Fesco back in black with US$456 million profit after sale of NCC stake

FESCO, the operator of the Vladivostok Container Terminal and Russia's largest container shipping line, has achieved a 2010 net profit of US$456 million, marking a dramatic turnaround from the net loss of $233 million reported a year earlier.


The positive earnings result was mainly attributed to the gain on the sale of an equity interest in a container terminal company.


The company made a profit of $419 million from the sale of its 50 per cent stake in National Container Company, reported Newark's Journal of Commerce. Revenue for 2010 surged by $190 million to $800 million driven by higher cargo volume and improved freight rates in its ocean shipping, logistics and domestic rail freight businesses.


Group operating profit almost doubled to $173 million and margins rose to 21.6 per cent, up from 15 per cent in 2009, the report said. It also reduced debt to $425 million by the end of 2010 from $783 million 12 months earlier.


"We're very pleased with our performance in 2010 and we are especially proud that strong year results were achieved not only by the profitable sale of our stake in National Container Company but also by successful operational results of all our business units," Yury Gilts, vice president and chief financial officer, was quoted as saying.
(Source:http://www.schednet.com)