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20 Jul 2017

Operating results for the second quarter and the first half of 2017

RNS Number : 5742L

PJSC Transcontainer

20 July 2017 

FOR IMMEDIATE RELEASE  

20 July 2017

OPERATING RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF OF 2017

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the second quarter and the first half of 2017. The positive operating results were mainly driven by the continuing growth of the Russian Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container
transportation market, which, in turn, was fueled by a considerable increase in international A form of payment for sea transportation of cargo, or the use of a ship for a certain period of time. Freight payment is determined by the volume of cargo delivered to the destination
or by the volume of cargo loaded onto the ship.
freight
flows, as well as positive trends in the macroeconomic environment.

Market overview 

Russia's container market continued to demonstrate strong performance in the second quarter of 2017. The transportation volumes in the second quarter of 2017 were up 17.3% year-on-year to 948 thousand twenty-foot equivalent units ("TEU"). This was driven by a 33.1% year-on-year growth in international transportation mainly due to the growth in import and Freight passing from one country to another through a third country. Whether cargo is permitted to transit a certain country and under what terms is subject to trade agreements and treaties between countries. Direct transit is when foreign goods are shipped under tariff protection, without holding at a customs warehouse; indirect transit is when goods arrive at customs warehouses and are then transported abroad.
transit
segments.

Russian Rail Container Transportation Market in 2Q 2017 (ISO Loaded + Empty), 000' TEU

2Q 2017

2Q 2016

Change

000' TEU

Percent

Domestic Routes

447.7

432.0

+15.7

+3.6%

Export

230.7

198.3

+32.3

+16.3%

Import

169.2

117.2

+52.0

+44.4%

Transit

99.9

60.0

+39.8

+66.3%

All Routes

947.5

807.6

+139.9

+17.3%

For the first half of 2017, the Russian rail container market grew by 19.8% year-on-year to 1,841 thousand TEU. In terms of segment breakdown for the six month period, domestic transportation volumes grew by 7.5% year-on-year, export transportation increased by 19.4% year-on-year, while import and transit transportation volumes surged by 39.4% and 71.3%, respectively.

1H 2017

1H 2016

Change

000' TEU

Percent

Domestic Routes

866.9

806.3

+60.6

+7.5%

Export

467.3

391.3

+76.1

+19.4%

Import

330.0

236.6

+93.3

+39.4%

Transit

177.0

103.3

+73.7

+71.3%

All Routes

1,841.2

1,537.5

+303.7

+19.8%

Rail container transportation

In the reporting quarter, container volumes transported by the Company's flatcars and containers (including provision of own containers to the third party flatcars) grew by 14.2% year-on-year to 436 thousand TEU as a result of the continued growth in international transportation, which was up 33.3% year-on-year, especially in import and transit segments, which grew by 48.8% and 89.2%, respectively.

Transportation of containers using TransContainer's assets in 2Q 2017 (ISO Loaded + Empty), 000' TEU

2Q 2017

2Q 2016

Change

000' TEU

Percent

Domestic Routes

226.0

224.2

+1.8

+0.8%

Export

102.8

89.8

+13.0

+14.4%

Import

77.4

52.0

+25.4

+48.8%

Transit

30.3

16.0

+14.3

+89.2%

All Routes

436.4

382.0

+54.4

+14.2%

Container volumes transported by the Company's A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet in the second quarter of 2017 increased by 14.8% year-on-year to 406 thousand TEU from 354 thousand TEU a year earlier. The Company's revenue-generating 
(1) container

 transportation volumes in Russia amounted to 351 thousand TEU in the second quarter of 2017, up 20.4% year-on-year.

For the first six months of 2017, container volumes transported by the Company's flatcar and container fleet, as described above, grew by 18.7% year-on-year to 860 thousand TEU, mainly as a result of an increase in transit, import and export transportation.

