FESCO net income down 80% to $20 mln in 2008

In 2008, FESCO net income calculated according to IFRS fell by 80%, year-on-year, to $20 mln, the company reports. Consolidated revenues reached $ 1.246 bln. (a 40% increase over FY 2007), EBITDA - $356 mln. (a 32% growth over FY2007).

“Solid growth of revenues and EBITDA is primarily driven by growth in volumes, mainly in rail and liner and logistics businesses,” FESCO notes.

A noticeable decrease of accounting net profit is caused by two main factors: a large recorded exchange rate loss (- USD 67 mln) and negative fair value and impairment adjustments (- USD 36 mln). Both of these items are of accounting nature, reflecting external circumstances – ruble depreciation and drop of fleet market value.

Special clarification note is made on the port business unit results. Full-year 2008 statements reflect NCC businesses’ results as investment assets for the 2nd half of 2008, following the decision to re-classify NCC in FESCO accounts under IFRS 5 rule. Therefore, there is no contribution from NCC operated terminals and businesses to P&L of the Port business unit of FESCO for 2nd half of 2008.

FESCO Transport Group is Russia’s largest intermodal transport operator. It combines advantages of own maritimerail and motor transportation, stevedore service in own port's terminals in the biggest ports of Russia and CIS. Far-Eastern Shipping Company OJSC is a base company of FESCO Transportation Group. The Group's business assets include various types of modern, fast and safe vessels, own park of diversificated rolling-stock, own main-line and diesel-locomotive shunters, freightliners, container equipment, water surface and on-land terminal complexes. The Group’s headquarters are in Moscow. 

Besides FESCO the Group comprises National Container Company (Russia’s largest operator of container terminals co-managed the Group and First Quantum; 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); FESCO ESF Ltd (feeder container carrier at the Baltic Sea); DalRefTrans (transportation of refrigerated cargo); Commercial Port of Vladivostok (one of the largest ports in the Far East of Russia ); FESCO Integrated Transport (the Group’s logistics operator).

 

 

Source: Port News