OPERATING RESULTS FOR THE FIRST QUARTER OF 2016
RNS Number : 9923V
PJSC Transcontainer
22 April 2016
Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the first quarter of 2016. The operating results were mainly affected by the continuing decline in Russian industrial production and consumer demand, by a decrease in the Company's owned and leased rolling stock, and by the challenging competitive environment. The competitive environment has been made more challenging by operators that are dealing with sea shipping lines' containers that are coming back to the Russian rail network.
In the first quarter of 2016, the Russian container transportation market was down only 0.7% year-on-year compared to a 5.2% year-on-year drop in the fourth quarter of 2015. The market was supported by 8.0% year-on-year growth in domestic transportation, despite an 8.4% decline in international transportation volume. The decline in international transportation was due to a 5.1% decrease in export transportation, a 9.7% decline in import transportation and an 18.2% drop in transit.
Container volumes transported by the Company's rolling stock in the first quarter of 2016 decreased by 9.7% year-on-year to 317 thousand twenty-foot equivalent units ("TEU") on the back of a 9.5% year-on-year decline in flatcars under operation following the termination of operating lease agreements in the second half of 2015. The Company's market share therefore decreased to 43.5%, from 45.9% in the fourth quarter of 2015. The decline in the Company's transportation volumes was mainly due to lower domestic transportation and a decrease in volumes on transit routes. However, TransContainer did outperform the market in import transportation volumes.
Transportation of containers by TransContainer's fleet in 1Q 2016 (ISO Loaded + Empty), 000' TEU
|
|
1Q 2016 |
1Q 2015 |
Change |
|
|
|
|
|
000' TEU |
Percent |
|
Domestic Routes |
170.2 |
182.5 |
-12.3 |
-6.7% |
|
Export |
82.0 |
91.4 |
-9.4 |
-10.2% |
|
Import |
50.4 |
51.5 |
-1.1 |
-2.2% |
|
Transit |
14.8 |
26.1 |
-11.3 |
-43.4% |
|
All Routes |
317.4 |
351.5 |
-34.1 |
-9.7% |
The Company's revenue-generating1 container transportation volumes in Russia amounted to 247 thousand TEU in the first quarter of 2016, down 6.4% year-on-year.
In the first quarter of 2016, the Company's throughput in the Russian rail container terminalnetwork decreased by 6.8% to 266 thousand TEU, compared to 285 thousand TEU for the same period of 2015.
Flatcar empty run ratios improved from 8.8% in the first quarter of 2015 to 7.7% in the first quarter of 2016, while container empty runs moderately increased from 28.0% to 29.3%, respectively. The turnover of flatcars remained broadly flat year-on-year in the first quarter of 2016, while the turnover of containers increased from 37.6 days to 42.5 days mainly due to a resumed inflow of shipping lines' containers to the Russian market and an increase in average distance travelled by the Company's containers across the Russian railway network.
1Transportation of clients' containers and own loaded containers
|
|
1Q 2016 |
1Q 2015 |
|
Turnover of containers, days |
42.5 |
37.6 |
|
Turnover of flatcars, days |
15.7 |
15.1 |
|
|
|
|
|
Empty run2 for containers, % |
29.3% |
28.0% |
|
Empty run for flatcars, % |
7.7% |
8.8% |
2The empty run ratio is calculated as an average empty run in kilometers divided by an average total run in kilometers
Enquiries:
|
TransContainer |
|
|
Andrey Zhemchugov, |
+7 495 637 9178 +7 495 609 6062 |
|
|
IR@trcont.ru |
|
Website |
|
Instinctif Partners |
|
|
Galyna Kulachek / Catherine Hems |
+44 (0) 20 7457 2020 |
About TransContainer
TransContainer (LSE ticker: TRCN) is the leading intermodal container transportation company in Russia with a market share of approximately 47%. It is the market leader in Russia by flatcar fleet size, container transportation by rail and rail-side container terminalthroughput. As at 31 December 2015, it owned and leased 24,461 flatcars and 64,596 ISO containers. TransContainer also owns a network of rail-side container terminals, located at 46 railway stations across Russia and operates one terminal in Slovakia under a long-term lease agreement. The Company's joint venture JSC Kedentransservice ("Kedentransservice", or "KDTS") also operates 19 inland rail-side terminals in Kazakhstan. The Company's sales network comprises about 120 sales outlets in Russia, along with additional outlets across 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
