|
HMS Group (HMSG)
HMS Group Reports FY 2020 EBITDA of Rub 4.9 billion
28-Apr-2021 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
HMS Group Reports FY 2020 EBITDA of Rub 4.9 billion
Moscow, Russia - April 28, 2021 - HMS Hydraulic Machines & Systems Group Plc (the "HMS Group", or the "HMS", or 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 the twelve months ended December 31, 2020.
Financial highlights 2020:
- Revenue: Rub 46.5 bn (-10% yoy)
- EBITDA[1]: Rub 4.9 bn (+3% yoy), EBITDA margin at 10.6%
- Operating profit: Rub 1.3 bn (-35% yoy)
- Loss for the period: Rub 816 mn
- Loss for the period adj.[2]: Rub 265 mn
- Total debt: Rub 22.2 bn (-9% yoy)
- Net debt: Rub 11.8 bn (-18% yoy)
- Net debt-to-EBITDA LTM ratio: 2.39x
Operational highlights 2020:
- Backlog[3]: Rub 53.9 bn (+20% yoy)
- Order intake[4]: Rub 54.2 bn (+4% yoy)
GROUP PERFORMANCE
FY 2020 financial Results
- Order intake grew to Rub 54.2 billion, by 4% yoy, compared with Rub 52.2 billion for 2019. The compressors business segment was the main contributor to this growth. In terms of contracts type, large contracts were the main drivers of the growth (+9% yoy).
- Backlog reached Rub 53.9 billion, up by 20% yoy, compared with Rub 44.7 billion last year, based on the compressors and the oil & gas equipment business segments. In terms of contracts type, recurring business grew by 13% yoy and large contracts was up 30% yoy, compared with 2019.
- Revenue was Rub 46.5 billion, down by 10% yoy, compared with Rub 51.4 billion for 2019, because of less revenue generated by the oil & gas equipment and the compressors business segments.
- EBITDA, in contrast, was Rub 4.9 billion (+3% yoy), due to increased margins of pumps and compressors contracts. EBITDA margin grew to 10.6%, compared with 9.4% for 2019.
Consolidated revenue from recurring business declined by 9% yoy, and revenue from large projects was down by 11% yoy. EBITDA from recurring business declined by 12% yoy, and, in contrast, EBITDA from large contracts increased 26% yoy.
- Loss for the period was Rub 816 million, compared with profit for the period at Rub 151 million for 2019. Included in this loss is an impairment of goodwill of Rub 425 million, recognized on acquisition of TMCP in the beginning of 2019. The goodwill was impaired as a result of not meeting targeted synergies with HMS Neftemash in executing large contracts, due to the Covid-19 pandemic and general situation on the oil and gas market.
- Loss for the 2020 year adj. was Rub 265 million.
- Free cash inflow was Rub 3.0 billion, compared with Rub 23 million in 2019, despite lower revenue due to the implemented cost-optimization program.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Orders
|
54,205
|
52,196
|
4%
|
15,304
|
19,359
|
-21%
|
|
Backlog
|
53,851
|
44,693
|
20%
|
53,851
|
56,580
|
-5%
|
|
Revenue
|
46,476
|
51,413
|
-10%
|
15,000
|
11,978
|
25%
|
|
EBITDA
|
4,947
|
4,824
|
3%
|
1,576
|
1,264
|
25%
|
|
EBITDA margin
|
10.6%
|
9.4%
|
|
10.5%
|
10.6%
|
|
|
(Loss)/Profit for the period adj.
|
(265)
|
151
|
na
|
(41)
|
90
|
na
|
|
Impairment of goodwill (note 9)
|
(426)
|
|
|
(426)
|
|
|
|
Impairment of previously recognised deferred tax assets (n.22)
|
(126)
|
|
|
(126)
|
|
|
|
(Loss)/Profit for the period
|
(816)
|
151
|
na
|
(593)
|
90
|
na
|
|
Free cash inflow
|
2,958
|
23
|
na
|
2,074
|
2,397
|
-13%
|
Expenses and Operating profit
- Cost of sales was down by 11% yoy to Rub 37.1 billion, compared with Rub 41.8 billion for 2019, due to lower materials and components costs and labour expenses. Materials and components declined 15% yoy because of lower revenue. Labour costs were down by 2% yoy due to the cost-cutting program.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
Share of 2020 revenue
|
Share of 2019 revenue
|
|
Cost of sales
|
37,071
|
41,804
|
-11%
|
79.8%
|
81.3%
|
|
Materials and components
|
23,760
|
27,957
|
-15%
|
51.1%
|
54.4%
|
|
Labour costs incl Social taxes
|
6,906
|
7,060
|
-2%
|
14.9%
|
13.7%
|
|
Depreciation and amortization
|
2,122
|
1,954
|
9%
|
4.6%
|
3.8%
|
|
Construction and design [5]
|
2,557
|
2,467
|
4%
|
5.5%
|
4.8%
|
|
Others
|
1,726
|
2,365
|
-27%
|
3.7%
|
4.6%
|
- Gross profit declined to Rub 9.4 billion, by 2% yoy, compared with Rub 9.6 billion for 2019.
