Operating results for the first quarter 2015

RNS Number : 4993K

OPERATING RESULTS FOR THE FIRST QUARTER OF 2015

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the first quarter of 2015. In the reporting quarter, TransContainer managed to expand its market share despite the decline in the Russian rail container transportation market. The deteriorating macroeconomic environment, the devaluation of the Russian rouble and increased volatility across the financial markets all had an impact on industry dynamics. The increase in the Company's market share was mainly achieved by pursuing TransContainer's flexible pricing policy and improving the quality of its services.

Rail container transportation

In the first quarter of 2015, the Company's rail container transportation volumes in Russia increased by 0.7% year-on-year to 352 thousand twenty-foot equivalent units ("TEU"), compared to 349 thousand TEU in the same period of 2014. This was mainly due to a 9.2% year-on-year increase in domestic transportation volumes, which offset a 7.0% year-on-year decline in international transportation. The increase in TransContainer's domestic transportation volumes was driven by the growth of clients' demand for transportations in the Company's own containers amid a lack of shipping lines' containers in the market, which, in turn, resulted from a drop in container import. Overall growth in the Russian domestic transportation segment was another supporting factor.

The drop in container transportation imports was caused by a decrease in containerised import volumes, which resulted from ruble devaluation and a slump in consumer demand. This drop was partially offset by an increase in the Company's market share in this segment. A decrease in container transportation export volumes was mainly due to a decline in export transportation of empty containers, reflecting a drop in loaded imports. The decline in transit volumes mainly resulted from lower transit transportation volumes between the Far East and Central Asia.

Transportation of containers by TransContainer's fleet in 1Q 2015 (ISO Loaded + Empty), 000' TEU

TransContainer's revenue-generating container transportation[1] volumes in Russia amounted to 264 thousand

TEU in the first quarter of 2014, down 3.0% from the first quarter of 2014.

In the first quarter of 2015, the Company's total estimated share in Russia's rail containertransportation market increased to 47.8% from 45.3% in the first quarter of 2014. TransContainer's share in the domestic market strengthened from 49.9% in the first quarter of 2014 to 52.7% for the reporting period, while its share in the international transportation market grew from 41.7% to 43.5%.

Terminal handling

In the first quarter of 2015, throughput of the Company's rail container terminal network in Russia decreased by 3.7% year-on-year to approximately 285 thousand TEU. The Company's terminal handling volumes were mainly in line with those of the Russian rail container transportation market, which were down by 4.9% year-on-year to 735 thousand TEU.

Asset utilisation

In the first quarter of 2015, flatcar empty runs were affected by a decrease in transportation volumes and changes in container flows across the international transportation segment. Container empty runs remained broadly flat year-on-year as a result of improved management of the container fleet both in Russia and abroad.

The container turnover improved reflecting growing customer demand for the Company's containers in the domestic and export transportation segments. This largely resulted from a lack of supply of empty containers by shipping lines amid falling import volumes. A moderate increase in flatcar turnover mainly reflects greater average distances travelled by the Company's fleet.

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2Since 2015 the calculation of flatcar and container turnover changed to reflect the wider range of railway statistic. Now it takes into account not only public rail infrastructure, but also private sidings. Respective data for 2014 are re-calculated on the comparable basis

3The empty run ratio is calculated as an average empty run in kilometres divided by an average total run in kilometres.

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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 2014, it operated 26,923 flatcars and 64,212 ISO containers. It owns a network of 46 rail-side container terminals in Russia, 19 rail-side terminals in Kazakhstan (through its joint venture company KedenTransService) and operates one terminal in Slovakia. Company's sales network comprises more than 130 sales offices across Russia as well as presence in the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. Company's major shareholder with 50% +2 shares is United Transportation and Logistics Company, established by Russian Railways, Belorussian Railway and Kazakhstan Temir Zholy.

[1] Transportation of clients' containers and own loaded containers
 

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