HMS Group (HMSG)
26-Apr-2018 / 11:05 CET/CEST
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: 2017 FY IFRS Results" announcement released at 16:40 GMT on April 24, 2018.
There was a misprint in the export contracts' value, and it has now been corrected to US$ 13.5 million (prev. US$ 15.5 mn).
All other details remain unchanged.
The full corrected version is shown below
HMS Group announces management statement and financial highlights
for FY 2017
Moscow, Russia - April 24, 2018 - 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, 2017.
Financial highlights FY 2017:
▪ Revenue: Rub 44.4 bn (+7% yoy)
▪ EBITDA[1]: Rub 6.8 bn (+7% yoy), EBITDA margin 15.4%
▪ Operating profit: Rub 4.6 bn (+26% yoy), operating margin up to 10.3%
▪ Profit for the period: Rub 2.1 bn (+73% yoy), net income margin 4.7%
▪ Total debt: Rub 16.0 bn (-2% yoy)
▪ Net debt: Rub 11.4 bn (-14% yoy)
▪ Net debt-to-EBITDA LTM ratio: 1.7x
Operational highlights FY 2017:
▪ Backlog: Rub 44.2 bn (+84% yoy)
▪ Order intake: Rub 65.5 bn (+61% yoy)
OPERATING REVIEW
BACKLOG & ORDER INTAKE
Backlog grew to Rub 44.2 billion (+84% yoy). All the four business segments demonstrated growth, but the main driver was the oil & gas equipment and projects business segment (OGEP).
The significant growth in all segments was fully due to a number of large integrated contracts signed and executed in the reporting period.
Backlog, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Industrial pumps
|
14,467
|
10,317
|
40%
|
Oil & Gas equipment and projects
|
20,180
|
9,524
|
112%
|
Compressors
|
5,186
|
3,476
|
49%
|
Construction
|
4,323
|
719
|
502%
|
Total
|
44,155
|
24,035
|
84%
|
Order intake[2] also hit a record high and reached Rub 65.5 billion (+61% yoy). All four business segments of HMS contributed to this growth, especially the oil and gas equipment and projects segment. The main driver was an outstanding growth of the portfolio of large contracts. However, recurring business also demonstrated growth, of 3% yoy.
Order intake, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
Change qoq
|
Industrial pumps
|
20,983
|
15,997
|
31%
|
8,762
|
5,127
|
71%
|
Oil & gas equipment
|
32,496
|
18,684
|
74%
|
4,025
|
2,752
|
46%
|
Compressors
|
7,202
|
5,172
|
39%
|
1,268
|
587
|
116%
|
Construction
|
4,818
|
771
|
525%
|
462
|
525
|
-12%
|
Total
|
65,499
|
40,624
|
61%
|
14,516
|
8,991
|
61%
|
Note to HMS' Backlog and Order intake:
The contract to deliver oil & gas equipment for reconstruction of a gas processing plant, signed in 2Q 2017 (Rub 23.3. bn) is still subject to uncertainty. The company hasn't received any advance payments, and even hasn't started any work. HMS isn't certain that the execution of this project will start in the nearest future.
The company doesn't include the contract its Backlog and Order intake.
GROUP PERFORMANCE
Revenue increased by 7% yoy and amounted to Rub 44.4 billion. The OGEP and the industrial pumps business segments contributed to this growth the most.
EBITDA was up by 7% yoy to Rub 6.8 billion. Robust results of the compressors segment were the major driver of the company's EBITDA growth.
Rub bn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
Change qoq
|
Revenue
|
44,422
|
41,582
|
7%
|
13,011
|
11,266
|
15%
|
EBITDA
|
6,839
|
6,369
|
7%
|
1,852
|
1,681
|
10%
|
EBITDA margin
|
15.4%
|
15.3%
|
|
14.2%
|
14.9%
|
|
In terms of contracts' type, revenue from recurring business grew by 7% yoy, wherein machine-building product sales increased by 8% yoy. Large projects' revenue advanced 5% yoy. EBITDA from recurring business grew 2% yoy and large contracts jumped by 15% yoy. All that led to an EBITDA margin increase to 15.4% from 15.3% last year.
