OREANDA-NEWS. On 22 July 2009 was announced, that FESCO Transportation Group reports full-year audited consolidated IFRS results for the period ending December 31, 2008, showing strong year-on-year performance even despite a very challenging 4th quarter of 2008.

FY 2008 IFRS Highlights:

Consolidated revenues to reach USD  1 bln 246 mln mln. (a 40% increase over FY 2007).

EBITDA to increase to USD 356 mln. (a 32% growth over FY2007)

Net income reported at USD 20 mln. (an 80% decrease over 2007).

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

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 – RURle 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.