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Fesco falls into the red in 2014

Fesco falls into the red in 2014
Russian logistics operator, Far-Eastern Shipping Company (Fesco), fell into the red last year, in dollar terms.

Fesco recorded a $110m pre-tax loss against a $42m profit in 2013, despite a much improved fourth quarter. Revenues for the year were flat at $1.12bn but improved nearly 18% in rouble terms.

The group's main businesses consist of ports, a rail division, liner and logistics, a shipping division, and bunkering. Most reported increased volumes of business, where applicable, but varied financial results largely as a result of rouble devaluation.

Bunkering saw a 161% increase in revenues to $218.4m but the group's main business in financial terms, liner and logistics, saw a 7% decline in revenues to $623m.

The group developed a cost optimisation project which started implementation in the fourth quarter and was credited in part with the improved results of the quarter. the programme will continue into this year. Part of it involved the transfer of stevedore and terminal handling charges into US dollars. It is targeting 80% dollar income for ports in 2015.

Fesco controls the Commercial Port of Vladivostok which has a 3.9m tonne capacity for general cargo and oil products, 150,000 vehicles and over 600,000 teu of containers.

The group warns that the current situation in the Ukraine together with sanctions on Russia by the west could have a negative impact on its future results.

TAGS: Europe Tankers