Cost of sales, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Share of 2017 FY revenue
|
Share of 2016 FY revenue
|
Cost of sales
|
32,536
|
30,799
|
6%
|
73.2%
|
74.1%
|
Materials and components
|
22,036
|
20,172
|
9%
|
49.6%
|
48.5%
|
Labour costs
|
5,116
|
4,627
|
11%
|
11.5%
|
11.1%
|
Construction and design and engineering services of subcontractors
|
1,365
|
2,173
|
-37%
|
3.1%
|
5.2%
|
Depreciation and amortization
|
1,307
|
1,340
|
-2%
|
2.9%
|
3.2%
|
Others
|
2,711
|
2,487
|
9%
|
6.1%
|
6.0%
|
Cost of sales grew by 6% yoy to Rub 32.5 billion almost completely due to an increase in materials and components (+9% yoy) and labour costs (+11% yoy). However, the cost of sales as a percentage of revenue decreased to 73%. The lagging growth of costs led to an expansion in gross margin (2017: 26.8% vs 25.9% in 2016).
Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Share of 2017 FY revenue
|
Share of 2016 FY revenue
|
Distribution and transportation
|
1,785
|
1,700
|
5%
|
4.0%
|
4.1%
|
General and administrative
|
4,999
|
4,523
|
11%
|
11.3%
|
10.9%
|
SG&A expenses
|
6,784
|
6,223
|
9%
|
15.3%
|
15.0%
|
Other operating expenses
|
547
|
548
|
0%
|
1.2%
|
1.3%
|
Operating expenses ex. Cost of sales
|
7,331
|
6,771
|
8%
|
16.5%
|
16.3%
|
Finance costs
|
1,775
|
1,905
|
-7%
|
4.0%
|
4.6%
|
SG&A expenses[3] increased by 9% yoy, and as a share of revenue grew to 15.3% from 15.0%.
Operating expenses excl. cost of sales grew by 8% yoy. As a share of revenue they also increased, to 16.5%. The main reason was an increase in labour costs due to the budgeted growth in wages.
Distribution and transportation expenses grew by 5% yoy to Rub 1.8 billion. The main reason was a growth of labour costs and transportation expenses. As a share of revenue, distribution and transportation expenses stayed almost unchanged at 4%.
General and administrative expenses grew by 11% yoy to Rub 5.0 billion due to labour costs' increase (+9% yoy). As a share of revenue, general and administrative expenses grew to 11.3% from 10.9%.
Operating profit grew by 26% yoy to Rub 4.6 billion from Rub 3.6 billion. Operating margin increased to 10.3% from 8.7%.
Finance costs, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Finance costs
|
1,775
|
1,905
|
-7%
|
Interest expenses
|
1,725
|
2,009
|
-14%
|
Fees for early repayment of loans
|
48
|
-
|
Na
|
Finance lease expenses
|
2
|
1
|
85%
|
Foreign exchange loss/(gain), net
|
1
|
(105)
|
-100%
|
Interest rate, average
|
9.8%
|
12.2%
|
|
Interest rate Rub, average
|
9.9%
|
12.4%
|
|
Finance costs decreased by 7% yoy. The main factor was lower interest expenses (-14% yoy) due to lower interest rates as a result of debt portfolio refinancing. Within a one-year period, average rates decreased from 12.2% p.a. to 9.8% p.a.
Profit for the year increased 73% yoy to Rub 2.1 billion from Rub 1.2 billion.
BUSINESS SEGMENTS PERFORMANCE
Industrial pumps[i]
The industrial pumps business segment's revenue increased by 5% yoy to Rub 17.5 billion from Rub 16.7 billion. EBITDA grew by 13% yoy to Rub 3.1 billion. EBITDA margin was up to 18.0% which is within the range of the pumps' "upper" profitability level.
Industrial pumps, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
2017 FY
|
Revenue
|
17,488
|
16,720
|
5%
|
5,141
|
4,942
|
4%
|
EBITDA
|
3,148
|
2,791
|
13%
|
1,034
|
1,073
|
-4%
|
EBITDA margin
|
18.0%
|
16.7%
|
|
20.1%
|
21.7%
|
|
Oil & Gas equipment and projects (OGEP)[ii]
The OGEP business segment's revenue advanced 28% yoy to Rub 21.5 billion from Rub 16.8 billion based on an impressive growth of both recurring business and large projects. However, the segment's EBITDA was down 12% yoy to Rub 2.6 billion due to lower EBITDA, generated also by recurring business and large contracts, as well.
