Despite the instability in the world caused by the coronavirus pandemic, FESCO managed not only to maintain its financial stability but also achieved new highs, expanded the network of routes and continued to increase its own assets.
In 2020, FESCO took the first place in the container turnover in Russia – the turnover in VMTP PJSC (member of FESCO Group) amounted to 672 442 TEU (up 8 % YoY).
FESCO increased the intermodal transportation volumes to 393 thousand TEU (up 14 % YoY), set a new record for the domestic maritime transportation turnover for over 80 thousand TEU (up 3 % YoY) and increased the international transportation volume to 293 thousand TEU (up 17 % YoY).
During 2020, FESCO’s management gradually implemented a program for improving production capacities: more than a third of the premises of VMTP PJSC were reconstructed, the vehicle park at all main terminals of the Group was updated, a fleet was acquired, which enabled the company to enter a new transportation segment and perform the first voyage through the Northern sea route.
The Group’s operating results
|Intermodal transportation, kTEU||344||393||14|
|International maritime transportation, kTEU||250||293||17|
|Domestic maritime transportation, kTEU||78||80||3|
|VMTP container handling, kTEU||625||672||8|
|VMTP general cargoes handling, kt||5 526||4 972||(10)|
|Vehicles handling (units)||77 023||71 248||(7)|
|Rolling stock (units)||12 723||8 200||(36)|
|Rail container transportation, kTEU||388||471||21|
|Shipments in box cars, units||16 372||17 917||9|
|Transport fleet, units||20||18||(10)|
|Operable vessel days ||7 208||6 478||(10)|
|Bunkering volumes, kt||68||67||(1)|
Financial performance of the Group
|Indicator, RUB m||2019||2020||Change, %|
|Revenue||56 673||62 168||10|
|EBITDA ||12 231||12 293||1|
|EBITDA margin, %||22%||20%||(2 pp)|
|Net profit / (loss)||(1 842)||8 346||-|
- Consolidated revenue in 2020 amounted to RUB 62 168 million, which is 10% more than in 2019, mainly due to the increase in cargo turnover in the Port division and the volume growth in the Group’s main services.
- In 2020, the Group’s consolidated EBITDA grew 1% compared to 2019 and reached RUB 12 293 million.
- The Group’s net profit in 2020 was RUB 8 346 million vs the loss in 2019, amounted to RUB 1 842 million.
Financial and operating performance by divisions
Liner and Logistics Division
- Revenue grew to RUB 46 586 million (up 23% YoY), driven by an increase in intermodal transportation volumes and the international trade shipping rates.
- EBITDA reached RUB 3 270 million (up 42% YoY).
- Intermodal transportation volume reached 393 thousand TEU (up 14% YoY), mainly due to launching new regular services, project transportation and expanding the portfolio of customers.
- International maritime transportation volume reached 293 thousand TEU (up 17% YoY). The growth was driven by the management's policy for attracting customers from the traditional transportation routes through the Deep Sea over to the routes going via the ports of the Far East.
- Domestic maritime transportation volume amounted to 80 thousand TEU (up 3% YoY). The growth is driven by the capacity increase of the Group’s main services.
- Revenue went up to RUB 16 326 million (up 6% YoY), mainly driven by the changes in turnover and rates, especially in transshipment of import and export cargoes.
- EBITDA amounted to RUB 7 416 million (up 9% YoY).
- Operating performance
- In 2020, the Group took the first place in container turnover in Russia with the record-breaking turnover of 672 442 TEU (up 8% YoY).
- Revenue decreased to RUB 5 340 million (down 35% YoY). During 2020, the management gradually implemented the program of selling the non-core assets and expanding the park of fitting platforms. The key stages of the program in 2020 were the withdrawal from the segment of grain transportation in hopper cars and the sale of a 100% share in TransGrain LLC.
- EBITDA amounted to RUB 1 939 million (down 46% YoY).
- Operating performance
- Railway container transportation volumes increased to 471 thousand TEU (up 21% YoY) mainly due to the fleet of fitting platforms expanding within the program for the specialized rolling-stock fleet development.
- Shipments by box cars rose to 17 917 units (up 9% YoY).
