EMEA News
Bunkering Boosts Results for Russian Firm
Russia's FESCO Transportation Group (Fesco) reports it got a boost from its fledgling bunkering business in the first half of the year but still saw its revenue and profits decline year-over-year.
The bunkering business contributed $70.9 million to the group's revenue and $6.2 million to its earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first half, compared with just $12.1 million revenues and $800,000 EBITA in the same period last year.
Overall, Fesco's revenues dropped 8 percent to $513.1 million, while EBITA fell 31.3 percent to $68.3 million.
Revenues and EBITDA for the company's three largest divisions, Liner & logistics, Rail, and Ports, all dropped year-over-year.
The company increased container transportation and handling volumes, with particular growth in the Far East market, but devaluation of the Russian ruble and decreased rates hurt its overall results.
FESCO-Bunker started operations at ports in Russia's Far East in April 2013 and joined the Russian Association of Marine and River Bunker Suppliers (Rosmorrechbunker) later that year, saying it wanted to help create a "civilised" bunker market.
