FESCO Transportation Group has published its operating and consolidated financial results for the full year of 2018 based on the management accounts.
Intermodal volumes carried by the Liner and Logistics Division increased 23.9% year-on-year up to 301.8 thousand TEU. The Group secured a record high intermodal transportation market share of 39% across the East – West corridor, up 2 pp year-on-year.
International maritime transportation slid by 2% down to 312.5 thousand TEU due to decrease on the Baltic lines (down 13,9% to 74.3 thousand TEU). At the same time, transportation via the Russian Far East, which is strategic for the Group, increased by 2.4% to 238.2 thousand TEU. Domestic maritime transportation gained 19.1% year-on-year to reach the record high 79.5 thousand TEU.
The Liner and Logistics Division’s revenue grew by 22.4% up 35.87 bn rubles, and EBITDA by 45.1% up to 1.27 bn rubles driven by intermodal and domestic transportation services.
The Port Division reached the highest turnover volumes in its history, in 2018, having handled 10.4 mn tons of cargo, up 39.2% year-on-year. Container throughput increased by 17.7% up to 551 thousand TEU surpassing the 2014 record of 513 thousand TEU, gaining on all fronts (imports, exports, domestic shipments). General and non-container cargo throughput surged by 60.7% up to 5,282.9 thousand tons.
The Port Division’s revenue grew by 39.5% year-on-year up to 13.12 bn rubles on the back of record-high handling volumes. The division’s EBITDA went up by 30.6% to 5.89 bn rubles.
Railway container transportation volumes carried by FESCO’s Rail Division increased by 26% year-on-year up to 340.2 thousand TEU. Shipments by box cars dropped by 29.5% down to 14,231 units as a result of prioritizing container cargo and the rolling stock being refocused on fitting platforms.
The Rail Division’s revenue in 2018 grew by 43.8% up to 11.8 bn rubles primarily due to the Group’s entry into the grain transportation market. The division’s EBITDA went up by 36% to 4.12 bn rubles.
In 2018, the Shipping Division carried out tramp transportations, ensured the shipments to Russia’s northern territories, as well as entered into a contract for the provision of supplies to the Indian research stations in Antarctica in 2019.
The division’s revenue increased by 23.3% year-on-year up to 2.77 bn rubles, as the Group explains, “due to active commercial activities and increased transportation rates amid improved market conditions”. EBITDA grew by 114.7% up to 0.66 bn rubles.
The Group’s bunkering operations were optimised to reflect the changes in the Bunkering Division’s role, which now mainly revolves around providing bunkering services for the Group’s own fleet. The 2018 bunkering volumes amounted to 72.4 thousand tons, a 5.5% decrease vs 2017.
As a result, the revenue from bunkering services decreased by 1.9% down to 1.02 bn rubles, while EBITDA grew by 32.1% up to 0.04 bn rubles.
The group’s consolidated revenue increased by 30.3% year-on-year to 57 bn rubles, bolstered by the overall economic recovery and higher transportation volumes. EBITDA grew by 36% year-on-year making 10.61 bn rubles.
Following the partial repayment of bank loans and partial refinancing of ruble-denominated liabilities, the group’s consolidated debt went down to 45.65 bn rubles as of 31 December 2018 from 47.18 bn rubles as of 31 December 2017. The total USD-denominated debt decreased by 19.8% down to $657.1 mn as of 31 December 2018 from $819 mn as of 31 December 2017.
As of 31 December 2018, the group’s net debt totaled 42.33 bn rubles vs 41.47 bn rubles as of 31 December 2017. The USD-denominated net debt was down by 15.3% to $609.4 mn vs $719.9 mn as of 31 December 2017.
The USD-denominated net debt / EBITDA ratio decreased from 5.8 as of 31 December 2017 to 3.9 as of 31 December 2018.