03.05.2016, 12:41
HMS Group Announces Financial Highlights for FY 2015
OREANDA-NEWS. HMS Group plc (the "Group") (LSE: HMSG), the leading pump and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, announces its financial results for FY 2015.
Artem Molchanov, CEO (Managing Director) of HMS Group, said:
"I am proud to announce that the year 2015 was a successful one for HMS Group in terms of revenue and EBITDA, despite a decrease in Russia's GDP, volatility of the ruble, international sanctions, low oil prices, high interest rates, and other negative factors affecting business in Russia.
We demonstrated a stable increase in standard production as well as in new large projects. I am particularly pleased to point out that the efforts we have put into developing relationships with Russian major gas companies in the last few years have started to pay off. We have reinforced our presence in the markets for gas production, transportation and refinery. Two out of three major contracts successfully carried out in 2015 were with gas companies, making a significant contribution to the company's financial results. We intend to continue our efforts in this direction.
In particular, I would like to draw your attention to the export activity of HMS Group. In 2015 foreign currency revenue accounted for 10% percent of the total ruble revenue, which was not due to the depreciation of the ruble, but largely the result of the Group's long-term efforts over the years, which made the development of exports one of its top priorities.
Despite the challenging conditions in the financial markets, we successfully refinanced our loans, as well as received new limits with Sberbank, VTB Bank, and UniCredit Bank. In addition, we decreased the net debt-to-EBITDA down to 1.66 times. We succeeded in keeping the net debt in absolute terms at the level of the previous year of 12.4 billion rubles.
In the Orel region HMS Group is continuing to develop a so-called "The Localization Project" intended to domestically produce high-capacity oil refining and transport pumps and nuclear pumps, worth Rub 2.6 billion. We are thankful to the Ministry of Industry and Trade of the Russian Federation for supporting this project in the form of a five-year loan, worth 500 million rubles, from the Fund of Industry Development of the Russian Federation, at a 5 percent interest rate.
The Group plans to continue its revenue growth from both large-scale projects and standard products. However, increasing competition amidst economic uncertainty, low oil prices, decreases or postponements of key customers' capital investments may lead to a decrease in profitability of the Group's major projects in 2016, and might increase the risk of a slight decline in EBITDA. Yet, at the same time, based on our current portfolio of large-scale projects to be developed in the near future, we feel optimistic about the years to come in 2017-2018."
Artem Molchanov, CEO (Managing Director) of HMS Group, said:
"I am proud to announce that the year 2015 was a successful one for HMS Group in terms of revenue and EBITDA, despite a decrease in Russia's GDP, volatility of the ruble, international sanctions, low oil prices, high interest rates, and other negative factors affecting business in Russia.
We demonstrated a stable increase in standard production as well as in new large projects. I am particularly pleased to point out that the efforts we have put into developing relationships with Russian major gas companies in the last few years have started to pay off. We have reinforced our presence in the markets for gas production, transportation and refinery. Two out of three major contracts successfully carried out in 2015 were with gas companies, making a significant contribution to the company's financial results. We intend to continue our efforts in this direction.
In particular, I would like to draw your attention to the export activity of HMS Group. In 2015 foreign currency revenue accounted for 10% percent of the total ruble revenue, which was not due to the depreciation of the ruble, but largely the result of the Group's long-term efforts over the years, which made the development of exports one of its top priorities.
Despite the challenging conditions in the financial markets, we successfully refinanced our loans, as well as received new limits with Sberbank, VTB Bank, and UniCredit Bank. In addition, we decreased the net debt-to-EBITDA down to 1.66 times. We succeeded in keeping the net debt in absolute terms at the level of the previous year of 12.4 billion rubles.
In the Orel region HMS Group is continuing to develop a so-called "The Localization Project" intended to domestically produce high-capacity oil refining and transport pumps and nuclear pumps, worth Rub 2.6 billion. We are thankful to the Ministry of Industry and Trade of the Russian Federation for supporting this project in the form of a five-year loan, worth 500 million rubles, from the Fund of Industry Development of the Russian Federation, at a 5 percent interest rate.
The Group plans to continue its revenue growth from both large-scale projects and standard products. However, increasing competition amidst economic uncertainty, low oil prices, decreases or postponements of key customers' capital investments may lead to a decrease in profitability of the Group's major projects in 2016, and might increase the risk of a slight decline in EBITDA. Yet, at the same time, based on our current portfolio of large-scale projects to be developed in the near future, we feel optimistic about the years to come in 2017-2018."
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