FESCO Announces Operational and Consolidated Financial Results
OREANDA-NEWS. FESCO Transportation Group announces its operational and consolidated financial results as per IFRS for three-month and twelve-month periods ended December 31, 2014.
Group financial results were positively affected by solid growth of container volumes across all divisions; however RUB devaluation and continuous rail market weakness were major contributors to negative dynamics of USD denominated financial results.
Group's consolidated revenue decreased by 1.9% YoY to \\$1,118m. Group's EBITDA decreased by 8.5% YoY and reached USD 177m.
In RUB terms Group's consolidated revenue and EBITDA were up by 17.8% YoY to RUB 42,787m and up by 10.6% YoY to RUB 6,820m, respectively.
In Port, Bunkering, Liner and Logistics and Shipping Divisions revenue and EBITDA in RUB were up in 2014 vs. 2013. In the Rail Division, the decrease of revenue and EBITDA in RUB was smaller than in USD.
Group's EBITDA margin decreased by 1.2pp YoY to 15.8%. Excludinglow-margin bunkering business, Group's EBITDA margin was up YoY.
The Group demonstrated strong performance in 4Q 2014 with Port, LLD and Shipping divisional EBITDA growth.
CAPEX spending increased due to expansion CAPEX component, which includes acquisition of two new fuel efficient vessels, acquisition of a dry container terminal in Novosibirsk, investments the Port Division and in Usady project as well as acquisition of trucks and investment in the corporate IT system. To address the macroeconomic challenges in 2015 the Group plans to cutback the expansion CAPEX, and keep the CAPEX at maintenance level in the range of USD20-25m.
Group had developed the cost optimization program which started to be implemented in Q4 2014 and will continue in 2015. The program is focused on maximization of cash flow by reduction of CAPEX, reduction of administrative expenses across all divisions, decrease in operating costs at port, optimization of fleet usage in rail and shipping, and the labour productivity growth.
In 4Q 2014, the Group started transferring stevedoring and terminal handling tariffs at Port for export-import cargo from RUB into USD to improve the revenue currency structure. The Group targets to increase the share of USD-denominated revenue for 2015 at Port division to 80%.
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