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Press-releases

25.07.2013

HMS Group Q2 2013 order intake

Moscow, Russia – HMS Group (LSE: HMSG), 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, today issues the statement regarding orders received during Q2 2013.

Please note, starting from Q1 2013 we provide the data split under management accounts, which corresponds with the Note “Segment Information” under IFRS, compared to a split by a type of products or services we used to provide in 2012. All numbers for 2012 are adjusted accordingly.

Please also notice that order intake performance can be volatile on a quarterly horizon due to uneven placement of orders for large projects in infrastructure

HIGHLIGHTS:

  • In Q2 2013, order intake under management accounts amounted to Rub 5.8 bn (USD 179 mn*), down 45% YoY, versus Rub 10.5 bn (USD 326 mn) in Q2 2012 due to a high-base effect of the last year’ ESPO contract and lower volume of orders for engineering and construction works
  • In the industrial pumps business segment order intake declined by 65% YoY and amounted to Rub 2.6 bn. Strong inflow of orders for pumps for water utilities was more than offset by weaker demand in pumps for power generation and a high-base effect resulted from the 4.6 bn follow-up contract for East Siberia – Pacific Ocean pipeline (ESPO) signed in Q2 2012.
  • In the oil and gas equipment business segment order inflow grew by 12% to Rub 1.7 bn mainly driven by orders for modular pump stations and oilfield equipment.
  • In the EPC business segment order intake declined by 52% YoY, primarily due to a drop in orders for engineering and construction works, which was partially offset by a stronger order flow for project and design services, which grew by 42% YoY.
  • In the compressor business segment, established in Q3 2012, order intake amounted to Rub 703 mn
  • In H1 2013, order intake under management accounts amounted to Rub 14.9 bn (USD 462 mn), down 19% YoY, versus Rub 18.372 bn (USD 569 mn) in H1 2012.

Order Intake (millions of Rub)
Q2 2013
Q2 2012
Δ
Business segments
  Industrial pumps
2,649
7,529
-64.8%
      The ESPO contract
4,626
  Industrial pumps, w/o the ESPO contract
2,649
2,903
-8.8%
  Oil and Gas equipment
1,722
1,539
11.9%
  Compressors
703
-
-
  EPC, including
705
1,464
-51.8%
      Construction
164
1,083
-84.9%
      Project and design
541
381
42.2%
Total
5,778
10,532
-45.1%

The 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. The HMS Group’s products are key elements of projects in a diverse range of basic industries. The Group reported revenues of RUB 7.3 billion, adjusted EBITDA of RUB 854 million and profit for the period of RUB 26 million for the 3 months ended March 31, 2013. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.


For further information, please contact:

Sergey Klinkov
Head of IR
Tel: +7 (495) 730-66-01, ext. 1302
klinkov@hms.ru

Nozima Karimova
Head of Press Service
Tel: +7 (495) 730-66-10
karimova@hms.ru

DISCLAIMER

THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR, GDRs OR OTHER SECURITIES TO ANY PERSON IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL AND, IN PARTICULAR, IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION.

THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OF ANY SECURITIES IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HMS GROUP HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY PORTION OF ANY OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF ANY SECURITIES IN THE UNITED STATES.

THIS COMMUNICATION IS ONLY BEING DISTRIBUTED TO AND IS DIRECTED ONLY AT (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE “ORDER”) AND (III) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED, FALLING WITHIN ARTICLE 49(2) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS “RELEVANT PERSONS”). THE SECURITIES REFERRED TO IN THIS ANNOUNCEMENT ARE ONLY AVAILABLE TO, AND ANY INVITATION, OFFER OR AGREEMENT TO SUBSCRIBE, PURCHASE OR OTHERWISE ACQUIRE SUCH SECURITIES WILL BE ENGAGED IN ONLY WITH, RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS.

* Hereafter , 1USD = 32,3106 RUB (CBR rate as of July, 24, 2013)


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