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DGAP-UK-Regulatory News vom 25.04.2019

HMS Group: 2018 FY IFRS Results - Correction

HMS Group (HMSG)

25-Apr-2019 / 20:05 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


The issuer advises that the following replaces the HMS HYDRAULIC MACHINES & SYSTEMS GROUP PLC "HMS Group: 2018 FY IFRS Results" announcement released at 15:34 GMT on April 25, 2019.

There were misprints in "Share buy-backs" section, and it has now been correcter:

In 2019, the company repurchased 61,295 GDRs (prev. 61,162 GDRs).  As of today, HMS has purchased 1,204,282 GDRs (prev. 1,204,149 GDRs) or 5.14 percent of its issued share capital.  We expect to continue our buy-back program to 6 percent of HMS' issued share capital.

​All other details remain unchanged.
The full corrected version is shown below


HMS Group Reports 2018 FY Net Income of Rub 1.9 Billion

 

Moscow, Russia - April 25, 2019 - HMS Group Plc (the "Group") (LSE: HMSG), the leading pump, oil & gas equipment and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces its financial results for twelve months ended December 31, 2018.

 

Financial highlights FY 2018:

            Revenue: Rub 52.6 bn (+18% yoy)

            EBITDA[1]: Rub 6.6 bn (-3% yoy), EBITDA margin 12.6%

            Operating profit: Rub 4.2 bn (-8% yoy), operating margin down to 8.0%

            Net income (profit for the year): Rub 1.9 bn (-6% yoy), net income margin 3.7%

 

            Total debt: Rub 19.4 bn (+21% yoy)

            Net debt: Rub 13.1 bn (+14% yoy)

            Net debt-to-EBITDA LTM ratio: 1.97x

 

Operational highlights FY 2018:

            Backlog: Rub 42.6 bn (+9% yoy)

            Order intake: Rub 55.9 bn (-6% yoy)

 

 

Artem Molchanov, CEO of HMS Group, commented:

"We again delivered what we promised. We managed to increase revenue by 18 percent to Rub 52.6 billon, and prevent Net income to decline significantly, keeping it at the level of Rub 1.9 billion."

 

 

GROUP PERFORMANCE

Results

in millions of Rub

2018 FY

2017 FY

Change yoy

2018 4Q

2017 4Q

Change yoy

Orders

55,891

59,679

-6%

25,176

14,516

73%

Backlog

42,634

39,067

9%

 

 

 

Revenue

52,619

44,422

18%

20,757

13,011

60%

EBITDA

6,621

6,839

-3%

2,302

1,852

24%

   EBITDA margin

12.6%

15.4%

 

11.1%

14.2%

 

Profit for the year

1,946

2,070

-6%

772

419

85%

Free cash flow

(139)

3,098

-105%

1,854

1,389

33%

ROCE

13.6%

15.9%

 

 

 

 

 

Order intake was lower in all business segments except Compressors compared to 2017. The decline was attributable to less amount of large contracts signed in the reporting period.

Backlog for HMS Group grew to Rub 42.6 billion by 9% vs. Rub 39.1 billion last year.  Pumps and, for the most part, Compressors made contribution to this growth.  Unlike 2017, the growth was based on the recurring business, as backlog of large integrated contracts was 4% yoy lower.

Revenue for the full year was Rub 52.6 billion, compared with Rub 44.4 billion in 2017.  Almost all segments contributed to this growth except Oil and gas equipment and projects (OGEP) business segment (-2% yoy).  EBITDA was down by 3% yoy to Rub 6.6 billion because of a decline in Pumps.  

Revenue from recurring business was down by 2% yoy.  Large projects' revenue jumped 75% yoy.  EBITDA from recurring business declined 45% yoy and large contracts advanced 41% yoy.

Higher revenue and lower EBITDA led to EBITDA margin decrease to 12.6% from 15.4% last year.

For the 4th quarter, revenue was Rub 20.8 billion, compared with Rub 13.0 billion in 2017.  EBITDA was up to Rub 2.3 billion from Rub 1.9 billion last year.  

