HMS Group: 2018 FY IFRS results

HMS Group (HMSG) HMS Group: 2018 FY IFRS results 25-Apr-2019 / 17:34 MSK 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. HMS Group Reports 2018 FY Net Income of Rub 1.9 Billion   Moscow, Russia- April 25, 2019 - 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, 2018.   Financial highlights FY 2018: ?            Revenue: Rub 52.6bn (+18% yoy) ?            EBITDA[1]: Rub 6.6bn (-3% yoy),EBITDA margin 12.6% ?            Operating profit: Rub 4.2bn (-8% yoy), operating margin down to 8.0% ?            Net income (profit for the year): Rub 1.9bn (-6% yoy), net income margin 3.7%   ?            Total debt: Rub 19.4 bn (+21% yoy) ?            Net debt: Rub 13.1bn (+14% yoy) ?            Net debt-to-EBITDA LTM ratio:1.97x   Operational highlights FY2018: ?            Backlog:Rub 42.6bn (+9% yoy) ?            Order intake: Rub 55.9bn (-6% yoy)     Artem Molchanov, CEO of HMS Group, commented: "We again delivered what we promised. We managed to increase revenue by 18 percent to Rub 52.6 billon, and prevent Net income to decline significantly, keeping it at the level of Rub 1.9 billion."     GROUP PERFORMANCE Results in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy Orders 55,891 59,679 -6% 25,176 14,516 73% Backlog 42,634 39,067 9%       Revenue 52,619 44,422 18% 20,757 13,011 60% EBITDA 6,621 6,839 -3% 2,302 1,852 24%    EBITDA margin 12.6% 15.4%   11.1% 14.2%   Profit for the year 1,946 2,070 -6% 772 419 85% Free cash flow (139) 3,098 -105% 1,854 1,389 33% ROCE 13.6% 15.9%           Order intake was lower in all business segments except Compressors compared to 2017. The decline wasattributable to less amount of large contracts signed in the reporting period. Backlog for HMS Group grew to Rub 42.6 billion by 9% vs. Rub 39.1 billion last year.  Pumps and, for the most part, Compressors made contribution to this growth.  Unlike 2017, the growth was based on the recurring business, as backlog of large integrated contracts was 4% yoy lower. Revenue for the full year was Rub 52.6billion, compared with Rub 44.4 billion in 2017. Almost all segments contributed to this growth except Oil and gas equipment and projects (OGEP) business segment (-2% yoy). EBITDA was down by 3%yoy to Rub 6.6billion because of a decline in Pumps.   Revenue from recurring business was down by 2% yoy.  Large projects' revenue jumped75% yoy.  EBITDA from recurring business declined 45% yoy and large contracts advanced 41% yoy. Higher revenue and lower EBITDA led to EBITDA margin decrease to 12.6% from 15.4% last year. For the 4th quarter, revenue was Rub 20.8 billion, compared with Rub 13.0 billion in 2017. EBITDA was up to Rub 2.3 billion from Rub 1.9 billion last year.   Depreciation and amortization for the full year was Rub 1.8 billion, up 19% yoy, compared with Rub 1.5 billion in 2017. Profit for the year (net income) was Rub 1.9 billion, down 6% yoy, compared with Rub 2.1 billion last year.  For the 4th quarter, net income was Rub 772 million compared with Rub 419 million in 2017. In 2018, decrease in free cash flow to Rub 139 million from Rub 3.1 billion in 2017 was due mainly to negative change in working capital. ROCE decreased because of lower operating profit and higher average capital employed. Expenses and Operating profit in millions of Rub 2018 FY 2017 FY Change yoy Share of  2018 FY revenue Share of  2017 FY revenue Cost of sales 40,617 32,536 25% 77.2% 73.2% Materials and components 27,628 22,036 25% 52.5% 49.6% Labour costs incl. Social taxes 7,276 6,528 11% 13.8% 14.7% Construction and design and engineering services of subcontractors 2,102 1,365 54% 4.0% 3.1% Depreciation and amortization 1,567 1,307 20% 3.0% 2.9% Others 2,045 1,299 57% 3.9% 2.9%   Cost of sales was Rub 40.6 billion, up 25% yoy, compared with Rub 32.5 billion in 2017.  This was almost fully attributable tomaterials and components(+25% yoy) and labour costs incl. social taxes (+11%yoy).  Despite the outpacing growth of cost of sales,gross profit was up 1% yoy to Rub 12.0 billion, compared with Rub 11.9 billion in 2017.   in millions of Rub 2018 FY 2017 FY Change yoy Share of  2018 FY revenue Share of  2017 FY revenue Distribution and transportation 1,916 1,785 7% 3.6% 4.0% General and administrative 5,636 4,999 13% 10.7% 11.3% SG&A expenses 7,551 6,784 11% 14.4% 15.3% Other operating expenses 250 547 -54% 0.5% 1.2% Operating expenses ex. Cost of sales 7,802 7,331 6% 14.8% 16.5% Operating profit 4,200 4,555 -8% 8.0% 10.3% Finance costs 1,611 1,775 -9% 3.1% 4.0%   Distribution and transportation expenses was Rub 1.9 billion, up 7% yoy, compared with Rub 1.8 billion in 2017.  