Group Highlights
- Consolidated revenue totalled $1,197m in 2012, up 16% from 2011;
- Adjusted Revenue1 totalled $1,172m in 2012 and was flat compared to the previous year;
- Higher revenues of the Rail and Liner & Logistics Divisions was offset by lower revenue from the Shipping Division (as adjusted for the disposal of vessels in 2012);
- Adjusted EBITDA1 of $279m in 2012, 14% increase compared to the previous year, and adjusted EBITDA margin of 24% in 2012, up 3pp from 21% in 2011; li>Capex decreased by 54% year-on-year to $66m mostly due to decrease in expansion capex in Rail division. Trade working capital decreased by 8% year-on-year to $69m;
- Strong liquidity position of $232m as of 31 December 2012;
- Net debt increased to $688m2 as of 31 December 2012 after raising loans in the course of Group’s indirect acquisition by Summa Group, GHP Group and TPG.
1 Adjusted revenue and EBITDA to reflect the acquisition of VMTP, as if it had occurred with effect from 1-Jan-2011, impact from disposal of 21 vessels in 2012, one-off transaction related expenses and compensation of insurance claims.
2 Total borrowings exclude the $400m guarantee provided by certain subsidiaries of FESCO to its principal shareholders in respect of acquisition financing; include a $140m REPO loan against the shares of TransContainer.
Divisional Highlights
- Port Division generated Adjusted Revenue of $206m (6% year-on-year decline) and Adjusted EBITDA of $98m (17% year-on-year increase) resulting in an EBITDA margin of 48%;
- The increase in the Port Division’s EBITDA was driven by improving container cargo throughput and also supported by the positive effect of operational synergies arising from the ongoing merger of the Commercial Port of Vladivostok («VMTP») and Vladivostok Container Terminal («VCT»), following our acquisition of control over VMTP in March 2012;
- The Rail Division generated revenue of $347m (13% year-on-year increase) and EBITDA of $167m (25% year-on-year increase) resulting in an EBITDA margin of 48%;
- Rail Division EBITDA was supported by increased volumes in container transportation by block trains and growth in marginal income per railcar per day;
- The Liner & Logistics Division generated revenue of $623m (10% year-on-year increase) and EBITDA of $43m (16% year-on-year decline) resulting in an EBITDA margin of 7%;
- The positive effect on EBITDA from the growth in transportation volumes was largely offset by increasing fuel and stevedoring services costs;
- Shipping Division went through a significant downsizing of operations as the Group disposed 21 vessels in 2012. The division generated Adjusted Revenue of $87m (45% year-on-year decline) and negative EBITDA of $3m;
- Following the significant reduction of our fleet, the division’s business model has evolved from ship ownership and ship management to support centre for the Liner & Logistics Division.
Yuriy Gilts, President of FESCO, commented: «It was another successful year for the company. The company proceeded with its strategy of growing its container business, the most promising segment of the Russian transportation market, while strengthening competitive positioning in the niches outside the container transportation. We completed the consolidation of the Commercial Port of Vladivostok and deepened the integration of our businesses in order to provide a one stop solution to our customers leveraging our strengths to meet our customers’ needs. FESCO’s Shipping Division completed the evolution of its business model from ship ownership and ship management to a support function for our Liner and Logistics Division. We are confident that these changes created a solid foundation for future growth. Our strong annual results and the momentum generated in the reporting year allow FESCO to look into the next financial year with confidence and enthusiasm.»
Downloads
Full text of FESCO Consolidated Financial Statements for the year ended December 31, 2012 is available on the FESCO Web site: http://www.fesco.ru/en/investor/documents/reports/
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About FESCO
FESCO is one of the largest Russian port owners and operators with integrated rail and logistics businesses and primarily focused on intermodal deliveries of containerized cargo. The Group owns port, rail and shipping assets, which allow it to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain. The majority of FESCO’s operations are located in the Russian Far East and the Group benefits from growing trade volumes between Russia and Asian countries.
FESCO controls the Commercial Port of Vladivostok, which has throughput capacity of 3.9 million tons for general cargo and oil products, 150,000 vehicles and over 600,000 TEUs in containers. FESCO is one of Russia’s top 10 private railcar operators providing services under the Transgarant (100%) and Russkaya Troyka (50% JV with Russian Railways) brands. Transgarant has approximately 16,200 units of rolling stock comprising of 12 different types of railcars, and Russkaya Troyka has approximately 1,570 fitting platforms. FESCO operates a container park of over 35,000 containers with total capacity of over 56,000 TEUs. FESCO also has 26 ships mostly deployed through own line and logistics operations.