Transportation of containers using TransContainer's assets in 1H 2017 (ISO Loaded + Empty), 000' TEU

1H 2017

1H 2016

Change

000' TEU

Percent

Domestic Routes

439.7

412.1

+27.6

+6.7%

Export

215.6

176.8

+38.8

+21.9%

Import

151.3

104.9

+46.5

+44.3%

Transit

53.4

31.0

+22.4

+72.3%

All Routes

860.0

724.7

+135.3

+18.7%

 Container volumes transported by the Company's flatcar fleet in the first half of 2017 increased by 19.2% year-on-year to 800 thousand TEU from 671 thousand TEU a year earlier. The Company's revenue-generating container transportation volumes in Russia amounted to 681 thousand TEU in the first half of 2017, up 23% year-on-year.

Terminal handling

In the second quarter of 2017, the Company's throughput in the Russian rail A place equipped for the trans-shipment and storage of containers. A container terminal
typically includes one or more container yards. Rail-based container terminals are equipped with spur tracks for loading and unloading containers to/from railroad platforms (cars).
container terminal
network increased by 6.5% to 332 thousand TEU, compared to 312 thousand TEU for the same period of 2016. For the first six months of 2017, the Company's container terminal throughput was up 7.6% and amounted to 622 thousand TEU compared to 578 thousand TEU for the first half of 2016.

The dynamics of the Company's container handling was slower than the whole container market growth due to the following factors: (i) the fast growing transit volumes have limited impact on the container terminal handling; and (ii) continuing growth of container freight going directly from/to the producers' own freight yards.

Asset utilisation 

In the second quarter of 2017, container For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
ratios improved from 32.3% to 29.7%, while empty run for flatcars grew from 6.4% to 10.8% due to misbalances in container flows in the Far East region.

2Q 2017

2Q 2016

1H 2017

1H 2016

Turnover of containers, days

35.7

32.2

38.2

37.2

Turnover of flatcars, days

12.0

13.1

12.1

14.1

Empty run (2) for containers, %

29.7%

32.3%

30.8%

30.9%

Empty run for flatcars, %

10.8%

6.4%

9.5%

7.2%

 Turnover of flatcars improved from 14.1 days for the first six months of 2016 to 12.1 days for the first six month period of 2017, while turnover of containers increased from 37.2 to 38.2 days, respectively. This was a result of the Company's policy of making container stocks in key loading hubs and in client's freight yards with the aim to reduce a number of flatcars standing idle.

 Enquiries:

 

TransContainer

Andrey Zhemchugov,
First Deputy CFO

+7 495 637 9178 
+7 495 609 6062

E-mail

IR@trcont.ru

Website

www.trcont.ru

Instinctif Partners

 

Galyna Kulachek / Dinara Shikhametova

+44 (0) 20 7457 2020

 

About TransContainer

TransContainer (LSE ticker: TRCN) is the leading intermodal Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container
transportation company in Russia with a market share of approximately 47%. It is the market leader in Russia by A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet size, container transportation by rail and rail-side A place equipped for the trans-shipment and storage of containers. A container terminal
typically includes one or more container yards. Rail-based container terminals are equipped with spur tracks for loading and unloading containers to/from railroad platforms (cars).
container terminal
throughput. As at 31 March 2017, it owned and leased 23,432 flatcars and 68,453 ISO containers. TransContainer also owns a network of rail-side container terminals, located at 44 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 of 111 sales outlets in Russia, along with additional outlets across the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. The Company's major shareholder with 50% +2 shares is United Transportation and The process of organising a chain of delivery, and managing that chain in the broadest sense. This chain may encompass both deliveries of raw materials needed for production and management of material resources at an enterprise, delivery to warehouses and distribution centres, sorting, handling, and final distribution at the points of consumption. In the context of transportation services, the main service is that of delivering cargo across a delivery route.
Logistics
Company, established by Russian Railways, Belorussian Railway and Kazakhstan Temir Zholy.

 


[1] Transportation of clients' containers by the Company's Cars for carrying cargo or passengers designated for railway transportation.
rolling stock
and own loaded containers by its own and third-party flatcars

[2] The For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
ratio is calculated as an average empty run in kilometers divided by an average total run in kilometers

This information is provided by RNSThe company news service from the London Stock Exchange END

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