FESCO back in black despite falling revenues

The Russian transportation and logistics company posted net profits of $12 million on revenues of $543.5 million for the first nine months of 2015.    FESCO Transportation Group posted net profits of $12 million for the first nine months of 2015, compared to the $29 million loss from the corresponding period in 2014, according to the Russian transportation and logistics company’s most recent unaudited financial statements.
   Revenues totaled $543.5 million for the first nine months of the year, a 36 percent decline year-over-year.
   FESCO’s earnings before interest, taxes, debt and amortization (EBITDA) stood at $88.5 million for the first nine months of 2015, a 33 percent drop from the same period in 2014.
   Although cost-control measures supported profitability, the company’s financial results were hindered by declining transportation volumes and depreciation of the Russian Ruble (RUB).
   In RUB terms, revenues for the period stood at 32,181 RUB, while the EBITDA totaled 5,308 RUB, year-over-year increases of 7.6 percent and 14 percent, respectively.
   The port division’s revenue totaled $89 million for the first nine months of 2015, a 36.7 percent decline year-over-year.
   Container throughput at the Commercial Port of Vladivostok (VMTP), part of FESCO Transportation Group, totaled 259,198 TEUs for the first nine months of 2015, down 32 percent from the same period last year. General cargo volumes (excluding vehicles) fell 14 percent year-over-year to 1,536 tons.
   Situated in the Russian Far East, VMTP is a multi-purpose port that features 15 berths with a total length of over 4 kilometers, according to the port’s website. 
   Revenues for the company’s rail division totaled $81.8 million for the first nine months of 2015, a 34.9 percent decline from the corresponding 2014 period.
   FESCO provides rail services under Transgarant (100 percent stake) and Russkaya Troyka (50 percent stake). Rail container transportation from the two subsidiaries totaled 209,600 TEUs for the first nine months of the year, an 11.4 percent decline year-over-year.
   Revenues from the liner and logistics division totaled $294.4 million for the first nine months of 2015, while revenues from the bunkering division reached $101.4 million, year-over-year drops of 38.3 percent and 34.6 percent, respectively.
   However, FESCO’s shipping division posted a 15.2 percent increase in revenues to $66.6 million for the first nine months of the year.