FESCO Transport Group becomes the largest container operator in Russua

24 April 2007
FESCO Group, the largest intermodal transportation group in Russia (RTS: FESH), today announces its audited consolidated IFRS financial results for the twelve months ended December 31, 2006.
  • Consolidated revenues up 7% year on year from US$ 541 million to US$ 577 million.
  • Group EBITDA up 52% from US 73.7 million to US$ 112 million.
  • Net profit increased six-fold year on year from US$ 11.3 million to US$ 68.9 million.
  • Net profit from continuing operations up 55% year on year from US$ 20.7 million to US$ 32 million.
  • Volume of consolidated container operations more than tripled year on year from 517,000 TEU to 1.8 million TEU.

Evgeny Ambrosov, President and Chief Executive Officer of FESCO Group, commented: «We are pleased to report healthy financial results for 2006, with 7% year on year revenue growth and a five-fold increase in net profit for the twelve months of 2006. In 2006 the Group moved to a new stage of its development. We have started the implementation of a large-scale strategy aimed at creating an integrated inter-modal company, focused on servicing the fast growing freight flow in Russia. We believe that the recent acquisitions, the increase in the volume of operations and improved market conditions will have a positive impact on our results in 2007 and allow us to become an undisputed leader in the fastest growing segments of the Russian transportation and logistics market.»

As part of this strategy, in 2006 and in the first four months of 2007, FESCO Group completed a number of significant acquisitions: the Group became a 100% owner of Transgarant, the largest private rolling stock operator in Russia and the CIS; FESCO Group acquired the National Container Company (along with First Quantum), the leading container terminals operator in Russia and the CIS; FESCO became the owner of INCOTEC, one of the major players in container transportation in the North-West of Russia; and acquired TIS, the logistics operator providing services on the Trans-Siberian Railway.

The new acquisitions have allowed FESCO Group to become the largest container operator in Russia with annual consolidated container operations reaching 1.8 million TEU.

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