- SG&A expenses[6] declined by 2% yoy due to decrease in general & administrative expenses. Distribution & transportation expenses were up by 1% yoy, mainly due to higher transportation expenses and labour costs. General & administrative expenses declined to Rub 5.2 billion by 3% yoy, compared with 2019, mainly due to decrease in labour costs and business trips expenses.
- Operating profit was down to Rub 1.3 billion by 35% yoy, compared with Rub 2.1 billion in 2019.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
Share of 2020 revenue
|
Share of 2019 revenue
|
|
Gross profit
|
9,405
|
9,609
|
-2%
|
20.2%
|
18.7%
|
|
Distribution & transportation
|
1,986
|
1,961
|
1%
|
4.3%
|
3.8%
|
|
General & administrative
|
5,243
|
5,395
|
-3%
|
11.3%
|
10.5%
|
|
SG&A expenses
|
7,228
|
7,356
|
-2%
|
15.6%
|
14.3%
|
|
Other operating expenses
|
412
|
196
|
111%
|
0.9%
|
0.4%
|
|
Operating expenses ex. Cost of sales
|
7,641
|
7,552
|
1%
|
16.4%
|
14.7%
|
|
Operating profit
|
1,338
|
2,057
|
-35%
|
2.9%
|
4.0%
|
|
Finance costs
|
1,926
|
1,785
|
8%
|
4.1%
|
3.5%
|
- Finance costs increased to Rub 1.9 billion by 8% yoy, compared with Rub 1.8 billion in 2019. The main reason was the 5% increase in interest expenses due to the higher level of average debt within 2020, compared with 2019.
- Average interest rates decreased to 8.00% p.a., compared with 8.57% p.a. last year.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
|
Finance costs
|
1,926
|
1,785
|
8%
|
|
Interest expenses
|
1,848
|
1,764
|
5%
|
|
Interest rate, average
|
8.00%
|
8.57%
|
|
|
Interest rate Rub, average
|
8.12%
|
8.69%
|
|
BUSINESS SEGMENTS PERFORMANCE
Industrial pumps[i]
- Order intake declined by 22% yoy to Rub 17.8 billion, compared with Rub 22.8 billion for 2019, due to less regular orders received and no large contracts signed. Backlog was down by 7% yoy to Rub 18.2 billion, compared with Rub 19.6 billion in 2019. Demand for pumps was impacted by the COVID-19 pandemic.
- Revenue grew to Rub 20.3 billion by 2% yoy, based on the recurring business. EBITDA was up to Rub 2.9 billion, by 13% yoy, compared with Rub 2.6 billion in 2019, due to a larger share of regular orders with higher profitability. EBITDA margin was 14.5%, compared with 13.1% in 2019.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Orders
|
17,773
|
22,792
|
-22%
|
4,429
|
5,329
|
-17%
|
|
Backlog
|
18,227
|
19,572
|
-7%
|
18,227
|
19,749
|
-8%
|
|
Revenue
|
20,256
|
19,770
|
2%
|
6,311
|
5,657
|
12%
|
|
EBITDA
|
2,931
|
2,599
|
13%
|
1,116
|
797
|
40%
|
|
EBITDA margin
|
14.5%
|
13.1%
|
|
17.7%
|
14.1%
|
|
Oil and Gas equipment & projects (OGEP)[ii]
- Order intake grew to Rub 13.6 billion, by 14% yoy, compared with Rub 11.9 billion in 2019, due to large contracts.
- Backlog was up by 25% yoy to Rub 9.3 billion, compared with Rub 7.4 billion for 2019, due to both large contracts and regular business.