Depreciation and amortization for the full year was Rub 1.8 billion, up 19% yoy, compared with Rub 1.5 billion in 2017.

Profit for the year (net income) was Rub 1.9 billion, down 6% yoy, compared with Rub 2.1 billion last year.  For the 4th quarter, net income was Rub 772 million compared with Rub 419 million in 2017.

In 2018, decrease in free cash flow to Rub 139 million from Rub 3.1 billion in 2017 was due mainly to negative change in working capital.

ROCE decreased because of lower operating profit and higher average capital employed.

Expenses and Operating profit

in millions of Rub

2018 FY

2017 FY

Change yoy

Share of  2018 FY revenue

Share of  2017 FY revenue

Cost of sales

40,617

32,536

25%

77.2%

73.2%

Materials and components

27,628

22,036

25%

52.5%

49.6%

Labour costs incl. Social taxes

7,276

6,528

11%

13.8%

14.7%

Construction and design and engineering services of subcontractors

2,102

1,365

54%

4.0%

3.1%

Depreciation and amortization

1,567

1,307

20%

3.0%

2.9%

Others

2,045

1,299

57%

3.9%

2.9%

 

Cost of sales was Rub 40.6 billion, up 25% yoy, compared with Rub 32.5 billion in 2017.  This was almost fully attributable to materials and components (+25% yoy) and labour costs incl. social taxes (+11% yoy).   Despite the outpacing growth of cost of sales, gross profit was up 1% yoy to Rub 12.0 billion, compared with Rub 11.9 billion in 2017.

 

in millions of Rub

2018 FY

2017 FY

Change yoy

Share of  2018 FY revenue

Share of  2017 FY revenue

Distribution and transportation

1,916

1,785

7%

3.6%

4.0%

General and administrative

5,636

4,999

13%

10.7%

11.3%

SG&A expenses

7,551

6,784

11%

14.4%

15.3%

Other operating expenses

250

547

-54%

0.5%

1.2%

Operating expenses ex. Cost of sales

7,802

7,331

6%

14.8%

16.5%

Operating profit

4,200

4,555

-8%

8.0%

10.3%

Finance costs

1,611

1,775

-9%

3.1%

4.0%

 

Distribution and transportation expenses was Rub 1.9 billion, up 7% yoy, compared with Rub 1.8 billion in 2017.  Growth of labor costs incl. social taxes (+14% yoy) was the main drivers.  As a share of revenue, distribution and transportation expenses was down to 3.6%, compared with 4.0% last year.

General and administrative expenses was Rub 5.6 billion, up 13% yoy, compared with Rub 5.0 billion last year, due to 11% yoy higher labour costs incl. social taxes.  As a share of revenue, general and administrative expenses was down to 10.7% from 11.3% in 2017. 

For the full year, SG&A expenses[2] was Rub 7.6 billion, that was 11% yoy higher than last year.  In contrast, as a share of revenue they decreased to 14.4% from 15.3%.

Operating profit was Rub 4.2 billion, down 8% yoy, compared with Rub 4.6 billion in 2017.  Operating margin decreased to 8.0% from 10.3%.

in millions of Rub

2018 FY

2017 FY

Change yoy

Finance costs

          1,611

1,775

(9)%

Interest expenses

          1,598

1,725

(7)%

Interest rate, average

8.7%

9.8%

 

Interest rate Rub, average

8.9%

9.9%

 

 

Finance costs were Rub 1.6 billion, down by 9% yoy, compared with Rub 1.8 billion in 2017.  The main factor was decrease of interest expenses (-7% yoy) due to lower interest rates as a result of debt portfolio refinancing.  

Average rates decreased to 8.7% p.a. from 9.8% p.a. within a one-year period.

