Bruce Barnard | Oct 04, 2011 8:21AM EDT
Fesco, owner of Russia’s largest ocean carrier, boosted revenue by 27 percent in the first six months and forecast an even stronger second half performance.
The company, which is also active in rail freight and ports, booked revenue of $458 million, a gain of $98 million on the first half of 2010. The boost was driven by a “substantial” increase in domestic demand from industrial and consumer sectors.
Fesco’s ocean container traffic grew 46 percent in the first half of 2011 to 214,000 20-foot container equivalent units from 146,000 TEUs a year ago. Rail shipments were up 24 percent to 116,000 TEUs in the same period.
Net profit totaled $45 million against a $28 million net loss in the same period in 2010. Operating profit jumped to $44.5 million from $30.9 million a year ago.
“We grew not only in terms of volume but also in pricing,” said Yury Gilts, Fesco vice president and chief financial officer. “Given the traditional seasonality of our business, we expect even higher numbers in the second half of the year, which supports our positive forecast for 2011 full year results.”
Fesco made a net profit of $456 million in 2010, due largely to a $419 million gain on the sale of a half stake in National Container Company to an affiliate of First Quantum. The Moscow-based oil trader owns the other half of Russia’s biggest container terminal operator.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.
