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Far Eastern Shipping Company: Trading update for the three month and nine month periods ended September 30, 2014

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Far Eastern Shipping Company: Trading update for the three month and
nine month periods ended September 30, 2014

28.11.2014 / 19:37

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November 28, 2014

Trading update for the three month and nine month periods ended September
30, 2014

FESCO Transportation Group (MOEX: FESH) provides a trading update with the
operational and consolidated financial results as per IFRS for three months
and nine months periods ended September 30, 2014.

Highlights:

- In 3Q 2014, FESCO continued to increase container transportation and
handling volumes across all divisions strengthening its leading
position in the Russian Far East

- FESCO was #1 in the Far East by total container handling at sea
port terminals with the market share of 31.9% and by import
container handling with the market share of 40.5%

- FESCO remained the leader by volume on all export-import sea
container service lines where the Group operates with the market
share of 41%

- Container throughput at the Vladivostok port increased by 10.4% YoY
in 3Q 2014 distinctly outperforming the Far East market, the
fastest growing Russian sea basin

- Container transportation by the Rail Division accelerated growth to
21.4% YoY in 3Q 2014

- In 3Q 2014, Rail division showed the first load volume growth and an
improvement of the financial performance on QoQ basis compared to
2Q2014 after a long decline since the beginning of 2013

- In the environment of RUB depreciation, FESCO is leveraging a
sustainable trend of growing bulk and containerized cargo export across
all steps of the transportation value chain

- Group results were positively impacted by growth of volumes across all
division and negatively impacted by RUB devaluation, change of cargo
mix in the port and continuous rail market weakness

- In 3Q 2014, Group's consolidated revenue in USD increased by 13.3% YoY
to $331m. In RUB, Group's consolidated revenue grew by 25.2% YoY to RUB
11,961m

- In 3Q 2014, Group's EBITDA in USD increased by 4.0% YoY and reached
$55.1m. On QoQ basis Group's EBITDA increased by 55.7% driven by
significant performance improvement across divisions. In RUB, Group's
EBITDA was up by 15.1%YoY and reached RUB 1,994m.

- EBITDA margin declined on YoY basis due to increasing share of less
marginal export cargo and increased from 13.1% in 2Q 2014 to 16.6% in
3Q 2014.

Group Financial Results