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20 Oct 2014

Operating results for the third quarter and the nine months of 2014

RNS Number : 6505U

OJSC Transcontainer

20 October 2014

 

FOR IMMEDIATE RELEASE 20 October 2014

OPERATING RESULTS FOR THE THIRD QUARTER AND THE NINE MONTHS OF 2014

 

Open Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the third quarter and nine months of 2014. The operating results were influenced by tightening competition in the 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
market against the background of challenging economic conditions. In these circumstances, the Company is taking steps to improve service quality and operating performance.

Rail container transportation volumes in Russia

The Company's rail container transportation volumes in Russia for the third quarter of 2014 increased by 1.0% to 376 thousand twenty-foot equivalent units ("TEU"), compared to 373 thousand TEU in the same period of 2013. This was mainly due to a 7.0% increase in domestic transportation volumes. This partly offset a 16.0% year-on-year decrease in imports. The fall in the Company's Import-bound container traffic, as indicated in the respective waybill.
import transportation
was primarily driven by a slump in Russia's total rail container imports. The Company's rail container transportation volumes in Russia increased by 2.3% quarter-on-quarter in the third quarter of 2014.

Transportation of containers by TransContainer's fleet in 3Q 2014 (ISO Loaded + Empty), 000' TEU

3Q 2014

 

 

 

3Q 2013

 

 

 

Change

 

 

 

000' TEU

 

 

 

Percent

 

 

 

Domestic Routes

 

 

 

205.0

 

 

 

191.7

 

 

 

+13.3

 

 

 

+7.0%

 

 

 

Export

 

 

 

87.8

 

 

 

86.9

 

 

 

+1.0

 

 

 

+1.1%

 

 

 

Import

 

 

 

56.8

 

 

 

67.7

 

 

 

-10.8

 

 

 

-16.0%

 

 

 

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

 

 

 

26.6

 

 

 

26.5

 

 

 

+0.1

 

 

 

+0.3%

 

 

 

All Routes

 

 

 

376.2

 

 

 

372.7

 

 

 

+3.5

 

 

 

+1.0%

 

 

 

The Company's rail container transportation volumes for the first nine months of 2014 grew by 1.8% year-on-year to 1,093 thousand TEU, compared to 1,074 thousand TEU for the first nine months of 2013. This increase was mainly driven by an improvement in domestic, export and transit transportation volumes, and helped to partly offset a 18.9% year-on-year decline in imports.

Transportation of containers by TransContainer's fleet in 9m 2014 (ISO Loaded + Empty), 000' TEU

9M 2014

 

 

 

9M 2013

 

 

 

Change

 

 

 

000' TEU

 

 

 

Percent

 

 

 

Domestic Routes

 

 

 

561.9

 

 

 

534.7

 

 

 

+27.2

 

 

 

+5.1%

 

 

 

Export

 

 

 

281.0

 

 

 

267.1

 

 

 

+13.9

 

 

 

+5.2%

 

 

 

Import

 

 

 

162.2

 

 

 

199.9

 

 

 

-37.7

 

 

 

-18.9%

 

 

 

Transit

 

 

 

88.0

 

 

 

72.3

 

 

 

+15.7

 

 

 

+21.8%

 

 

 

All Routes

 

 

 

1,093.1

 

 

 

1,074.0

 

 

 

+19.1

 

 

 

+1.8%

 

 

 

The drop in container import was largely caused by roubledevaluation against the US dollar and Euro, as well as the slump in consumption on the back of economic uncertainty.

The Company's revenue-generating container transportation[1]volumes in Russia amounted to 292 thousand TEU in the third quarter of 2014, up 1.3% compared to the third quarter of 2013. For the first nine months of 2014, revenue-generating container transportation volumes grew by 3.4% year-on-year to 849 thousand TEU.