Growth of labor costs incl. social taxes (+14% yoy) was the main drivers.  As a share of revenue, distribution and transportation expenses was down to 3.6%, compared with 4.0% last year. General and administrative expenses was Rub 5.6 billion, up 13% yoy, compared with Rub 5.0 billion last year, due to 11% yoy higherlabour costs incl. social taxes. As a share of revenue, general and administrative expenses was down to 10.7% from 11.3% in 2017.  For the full year, SG&A expenses[2]was Rub 7.6 billion, that was 11% yoy higher than last year.  In contrast, as a share of revenue theydecreased to14.4% from 15.3%. Operating profit was Rub 4.2 billion, down 8% yoy, compared with Rub 4.6 billion in 2017. Operating margin decreased to 8.0% from 10.3%. in millions of Rub 2018 FY 2017 FY Change yoy Finance costs           1,611 1,775 (9)% Interest expenses           1,598 1,725 (7)% Interest rate, average 8.7% 9.8%   Interest rate Rub, average 8.9% 9.9%     Finance costs were Rub 1.6 billion, down by 9%yoy, compared with Rub 1.8 billion in 2017.  The main factor was decrease of interest expenses (-7% yoy) due to lower interest rates as a result of debt portfolio refinancing.  Average rates decreased to 8.7% p.a. from 9.8% p.a. within a one-year period.   BUSINESS SEGMENTS PERFORMANCE Industrial pumps[i] in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy Orders 19,573 20,983 -7% 6,141 8,762 -30% Backlog 17,152 14,467 19%       Revenue 17,811 17,488 2% 6,613 5,141 29% EBITDA 2,390 3,148 -24% 1,191 1,034 15% EBITDA margin 13.4% 18.0%   18.0% 20.1%     Lower order intake of Rub 19.6 billion was due to no large contracts signed in the reporting period, though recurring business grew by 17% yoy. Backlog grew by 19% yoy to Rub 17.2 billion because of a slower pace of revenue recognition of several contracts signed in 2017, that have execution period more than one year. Revenue was Rub 17.8 billion, up 2% yoy, compared with Rub 17.5 billion in 2017. EBITDA declined to Rub 2.4 billion, by 24% yoy, from Rub 3.1 billion, mainly due to increase of wages and a high base effect in 2017, when several untypical modular equipment projects were executed, that had higher than average profitability. EBITDA margin was down to 13.4% due to higher revenue and lower EBITDA in 2018.   Oil and Gas equipment & projects (OGEP)[ii] in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy Orders 12,023 27,408 -56% 3,203 4,025 -20% Backlog 6,658 15,092 -56%       Revenue 20,859 21,536 -3% 4,346 6,499 -33% EBITDA 2,883 2,592 11% 166 1,132 -85% EBITDA margin 13.8% 12.0%   3.8% 17.4%   For the full year, order intake decreased sharply to Rub 12.0 billion from Rub 27.4 billion, because there were no large contracts signed in 2018. Backlog also went down to Rub 6.7 billion from Rub 15.1 billion, due to less contracts signed than revenue recognized in the reporting period.  Both recurring business and large contracts declined. Revenue was down 3% yoyto Rub 20.9 billion,compared with Rub 21.5 billion in 2017. EBITDA and EBITDA margin rose on large contracts.   Compressors[iii] in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy Orders 23,883 7,202 232% 15,811 1,268 1147% Backlog 16,688 5,186 222%       Revenue 14,678 9,130 61% 9,371 2,481 278% EBITDA 1,758 1,143 54% 1,320 47 2693% EBITDA margin 12.0% 12.5%   14.1% 1.9%     Order intake grew to Rub 23.9 billion, compared with Rub 7.2 billion in 2017, due to a substantially higher volume from large contracts signed in 4Q 2018. Backlog was lifted by order intake to Rub 16.7 billion, compared with Rub 5.2 billion last year. Revenue and EBITDA grew to Rub 14.7 billion and Rub 1.8 billion respectively, led by large contracts.  EBITDA margin decline to 12.0% due to a mix of more profitable projects executed in 2017.   Construction[iv] in millions of Rub 2018 FY 2017 FY Change yoy 2018 4Q 2017 4Q Change yoy Orders 411 4,086 -90% 20 462 -96% Backlog 2,137 4,323 -51%       Revenue 1,795 1,045 72% 537 597 -10% EBITDA (138) (75) 83% 23 44 -49% EBITDA margin -7.7% -7.2%   4.2% 7.4%     For the full year, orders portfolio and backlog declined substantially. Revenue was Rub 1.8 billion, up 72% yoy, from Rub 1.0 billion in 2017, due to revenue recognition from large integrated contracts under execution. Though 4Q 2018 was profitable in terms of EBITDA, the full year EBITDA was still negative.   