Financial and operating results of FESCO Transportation Group for 2018
FESCO Transportation Group has announced its operating and consolidated financial results for the twelve months ended December 31, 2018 based on the management accounts.
In the reporting period, the Group improved its key operating results and also achieved the highest handling volumes in the Port’s history (10.4 million tonnes) while also ramping up the container throughput by 17.7% to 551 thousand TEU.
Having developed the expedited multimodal delivery of cargoes along the Shanghai–Moscow Route in 2017, FESCO Group expanded the process to include deliveries from Busan to Moscow and St. Petersburg and from sea ports of Japan to Moscow, setting a new standard for terms of delivery from the countries of Asia-Pacific Region to the Russian Federation through the Far East.
Following the strategy for the development of new routes and regions, The Group also expanded the route network by launching new railroad services for export cargo deliveries from Russia to China via Mongolia and Kazakhstan.
In order to unlock the significant market potential and capitalise on the existing competencies, the Group decided to tap into the containerised grain transportation both domestically and internationally.
The Group has continued to develop its expertise in Supply Chain Management in 3PL and 4PL segments as well as significantly expanded its order portfolio by offering project logistics services.
The Group has continued the optimization of its assets, increasing the fleet of fitting platforms in operations by 19.8%, to 5,079 units.
The universal bulk carrier FESCO Nevelsk was added to the marine transportation fleet during 2018. Container vessel FESCO Dalnegorsk bought in 2017 started operations.
The Group closed the sale of its 25.1% interest in TransContainer PJSC, using the proceeds to deleverage.
Consolidated revenue increased by 30.3% YoY to RUB 57.0 billion, bolstered by the overall economic recovery and higher transportation volumes.
EBITDA grew by 36.0% YoY to RUB 10.61 billion given that all operating divisions contributed to the consolidated EBITDA growth, with their effective commercial policies and higher cargo traffic being the key drivers. EBITDA margin expanded from 17.8% to 18.6%.
