Transoil Summarizes Its Performance Results For the Six Months Ended 30 June 2013

Transoil LLC, the largest Russian private rail operator of rolling stock by volume transported and the market share in the oil and petroleum products rail freight market, announces its operational results for the six months ended 30 June 2013.

The company’s share in the segment of railway transportation of oil and petroleum products through the Russian Railways network for the first six months of 2013 didn’t change significantly, being stable at 22 percent. The volume of freight transported by Transoil in January-June 2013 amounts to 27.6 million tons compared with 28.2 million tons in the same period of previous year. The decline of the freight volume by 2 percent year-on-year was driven by the preventive work at the Kirishi Refinery. At the same time the  company showed a more stable dynamics of shipments than the whole Russian sector of oil products transportation, where was recorded a decline of 3 percent.

In the reporting period, the  company continued the implementation of its program of reorientation to the shipment of light oil products. Their share in the total freight volume increased from 42 percent in the same period of last year to 45 percent. Stable gas condensate from Purovsky plant became the main source of this growth, its share in the traffic of light oil products accounts to 15 percent.

Vladimir Sokolov, the company’s CEO, said: “The major trend of our activity in the first two quarters of the year was to find the growth reserves through the practice of modern logistics solutions and creation of the functional fleet management system. The company in conditions of the surging level of competition continues its consistent development of infrastructure projects in order to improve the quality of services.”

The greatest share of shipment volume – 74 percent – was comprised of transportation for key clients of the  company: Gazprom Neft, Rosneft, Surgutneftegas, and Novatek.

As of June 30, 2013, the own fleet consisted of 24,700 rail tanks, the managed fleet exceeded 34,200 rail tanks. The growth of the values relative to the first six months of 2013 was 68 percent and 19 percent, respectively. The average age of the owned rail tanks was 13.4 years.