FESCO’s IFRS net profit totals $68.9 million in 2006
In 2006, net profit of Far East Shipping Company (FESCO) under IFRS totaled $68.9 million (6.1 times as high as in 2005), the company reports. Consolidated revenues totaled $577 million (+7%, year-on-year). EBITDA grew to $112 million (+52 %). Net profit from continuing operations amounted to $32 million (+55 %).
“The year of 2006 marked the beginning of a new stage in the Group’s development. We started implementation of a large-scale strategy to create the largest integrated transport-and-logistics group in Russia focused on Russian fast-growing cargo flows. We place stake on leadership in the most dynamic segments of this market,” Evgeni Ambrosov, the company’s Director General said. In 2006 and early in 2007, FESCO Group completed acquisition of Transgarant (one of Russia’s largest railway operators); became the owner of National Container Company (leader at the market of container terminals in Russia and CIS) on parity with First Quantum; became the owner of INKOTEC (largest private railway container carrier in the North-West region); and acquired TIS company (logistics operator servicing over one third of all container transportations along Transsib). New acquisitions made FESCO the largest Russian container operator: total volume of the Group’s container operations amounted to 1.8 million TEU.
According to the press release, the company plans to improve its financial results in 2007.
FESCO Transport Group is created on the basis of Far Eastern Shipping Company - one of the largest and oldest transport companies in Russia, founded in 1880. The strategy of group development is aimed at turning FESCO into an integrated multimodal transportation & logistics company, offering its clients a complete set of services for "door to door" delivery of containers and bulked cargos both on the domestic market and between Russia, Europe and South-East Asia. Today the group comprises Far Eastern Shipping Company; Transgarant (one of Russia’s largest railway operators specializing in transportation of dry bulk cargo); Russkaya Troika CJSC (JV with Russian Railways OJSC, specializing in railway transportation of containers); National Container Company (leader at Russian market of container terminals); partnership project with First Quantum; TIS (covering 30% of Transsib container transportations); Inkotek-Trans-Servis (container transportation in the North-West region of Russia); DalRefTrans (transportation of refrigerated cargo); vast network of agent companies covering Russia, CIS, Asia and Europe.