- Revenue grew to RUB 3 338 million (up 3% YoY) mainly as a result of adding new multi-purpose vessels to the fleet and successfully completing the expedition to Antarctica for supply of the Indian research stations.
- EBITDA amounted to RUB 1 005 million (up 29% YoY).
- Operating performance
- Total operating vessel-day volume amounted to 6 478 (down 10% YoY).
- Revenue amounted to RUB 841 million (down 29% YoY). The decline was mainly driven by the introduction of new environmental requirements for the transition to low-sulfur marine fuel, as well as the growth of bunkering on an agency basis instead of the oil products sales.
- EBITDA amounted to RUB 12 million (down 85% YoY).
- Operating performance
- Bunkering volume declined to 67 thousand tonnes (down 1% YoY).
Financial performance by divisions
|Liner and Logistics Division|
|Revenue||37 944||46 586||23|
|EBITDA||2 309||3 270||42|
|EBITDA margin||6%||7%||1 pp|
|Revenue||15 409||16 326||6|
|EBITDA||6 787||7 416||9|
|Revenue||8 232||5 340||(35)|
|EBITDA||3 596||1 939||(46)|
|EBITDA margin||44%||36%||(7 pp)|
|Revenue||3 245||3 338||3|
|EBITDA margin||24%||30%||6 pp|
The Group’s consolidated debt as of 31 December 2020
- Net debt/ EBITDA ratio:
- (excluding IFRS 16 impact) declined from 3.7х as of 31.12.2019 to 2.8х as of 31.12.2020
- The Group’s RUB-denominated consolidated debt declined to RUB 33 692 million (down 17% YoY). (на 17% ниже уровня 2019 года).
- The Group’s liabilities:
- RUB 31 732 million in loans
- RUB 1 960 million in lease liabilities
31.12.2019 EBITDA 31.12.2020 EBITDA Indicator, RUB m (Cash and cash equivalents) (1 232) (0,1х) (4 140) (0,4х) Debt obligations and finance lease liabilities, including  39 294 3,4х 33 692 3,2х Short-term 6 659 8 484 Long-term 32 635 25 208 Net Debt 38 063 3,3х 29 552 2,8х
Key еvents subsequent to the reporting date
In April 2021, FESCO signed a loan agreement with VTB Bank in the amount of RUB 25.8 billion (USD 323 million) to refinance its current liabilities. The received funds are directed to repay the main part of the current financial debt to VTB Bank. As a result of the transaction, the Group received more comfortable debt service conditions: decrease of the interest rates, changes in the currency composition of the debt that will ensure the natural hedging of foreign exchange risks, extension of the maturity dates for the principal debt repayment up to and including 2027and reduction of the amount of quarterly payment.
 Total number of days in which the vessel was available for operation, excluding downtime due to the vessel's overhaul, upgrade, dry docking, and specialized or intermediate maintenance.
 EBITDA is calculated as operating profit net of amortisation, depreciation, and the impact of asset write-offs and one-off expense, and includes the impact of IFRS 16.
 Lease liabilities do not include the liabilities, where until 1 January 2019 the lease was considered operating before IFRS 16 came into force, so to calculate ratios, adjusted EBITDA excluding the impact of the IFRS 16 adoption is also used.
