RUSSIA's Fesco Transportation Group posted a 38.2 per cent year-on-year decline in first quarter revenue to US$126 million, reported St Petersburg PortNews.
The deeply indebted group's total debt amounted to $912 million, of which $130 million is repayable within the next 12 months.
"The group's financial results were affected by the negative economic growth rate in Russia, a decline in Russian transportation volumes and a rouble depreciation," said the company statement.
Operating expenses were reduced 42.5 per cent to $84 million while administrative expenses came to $17 million, which were 19 per cent less than the comparable quarter in the prior year.
"The transport market in the Russian Far East demonstrated negative trends in 1Q 2016. Container transportation volumes decreased while general cargo transportation volumes slightly improved," said the Fesco statement.
In 1Q 2016, the group continued to implement cost optimisation measurers, including further production and administrative cost savings as well as sale and renting out of non-core assets.
In March 2016, Transgarant signed an agreement with NefteTransService group for the long-term operating lease of 6,085 gondola cars. The agreement is intended to help the group optimise costs and provide an additional source of revenue.
In April 2016, the group announced that in light of the current macroeconomic environment the group's debt restructuring is necessary. Fesco is in the process of negotiating with holders of its eurobonds and rouble bonds, and other lenders.
Source : HKSG.