Russian Ocean Carrier Fesco Revenue Jumps 34 Percent

Fesco, owner of Russia's biggest ocean container carrier, reported first half revenue jumped 34 percent from a year ago, driven by gains at its shipping, logistics, rail and ports units.

Revenue rose to $387 million in the six months to June 30 from $288 million in the same period in 2009 with container shipping and logistics accounting for $268 million of sales.

The company swung to an operating profit of $33 million from a year-earlier loss of $73.8 million and narrowed net losses to $28 million from $124 million.

By The Numbers: Asia-Europe Westbound Container Traffic.

"Improved financial results of the group show strong underlying recovery of operational performance across all Fesco business units, driven by the overall growth of the economy and restoration of volumes and, to a lesser extent, margins in transportation and logistics businesses," said Fesco Chief Financial Officer Yury Gilts.

Fesco said the first half results do not yet reflect the "very successful" divestment of its shares in the National Container Company, Russia's largest container terminal operator, in July.

"Today, Fesco's balance sheet is strong and healthy, with $450 million of total debt and $600 million on the balance sheet," Gilts said.

Fesco is reported to have received around $900 million for the sale of its NCC stake to an affiliate of Moscow oil trader Quantum that already owned the other half of the Moscow-based company.

Fesco paid $375 million for its NCC stake three and a half years ago.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.