The revenues of the Russian shipping operator FESCO dropped by 18.6% yoy in Q3 2016 to 138 million USD, due to low freight rates, international sanctions against Russia and delay in world economy growth. The company suffered from political tension, as well as decreasing of Far East trade. However, during the reported period, FESCO maintained its market share and routes, but also expanded its fleet. The shipping company also succeeded to reduce the operating expenses by 16.2% to 98 million USD, which erased part from the revenues gap in EBITDA, reporting 40 million USD earnings before interest, taxes, depreciation and amortization. However, the increase in interest expenses weightened on EBIT and company reported net loss of 1 million USD, compared to profit of 10 million USD an year ago.
Since the beginning of the year, period January-September 2016, revenues of FESCO slid by 27.2% yoy to 396 million USD, while EBITDA decreased by 21.6% yoy to 116 million USD. During the reported period, Russian shipping operator implemented restructuring program and succeeded to reduce significantly the administrative and non-operating expenses, which pushed the EBIT to profit of 59 million USD, representing increase of almost 100%.
The Russian logistics operator Far-Eastern Shipping Company Pls (FESCO) is one of the leading public transportation and logistics companies in Russia with operations in ports, rail, integrated logistics and shipping business. 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.