- Revenue declined to Rub 11.3 billion, by 14% yoy, compared with Rub 13.2 billion in 2019. EBITDA was down to Rub 241 million, compared with Rub 430 million in 2019. The main reasons were the COVID-19 pandemic and postponement of projects for 2021.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Orders
|
13,568
|
11,887
|
14%
|
3,331
|
3,514
|
-5%
|
|
Backlog
|
9,318
|
7,426
|
25%
|
9,318
|
9,916
|
-6%
|
|
Revenue
|
11,284
|
13,160
|
-14%
|
2,890
|
3,241
|
-11%
|
|
EBITDA
|
241
|
430
|
-44%
|
(49)
|
47
|
-204%
|
|
EBITDA margin
|
2.1%
|
3.3%
|
|
-1.7%
|
1.4%
|
|
Compressors[iii]
- Order intake grew by 30% to Rub 22.6 billion, compared with Rub 17.4 billion in 2019. Backlog increased to Rub 24.8 billion, compared with Rub 16.1 billion in 2019. Both recurring business and large contracts grew.
- Revenue was down by 16% yoy to Rub 14.9 billion, compared with Rub 17.9 billion, due to less revenue generated by recurring business.
- EBITDA grew by 25% yoy to Rub 1.9 billion, compared with Rub 1.5 billion in 2019, due to higher margins generated by large contracts. EBITDA margin was up to 13.0%, compared with 8.6% in 2019.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Orders
|
22,617
|
17,363
|
30%
|
7,511
|
10,512
|
-29%
|
|
Backlog
|
24,765
|
16,067
|
54%
|
24,765
|
25,264
|
-2%
|
|
Revenue
|
14,947
|
17,884
|
-16%
|
6,080
|
3,075
|
98%
|
|
EBITDA
|
1,939
|
1,546
|
25%
|
796
|
489
|
63%
|
|
EBITDA margin
|
13.0%
|
8.6%
|
|
13.1%
|
15.9%
|
|
Construction[iv]
- Order intake equaled Rub 247 million. Backlog stood at Rub 1.5 billion.
- Revenue was down to Rub 718 million, compared with Rub 1.4 billion in 2019. EBITDA was Rub (63) million, compared with Rub (29) million last year.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Orders
|
247
|
155
|
60%
|
32
|
5
|
521%
|
|
Backlog
|
1,541
|
1,628
|
-5%
|
1,541
|
1,652
|
-7%
|
|
Revenue
|
718
|
1,394
|
-49%
|
138
|
174
|
-21%
|
|
EBITDA
|
(63)
|
(29)
|
117%
|
(43)
|
(59)
|
-27%
|
|
EBITDA margin
|
-8.8%
|
-2.1%
|
|
-31.2%
|
-34.0%
|
|
Working capital and Capital expenditures
- Working capital declined to Rub 6.8 billion, by 24% yoy, compared with Rub 8.8 billion in 2019. As a share of revenue, working capital declined to 14.5% which is a very low ratio. It was the result of tough anti-crisis measures initiated by the company.
- Maintenance capex was down to Rub 1.4 billion, by 11% yoy, compared with Rub 1.6 billion in 2019
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Working capital
|
6,752
|
8,846
|
-24%
|
6,752
|
8,715
|
-23%
|
|
Working capital / Revenue LTM
|
14.5%
|
17.2%
|
|
14.5%
|
18.9%
|
|
|
Capex
|
1,392
|
1,571
|
-11%
|
250
|
399
|
-37%
|
|
Acquisition
|
0
|
670
|
|
0
|
0
|
|
DEBT POSITION
- Total debt declined by 9% yoy to Rub 22.2 billion, compared with Rub 24.3 billion in 2019. Net debt was down to Rub 11.8 billion, by 18% yoy, compared with Rub 14.4 billion in 2019.
- Net debt to EBITDA LTM ratio decreased to 2.39x, compared with 2.98x in 2019.
|
in millions of Rub
|
2020
|
2019
|
Change yoy
|
4Q 2020
|
3Q 2020
|
Change qoq
|
|
Total debt
|
22,175
|
24,321
|
-9%
|
22,175
|
22,832
|
-3%
|
|
Net debt
|
11,814
|
14,369
|
-18%
|
11,814
|
13,897
|
-15%
|
|
Net debt / EBITDA LTM
|
2.39
|
2.98
|
|
2.39
|
2.89
|
|
SIGNIFICANT EVENTS AFTER THE REPORTING DATE & FINANCIAL MANAGEMENT
LARGE CONTRACTS
- After the reporting date, in April 2021, the company announced the signature of a Rub 7.5 billion contract to design and manufacture oil & gas equipment for one of the largest gas fields in Russia. The contract is for manufacture, delivery and installation of membrane modules and elements, turbocompressor units for an interstage compressor station and gas transportation units for a gas booster station as part of a helium concentrate membrane recovery unit. This is a follow-up contract HMS Group has secured with this client. The first one was announced in 2017 in a Rub 10.2 billion contract, and that was the first project of that kind in Russia.
