FESCO's bunkering revenue decreased by 84.9 percent year on year in 9M16.
Russia's FESCO Transportation Group (FESCO), in its results for the nine-month period ending September 30, reports that the company's bunkering revenue decreased by 84.9 percent year on year to $15.3 million, compared to $101.4 million during the same period of 2015, due to a decrease in bunkering activity.
"Due to the Group's decision to review its bunkering business segment, the Bunkering Division significantly reduced its operations, which also allowed working capital to be substantially reduced," explained the company.
FESCO notes that its consolidated revenue decreased by 27.1 percent year on year during the period, falling to $396.4 million compared to $543.5 million in the same nine months of 2015, which FESCO also attributes to its decline in bunkering activity.
consolidated revenue decreased by 27.1 percent year on year... which FESCO also attributes to a decline in bunkering activity
"During this period the Group has entered into discussions with bondholders in furtherance of its ongoing restructuring process," explained FESCO.
"During the course of these discussions, the Group presented the key terms of a proposal to restructure its indebtedness. While a consensual agreement has not yet been reached, the Group is continuing to work with the advisers to the bondholders with a view to agreeing mutually acceptable terms for the restructuring."
In August, Ship & Bunker reported that FESCO's bunkering division revenue fell to $3.1 million during the first half of 2016, compared to $66.2 million during the same period of 2015.