EBITDA margin declined to 12.0% on the back of a fall in yields of products sold in the reporting period.
OGEP, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
Change qoq
|
Revenue
|
21,536
|
16,767
|
28%
|
6,499
|
4,790
|
36%
|
EBITDA
|
2,592
|
2,961
|
-12%
|
1,132
|
975
|
16%
|
EBITDA margin
|
12.0%
|
17.7%
|
|
17.4%
|
20.3%
|
|
Compressors[iii]
Revenue demonstrated the growth of 5% yoy to Rub 9.1 billion. EBITDA almost doubled from Rub 619 million to Rub 1.1 billion in FY 2017. This impressive growth was due to an enhanced tender & large project management and a number of middle-size projects executed in 2H 2017. EBITDA margin increased to 12.5%.
Compressors, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
Change qoq
|
Revenue
|
9,130
|
8,700
|
5%
|
2,481
|
2,027
|
22%
|
EBITDA
|
1,143
|
619
|
85%
|
47
|
(37)
|
na
|
EBITDA margin
|
12.5%
|
7.1%
|
|
1.9%
|
-1.8%
|
|
Construction[iv]
Construction increased its revenue by 53% yoy and reached Rub 1.0 billion from Rub 684 million in the comparative period. EBITDA continued to demonstrate weak results facing challenges in the oil & gas facility construction market.
Construction, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
2017 4Q
|
2016 4Q
|
Change qoq
|
Revenue
|
1,045
|
684
|
53%
|
597
|
127
|
371%
|
EBITDA
|
(75)
|
(40)
|
na
|
44
|
9
|
400%
|
EBITDA margin
|
-7.2%
|
-5.8%
|
|
7.4%
|
7.0%
|
|
FINANCIAL REVIEW
CASH FLOW PERFORMANCE
Working capital was down by 21% yoy to Rub 7.8 billion from Rub 10.0 billion in 2016. The sharp decrease in working capital was because of a number of payments received from customers and delivery of equipment produced under large contracts. As a share of revenue, working capital dropped to 18% from 24% at 2016-end.
In December 2017, the company obtained a few payments from customers that were budgeted for to be received at the beginning of 2018. As a result of the earlier payments in 2017, working capital in 1Q 2018 is expected to grow.
Working capital & Capex, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Working capital
|
7,820
|
9,962
|
-21%
|
Working capital / Revenue LTM
|
18%
|
24%
|
|
Capital expenditures
|
2,159
|
1,701
|
27%
|
Capital expenditures grew by 27% yoy to Rub 2.2 billion. The company completed the second stage of the Localization project in 4Q 2017. Now the shop is in full operation. Total investment in the project was Rub 710 million in 2017. Capex, excluding the localization, was up by 40% yoy and reached Rub 1.5 billion.
HMS Group generated positive operating cash flow of Rub 5.2 billion that almost tripled.
Increased operating cash flow resulted in positive free cash flow[4] of Rub 3.1 billion.
Cash flow performance, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Net cash from operating activities
|
5,233
|
1,808
|
189%
|
Net cash used in investing activities
|
(2,135)
|
(1,788)
|
19%
|
Free cash flow (FCF)
|
3,098
|
20
|
na
|
Net cash used in financing activities
|
(1,461)
|
(394)
|
270%
|
Cash & cash equivalents
|
4,621
|
2,990
|
55%
|
DEBT POSITION
Total debt decreased by 2% yoy to Rub 16.0 billion from Rub 16.3 billion.
Net debt was down by 14% yoy to Rub 11.4 billion. The Net debt-to-EBITDA LTM ratio was down to 1.7x due to lower Net debt combined with higher EBITDA in the reporting period.
Leverage, Rub mn
|
2017 FY
|
2016 FY
|
Change yoy
|
Total debt
|
16,042
|
16,336
|
-2%
|
Long-term debt
|
13,065
|
12,770
|
2%
|
Short-term debt
|
2,977
|
3,566
|
-17%
|
Net debt
|
11,422
|
13,347
|
-14%
|
Net debt / EBITDA LTM
|
1.7x
|
2.1x
|
|
SIGNIFICANT EVENTS AFTER THE REPORTING DATE & FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT
As of April 1, 2018, average interest rate decreased to 8.9% compared to 12.2% at the beginning of 2017.
