EquityStory.RS, LLC-News: Far Eastern Shipping Company / Key word(s):
Miscellaneous
Far Eastern Shipping Company: Trading update for the three month and
six month periods ended June 30, 2014
29.08.2014 / 15:28
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August 29, 2014
Trading update for the three month and six month periods ended June 30,
2014
FESCO Transportation Group (MOEX: FESH) provides a trading update with the
operational and consolidated financial results as per IFRS for the three
month and six month periods ended June 30, 2014.
Highlights:
- In 1H2014, the Group continued to increase its container transportation
and handling volumes securing the leadership position in Russian Far
East by container shipping via sea lines and import container
throughput at Port
- Container throughput at Port increased by 8.4% YoY in 1H2014 strongly
outperforming the Far East market, with the Port of Vladivostok market
share in import container handling reaching 41%
- Continued growth in export in 1H2014 seen as a sustainable trend across
all steps of transportation chain
- Despite the container volumes growth the Group's financial results
experienced downward pressure from RUB devaluation and decreased rates
and tariffs. In 1H2014, Group's consolidated revenue in USD declined by
8.0% YoY to $513.1m. Consolidated revenue in RUB grew by 3.5% YoY to
RUB 17,947m. 1H2014 EBITDA reached $68.3m, down 31.3% YoY
- 1H2014 Group's consolidated EBITDA excluding one-offs amounted to
$74.3m
- The Group continued the optimization of its vessels and railcars fleet
- The Group announced acquisition of an inland container terminal in
Novosibirsk for total consideration of $8m
- Total cash spend for CAPEX in 1H2014 (including $2.4m paid as advance
for terminal in Novosibirsk) remains at relatively low level amounting
to $36.3m in 1H2014. Net cash CAPEX after proceeds from disposal of
fixed assets equals to $27.3m
Group Financial Results
<pre>
$ million 1Q 2014 2Q 2014 1H2014 1H2013 Dynamics
Revenue 242.5 270.7 513.1 557.6 -8.0%
EBITDA 32.8 35.4 68.3 99.4 -31.3%
EBITDA margin 13.5% 13.1% 13.3% 17.8% -4.5 pt
Capital Expenditures 18.4 17.9 36.3 25.2 +44.0%
</pre>
<pre>
RUB million 1Q 2014 2Q 2014 1H2014 1H2013 Dynamics
Revenue 8 484.9 9 462.1 17 947.0 17 340.9 +3.5%
EBITDA 1 154.4 1 238.5 2 392.8 3 086.9 -22.5%
EBITDA margin 13.6% 13.1% 13.3% 17.8% -4.5 pt
</pre>
Divisional Performance Highlights
Port Division
- Container throughput in 1H2014 up by 8.4% YoY with import container
throughput growth of 11.2% YoY
- Significant growth of 20.4% YoY in general cargo throughput volumes
with ferrous metals growth of 50% YoY in 1H2014
- In 1H2014, revenue in RUB increased by 2.6% YoY with EBITDA in RUB
decreased by 2.3% YoY. Revenue and EBITDA in USD decreased by 8.5% YoY
and 12.3% YoY respectively due to RUB devaluation
- The liberalization of customs procedures in 2Q2014 resulted in decrease
in average container tariffs by 16.5%YoY in USD (driven by lower
revenue from storage and auxiliary services) and contributed to
relative weakening of Port performance in the short term
Rail Division
- Rail container transportation volumes in 1H2014 up by 8.1% YoY to
147,338 TEU driven by expansion of Transgarant fleet by 562 fitting
platforms YoY
- The number of container block trains increased by 7% YoY (from 523 to
558) driven by growing demand for the service
- Low single-digit decrease in non-container cargo load due to decline in
coal transportation volumes and reduction in number of gondola cars
- Revenue decreased by 39.7% YoY to $85.0m due to continued decline in
gondola rates in 1H2013 and RUB devaluation. EBITDA decreased by 53.9%
YoY to $24.5m
Liner and Logistics Division
- Strong growth of export-import sea container transportation in 1H2014
(up by 11.8% YoY)
- In 1H2014, revenue in RUB was up by 4.4% YoY and in USD decreased by
6.9% YoY down to $304.8m driven by RUB devaluation and growing share of
export in intermodal transportation
- EBITDA in 1H2014 declined by 46.3% YoY due to zero EBITDA in 1Q2014. In
2Q2014, EBITDA was up by 8.0% YoY
Shipping Division
- Shipping Division demonstrated 16.0% YoY growth of revenue and positive
EBITDA of $2.9m in 1H2014 due to positive result from icebreakers and
profitable contracts with the third party
Bunkering
- Bunkering business contributed $70.9m to the Group's revenue and $6.2m
to the Group's EBITDA in 1H2014
<pre>
$ millions 1Q 2014 2Q 2014 1H2014 1H2013 Dynamics
