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20 Oct 2017

Operating results for the third quarter and the nine months of 2017

RNS Number : 1449U

PJSC Transcontainer

20 October 2017 

FOR IMMEDIATE RELEASE                                                                          

OPERATING RESULTS FOR THE THIRD QUARTER AND THE NINE MONTHS OF 2017

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the third quarter and the nine months of 2017. The positive operating results were in line with 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 by positive trends in the macroeconomic environment and continuing growth in Russian rail The use of containers for cargo transportation, supply and storage.
containerisation
.

Market overview 

Russia's container market continued to demonstrate strong performance in the third quarter of 2017. The transportation volumes in the third quarter of 2017 were up 19.2% year-on-year to 990 thousand twenty-foot equivalent units ("TEU"). This was driven by a 32.6% 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 3Q 2017 (ISO Loaded + Empty), 000' TEU

3Q 2017

3Q 2016

Change

000' TEU

Percent

Domestic Routes

462.0

432.2

+29.7

+6.9%

Export

235.9

192.3

+43.6

+22.7%

Import

180.7

136.9

+43.8

+32.0%

Transit

111.3

68.9

+42.5

+61.7%

All Routes

989.9

830.3

+159.6

+19.2%

For the nine months of 2017, the Russian rail container market grew by 19.6% year-on-year to 2,831 thousand TEU. In terms of segment breakdown for the nine month period, domestic transportation volumes grew by 7.3% year-on-year, export transportation increased by 20.5% year-on-year, while import and transit transportation volumes surged by 36.7% and 67.5%, respectively.

Russian Rail Container Transportation Market for 9 months 2017 (ISO Loaded + Empty), 000' TEU

9m 2017

9m 2016

Change

000' TEU

Percent

Domestic Routes

1,328.9

1,238.5

+90.4

+7.3%

Export

703.2

583.5

+119.7

+20.5%

Import

510.6

373.5

+137.1

+36.7%

Transit

288.4

172.2

+116.2

+67.5%

All Routes

2,831.1

2,367.8

+463.3

+19.6%

Rail container transportation

In the reporting quarter, container volumes transported by the Company's transportation assets (including provision of own containers to third party flatcars) grew by 16.0% year-on-year to 456.7 thousand TEU as a result of the continued growth in international transportation, which was up 34.8% year-on-year, especially in import and transit segments, which grew by 34.0% and 92.3%, respectively.

Container transportation by TransContainer's assets in 3Q 2017 (ISO Loaded + Empty), 000' TEU

3Q 2017

3Q 2016

Change

000' TEU

Percent

Domestic Routes

229.3

225.0

+4.3

+1.9%

Export

105.2

85.7

+19.5

+22.8%

Import

86.2

64.3

+21.9

+34.0%

Transit

36.0

18.7

+17.3

+92.3%

All Routes

456.7

393.8

+63.0

+16.0%

Container volumes transported by the Company's A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet in the third quarter of 2017 increased by 19.0% year-on-year to 430.4 thousand TEU from 361.6 thousand TEU a year earlier. The Company's revenue-generating[1] container transportation volumes in Russia amounted to 376.1 thousand TEU in the third quarter of 2017, up 22.7% year-on-year.

For the nine months of 2017, container volumes transported by the Company's flatcar and container fleet, as described above, grew by 17.7% year-on-year to 1316.8 thousand TEU, mainly as a result of an increase in import and export transportation.

Container transportation by TransContainer's assets for 9 months 2017 (ISO Loaded + Empty), 000' TEU

9m 2017

9m 2016

Change

000' TEU

Percent

Domestic Routes

669.0

637.1

+31.9

+5.0%

Export

320.8

262.5

+58.3

+22.2%

Import

237.5

169.2

+68.4

+40.4%

Transit

89.4

49.7

+39.7

+79.9%

All Routes

1,316.8

1,118.5

+198.3

+17.7%

Container volumes transported by the Company's flatcar fleet in the nine months of 2017 increased by 19.1% year-on-year to 1,230.5 thousand TEU from 1,032.8 thousand TEU a year earlier. The Company's revenue-generating container transportation volumes in Russia amounted to 1,056.5 thousand TEU in the nine months of 2017, up 22.9% year-on-year.

Terminal handling

In the third 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 6.4% to 339 thousand TEU, compared to 319 thousand TEU for the same period of 2016. For the nine months of 2017, the Company's container terminal throughput was up 7.1% and amounted to 961 thousand TEU compared to 897 thousand TEU for the nine months of 2016.

The Company's container handling lagged the level of growth witnessed in the container transportation market due to a higher share of the export and transit transportation market, as well as due to the restrictions applied to some of the Company's terminals in Moscow, in line with the intention of Moscow government to reduce the number of freight terminals located in the central part of the city.

Asset utilisation 

Starting from this reporting date the Company has changed the manner in which it presents 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 for flatcars and containers. The new formula is based on average container*kilometers rather than average kilometers. This approach provides for more accurate metrics reflecting both distances and volumes relevant to empty transportation.

The comparison of the new metrics with the old ones is shown below:

Empty run ratio

2014

2015

2016

1Q 16

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

Containers (new)

17.6%

21.7%

21.5%

20.9%

22.2%

22.0%

20.9%

22.6%

17.4%

16.7%

Container (old)

28.8%

31.2%

32.0%

29.3%

32.3%

34.0%

32.1%

31.8%

29.7%

30.2%

Flatcars (new)

2.2%

2.0%

2.7%

2.3%

1.9%

3.1%

3.5%

3.6%

3.7%

4.1%

Flatcar (old)

7.2%

7.4%

8.3%

8.2%

6.4%

8.8%

9.5%

9.2%

10.8%

12.1%

In the third quarter of 2017, container empty run ratios improved from 22.0% to 16.7% due to the optimisation of sales and operations planning and tariffs. Empty run for flatcars grew from 3.1% to 4.1% due to persistent misbalances in container flows in the Far East region, caused by the fast-growing transit and import flows from China.

3Q 2017

3Q 2016

9m 2017

9m 2016

Turnover of containers, days

38.3

32.7

38.2

35.6

Turnover of flatcars, days

12.0

13.5

12.0

13.9

Empty run[2] for containers, %

16.7%

22.0%

18.7%

21.7%

Empty run[3] for flatcars, %

4.1%

3.1%

3.8%

2.5%


The turnover of flatcars improved from 13.9 days for the nine months of 2016 to 12.0 days for the same period of 2017. The turnover of containers increased from 35.6 to 38.2 days, respectively. This was a result of the Company's policy of arranging container stocks in key loading hubs and in clients' freight yards in order to reduce the 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 30 June 2017, it owned and leased 23,561 flatcars and 70,990 ISO containers. TransContainer also owns a network of rail-side container terminals, located at 42 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 113 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 container*kilometers divided by an average total container*kilometers

[3] The empty run ratio is calculated as an average empty flatcar*kilometers divided by an average total flatcar*kilometers


This information is provided by RNS

The company news service from the London Stock Exchange 

END

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