Financial and operating results of FESCO Transportation Group for 2021

04 April 2022
FESCO 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.
Financial and operating results of the Group

In 2021, FESCO Transportation Group improved its key operating and financial indicators and set new records in its activities, in particular:

achieved record volumes of cargo transshipment in Commercial Port of Vladivostok (hereinafter – “CPV”) in the amount of 13.3 million tons, including a record container turnover of 757 thousand TEU;

reached EBITDA in the amount of 47 474 million rubles, which is almost 4 times higher than the level of 2020;

refinanced obligations to VTB Bank (PJSC) with annual uniform repayment for a period up to 2027, changed currency structure of debt in favor of rubles;

reached a record low «Net debt to EBITDA» ratio of 0.5x as of December 31, 2021. In comparison to the same date of 2020, the indicator has been reduced by 5.6 times. International and Russian credit ratings have been improved to levels “B+” with a stable forecast and “BBB-“ with a stable forecast, respectively;

continued to increase assets:

  1. fleet of the Group has been replenished with three vessels – FESCO Olga, FESCO Yanina, FESCO Sofia;
  2. container fleet in operation has been increased to a record 109 thousand TEU;
  3. the fleet of fitting platforms has been replenished with 1 286 units of 80-ft platforms.

Operating results of the Group:

Indicator 2020 2021 Alteration, %
Container transshipment in CPV (thousand TEU) 672 757 13
General cargo and oil products transshipment in CPV (thousand tons) 4 972 5 584 12
Intermodal transportations (thousand TEU) 393 465 18
International marine transportations (thousand TEU) 293 284 (3)
Coastal shipments (thousand TEU) 80 81 1
  • Total cargo turnover of CPV in tons increased by 16% compared to 2020.
  • Intermodal transportations volumes increased by 18% compared to 2020 and amounted to 465 thousand TEU by developing the geography of transportations, increasing container fleet and the fleet of fitting platforms.
  • Total volumes on marine arm of multimodal transportations are maintained at the level of year 2020 despite market restrictions caused by imbalance of supply chains due to COVID-19 crisis.

Financial performance of the Group:

Indicator, mil RUB 2020 2021 Alteration, %
Revenue 62 168 113 709 83
EBITDA [1] 12 293 47 474 286
EBITDA margin, % 20% 42% +22 pp
Net profit / (loss) 8 346 37 850 354

Consolidated debt of the Group as of 31.12.2021

Indicator, mil RUB 31.12.2020 EBITDA 31.12.2021 EBITDA
(Monetary means) (4 140) (0,4х) (11 068) (0,2х)
Loans and lease obligations 2 33 692 3,2х 34 010 0,7х
Short-term 8 484 3 639
Long-term 25 208 30 371
Total net debt 29 552 2,8х 22 942 0,5х

Net debt decreased from 29 552 million rubles to RUB 22 942 million rubles as of 31 December 2021.

Obligations of the Group:

    Financial performance
  • 31 014 million rubles on credits and loans
  • 2 996 million rubles on lease agreements

IMPORTANT NOTE

In this information message, the term FESCO means FAR-EASTERN SHIPPING COMPANY PLC.

Terms “FESCO Group”, “FESCO”, “Group”, “Company” refer to FESCO and legal entities under its direct and/or indirect control (controlled entities).

This information message is not intended to be and does not constitute an investment recommendation. This information message is not an offer and cannot be interpreted as an offer or an obligation to sell or issue (and is not part of such offer or obligation) securities of FESCO or any of its subsidiaries in any jurisdiction, as well as an inducement, recommendation, obligation or invitation to subscribe or otherwise purchase securities of FESCO or any of its subsidiaries in any jurisdiction, and cannot be interpreted as an advertisement of securities of FESCO or any of its subsidiaries in any jurisdiction or as an incentive to carry out investment activities in any jurisdiction.

Information provided in this information message has been prepared on the basis of management reports of the Group. These data do not contain sufficient information to be considered a complete set of financial statements. Indicators given in this information message have not been audited.



[1] 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

[2] Lease obligations 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 application of IFRS 16 standards.

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