Port
Revenue 44.4 45.5 90.0 98.4 -8.5%
EBITDA 19.3 19.3 38.6 44.0 -12.3%
EBITDA margin 43.5% 42.4% 42.9% 44.7% -1.8 pt
Rail
Revenue 44.6 40.4 85.0 140.9 -39.7%
EBITDA 13.3 11.2 24.5 53.1 -53.9%
EBITDA margin 29.8% 27.7% 28.8% 37.7% -8.9 pt
Liner & Logistics
Revenue 137.3 167.5 304.8 327.5 -6.9%
EBITDA 0.0 9.4 9.4 17.5 -46.3%
EBITDA margin 0.0% 5.6% 3.1% 5.3% -2.2 pt
Shipping
Revenue 19.8 13.5 33.3 28.7 +16.0%
EBITDA 4.4 -1.5 2.9 -3.9 -
EBITDA margin 22.2% - 8.7% - -
Bunkering
Revenue 29.4 41.5 70.9 12.1 +486%
EBITDA 3.8 2.4 6.2 0.8 +675%
EBITDA margin 12.9% 5.8% 8.7% 6.6% +2.1 pt
</pre>
FESCO Consolidated Group Financial Position
Pro-forma net debt amounted to $1,016m as of 30-Jun-2014:
- Consolidated debt includes $550m of 8.00% Senior Secured Notes due 2018
and $325m of 8.75% Senior Secured Notes due 2020, as well as RUB 5bn of
bonds, the proceeds from which were used to refinance the Group's
acquisition-related and pre-existing debt
- As of June 30, 2014, Pro-forma Net Debt / LTM adjusted EBITDA ratio was
6.2x
<pre>
$ millions At 30 June, 2014
Pro-forma total Debt(1) 1,155
Cash 139
Pro-forma net Debt 1,016
Pro-forma net Debt/ LTM Adj. EBITDA 6.2x
</pre>
(1)Total borrowings include USD 550m 8.00% Senior Secured Notes due 2018
and USD 325m 8.75% Senior Secured Notes due 2020; RUB 5bln ruble bonds and
exclude the $150m REPO loan secured by shares of TransContainer
FESCO operational results for 1H2014
<pre>
1Q2014 2Q2014 1H2014 1H2013 Dynamics
Intermodal freight 55,995 61,479 117,474 117,187 +0.2%
transportation* (TEU)
Export-import sea 94,475 108,067 202,542 181,203 +11.8%
container trade (TEU)
Domestic sea container 12,828 15,326 28,154 28,871 -2.5%
trade (TEU)
VMTP container 109,828 132,784 242,612 223,802 +8.4%
throughput(TEU)
49,565 58,924 108,489 97,563 +11.2%
Import 38,031 47,437 85,468 78,498 +8.9%
Export 22,212 26,443 48,655 47,741 +1.9%
Cabotage
VMTP non-container cargo 827 448 1,275 1,059 +20.4%
throughput (excluding
vehicles) (thousand tons)
Automobiles and 15,329 21,487 36,816 47,922 -23.2%
transportation vehicles
throughput (units)
Rail container 70,219 77,119 147,338 136,353 +8.1%
transportation
(«RusskayaTroyka» and
«Transgarant») (TEU)
Rail cargo load (million 4.9 5.0 9.9 10.2 -2.9%
tons)
Rail cargo turnover 7.6 7.8 15.4 16.1 -4.3%
(billion ton-kilometers)
</pre>
* - excluding transportation of empty carrier owned containers (COC)
About FESCO
FESCO is one of the leading privately-owned transportation and logistics
companies in Russia with operations in ports, rail, integrated logistics
and shipping business. Diversified but integrated asset portfolio enables
FESCO to provide door-to-door logistics solutions and control almost all
steps of the intermodal transportation value chain. The majority of FESCO's
operations are located in the Russian Far East and the Group benefits from
growing trade volumes between Russia and Asian countries.
FESCO is the leader of container transportation through the Russian Far
East via international sea container lines to/from Asian countries,
domestic sea container lines and by rail. FESCO is the leading port
container operator in the Far East region.
FESCO controls the Commercial Port of Vladivostok which has throughput
capacity of 3.9 million tons of general cargo and oil products, 150,000
vehicles and over 600,000 TEU of containers. In 2013, total container
throughput at the Commercial Port of Vladivostok reached 477,000 TEU,
including 204,000 TEU of imported cargo.
FESCO is among the 10 largest Russian private rail operators, providing
services under "Transgarant" (100% subsidiary of FESCO) and "Russian
Troika" (50% joint venture with JSC Russian Railways) brands. "Transgarant"
operates a fleet of 16.3 thousand units of rolling stock, while "Russian
Troika" operates a fleet of 1.7 thousand container platforms. FESCO has a
fleet of 24 vessels, mostly deployed through own sea service lines, and 4
icebreakers leased under long-term contracts.
IR contacts:
Galina Shilina
IR Director
+7 (495) 926 80 00 ext.11007
gshilina@fesco.com
Ekaterina Semenova
IR manager
+7 (495) 926 80 00 ext.11058
esemenova@fesco.com
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29.08.2014 Dissemination of a Corporate News, transmitted by
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284773 29.08.2014
DGAP-News: Far Eastern Shipping Company: Trading update for the three month and six month periods ended June 30, 2014
| Source: EQS Group AG