BUYBACK PROGRAM
- After the reporting date, HMS Group repurchased 176,000 GDRs under its buyback program.
DIVIDENDS
- The Board of Directors at the meeting on April 21, 2021, recommended payment of a final dividends in respect of FY 2020 in the amount of Rub 4.25 per one ordinary share (Rub 21.25 per one GDR). The dividends are subject to the approval at the AGM on June 24, 2021. Subject to such approval, the Dividends may be paid on July 1, 2021 to shareholders on the Company's register at close of business (UK time) on June 18, 2021 (the "Record Date").
MOEX LISTING
- Also, the Board of Directors approved the listing of the Group's GDRs as a Foreign Issuer on the Moscow Exchange. The Company's GDRs will continue trading on the Main Market of the London Stock Exchange. Trading of HMS Group's GDRs on the Moscow Exchange is expected to commence in the second quarter of 2021, subject to approval by the Moscow Exchange.
***
Webcast to discuss FY 2020 IFRS
Date: Wednesday, April 28, 2021
Time: 5.00 PM (MOSCOW) / 3.00 PM (London) / 10.00 AM (NY)
HMS Group FY 2020 IFRS results
Conference passcode: 5377110
To participate in the conference call, please dial in:
Russia Local: +7 499 609 1260
Russia Toll Free: 8 800 100 9471
UK Local: +44 (0)330 027 1846
UK Toll Free: 0800 031 4838
US Local: +1 334 777 6978
US Toll Free: 800 367 2403
Live link
https://www.webcast-eqs.com/hmsgroup20210428
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
Consolidated Statement of Financial Position at 31 December 2020
|
in thousands of Russian Roubles, unless otherwise stated
|
31 December 2020
|
31 December 2019
|
|
ASSETS
|
|
|
|
Non-current assets:
|
|
|
|
Property, plant and equipment
|
14,684,279
|
15,532,576
|
|
Other intangible assets
|
1,743,399
|
2,001,646
|
|
Goodwill
|
3,255,984
|
3,370,275
|
|
Right-of-use assets
|
183,211
|
174,614
|
|
Investments in associates
|
94,307
|
94,489
|
|
Deferred income tax assets
|
786,455
|
631,428
|
|
Other long-term assets
|
42,252
|
42,316
|
|
Investment property
|
176,833
|
186,632
|
|
Total non-current assets
|
20,966,720
|
22,033,976
|
|
Current assets:
|
|
|
|
Inventories
|
8,847,749
|
7,859,051
|
|
Trade and other receivables and other financial assets
|
15,598,766
|
18,051,909
|
|
Contract assets
|
6,201,354
|
8,058,877
|
|
Current income tax receivable
|
94,972
|
227,917
|
|
Cash and cash equivalents
|
10,360,588
|
9,952,118
|
|
Total current assets
|
41,103,429
|
44,149,872
|
|
TOTAL ASSETS
|
62,070,149
|
66,183,848
|
|
|
|
|
|
EQUITY AND LIABILITIES
EQUITY
|
|
|
|
Share capital
|
48,329
|
48,329
|
|
Share premium
|
3,523,535
|
3,523,535
|
|
Treasury shares
|
(33,055)
|
(319,475)
|
|
Other reserves
|
129,392
|
62,716
|
|
Currency translation reserve
|
646,427
|
(44,878)
|
|
Retained earnings
|
5,510,974
|
7,029,094
|
|
Equity attributable to the shareholders of the Company
|
9,825,602
|
10,299,321
|
|
Non-controlling interests
|
3,518,674
|
3,569,953
|
|
TOTAL EQUITY
|
13,344,276
|
13,869,274
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Non-current liabilities:
|
|
|
|
Long-term borrowings
|
20,452,736
|
20,582,061
|
|
Deferred income tax liability
|
1,421,489
|
1,620,211
|
|
Retirement benefit obligations
|
646,213
|
597,238
|
|
Provisions for liabilities and charges
|
228,199
|
154,809
|
|
Lease liabilities
|
153,048
|
139,272
|
|
Other long-term payables
|
230,581
|
240,172
|
|
Total non-current liabilities
|
23,132,266
|
23,333,763
|
|
Current liabilities:
|
|
|
|
Trade and other payables
|
17,969,950
|
20,658,429
|
|
Contract liabilities
|
4,304,845
|
2,248,029
|
|
Short-term borrowings
|
1,548,574
|
3,578,390
|
|
Provisions for liabilities and charges
|
589,762
|
550,050
|
|
Retirement benefit obligations