 

BUSINESS SEGMENTS PERFORMANCE

Industrial pumps[i]

in millions of Rub

2018 FY

2017 FY

Change yoy

2018 4Q

2017 4Q

Change yoy

Orders

19,573

20,983

-7%

6,141

8,762

-30%

Backlog

17,152

14,467

19%

 

 

 

Revenue

17,811

17,488

2%

6,613

5,141

29%

EBITDA

2,390

3,148

-24%

1,191

1,034

15%

EBITDA margin

13.4%

18.0%

 

18.0%

20.1%

 

 

Lower order intake of Rub 19.6 billion was due to no large contracts signed in the reporting period, though recurring business grew by 17% yoy.

Backlog grew by 19% yoy to Rub 17.2 billion because of a slower pace of revenue recognition of several contracts signed in 2017, that have execution period more than one year.

Revenue was Rub 17.8 billion, up 2% yoy, compared with Rub 17.5 billion in 2017.

EBITDA declined to Rub 2.4 billion, by 24% yoy, from Rub 3.1 billion, mainly due to increase of wages and a high base effect in 2017, when several untypical modular equipment projects were executed, that had higher than average profitability.

EBITDA margin was down to 13.4% due to higher revenue and lower EBITDA in 2018.

 

Oil and Gas equipment & projects (OGEP)[ii]

in millions of Rub

2018 FY

2017 FY

Change yoy

2018 4Q

2017 4Q

Change yoy

Orders

12,023

27,408

-56%

3,203

4,025

-20%

Backlog

6,658

15,092

-56%

 

 

 

Revenue

20,859

21,536

-3%

4,346

6,499

-33%

EBITDA

2,883

2,592

11%

166

1,132

-85%

EBITDA margin

13.8%

12.0%

 

3.8%

17.4%

 

For the full year, order intake decreased sharply to Rub 12.0 billion from Rub 27.4 billion, because there were no large contracts signed in 2018.

Backlog also went down to Rub 6.7 billion from Rub 15.1 billion, due to less contracts signed than revenue recognized in the reporting period.  Both recurring business and large contracts declined.

Revenue was down 3% yoy to Rub 20.9 billion, compared with Rub 21.5 billion in 2017.

EBITDA and EBITDA margin rose on large contracts.

 

Compressors[iii]

in millions of Rub

2018 FY

2017 FY

Change yoy

2018 4Q

2017 4Q

Change yoy

Orders

23,883

7,202

232%

15,811

1,268

1147%

Backlog

16,688

5,186

222%

 

 

 

Revenue

14,678

9,130

61%

9,371

2,481

278%

EBITDA

1,758

1,143

54%

1,320

47

2693%

EBITDA margin

12.0%

12.5%

 

14.1%

1.9%

 

 

Order intake grew to Rub 23.9 billion, compared with Rub 7.2 billion in 2017, due to a substantially higher volume from large contracts signed in 4Q 2018.

Backlog was lifted by order intake to Rub 16.7 billion, compared with Rub 5.2 billion last year.

Revenue and EBITDA grew to Rub 14.7 billion and Rub 1.8 billion respectively, led by large contracts.  EBITDA margin decline to 12.0% due to a mix of more profitable projects executed in 2017.

 

Construction[iv]

in millions of Rub

2018 FY

2017 FY

Change yoy

2018 4Q

2017 4Q

Change yoy

Orders

411

4,086

-90%

20

462

-96%

Backlog

2,137

4,323

-51%

 

 

 

Revenue

1,795

1,045

72%

537

597

-10%

EBITDA

(138)

(75)

83%

23

44

-49%

EBITDA margin

-7.7%

-7.2%

 

4.2%

7.4%

 

 

For the full year, orders portfolio and backlog declined substantially.

Revenue was Rub 1.8 billion, up 72% yoy, from Rub 1.0 billion in 2017, due to revenue recognition from large integrated contracts under execution.  Though 4Q 2018 was profitable in terms of EBITDA, the full year EBITDA was still negative.

