Bruce Barnard, Special Correspondent | Apr 30, 2012 8:45AM EDT
Russia’s Fesco reported 2011 revenue grew 28 percent from a year ago to top $1 billion for the first time, driven by strong liner and logistics growth and higher rates at its port and rail units.
The owner of Russia’s largest ocean container carrier boosted operating earnings by 30 percent to $225 million from $173 million in 2010.
Net income fell to $29 million from 2010’s $456 million which was inflated by a $419 million profit on the sale of its 50 percent stake in National Container Company, Russia’s largest container terminal operator. The revaluation of Fesco’s shipping fleet also had a $47 million negative impact on the bottom line.
“We achieved noticeable revenue growth in all priority segments keeping profitability stably high,” said Fesco Chief Financial Officer Yury Gilts.
“As opposed to 2010, revenue growth was driven not only by increasing volumes, but also by price dynamics in rail transportation and ports.”
The group’s net debt stood at $465 million and balance sheet cash totaled $231 million.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