|
77,859
|
76,904
|
|
Lease liabilities
|
20,440
|
21,329
|
|
Current income tax payable
|
134,080
|
218,974
|
|
Other taxes payable
|
948,097
|
1,628,706
|
|
Total current liabilities
|
25,593,607
|
28,980,811
|
|
TOTAL LIABILITIES
|
48,725,873
|
52,314,574
|
|
TOTAL EQUITY AND LIABILITIES
|
62,070,149
|
66,183,848
|
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020
|
in thousands of Russian Roubles, unless otherwise stated
|
|
2020
|
2019
|
|
Revenue
|
|
46,476,487
|
51,412,961
|
|
Cost of sales
|
|
(37,071,430)
|
(41,803,705)
|
|
Gross profit
|
|
9,405,057
|
9,609,256
|
|
|
|
|
|
|
Distribution and transportation expenses
|
|
(1,985,928)
|
(1,961,331)
|
|
General and administrative expenses
|
|
(5,242,566)
|
(5,395,083)
|
|
Other operating expenses, net
|
|
(412,472)
|
(195,595)
|
|
Impairment of goodwill
|
|
(425,668)
|
-
|
|
Operating profit
|
|
1,338,423
|
2,057,247
|
|
|
|
|
|
|
Finance income
|
|
251,571
|
172,302
|
|
Finance costs
|
|
(1,926,310)
|
(1,784,607)
|
|
Share of results of associates
|
|
(161)
|
(632)
|
|
|
|
|
|
|
(Loss)/profit before income tax
|
|
(336,477)
|
444,310
|
|
|
|
|
|
|
Income tax expense
|
|
(479,814)
|
(293,680)
|
|
|
|
|
(Loss)/profit for the year
|
|
(816,291)
|
150,630
|
|
|
|
|
|
|
(Loss)/profit attributable to:
Shareholders of the Company
|
|
(971,996)
|
(93,932)
|
|
Non-controlling interests
|
|
155,705
|
244,562
|
|
(Loss)/profit for the year
|
|
(816,291)
|
150,630
|
|
|
|
|
|
|
Other comprehensive income/(loss):
|
|
|
|
|
Items that will not be subsequently reclassified to profit or loss
|
|
|
|
|
Remeasurement of post-employment benefit obligations
|
|
(5,321)
|
(64,673)
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss
|
|
|
|
|
Currency translation differences
|
|
693,105
|
(141,369)
|
|
Currency translation differences of associates
|
|
(21)
|
1,856
|
|
Other comprehensive income/(loss) for the year
|
|
687,763
|
(204,186)
|
|
Total comprehensive loss for the year
|
|
(128,528)
|
(53,556)
|
|
Total comprehensive loss attributable to:
Shareholders of the Company
|
|
|
|
(288,238)
|
(300,891)
|
|
Non-controlling interests
|
|
159,710
|
247,335
|
|
Total comprehensive loss for the year
|
|
(128,528)
|
(53,556)
|
|
|
|
|
|
|
Basic and diluted loss per ordinary share for profit attributable to the ordinary shareholders (RR per share)
|
|
(8.50)
|
(0.84)
|
| |
|
|
|
|
|
|
Consolidated Statement of Cash Flows for the year ended 31 December 2020
|
in thousands of Russian Roubles, unless otherwise stated
|
2020
|
2019
|
|
Cash flows from operating activities
|
|
|
|
(Loss)/profit before income tax
|
(336,477)
|
444,310
|
|
Adjustments for:
|
|
|
|
Depreciation and amortisation
|
2,451,191
|
2,295,572
|
|
Gain from disposal of property, plant and equipment and intangible assets
|
(1,821)
|
(50,312)
|
|
Finance income
|
(251,571)
|
(172,302)
|
|
Finance costs
|
1,926,310
|
1,784,607
|
|
Change in retirement benefits obligations
|
82,075
|
95,974
|
|
Change in warranty provision
|
136,752
|
6,392
|
|
Change in expected credit losses allowance for trade and other receivables and other financial assets and allowance for impairment of non-financial assets
|
72,152
|
116,303
|
|
Change in expected credit losses allowance for cash and cash equivalents
|
31,850
|
-
|
|
Change in allowance for obsolete inventories
|
10,598
|
118,515
|
|
Change in provision for legal claims
|
83,987
|
(32,866)
|
|
Share-based compensation
|
58,921
|
118,544
|
|
Foreign exchange loss, net
|
73,534
|
80,332
|
|
Gain on remeasurement of contingent consideration liability
|
-
|
(58,890)
|
|
Amortisation of government grants
|
(36,048)
|
(32,411)
|
|
Impairment of taxes
|
10,418
|
-
|
|
Impairment of goodwill