CONTRACTS
In January 2018, the company announced signing of a contract worth Rub 3.1 billion for delivery and installation of oil & gas equipment for a pre-transport gas treatment unit. The project is to be completed by the end of 2018.
In April 2018, HMS signed three export contracts worth c. US$ 13.5 million to deliver pumping equipment to a power plant, located in South Asia. Also, the company announced a Rub 1.9 billion contract to deliver compressor equipment to a gas production and treatment facility in Russia.
DIVIDENDS AND HMS GDRS
During the period from December 11, 2017 up to and including April 24, 2018, HMS Group purchased 43,000 of its global depositary receipts ("GDRs"). As of today, HMS Group has purchased 1,076,887 GDRs (4.60 percent of its issued share capital).
On December 7, 2017, the Board of Directors approved the payment of interim dividends in respect of the first 9 months 2017 in the amount of 5.12 rubles per ordinary share, i.e. 25.6 rubles per one GDR. Dividends were paid on January 26, 2018.
Based on strong and better than budgeted financial results of 2017, on April 24, 2018 the Board of Directors recommended the payment of final dividends in respect of FY 2017 in the amount of 6.83 rubles per ordinary share, i.e. 34.15 rubles per one GDR.
However, the company's long-term dividend policy stays unchanged - HMS targets to pay out total dividends in the region of 50% of the Profit attributable to shareholders for the year, subject to capital constraints such as debt and liquidity position and forecast.
If approved at the Annual General Meeting of Shareholders, total dividends for 2017 will amount to 11.95 rubles per ordinary share or 59.75 rubles per one GDR.
***
WEBCAST TO DISCUSS 2017 FY IFRS FINANCIAL RESULTS
Date: Thursday, April 26, 2018
Time: 5.00 PM (MOSCOW) / 3.00 PM (London) / 4.00 PM (CET) / 10.00 AM (NY)
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: +7 495 213 1767
UK Local: +44 (0)330 336 9105
UK Toll Free: 0800 358 6377
US Local: +1 323 701 0225
US Toll Free: 888 394 8218
Conference ID: 7452073
Title: HMS Group 2017 FY IFRS results
Webcast meeting:
To access the live event, click on the link:
http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=5535
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 2017
(in thousands of Russian Roubles, unless otherwise stated)
|
|
31 December 2017
|
31 December 2016
|
ASSETS
|
|
|
|
Non-current assets:
|
|
|
|
Property, plant and equipment
|
|
14,563,544
|
13,908,291
|
Other intangible assets
|
|
663,616
|
712,527
|
Goodwill
|
|
2,937,695
|
2,863,925
|
Investments in associates
|
|
84,829
|
88,724
|
Deferred income tax assets
|
|
377,902
|
366,057
|
Other long-term assets
|
|
20,541
|
29,040
|
Investment property
|
|
222,929
|
233,994
|
Total non-current assets
|
|
18,871,056
|
18,202,558
|
Current assets:
|
|
|
|
Inventories
|
|
7,776,096
|
7,228,293
|
Trade and other receivables and other financial assets
|
|
16,915,052
|
14,021,896
|
Current income tax receivable
|
|
178,566
|
169,650
|
Cash and cash equivalents
|
|
4,620,601
|
2,989,691
|
Total current assets
|
|
29,490,315
|
24,409,530
|
TOTAL ASSETS
|
|
48,361,371
|
42,612,088
|
|
|
|
|
EQUITY AND LIABILITIES
EQUITY
|
|
|
|
Share capital
|
|
48,329
|
48,329
|
Share premium
|
|
3,523,535
|
3,523,535
|
Treasury shares
|
|
(404,994)
|
(323,556)
|
Other reserves
|
|
122,730
|
122,730
|
Currency translation reserve
|
|
(652,109)
|
(607,393)
|
Retained earnings
|
|
7,073,645
|
6,348,279
|
Equity attributable to the shareholders of the Company
|
|
9,711,136
|
9,111,924
|
Non-controlling interests
|
|
3,145,950
