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17 Jan 2013

Preliminary Operating Results for the Fourth Quarter of 2012 and the Full Year 2012

RNS Number : 7321V

OJSC Transcontainer

17 January 2013

TransContainer

OPERATING RESULTS FOR THE fourth QUARTER OF 2012 AND THE FULL YEAR 2012

Open Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the fourth quarter of 2012 and for the full year 2012. The results confirm the Company's strong market position and reflect its healthy operating performance during the year. As previously indicated by the Company, in the fourth quarter of 2012 there appeared to be some signs of a slowdown in 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 growth associated with the weakening economic environment.

Rail container transportation volumes

The Company's rail container transportation volumes for the fourth quarter of 2012 increased by 5.4% to 381 thousand twenty-foot equivalent units ("TEU") compared to 362 thousand TEU for the same period of 2011. This was mainly due to an increase 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
transportation which went up by 14.0% and 38.3% respectively, partly offset by domestic transportation which dropped 0.8% YoY.

Transportation of containers by TransContainer's fleet in 4Q 2012 (ISO Loaded + Empty), 000' TEU


4Q 2012

4Q 2011

Change




000' TEU

Percent

Domestic Routes

201.3

202.8

-1.6

-0.8%

Export

91.6

84.5

7.1

8.5%

Import

68.5

60.1

8.4

14.0%

Transit

20.0

14.4

5.5

38.3%

All Routes

381.4

361.8

19.6

5.4%

The Company's rail container transportation volumes for the full year 2012 increased by 8.9% to 1,484 thousand TEU compared to 1,362 thousand TEU in 2011, mainly due to an increase in import and transit transportation. Domestic transportation volumes in 2012 grew by 1.9% to 793 thousand TEU.

Transportation of containers by TransContainer's fleet for 2012 (ISO Loaded + Empty), 000' TEU


2012

2011

Change




000' TEU

Percent

Domestic Routes

792.9

778.0

14.9

1.9%

Export

353.2

328.6

24.7

7.5%

Import

247.4

221.5

25.8

11.7%

Transit

90.0

33.7

56.2

166.7%

All Routes

1 483.5

1 361.8

121.7

8.9%

The Company's revenue-generating container transportation1 volumes grew by 3.5% to 286 thousand TEU in the fourth quarter of 2012 as compared to 276 thousand TEU in the fourth quarter of 2011. For the full year 2012 revenue-generating container transportation volumes increased by 9.8% to 1,120 thousand TEU as compared to 1,020 thousand TEU in 2011.

TransContainer's estimated share in Russia's rail container transportation remained flat during the year 2012 at about 50%.

__________

1transportation of clients' containers and own loaded containers

Terminal handling2

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 in the fourth quarter of 2012 decreased by 3.1% to 362 thousand TEU compared to 374 thousand TEU for the same period of 2011. This decrease is a result of a drop in 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
) handling by 37.3% from 43 thousand TEU to 27 thousand TEU. ISO container handling increased by 1.4% from 331 thousand TEU in the fourth quarter of 2011 to 335 thousand TEU in the last quarter of 2012.

In 2012 the Company's terminal handling volumes at the Russian terminals amounted to 1,428 thousand TEU, representing a decrease of 3.7% YoY. A 1.4% increase in ISO container handling from 1,287 thousand TEU in 2011 to 1,305 thousand TEU in 2012 was offset by a decrease in MDC handling by 36.9% from 196 thousand TEU to 124 thousand TEU.

Asset utilisation

The Company's For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
metrics showed an improvement in the fourth quarter of 2012 compared with the respective reporting period of 2011, repeating the record levels reached last year. The full year 2012 empty run ratio for flatcars decreased to 7.5% from 8.3% in 2011 and empty run ratio for containers increased from 34.4% to 35.9% due to weaker performance in the first half of 2012. Some growth in turnover of containers in the fourth quarter of 2012 and for the full year 2012 is associated with the higher average transportation distances for the respective periods as compared with the same periods of 2011.

4Q 2012

4Q 2011

2012

2011

Turnover of containers, days

24.1

22.0

23.1

21.9

Turnover of flatcars, days

13.5

13.3

13.3

13.1





Empty run3 for containers, %

33.0%

34.4%

35.9%

34.4%

Empty run3 for flatcars, %

6.8%

7.4%

7.5%

8.3%

__________

2 In 2012, TransContainer improved its method for aggregating container handling to make the results more accurate. In this release, terminal container handling figures for 2011 are derived using the modified method for comparability.

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

17 January 2013

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

College Hill

 

Tony Friend / Alexandra Roper

+44 (0)20 7457 2020


                                             This information is provided by RNS

The company news service from the London Stock Exchange

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