OREANDA-NEWS. June 09, 2010. The Annual General Shareholders’ Meeting of FAR-EAST SHIPPING COMPANY PLC. (“FESCO” or the “Company”) was held in Vladivostok to review the Company’s results for 2009. Shareholders approved the annual report, annual balance sheet, profit and loss statement for 2009, and elected the new Board of Directors.

President and CEO of FESCO Transportation Group Ltd. Sergey Generalov reported to shareholders on the Company results for 2009. In addition, shareholders heard brief presentations by Alexey Nazarov, Director of Accounting Department of FESCO, Dmitry Shokhin, Vice-President for Legal Affairs of FESCO Transportation Group Ltd. and Roman Shkuratov, member of Audit Commission of FESCO.

Shareholders approved all nine issues on the agenda by more than 90 percent of votes.

The annual balance sheet, profit and loss statement for 2009, aproved by the AGM, is prepared in accordance with Russian Accounting Standards and represents only the Group’s marine division, not reflecting the results of the rail, port and liner and logistic divisions. Financial results of the entire Group are reflected in the Consolidated financial statement according to IFRS, which will be published at the beginning of July 2010.

In accordance with statement under Russian Accounting Standards for 2009, the Company revenue amounted to 3.1 billion rubles, which is 420 million rubles less than in 2008. At the same time, FESCO net income totaled 1.2 billion rubles and decreased by 741 million rubles, compared with 2008. Sergey Generalov in his speech to shareholders noted that the significant decrease is mainly caused by adverse market conditions in 2009, namely, falling rates in the sea freight market and reduction of total number of ship days in operation.

The AGM elected new Board of Directors and increased the total number of independent Directors in the Board to 6 members. New Board members are:
—  Sergey Generalov – Chairman of the Board;
—  Jacob Grapengiesser – Independent Director;
—  Dmitry Shokhin;
—  William Owens – Independent Director;
—  Maxim Likhachev – Independent Director;
—  Boris Lapidus – Independent Director;
—  Kirill Rubinskiy;
—  Jan-Pascal Pier Alexander Duviesar – Independent Director;
—  Alexander Malakh – Independent Director.


Over the past three years FESCO Shareholders meeting supports preliminary approval of Group related-party transactions for the next year.

FESCO shareholders also approved the distribution of net profit for 2009. The Board of Directors proposed not to declare and not to pay dividends for 2009 and to reinvest all profits. Also, the Board of Directors proposed not to pay remuneration to members of the previously elected Board and Audit Commission for 2009. Shareholders supported both proposals.