|
2,972,005
|
TOTAL EQUITY
|
|
12,857,086
|
12,083,929
|
|
|
|
|
LIABILITIES
|
|
|
|
Non-current liabilities:
|
|
|
|
Long-term borrowings
|
|
13,065,129
|
12,770,486
|
Deferred income tax liability
|
|
1,617,238
|
1,579,152
|
Retirement benefit obligations
|
|
525,436
|
519,397
|
Provisions for liabilities and charges
|
|
116,835
|
151,359
|
Other long-term payables
|
|
204,394
|
162,984
|
Total non-current liabilities
|
|
15,529,032
|
15,183,378
|
Current liabilities:
|
|
|
|
Trade and other payables
|
|
15,081,200
|
10,417,155
|
Short-term borrowings
|
|
2,977,261
|
3,565,875
|
Provisions for liabilities and charges
|
|
771,877
|
531,075
|
Retirement benefit obligations
|
|
67,314
|
72,621
|
Current income tax payable
|
|
72,610
|
53,278
|
Other taxes payable
|
|
1,004,991
|
704,777
|
Total current liabilities
|
|
19,975,253
|
15,344,781
|
TOTAL LIABILITIES
|
|
35,504,285
|
30,528,159
|
TOTAL EQUITY AND LIABILITIES
|
|
48,361,371
|
42,612,088
|
HMS Hydraulic Machines & Systems Group plc
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2017
(in thousands of Russian Roubles, unless otherwise stated)
|
|
2017
|
2016
|
|
|
|
|
Revenue
|
|
44,422,177
|
41,582,388
|
Cost of sales
|
|
(32,535,607)
|
(30,798,509)
|
Gross profit
|
|
11,886,570
|
10,783,879
|
|
|
|
|
Distribution and transportation expenses
|
|
(1,784,967)
|
(1,699,610)
|
General and administrative expenses
|
|
(4,999,086)
|
(4,523,183)
|
Other operating expenses, net
|
|
(547,307)
|
(547,886)
|
Impairment of property, plant and equipment
|
|
-
|
(18,685)
|
Impairment of goodwill
|
|
-
|
(370,360)
|
Operating profit
|
|
4,555,210
|
3,624,155
|
|
|
|
|
Finance income
|
|
168,660
|
174,213
|
Finance costs
|
|
(1,775,092)
|
(1,905,206)
|
Share of results of associates
|
|
(331)
|
(257)
|
|
|
|
|
Profit before income tax
|
|
2,948,447
|
1,892,905
|
|
|
|
|
Income tax expense
|
|
(878,349)
|
(694,475)
|
|
|
Profit for the year
|
|
2,070,098
|
1,198,430
|
|
|
|
|
Profit attributable to:
Shareholders of the Company
|
|
1,834,264
|
1,196,789
|
Non-controlling interests
|
|
235,834
|
1,641
|
Profit for the year
|
|
2,070,098
|
1,198,430
|
|
|
|
|
Other comprehensive (loss)/income:
|
|
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
Remeasurement of post-employment benefit obligations
|
|
(23,313)
|
8,390
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss
|
|
|
|
Currency translation differences
|
|
(69,526)
|
(1,164,504)
|
Currency translation differences of associates
|
|
(3,564)
|
(17,059)
|
Other comprehensive loss for the year
|
|
(96,403)
|
(1,173,173)
|
Total comprehensive income for the year
|
|
1,973,695
|
25,257
|
Total comprehensive income/(loss)
attributable to:
|
|
|
|
Shareholders of the Company
|
|
1,768,256
|
106,559
|
Non-controlling interest
|
|
205,439
|
(81,302)
|
Total comprehensive income for the year
|
|
1,973,695
|
25,257
|
|
|
|
|
Basic and diluted earnings per ordinary share for profit attributable to the ordinary shareholders (RR per share)
|
|
16.32
|
10.53
|
|
|
|
|
|
|
|
HMS Hydraulic Machines & Systems Group plc
Consolidated Statement of Cash Flows for the year ended 31 December 2017
(in thousands of Russian Roubles, unless otherwise stated)
|
|
2017
|
2016
|
Cash flows from operating activities
|
|
|
|
Profit before income tax
|
|
2,948,447
|
1,892,905
|
Adjustments for:
|
|
|
|
Depreciation and amortisation
|
|
1,541,946
|
1,553,657
|
Loss from disposal of property, plant and equipment and intangible assets
|
|
45,822
|
9,053
|
Finance income
|
|
(168,660)
|
(174,213)
|
Finance costs
|
|
1,775,092
|
1,905,206
|
Change in retirement benefits obligations