 

Working capital and Capital expenditures

in millions of Rub

2018 FY

2017 FY

Change yoy

4Q 2018

3Q 2018

Change qoq

Working capital

9,130

7,820

17%

9,130

11,340

(19)%

Working capital / Revenue LTM

17%

18%

 

17%

25%

 

Capital expenditures

2,335

2,159

8%

893

649

38%

 

For the full year, working capital was Rub 9.1 billion, up by 17% yoy in line with growth of revenue.  As a share of revenue, working capital declined to 17% from 18% in 2017.

Capital expenditures were Rub 2.3 billion, up 8% yoy, compared with Rub 2.2 billion in 2017.

 

DEBT POSITION

(in millions of Rub)

2018 FY

2017 FY

Change yoy

4Q 2018

3Q 2018

Change qoq

Total debt

19,360

16,042

21%

19,360

19,177

1%

Long-term debt

18,198

13,065

39%

18,198

18,191

0%

Short-term debt

1,162

2,977

(61)%

1,162

986

18%

Net debt

13,065

11,422

14%

13,065

14,828

(12)%

Net debt / EBITDA LTM

1.97x

1.67x

 

1.97x

2.40x

 

 

Total debt was Rub 19.4 billion, compared with Rub 16.0 billion in 2017. Net debt also increased, to Rub 13.1 billion vs. Rub 11.4 billion at 2017-end.

2018 FY Net debt to EBITDA LTM ratio increased to 1.97x compared with 1.67x in 2017.

For the 4th quarter, total debt increased by minor 1% qoq, compared with Rub 19.2 billion in 3Q 2018.   Net debt, in contrast, was down 12% qoq, compared with 14.8 billion in 3Q 2018.

 

Dividends

The Board of Directors of HMS Group recommended total dividends for 2018 of Rub 9.81 per ordinary share (Rub 49.05 per GDR), of which Rub 3.84 per share (Rub 19.20 per GDR) have been already distributed as interim dividends in January 2019.

If approved at the Annual General Meeting of Shareholders, final dividends of Rub 5.97 per ordinary share (Rub 29.85 per GDR) will be distributed on the 1st of July, 2019.

 

Share buy-backs

HMS Group repurchased 66,100 global depositary receipts during 4Q 2018. For the full year, the company repurchased 109,100 GDRs.

In 2019, the company repurchased 61,295 GDRs.  As of today, HMS has purchased 1,204,282 GDRs or 5.14 percent of its issued share capital.  We expect to continue our buy-back program to 6 percent of HMS' issued share capital.

 

MANAGEMENT PURCHASES

In 2018, HMS managers purchased 19,225 of the company's GDRs using their own funds.

 

SIGNIFICANT EVENTS AFTER THE REPORTING DATE & FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT

As of April 1, 2019, average interest rate decreased to 8.8% compared to 9.8% at the beginning of 2018.  According to management accounts, total debt decreased by 3% to Rub 18.8 billion, and net debt, in contrast, was up 13% to Rub 14.8 billion due to working capital, required for execution of large projects.

CONTRACTS

In April 2019, the company announced signing of two contract worth Rub 4.0 billion for delivery of gas transportation units, that will be executed by the end of 2019.

RESTRUCTUING OF THE CORE SHAREHOLDERS' SHAREHOLDING

On March 6, 2019 its major shareholder H.M.S. Technologies Limited ("HMST"), registered at Cyprus transferred its entire shareholding in the Company to JSC HMS Holding ("HMS Holding"), registered at Russia, the subsidiary undertaking of HMST, via the following transactions:

  • HMST transferred 67,159,421 ordinary shares in the Company (comprising 57.32% of the Company's issued share capital) to HMS Holding in the form of the shareholder's asset contribution for nil consideration;
  • HMST transferred 2,924,207 global depositary receipts issued under the Company's depositary receipts program ("GDRs") (representing 14,621,035 shares in the Company and comprising 12.28% of the Company's issued share capital) to HMS Holding in exchange for additionally issued shares in HMS Holding.