|
425,668
|
-
|
|
Impairment of property, plant and equipment
|
13,936
|
-
|
|
Change in provision for tax risks, other than income tax
|
9,898
|
-
|
|
Share of results of associates
|
161
|
632
|
|
Operating cash flows before working capital changes
|
4,761,534
|
4,714,400
|
|
(Increase)/decrease in inventories
|
(869,830)
|
1,142,258
|
|
Decrease/(increase) in trade and other receivables
|
2,967,766
|
(5,825,144)
|
|
Decrease/(increase) in contract assets
|
1,916,049
|
(3,493,520)
|
|
Decrease in current income tax receivable
|
132,920
|
29,492
|
|
(Decrease)/increase in accounts payable and accrued liabilities
|
(3,361,448)
|
6,830,995
|
|
Increase in contract liabilities
|
2,056,816
|
404,649
|
|
(Decrease)/increase in taxes payable
|
(829,967)
|
354,446
|
|
Cash from operations
|
6,773,840
|
4,157,576
|
|
Income tax paid
|
(806,031)
|
(366,040)
|
|
Interest paid
|
(1,887,821)
|
(1,793,240)
|
|
Interest received
|
259,533
|
164,692
|
|
Net cash from operating activities
|
4,339,521
|
2,162,988
|
|
Cash flows from investing activities
|
|
|
|
Repayment of loans advanced
|
6,953
|
10,378
|
|
Loans advanced
|
(20,203)
|
(30,588)
|
|
Proceeds from sale of property, plant and equipment and intangible assets, net
|
55,948
|
120,539
|
|
Interest received
|
-
|
175
|
|
Purchase of property, plant and equipment, net of VAT
|
(937,132)
|
(996,241)
|
|
Acquisition of intangible assets, net of VAT
|
(454,417)
|
(574,322)
|
|
Acquisition of subsidiaries, net of cash acquired
|
-
|
(670,141)
|
|
Repayment of contingent consideration liability
|
(33,000)
|
-
|
|
Net cash used in investing activities
|
(1,381,851)
|
(2,140,200)
|
|
Cash flows from financing activities
|
|
|
|
Repayments of borrowings
|
(11,478,749)
|
(9,488,918)
|
|
Proceeds from borrowings
|
9,127,605
|
14,364,549
|
|
Proceeds from government grant
|
28,092
|
40,000
|
|
Repayment of the lease liabilities principal
|
(35,905)
|
(27,234)
|
|
Buy back of issued shares
|
(1,705)
|
(25,649)
|
|
Dividends related to Long-term Incentive Program
|
(5,660)
|
(42,964)
|
|
Dividends paid to non-controlling shareholders of subsidiaries
|
(55,162)
|
(60,950)
|
|
Dividends paid to the shareholders of the Company
|
(391,942)
|
(1,103,859)
|
|
Net cash (used in)/from financing activities
|
(2,813,426)
|
3,654,975
|
|
Net increase in cash and cash equivalents
|
144,244
|
3,677,763
|
|
Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency
|
296,076
|
(20,804)
|
|
Effect of changes in expected credit losses allowance for cash and cash equivalents
|
(31,850)
|
-
|
|
Cash and cash equivalents at the beginning of the year
|
9,952,118
|
6,295,159
|
|
Cash and cash equivalents at the end of the year
|
10,360,588
|
9,952,118
|
[1] EBITDA is defined as operating profit/(loss) 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 acquisition, defined benefits scheme expense and provisions (including provision for obsolete inventory, ECL allowance and provision for impairment of trade and other receivables and other financial assets, 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] Loss for the period adj. - is the reported Loss for the period, excluding the effects of goodwill impairment and impairment of previously recognized deferred tax asset
[3] Backlog - Portfolio of uncompleted orders and contracts
[4] Order intake - Portfolio of contracts and orders signed for a period
[5] Construction and design and engineering services of subcontractors
[6] SG&A expenses - Selling, General and Administrative Expenses, compiled of distribution & transportation expenses plus general & administrative ones
[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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