FESCO Transportation Group has announced its 2018 financial results

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FESCO Transportation Group has posted consolidated revenue increase of 30.3% year-on-year to RUB* 57.0bn, driven by a general economic recovery and higher transportation volumes.

EBITDA grew by 36.0% year-on-year to RUB10.61bn. All operating divisions contributed to the growth, with effective commercial policies and higher cargo traffic being the key drivers. EBITDA margin grew from 17.8% to 18.6% year-on-year.

Revenue in the Liner and Logistics division grew by 22.4% to RUB35.87bn and EBITDA increased by 45.1% to RUB1.27bn driven by intermodal and domestic transportation services. The Group secured a 23.9% year-on-year increase in intermodal transportation volumes bringing them to 301,800 TEU. The Group reportedly secured a record high intermodal transportation market share of 39% across the East–West corridor, up two percentage points.

FESCO improved its key operating results and achieved the highest handling volumes in the Port history (10.4m tonnes). It also enhanced the container throughput by 17.7% to 551,000 TEU.

The Rail Division’s revenue in 2018 grew by 43.8% year-on-year to RUB11.8bn primarily due to the Group’s entry into the grain transportation market. The division’s EBITDA increased by 36.0% to RUB4.12bn. Its EBITDA margin reached 34.9%, down by two percentage points driven by increased share of the leased fleet, as well as by rising costs of rolling stock repairs.

In 2018, the Group’s Shipping Division posted revenue increase of 23.3% to RUB2.77bn due to active commercial activities and increased transportation rates amid improved market conditions. EBITDA grew by 114.7% to RUB0.66bn.

FESCO Group has expanded the expedited multimodal delivery of cargoes to deliveries from Busan to Moscow and St. Petersburg and from sea ports of Japan to Moscow after introducing it in 2017 along the Shanghai–Moscow Route.

The Group also expanded its route network by launching new railroad services for export cargo deliveries from Russia to China via Mongolia and Kazakhstan.

The Group has continued to develop its expertise in Supply Chain Management in 3PL and 4PL segments and it has expanded its order portfolio by offering project logistics services.

FESCO has also tapped into the containerised grain transportation both domestically and internationally.

Source: FESCO

*€=RUB 74.04 / $= RUB 67.58