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Fesco 2015 profit falls 36.5pc to US$188 million as revenues drop 38.5pc

RUSSIA's FESCO Transportation Group 2015 gross profit declined 36.5 per cent year on year to US$188 million, drawn on revenues of $688 million, which fell 38.5 per cent.

"The uncertain economic environment, foreign exchange rate fluctuations, economic sanctions and a slowdown in domestic consumption negatively impacted transportation volumes and the financial results of the company," said the FESCO statement.

The group is focused on strengthening relationship with direct accounts and extending presence in new business segments to generate incremental revenue and maintain profitability.

The group has implemented the cost optimisation programme planned for 2015. The total benefit accounted for $55 million. The cost optimisation effort continues in 2016.

FESCO port and liner container volumes decreased due to unfavourable market conditions, as well as lower trading with foreign partners in Russia.

Container handling at the Commercial Port of Vladivostok (VMTP), which the company owns, decreased 32.8 per cent year on year to 345,000 TEU.

Export-import liner volumes decreased by 27.8 per cent year on year to 309,000 TEU.

Intermodal transportation decreased by 30.7 per cent year on year to 179,300 TEU.

General cargo volumes at the port decreased by 11.7 per cent year on year to 2.02 million tons.

Intermodal volume declined 14.3 per cent year on year to 278,800 TEU due to the low operational results from Russkaya Troyka, which fell 26 per cent while Transgarant container transportation declined five per cent. Carloads declined by three per cent year on year to 19.4 million tons.