|
|
36,248
|
90,479
|
Change in warranty provision
|
|
(48,908)
|
67,297
|
Change in provision for impairment of trade and other receivables and other financial assets
|
|
3,815
|
38,179
|
Change in provision for obsolete inventories
|
|
163,520
|
45,922
|
Change in provision for legal claims
|
|
195,830
|
55,408
|
Share-based compensation
|
|
93,218
|
35,917
|
Impairment of goodwill
|
|
-
|
370,360
|
Impairment of property, plant and equipment
|
|
-
|
18,685
|
Foreign exchange loss/(gain), net
|
|
72,300
|
65,031
|
Amortisation of government grants
|
|
(16,777)
|
(15,108)
|
Loss on revaluation of redemption liability
|
|
-
|
17,960
|
Change in provision for tax risks, other than income tax
|
|
14,984
|
13,096
|
Impairment of taxes receivable
|
|
6,204
|
101,948
|
Share of results of associates
|
|
331
|
257
|
Operating cash flows before working capital changes
|
|
6,663,412
|
6,092,039
|
Increase in inventories
|
|
(782,888)
|
(833,072)
|
Increase in trade and other receivables
|
|
(2,758,024)
|
(2,488,790)
|
Increase in current income tax receivable
|
|
(8,916)
|
(16,970)
|
Increase/(decrease) in taxes payable
|
|
247,774
|
(19,916)
|
Increase in accounts payable and accrued liabilities
|
|
4,177,130
|
1,708,380
|
Cash from operations
|
|
7,538,488
|
4,441,671
|
Income tax paid
|
|
(739,534)
|
(773,816)
|
Interest paid
|
|
(1,687,545)
|
(2,036,200)
|
Interest received
|
|
121,142
|
150,907
|
Decrease in restricted cash
|
|
-
|
25,792
|
Net cash from operating activities
|
|
5,232,551
|
1,808,354
|
Cash flows from investing activities
|
|
|
|
Repayment of loans advanced
|
|
65,884
|
63,073
|
Loans advanced
|
|
(57,507)
|
(187,837)
|
Proceeds and expenses from sale of property, plant and equipment and intangible assets, net
|
|
12,215
|
20,190
|
Interest received
|
|
4,040
|
17,527
|
Purchase of property, plant and equipment, net of VAT
|
|
(1,921,001)
|
(1,566,691)
|
Acquisition of intangible assets, net of VAT
|
|
(238,225)
|
(134,138)
|
Net cash used in investing activities
|
|
(2,134,594)
|
(1,787,876)
|
Cash flows from financing activities
|
|
|
|
Repayments of borrowings
|
|
(18,561,873)
|
(10,117,158)
|
Proceeds from borrowings
|
|
18,126,821
|
10,756,815
|
Proceeds from government grant
|
|
78,945
|
50,000
|
Payment for finance lease
|
|
(6,569)
|
(6,382)
|
Buy back of issued shares
|
|
(81,438)
|
(110,067)
|
Acquisition of non-controlling interest in subsidiaries
|
|
-
|
(346,900)
|
Dividends related to Long-term Incentive Program
|
|
(17,696)
|
-
|
Dividends paid to non-controlling shareholders of subsidiaries
|
|
(37,513)
|
(40,798)
|
Dividends paid to the shareholders of the Company
|
|
(961,510)
|
(579,863)
|
Net cash used in financing activities
|
|
(1,460,833)
|
(394,353)
|
Net increase/(decrease) in cash and cash equivalents
|
|
1,637,124
|
(373,875)
|
Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency
|
|
(6,214)
|
(132,854)
|
Cash and cash equivalents at the beginning of the year
|
|
2,989,691
|
3,496,420
|
Cash and cash equivalents at the end of the year
|
|
4,620,601
|
2,989,691
|
[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] According to management accounts
[3] SG&A expenses = Selling, General and Administrative Expenses = Distribution and transportation + General and administrative
[4] Free cash flow (FCF) = Net cash from operating activities (operating cash flow) + Net cash used in investing activities (investing cash flow), represents the cash that a company is able to generate after laying out the money required to maintain or expand its assets base.
[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.
|