)

    Rail cargo load (million tons)

    4.7

    4.4

    (6.4%)

    Rail cargo turnover (billion ton-kilometers)

    9.6

    7.0

    (27.1%)

    Financial Overview

    The Group’s financial results were affected by the negative economic growth rate in Russia, decline in Russian transportation volumes, in particular in the Far East basin, and purchasing power and RUB depreciation. As a result, the Group’s consolidated revenue decreased by 38.2% compared to 1Q15 to $126 m. Operating expenses were reduced by 42.5% to $84 m. Administration expenses amounted to $17 m, which was19.0% less than the comparable quarter in the prior year.

    FESCO Consolidated Financial Position

    As of 31 March 2016, Group total debt amounted to $912 m, of which $130 m is repayable within the next twelve months.




2022 January 24

18:22 Nakilat takes delivery and management of fourth LNG carrier newbuild
18:09 CMA CGM and TotalEnergies launch Port of Marseille Fos’ first ship-to-containership LNG bunkering operation
17:55 Detachment of RF Navy’s Baltic Fleet went to sea to fulfill tasks of long-distance campaign
17:32 Raiffeisenbank opens USD 20 million credit facility for Sea Port of Saint-Petersburg
17:13 GTMaritime guide sets out future of maritime communications
16:50 Glavgosexpertiza approves construction of coal terminal Port “Vera” in Primorye
16:29 Salus Technical introduces its the cloud-based software Bowtie Master
15:58 Tersan shipyard lays down trawler for Magadan based fishing company Tikhrybkom
15:11 Wärtsilä hits methanol milestone with first newbuild engine order
14:30 Sea Port of Saint-Petersburg to take delivery of over 40 units of handling equipment and one 63-tonne crane in 2022
14:01 Dogger Bank announces supplier events for O&M phase
13:44 BW Offshore signed an agreement for the sale of the FPSO BW Joko Tole
13:21 Loko-Bank shareholder increased his share in FESCO to 26.52%
13:07 Royal Dutch Shell plc changes its name to Shell plc
12:44 FESCO increases number of transit container trains from CPV almost twice in 2021
12:23 EdgeTech rolls out the 6205s2 Swath Bathymetry & Side Scan Sonar System
12:18 PGS secures Northern Lights CO2 storage acquisition contract
11:52 Maersk Drilling secures 21-month contract with TotalEnergies
11:17 Second episode of a creative multimedia project named The Ecologist was launched in cooperation with Van Oord
10:49 Heerema announces contract with McDermott for Saudi Aramco’s Marjan Increment Program
10:42 Eastern Shipbuilding completes major infrastructure improvement project to support OPC program
09:28 Crude oil prices rise as demand increases
09:11 Baltic Dry Index as of January 21
08:37 MABUX: No firm trend on Global bunker market on Jan 24

2022 January 23

14:29 Record figures in Polish ports
13:52 Coast Guard to close southern Green Bay for commercial traffic
12:36 CMHI shipyard hosts a keel-laying ceremony for Ulstein designed expedition cruise vessel ‘Ocean Albatros’
11:47 SGMF releases updated version of LNG as a marine fuel – Safety and Operational Guidelines – Bunkering'
11:08 James Fisher Renewables secures high voltage safety management commissioning contract from Iberdrola’s Baltic Eagle offshore win
10:57 BW Ideol secures close to 1GW of offshore floating wind acreage in ScotWind leasing round
09:51 AIDA named Top Employer again

2022 January 22

14:06 Crowley names Marcus Jadotte as Senior VP, Government Relations
13:29 Kongsberg Digital joins the NorthWind project to develop digital twin technology for offshore wind
12:41 New year boost for MYCRANE as four lifting experts join the team
12:07 Mitsui O.S.K. Lines, Ltd. and Bombora Wave Power strengthen their collaboration through an investment
11:34 Carnival Cruise Line adding more embarkation enhancements as it commits to current protocols for the foreseeable future
10:54 Indian Register of Shipping strengthens focus on safety of Inland Waterways

2022 January 21

19:15 PortNews’ week updates and insights summary
18:20 More than 600 boxships stay off ports waiting for berth space, Seaexplorer disruption indicator shows
18:07 Green Innovation Fund adopts joint project on “Mass-production and Cost Reduction of Floating Offshore Wind Installation”
17:44 The new Stena Baltica has debuted on Stena Line’s Baltic Sea route from Ventspils to Nynäshamn
17:16 Port of Los Angeles breaks cargo record in 2021
17:06 Finnlines strengthens Germany-Sweden route with a fourth ship
16:36 Maersk opens its logistics center for South Western Europe at port of Barcelona
16:03 Dublin Port sees a small reduction in volumes in 2021
15:24 Kongsberg Digital joins the NorthWind project to develop digital twin technology for offshore wind
14:03 ClassNK issues Approval in Principle for ammonia-fueled Panamax bulk carrier developed by Planning and Design Center for Greener Ships (GSC)
14:02 TGE Marine announces completion of largest LNG Bi-Lobe Type C Tanks
13:23 Samskip adds 150 new sustainable reefer containers to its fleet
13:01 Icebreakers remain busy assisting shipping of the Gulf of Finland eastern part
12:13 Freight volumes increase at the Port of Gothenburg in 2021
12:12 Nippon Paint Marine’s new fastar antifouling earmarked for Cosco Shipping VLCC fleet
11:42 RZD invested heavily in its rolling stock upgrade in 2021
11:31 DP World launches a premium barge service between the Upper Rhine region and Rotterdam World Gateway
11:03 Israel orders three new submarines from thyssenkrupp Marine Systems
10:31 Port of Oakland import volume hit new record in 2021
10:11 Crude oil prices drop on US oil reserves growth
09:32 MABUX: Global bunker prices may slide down on Jan. 21
09:21 Baltic Dry Index as of Jan 20

2022 January 20

18:35 EuroDry announces agreement to acquire a 2014-built Supramax bulker