HMS Hydraulic Machines & Systems Group plc
(the “Company”, and together with its subsidiaries, the “HMS Group”)
HMS GROUP Q4 2012 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 following statement regarding orders received during Q4 2012.
- In Q4 2012, order intake under management accounts amounted to Rub 6.9 bn (USD 229 mn1), down 36% YoY, versus Rub 10.8 bn (USD 358 mn) in Q4 2011
- In 2012, total order inflow grew by 55% YoY from Rub 23.2 bn (USD 773 mn) to Rub 36.1 bn (USD 1.2 bn).
- In the industrial pumps business segment order intake grew by 29% driven by a large number of regular orders, mainly for oil production pumps, oil transportation and oil refinery pumps and pumps for thermal power application
- In the oil & gas equipment and EPC business segments order intake contracted by 48% and 62% respectively primarily due to a lack of large-scale contracts similar to those secured in Q4 2011.
- In the compressors business segment, established in Q3 2012, order flow grew by 50% and amounted to Rub 355 mn
|Order Intake (millions of Rub)||Q4 2012||Q4 2011||Δ|
|Oil and Gas equipment||2,126||4,116||-48%|
|Project and design||688||698||-1%|
Overview by business segments
Please note that quarter-on-quarter performance can be a subject to volatility due to peculiarities of customers’ project cycle and long-term nature of the most of the projects
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 bare shaft pumps built to standard specifications, customized pumps and integrated solutions.
In Q4 2012, the order intake in the industrial pumps business segment grew by 29% YoY from Rub 1,686 mn to Rub 2,172 driven by a large number of regular orders across all types of pumps and pump-based solutions for oil production, oil transportation, oil refineries and thermal power industries.
Oil & gas equipment
The oil and gas equipment business segment manufactures, installs and commissions modular pumping stations, automated metering equipment, oil, gas and water processing and preparation units, tanks and vessels and other equipment and systems for use primarily in oil extraction and transportation. The segment’s 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.
In Q4 2012, the order intake in the oil and gas equipment segment contracted by 48% and amounted to Rub 2,126 mn versus Rub 4,116 mn in Q4 2011. Although HMS continued to enjoy a strong demand for modular equipment, automated group metering units, tanks and vessels, a large-scale follow-up contract for the second stage of Vankor oilfield development, secured in Q4 2011, created a high-base effect which was a main driver for order flow contraction.
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, compressor-based integrated solutions.
The compressors business segment was established on July 01, 2012 due to consolidation of the acquired KazanKomprepressorMash (KKM) plant. In Q4 2012, the order intake in the compressors business segment amounted to Rub 355 mn mainly driven by regular orders for compressors. In Q4 2011, several contracts for delivery of compressors, signed by the Group, were reflected in the “Oil and gas equipment” business segment and amounted to 237 mn. Thus, In Q4 2012, order intake for compressors grew by 50% YoY.
EPC (Engineering, procurement and construction)
The engineering, procurement and construction (EPC) business segment provides project, design and construction works as well as overall project management, including on a turn-key basis, for customers in the oil and gas upstream, oil and gas transportation and water utilities.
In Q4 2012, the order intake in the EPC business segment contracted by 62% from Rub 4,476 mn to Rub 1,690 mn mainly due to lower amount of orders for construction services. Orders for construction works declined by 73% from Rub 3,777 mn in Q4 2011 to Rub 1,002 mn in Q4 2012. The inflow of orders for project and design works slightly contracted from Rub 698 mn in Q4 2011 to Rub 688 mn in Q4 2012.
Other orders for a wide range of services as well as for non-core products and equipment grew by 50% YoY from Rub 475 mn in Q4 2011 to Rub 713 mn in Q4 2012.
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. The Group reported revenues of Rub 23.6 billion, adjusted EBITDA of Rub 4.0 billion and profit for the period of Rub 1.5 billion for the 9 months ended September 30, 2012. 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||Nozima Karimova|
|Head of IR||Head of Press Service|
|Tel: +7 (495) 730-66-01, ext. 1302||Tel: +7 (495) 730-66-10|
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1 Hereafter - 1USD = 30,0451 RUB (CBR rate as of January 28, 2013).