As a result of this restructuring:

  • HMS Holding became a direct holder of 69,159,421 ordinary shares in the Company and 2,924,207 GDRs comprising in aggregate 71.51% of the Company's issued share capital; and
  • HMST remains the sole voting shareholder of HMS Holding retaining control over the majority shareholding in the Company,

and consequently none of the transactions made as a part of the restructuring triggers an obligation of the Company, HMST or HMS Holding to make any mandatory offer to the GDR holders.

This restructuring of the core shareholders' shareholding in the Company does not lead to any change in corporate governance or corporate control of the Company.  All applicable regulatory approvals have been obtained in connection with this restructuring.

Further details of the transactions above are available here:

 

 

 

***

WEBCAST TO DISCUSS 2018 FY IFRS FINANCIAL RESULTS 

 

Date:  Friday, April 26, 2019

Time:  1.00 PM (MOSCOW) / 11.00 AM (London) / 12.00 PM (CET)

 

Speaker:

Inna Kelekhsaeva - Deputy Head of Capital markets

Q&A session:

Kirill Molchanov - First Deputy General Director and Co-Founder

Alexander Rybin - Head of Capital markets

 

To participate in the conference call, please dial in:

 

Russia Local:   +7 495 646 9315

 

UK Local:  +44 207 194 3759

UK Toll Free:  0800 376 6183

 

US Local:  +1 646 722 4916

US Toll Free:  +1 844 286 0643

 

Conference ID: 62266395#

Title: HMS Group 2018 FY IFRS results

 

Webcast meeting:

To access the live event, click on the link:

https://webcasts.eqs.com/hmsgroup20190426

 

Please, dial in 5-10 minutes prior to the scheduled start time.  Pre-registration is available.

We will share materials on HMS' investor website ahead of the webcast.

 

Contacts:

Investor Relations, ir@hms.ru

 

 

***

HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS Group's products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia's core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS Group's global depositary receipts ("GDRs") are listed under the symbol "HMSG" on the London Stock Exchange.

 

 

Press Release Information Accuracy Disclaimer

Information published in press releases was accurate at the time of publication but may be superseded by subsequent releases or other information.

 

LEI: 254900DDFETNLASV8M53

 

 

HMS Hydraulic Machines & Systems Group plc

Consolidated Statement of Financial Position at 31 December 2018

(in thousands of Russian Roubles, unless otherwise stated)

 

 

31 December 2018

31 December 2017

Restated*

ASSETS

 

 

Non-current assets:

 

 

Property, plant and equipment

15,492,896

14,563,544

Other intangible assets

1,898,781

663,616

Goodwill

3,092,257

2,937,695

Investments in associates

93,265

84,829

Deferred income tax assets

424,004

377,902

Other long-term assets

26,004

20,541

Investment property

196,480

222,929

Total non-current assets

21,223,687

18,871,056

 

Current assets:

 

 

Inventories

9,088,680

7,776,096

Trade and other receivables and other financial assets

12,267,843

11,540,164

Contract assets

4,611,700

5,374,888

Current income tax receivable

257,409

178,566

Cash and cash equivalents

6,295,159

4,620,601

Total current assets

32,520,791

29,490,315

TOTAL ASSETS

53,744,478

48,361,371

 

 

 

EQUITY AND LIABILITIES

EQUITY

 

 

Share capital

48,329

48,329

Share premium

3,523,535

3,523,535

Treasury shares

(461,630)

(404,994)

Other reserves

122,730

122,730

Currency translation reserve

123,918

(652,109)

Retained earnings

7,847,636

7,073,645

Equity attributable to the shareholders of the Company

11,204,518

9,711,136

Non-controlling interests

3,386,155

3,145,950

TOTAL EQUITY

14,590,673

12,857,086

 

 

 

LIABILITIES

 

 

Non-current liabilities:

 

 

Long-term borrowings

18,198,084

13,065,129

Deferred income tax liability

1,622,627

1,617,238

Retirement benefit obligations

468,324

525,436

Provisions for liabilities and charges

168,687

116,835

Other long-term payables

432,915

204,394

Total non-current liabilities

20,890,637

15,529,032

 

Current liabilities:

 

 

Trade and other payables

13,224,940

11,642,805

Contract liabilities

1,843,380

3,438,395

Short-term borrowings

1,162,133

2,977,261

Provisions for liabilities and charges

709,252

771,877

Retirement benefit obligations

67,497

67,314

Current income tax payable

57,684

72,610

Other taxes payable

1,198,282

1,004,991

Total current liabilities

18,263,168

19,975,253

TOTAL LIABILITIES

39,153,805

35,504,285

TOTAL EQUITY AND LIABILITIES

53,744,478

48,361,371


HMS Hydraulic Machines & Systems Group plc

Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the year ended 31 December 2018 

(in thousands of Russian Roubles, unless otherwise stated)

 

 

 

2018

2017

 

 

 

 

Revenue

 

52,618,880

44,422,177

Cost of sales

 

(40,617,376)

(32,535,607)

Gross profit

 

12,001,504

11,886,570

 

 

 

 

Distribution and transportation expenses

 

(1,915,880)

(1,784,967)

General and administrative expenses

 

(5,635,585)

(4,999,086)

Other operating expenses, net

 

(250,135)

(547,307)

Operating profit

 

4,199,904

4,555,210

 

 

 

 

Finance income

 

182,188

168,660

Finance costs

 

(1,610,545)

(1,775,092)

Share of results of associates

 

(570)

(331)

 

 

 

 

Profit before income tax

 

2,770,977

2,948,447

 

 

 

 

Income tax expense

 

(825,028)

(878,349)

 

 

Profit for the year

 

1,945,949

2,070,098

 

 

 

 

Profit attributable to:

Shareholders of the Company

 

 

1,688,473

1,834,264

Non-controlling interests

 

257,476

235,834

Profit for the year

 

1,945,949

2,070,098

 

 

 

 

Other comprehensive income/(loss):

 

 

 

Items that will not be reclassified to profit or loss

 

 

 

Remeasurement of post-employment benefit obligations

 

101,017

(23,313)

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

Currency translation differences

 

830,112

(69,526)

Currency translation differences of associates

 

9,006

(3,564)

Other comprehensive income/(loss) for the year

 

940,135

(96,403)

Total comprehensive income for the year

 

2,886,084

1,973,695

 

Total comprehensive income

attributable to:

 

 

 

Shareholders of the Company

 

2,537,407

1,768,256

Non-controlling interests

 

348,677

205,439

Total comprehensive income for the year

 

2,886,084

1,973,695

 

 

 

 

 

Basic and diluted earnings per ordinary share for profit attributable to the ordinary shareholders (RR per share)

 

15.10

16.32

             

 

 

 

HMS Hydraulic Machines & Systems Group plc

Consolidated Statement of Cash Flows for the year ended 31 December 2018

(in thousands of Russian Roubles, unless otherwise stated)

 

2018

2017 Restated*

Cash flows from operating activities

 

 

Profit before income tax

2,770,977

2,948,447

Adjustments for:

 

 

Depreciation and amortisation

1,842,607

1,541,946

(Gain)/loss from disposal of property, plant and equipment and intangible assets

(20,457)

45,822

Finance income

(182,188)

(168,660)

Finance costs

1,610,545

1,775,092

Change in retirement benefits obligations

55,878

36,248

Change in warranty provision

102,966

(48,908)

Change in ECL allowance and provision for impairment of trade and other receivables and other financial assets

59,546

3,815

Change in provision for obsolete inventories

98,617

163,520

Change in provision for legal claims

(19,398)

195,830

Share-based compensation

155,989

93,218

Foreign exchange (gain)/loss, net

(13,352)

72,300

Amortisation of government grants

(30,806)

(16,777)

Change in provision for tax risks, other than income tax

(12,366)

14,984

Impairment of taxes receivable

-

6,204

Share of results of associates

570

331

Operating cash flows before working capital changes

6,419,128

6,663,412

Increase in inventories

(1,067,279)

(782,888)

