Results of Freight One Annual General Meeting
By the results of last year Freight One confirmed its position as the leader of the Russian railway freight market, judging by the range of activity and key performance indicators. The goods turnover of Freight One totaled 361 bln tkm, taking up over 15 percent share in the total transportation volume on the Russian Railways network in 2015.
Against the downturn trend of market dynamics the Company increased its transportation volumes in several segments, including 12.8 percent for ferrous and non-ferrous ore cargoes, 5.7 for cement, and 58.6 percent for non-ferrous metals.
The key strategic areas of the Company?s activity in 2015 included efficiency improvement target programs, optimization of rolling stock maintenance and repairs, and increasing the share of high-yield transportations.
In terms of the strategy to improve rolling stock operation efficiency, Freight One managed to boost up the speed of loaded railcars by 7.8 percent. The operational fleet increased performance by 11 percent, decreasing the railcar turnover by 6 percent, and improving the empty run ratio by 7 percent.
Due to the high working standards and joint commitment to strengthen the customer base and build long-term relationships with consignors, Freight One has increased its share in the contract structure of Russia?s major enterprises and has expanded its client portfolio with new long-term service contracts. Freight One?s key partners include Eurocement Group, Severstal, UC RUSAL, NLMK Group and other leaders of the Russian industry.
Despite a difficult year for the industry, Freight One demonstrated stable financial performance, providing for further business development. The Company's revenues by the results of 2015 totaled RUB 83.2 bln, EBITDA reached RUB 21.5 bln. Efficient business sustainability improvement helped Freight One reduce the net debt by 21 percent by the end of 2015, and bring the total operating expenses down by 9 percent.
«In the difficult market conditions of 2015 we once again demonstrated our ability of prompt and adequate response to external challenges. We have increased operational efficiency, and we have significantly reduced operating and investment costs, thus ensuring high business sustainability,» said Oleg Bukin, CEO of Freight One.
With account of the Company?s performance in 2015, it was decided not to pay annual dividends to the shareholders. The members of the Board of Directors will be paid annual remuneration, and a fee for participation in the work of the Board of Directors and its Committees over the period between the annual general meetings of shareholders of 2015-2016.
June 30, 2016 in Moscow Joint Stock Company Freight One (Freight One) held its Annual General Meeting of Shareholders, approving the annual report, the annual financial statements, and the profit and loss statement of the Company for the year 2015.By the results of last year Freight One confirmed its position as the leader of the Russian railway freight market, judging by the range of activity and key performance indicators. The goods turnover of Freight One totaled 361 bln tkm, taking up over 15 percent share in the total transportation volume on the Russian Railways network in 2015.
Against the downturn trend of market dynamics the Company increased its transportation volumes in several segments, including 12.8 percent for ferrous and non-ferrous ore cargoes, 5.7 for cement, and 58.6 percent for non-ferrous metals.
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