Related materialsFinancial and operating results of FESCO Transportation Group for six months ended on June 30, 202229 aug 2022Financial and operating results of FESCO Transportation Group for six months ended on June 30, 2022FESCO Transportation Group (the “Group” or “FESCO”) announces its operating and financial results for six months ended on June 30, 2022. The Group also informs that all audit procedures in relation to consolidated interim condensed statements according to international standards for the first half of 2022 have been completed. Full version of statements with notes is published on www.fesco.ru, section To Shareholders and Investors. Operating and financial results of the Group As per results of H1 2022, FESCO has improved its key operating and financial indicators, in particular: achieved record traffic volumes of 144 thousand TEU on international lines from countries of Southeast Asia to the Far East. Cumulative increase compared to 2021 is 22%; achieved record volumes of refrigerated cargo transportations. Total volume amounted to 19 thousand TEU, which is 35% higher than in 2021; EBITDA in the amount of 37 969 million rubles, which is more than 2 times higher than the level of the same period in 2021; record low “Net debt/EBITDA” indicator of 0.3x as of 30.06.2022; The Group continued to increase assets: container fleet in operation has been increased by 3 184 units; the fleet of fitting platforms has been replenished with 1 723 units of 80-ft platforms. Operating results of the Group: Six-month period ended30 June Indicator of 2021 2022 Alteration, % Container transshipment in CPV (thousand TEU) 364,5 345,5 (5) General cargo and oil products transshipment in CPV (thousand tons) 3 158,7 3 016,2 (5) Intermodal transportations (thousand TEU) 222,1 244,8 10 International marine transportations (thousand TEU) 137,4 151,1 10 Coastal shipments (thousand TEU) 38,6 42,1 9 Transshipment of containers in CPV decreased by 5% due to withdrawal of major international line operators from the Russian market. Volumes of intermodal transportations are increased by 10% compared to 2021 and amount to 245 thousand TEU due to development of geography of transportations, increase of container fleet and fitting platforms. Financial performance of the Group: Six-month period ended30 June Indicator of, mln RUB 2021 2022 Alteration, % Revenue 47 797 84 347 75 EBITDA 1 16 906 37 969 125 EBITDA margin, % 35,4 45,0 9,6 п.п. Consolidated debt of the Group as of 30.06.2022 Indicator of, mln RUB 31.12.2021 EBITDA 30.06.2022 EBITDA (Cash balances) (11 068) (0,2х) (23 734) (0,6х) Loans and lease liabilities 2 34 010 0,7х 32 993 0,9х Short-term 3 639 2 817 Long-term 30 371 30 176 Total net debt 22 942 0,5х 9 259 0,3х Net debt as of June 30, 2022 decreased to 9 259 million rubles from 22 942 million rubles as of end of 2021. Obligations of the Group: 30 267 million rubles on credits and loans 2 726 million rubles on lease agreements  EBITDA is calculated as operating profit excluding depreciation, impairment and the result of disposal of assets and one-time expenses and takes into account the impact of IFRS 16.  Lease liabilities do not take into account obligations under lease agreements, which until January 1, 2019 was recognized as operating prior to entry into force of IFRS 16, therefore, adjusted EBITDA is also used to calculate coefficients without taking into account impact of the effect of applying IFRS 16.Financial and operating results of FESCO Transportation Group for 20214 apr 2022Financial and operating results of FESCO Transportation Group for 2021FESCO Transportation Group (“FESCO”, the “Group”) announces its operating and financial results for twelve months ended on December 31, 2021. The Group also informs that all audit procedures regarding 2021 IFRS consolidated financial statements have been completed. Full version of financial statements with notes is published on www.fesco.ru, section Investor Relations.Fitch Ratings upgrades FESCO’s credit rating to ‘В+’; outlook stable24 may 2021Fitch Ratings upgrades FESCO’s credit rating to ‘В+’; outlook stableThe international rating agency Fitch Ratings has updated the long-term credit rating of FESCO Transportation Group (“FESCO”, the “Group”, the parent company - Far Eastern Shipping Company PJSC) from ‘CCC’ to ‘B+’, outlook is stable.Financial and operating results of FESCO Transportation Group for 201925 may 2020Financial and operating results of FESCO Transportation Group for 2019FESCO Transportation Group (the “Group” or “FESCO Group”) announces its operating and consolidated financial results for the twelve months ended 31 December 2019. The Group also informs that all audit procedures regarding 2019 IFRS consolidated financial statements have been completed. For the full version of the financial statements with notes, see the Investor Relations section of our website www.fesco.com.Buy-back of FESCO’s BO-01 и BO-02 series exchange-traded bonds based on irrevocable public tender offers1 oct 2019Buy-back of FESCO’s BO-01 и BO-02 series exchange-traded bonds based on irrevocable public tender offersFESCO Transportation Group (the “Group or “FESCO”) announces the results of recently expired irrevocable public offers to holders of FESCO PLC’s BO-01 and BO-02 series exchange-traded bonds.Financial and operating results of FESCO Transportation Group for 201828 mar 2019Financial and operating results of FESCO Transportation Group for 2018FESCO Transportation Group (the “Group” or “FESCO Group”) announces its operating and consolidated financial results for the twelve months ended December 31, 2018 based on the management accounts.