22 Apr 2014 07:01
FOR IMMEDIATE RELEASE 22 April 2014
TransContainer
OPERATING RESULTS FOR THE FIRST QUARTER OF 2014
Open Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the first quarter of 2014. The operating results of the first three months reflect continuing growth in the container market, which is partially attributable to the low base effect of the previous year. In addition, the weakening of the rouble supported export transportation volumes, but it had a negatively impact on the import transportation. Under these circumstances, the Company continued to pursue a flexible policy aimed at addressing the customers' requirements, as well as optimising costs and improving operational efficiency.
Rail container transportation volumes in Russia
The Company's rail container transportation volumes in Russia for the first quarter of 2014 increased by 1.9% to 349 thousand twenty-foot equivalent units ("TEU"), compared to 342 thousand TEU in the corresponding period of 2013. This was mainly due to a 41% growth in transit transportation volumes and 10% growth in export transportation, which was largely offset by a 16.8% decrease in international transportation. A decrease in the Company's import transportation primarily resulted from the negative impact of the weaker roubleon container imports.
Transportation of containers by TransContainer's fleet in 1Q 2014 (ISO Loaded + Empty), 000' TEU
1Q 2014 | 1Q 2013 | Change | ||
000' TEU | Percent | |||
Domestic Routes | 167.2 | 167.1 | +0.1 | 0.0% |
Export | 99.8 | 90.7 | +9.1 | +10.1% |
Import | 53.5 | 64.4 | -10.8 | -16.8% |
Transit | 28.4 | 20.1 | +8.3 | +41.0% |
All Routes | 349.0 | 342.4 | +6.6 | +1.9% |
The Company's revenue-generating container transportation[1] volumes in Russia increased by 5.1% in the first quarter of 2014 to 272 thousand TEU, compared to the corresponding period of 2013.
TransContainer's estimated share of Russia's rail container transportation in the first quarter of 2014 decreased to ca. 45.3% from ca. 48.5% in the corresponding period of 2013 and remained essentially flat compared to the fourth quarter of 2013.
Rail container transportation volumes in Kazakhstan
Rail container transportation volumes carried out by KedenTransService, the joint venture of TransContainer and Kazakhstan Temir Zholy in Kazakhstan, amounted to 53.9 thousand TEU in the first quarter of 2014, a near 3.5-fold year on year rise, as a result of a substantial increase in the flatcar fleet in operation throughout the year of 2013.
Terminal handling
Throughput of the Company's rail container terminal network in Russia in the first quarter of 2014 decreased by 0.2% to 296 thousand TEU, compared to the fourth quarter of 2013. This decline was mainly due to a 83.1% year on year drop in the handling volume of medium-duty containers (MDC), as a result of the continuing phasing out of the MDC fleet.
Preliminary figures indicate that container handling by KedenTransService, the joint venture of TransContainer and Kazakhstan Temir Zholy in Kazakhstan, at the cross-border rail side terminals Dostyk and Altynkol amounted to 39.2 thousand TEU in the first quarter of 2014, flat to the first quarter of 2013. Non-container throughput at KedenTransService's terminals was 0.6 million tonnesin the first quarter of 2014, demonstrating a 29.4% year on year decrease.
Asset utilisation
In the first quarter of 2014, containers empty runs decreased year on year due to management efforts aimed at optimisingthe container fleet utilisationamid a challenging operating environment. This was partly offset by a moderate increase in flatcars empty runs.
Growth in the container turnover mainly related to the market environment, growing competition and increasing complexity of logistics chains in the first three months of 2014, while flatcars turnover remained essentially flat.
1Q 2014 | 1Q 2013 | |
Turnover of containers, days | 31.8 | 26.0 |
Turnover of flatcars, days | 14.5 | 14.0 |
Empty run[2] for containers, % | 27.6% | 29.2% |
Empty run for flatcars, % | 6.7% | 6.1% |
Enquiries:
TransContainer | |
Andrey Zhemchugov,Director, Capital Markets and Investor Relations | +7 495 637 9178 +7 495 609 6062 |
IR@trcont.ru | |
Website | www.trcont.ru |
Instinctif Partners |
|
Tony Friend / Galyna Kulachek | +44 (0) 20 7457 2020 |
About TransContainer
TransContainer (LSE ticker: TRCN) is the leading intermodal container transportation company in Russia. It is the market leader in Russia by flatcar fleet size, container transportation by rail and rail-side container terminal throughput. As of 31 December 2013 it owned and operated 26,305 flatcars and 62,367 containers. It owns a network of 46 rail-side container terminals in Russia, 19 rail-side terminals in Kazakhstan (through its subsidiary KedenTransService) and operates one terminal in Slovakia. Company's sales network comprises approximately 140 sales offices across Russia along with presence in the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. Company's major shareholder is JSC Russian Railways with 50%+2 shares.
[1] Transportation of clients' containers and own loaded containers
[2] The Empty run ratio is calculated as an average empty run in kilometers divided by an average total run in kilometers