Operating performance

2015 proved to be another challenging year for FPC, as well as for the Russian economy in general. Complex macro-economic and geopolitical factors put downward pressure on the business performance of all participants in the passenger transportation market, resulting in a reduced passenger traffic.

Under pressure from continuous price dumping by air carriers, well-timed major decisions made by the Company enabled it to post a positive FY2015 financial result with the net profit of RUB 141 million.

Thanks to the effective pricing policy in 2015, the Company contained the decline in revenue within 2.4% year-on-year despite a 9% fall in passenger turnover vs 2014.

In 2015, the following measures were implemented to boost FPC’s performance:

  • route network optimisation (in 2015, carriage productivity performance was up 3.4% year-on-year);
  • branches and depots restructuring;
  • increased the share of revenue from other activities not directly related to transport service (up 1% year-on-year);
  • anti-crisis measures to reduce costs related to a decline in passenger traffic, generating savings of RUB 14.5 billion.

Additionally, in a rising interest rate environment, all financial covenants of the Company comply with FPC’s debt policy.

FY2015 EBITDA reached RUB 18.6 billion.

Average revenue per passenger, RUB

Volume-based indicators

Indicator 2013 2014 2015 % of 2014 level
Passenger turnover, billion passenger kilometres 107.0 94.6 86.1 91.0
deregulated segment 43.5 35.7 29.1 81.6
regulated segment 63.6 58.8 56.9 96.7
Passengers carried, million passengers 108.6 98.7 91.3 92.5
deregulated segment 41.9 35.9 30.3 84.5
regulated segment 66.7 62.8 60.9 97.1
Average number of carriages in a train, carriages 13.3 13.0 12.7 97.7

In 2015, passenger turnover was 86.1 billion passenger-kilometres, or 91.0% of the previous year’s level, with trains made up by FPC accounting for 81.1 billion passenger-kilometres, or 92.7% of the 2014 level.

In the deregulated segment, the number of passengers carried amounted to 84.5% of the previous year’s level. A decline in international traffic (44.9% of the 2014 level) was due to an increase in international passenger fares linked to the Swiss franc exchange rate. In the reporting year, passenger turnover on trains made up in the CIS and Baltic states totalled 4.9 billion passenger-kilometres, or 69.7% of the previous year’s level.

The number of passengers carried amounted to 91.3 million people (92.5% of the 2014 level), including:

  • 86.2 million passengers (94.5% of the 2014 level) carried on trains made up by FPC;
  • 5.0 million passengers (68.2% of the 2014 level) carried on trains made up in the CIS and Baltic states.

In 2015, the carriage-kilometre performance of FPC trains was optimised at 88.4% of the 2014 level, reaching 2.9 billion carriage-kilometres, with trains made up in the CIS and Baltic states demonstrating a decline of 27.7% year-on-year.

The year-on-year optimisation of carriage-kilometre performance drove an increase in carriage capacity utilisation rates to 70.2%, up 1.6% year-on-year.

In the reporting period, FPC passenger trains comprised an average of 12.7 carriages.

Changes in key volume-based indicators for 2015

Changes in key volume-based indicators for 2015 * Of the 2014 level.