TransContainer's estimated share of Russia's rail container transportation for the first nine months of 2014 decreased to 45.5% compared to 47.4% for the corresponding period of 2013. In the third quarter of 2014, the Company's market share remained broadly flat at 45.4% compared to 45.9% in the previous quarter.

Rail container transportation volumes in Kazakhstan

Rail container transportation volumes carried out by KedenTransService ("KDTS"), the joint venture between the Company and Kazakhstan Temir Zholy in Kazakhstan fell by 2.5% year-on-year to 65.7 thousand TEU in the third quarter of 2014. In the first nine months of 2014, rail container transportation volumes increased by 11.5% year-on-year to 183.0 thousand TEU. This was a result of the average A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet under operation being expanded.

Terminal handling in Russia

In the third quarter of 2014, throughput of the Company's 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 in Russia remained flat year-on-year at about 359 thousand TEU. The terminal throughput was affected by an 86.8% drop in handling medium-duty containers (A medium duty container of an outdated local standard for Russia and former Soviet Union states, designed to carry loads not exceeding 5 tons.
MDC
), which was fully offset by a 1.4% increase in ISO container handling. MDC handling volumes in the third quarter of 2014 amounted to 0.7 thousand TEU, compared to 5.1 thousand TEU in the corresponding period of 2013.

For the first nine months of 2014, throughput of the Company's rail container terminal network in Russia amounted to 994 thousand TEU, representing a year-on-year increase of 1.6%. MDC handling volumes dropped 83.4% year-on-year for the same period.

Terminal handling in Kazakhstan

Preliminary figures indicate that container handling by KDTS at the cross-border rail side terminals Dostyk and Altynkol amounted to 53.7 thousand TEU in the third quarter of 2014, an 86.3% year-on-year increase. For the first nine months of 2014, terminal handling volumes at these cross-border terminals amounted to 148.2 thousand TEU, which represents a 62.4% year-on-year increase. This was a result of a rise in cross-border handling volumes and getting new container handling yards at the Altynkol rail station under operation.

Preliminary data suggests that in the third quarter of 2014, non-container throughput at KDTS' terminals increased by 65.1% year-on-year to 1.4 million tonnes. For the first nine months of 2014, non-container throughput at KDTS' terminals was up 11.9% year-on-year to 2.9 million tonnes.

Asset utilisation

In the third quarter of 2014, both flatcar and container empty runs in Russia improved moderately as a result of the Company's efforts to optimiseits fleet utilisation.

Growth in flatcar and container turnover primarily reflects weaker customer demand and greater average distances travelled by the Company's containers.

3Q 2014

 

 

 

3Q 2013

 

 

 

9M 2014

 

 

 

9M 2013

 

 

 

Turnover of containers, days

 

 

 

32.8

 

 

 

26.7

 

 

 

31.6

 

 

 

25.9

 

 

 

Turnover of flatcars, days

 

 

 

14.2

 

 

 

13.7

 

 

 

14.2

 

 

 

13.7

 

 

 

For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
Empty run
[2] for containers, %

 

 

 

29.2%

 

 

 

30.8%

 

 

 

29.1%

 

 

 

30.3%

 

 

 

For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
Empty run
for flatcars, %

 

 

 

7.4%

 

 

 

7.7%

 

 

 

6.8%

 

 

 

6.8%

 

 

 

Enquiries:

TransContainer

Andrey Zhemchugov,
Director, Capital Markets and Investor Relations

+7 495 637 9178

+7 495 609 6062

 

 

 

E-mail

 

IR@trcont.ru

 

 

 

Website

 

www.trcont.ru

 

 

 

Instinctif Partners

 

 

 

Tony Friend / Galyna Kulachek/ Jenny Payne

 

 

+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. 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 of 30 June 2014, it operated 27,174 flatcars and 64,670 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 is JSC Russian Railways with 50%+2 shares.

 


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

 

[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 kilometres

 

This information is provided by RNS

 

The company news service from the London Stock Exchange

 

END

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