Decrease/(increase) in trade and other receivables

977,282

(949,658)

Decrease/(increase) in contract assets

763,188

(1,808,366)

(Decrease)/increase in contract liabilities

(1,595,015)

2,718,357

Increase in current income tax receivable

(78,843)

(8,916)

(Decrease)/increase in taxes payable

(136,304)

247,774

(Decrease)/increase in accounts payable and accrued liabilities

(722,970)

1,458,773

Cash from operations

4,559,187

7,538,488

Income tax paid

(1,162,267)

(739,534)

Interest paid

(1,618,021)

(1,687,545)

Interest received

177,390

121,142

Net cash from operating activities

1,956,289

5,232,551

Cash flows from investing activities

 

 

Repayment of loans advanced

74,914

65,884

Loans advanced

(53,445)

(57,507)

Proceeds and expenses from sale of property, plant and equipment and intangible assets, net

51,266

12,215

Interest received

890

4,040

Purchase of property, plant and equipment, net of VAT

(1,956,140)

(1,921,001)

Acquisition of intangible assets, net of VAT

(378,521)

(238,225)

Inflow of cash and cash equivalents on acquisition of subsidiary

165,257

-

Net cash used in investing activities

(2,095,779)

(2,134,594)

Cash flows from financing activities

 

 

Repayments of borrowings

(11,976,504)

(18,561,873)

Proceeds from borrowings

15,223,755

18,126,821

Proceeds from government grant

60,000

78,945

Payment for finance lease

(16,580)

(6,569)

Buy back of issued shares

(56,636)

(81,438)

Acquisition of non-controlling interest in subsidiaries

(53,736)

-

Dividends related to Long-term Incentive Program

(48,816)

(17,696)

Dividends paid to non-controlling shareholders of subsidiaries

(48,319)

(37,513)

Dividends paid to the shareholders of the Company

(1,336,860)

(961,510)

Net cash from/(used in) financing activities

1,746,304

(1,460,833)

Net increase in cash and cash equivalents

1,606,814

1,637,124

Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency

67,744

(6,214)

Cash and cash equivalents at the beginning of the year

4,620,601

2,989,691

Cash and cash equivalents at the end of the year

6,295,159

4,620,601

 


[1] EBITDA is defined as operating profit/loss from continuing operations adjusted for other operating income/expenses, depreciation and amortisation, amortisation of government grants, impairment of assets, excess of fair value of net assets acquired over the cost of the acquisition, defined benefits scheme expense and provisions (including provision for obsolete inventory, provision for impairment of accounts receivable, unused vacation allowance, warranty provision, provision for legal claims, tax provision and other provisions). This measurement basis, therefore, excludes the effects of a number of non-recurring income and expenses on the results of the operating segments.

[2] SG&A expenses = Selling, General and Administrative Expenses = Distribution and transportation + General and administrative


[i] The industrial pumps business segment designs, engineers, manufactures and supplies a diverse range of pumps and pump-based integrated solutions to customers in the oil and gas, power generation and water utilities sectors in Russia, the CIS and internationally. The business segment's principal products include customized pumps and integrated solutions as well as pumps built to standard specifications; it also provides aftermarket maintenance and repair services and other support for its products.

[ii] The oil and gas equipment and projects business segment manufactures, installs and commissions modular pumping stations, automated metering equipment, oil, gas and water processing and preparation units and other equipment and systems for use primarily in oil extraction and transportation. The segment's core products are equipment packages and systems installed inside a self-contained, free-standing structure which can be transported on trailers and delivered to and installed on the customer's site as a modular but fully integrated part of the customer's technological process.

[iii] The compressors business segment designs, engineers, manufactures and supplies a diverse range of compressors and compressor-based solutions, including compressor units and compressor stations, to customers in the oil and gas, metals and mining and other basic industries in Russia. The business segment's principal products include customized compressors, series-produced compressors built to standard specifications, and compressor-based integrated solutions.

[iv] The construction provides construction works for projects for customers in the oil upstream and midstream, gas upstream.




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