Working capital and Capital expenditures in millions of Rub 2018 FY 2017 FY Change yoy 4Q 2018 3Q 2018 Change qoq Working capital 9,130 7,820 17% 9,130 11,340 (19)% Working capital / Revenue LTM 17% 18%   17% 25%   Capital expenditures 2,335 2,159 8% 893 649 38%   For the full year, working capitalwas Rub 9.1 billion, up by 17% yoy in line with growth of revenue.  As a share of revenue, working capital declined to 17% from 18% in 2017. Capital expenditures was Rub 2.3 billion, up 8% yoy, compared with Rub 2.2 billion in 2017.   DEBT POSITION (in millions of Rub) 2018 FY 2017 FY Change yoy 4Q 2018 3Q 2018 Change qoq Total debt 19,360 16,042 21% 19,360 19,177 1% Long-term debt 18,198 13,065 39% 18,198 18,191 0% Short-term debt 1,162 2,977 (61)% 1,162 986 18% Net debt 13,065 11,422 14% 13,065 14,828 (12)% Net debt / EBITDA LTM 1.97x 1.67x   1.97x 2.40x     Total debtwas Rub 19.4 billion, compared with Rub 16.0 billion in 2017. Net debt also increased, to Rub 13.1 billion vs. Rub 11.4 billion at 2017-end. 2018 FY Net debt to EBITDA LTM ratio increased to 1.97x compared with 1.67x in 2017. For the 4th quarter, total debt increased by minor 1% qoq, compared with Rub 19.2 billion in 3Q 2018.  Net debt, in contrast, was down 12% qoq, compared with 14.8 billion in 3Q 2018.   Dividends The Board of Directors of HMS Group recommended total dividends for 2018 of Rub 9.81 per ordinary share (Rub 49.05 per GDR), of which Rub 3.84 per share (Rub 19.20 per GDR) have been already distributed as interim dividends in January 2019. If approved at the Annual General Meeting of Shareholders, final dividends of Rub 5.97 per ordinary share (Rub 29.85 per GDR) will be distributed on the 1st of July, 2019.   Share buy-backs HMS Group repurchased 66,100 global depositary receipts during 4Q 2018. For the full year, the company repurchased 109,100 GDRs. In 2019, the company repurchased 61,162 GDRs. As of today, HMS has purchased 1,204,149 GDRs or 5.14 percent of its issued share capital.  We expect to continue our buy-back program to 6 percent of HMS' issued share capital.   MANAGEMENT PURCHASES In 2018, HMS managers purchased 19,225 of the company's GDRs using their own funds.   SIGNIFICANTEVENTSAFTERTHE REPORTING DATE & FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT As of April 1, 2019, average interest rate decreased to 8.8% compared to 9.8% at the beginning of 2018. According to management accounts, total debt decreased by 3% to Rub 18.8 billion, and net debt, in contrast, was up 13% to Rub 14.8 billion due to working capital,required for execution of large projects. CONTRACTS In April 2019, the company announced signing of two contract worth Rub 4.0 billion for delivery of gas transportation units, that will be executed by the end of 2019. RESTRUCTUING OF THE CORE SHAREHOLDERS' SHAREHOLDING On March 6, 2019 its major shareholder H.M.S. Technologies Limited ("HMST"), registered at Cyprus transferred its entire shareholding in the Company to JSC HMS Holding ("HMS Holding"), registered at Russia, the subsidiary undertaking of HMST, via the following transactions: HMST transferred 67,159,421 ordinary shares in the Company (comprising 57.32% of the Company's issued share capital) to HMS Holding in the form of the shareholder's asset contribution for nil consideration; HMST transferred 2,924,207 global depositary receipts issued under the Company's depositary receipts program ("GDRs") (representing 14,621,035 shares in the Company and comprising 12.28% of the Company's issued share capital) to HMS Holding in exchange for additionally issued shares in HMS Holding. As a result of this restructuring: HMS Holding became a direct holder of 69,159,421 ordinary shares in the Company and 2,924,207 GDRs comprising in aggregate 71.51% of the Company's issued share capital; and HMST remains the sole voting shareholder of HMS Holding retaining control over the majority shareholding in the Company, and consequently none of the transactions made as a part of the restructuring triggers an obligation of the Company, HMST or HMS Holding to make any mandatory offer to the GDR holders.   This restructuring of the core shareholders' shareholding in the Company does not lead to any change in corporate governance or corporate control of the Company.  All applicable regulatory approvals have been obtained in connection with this restructuring. Further details of the transactions above are available here: GDRs MAR notification by HMST GDRs MAR notification by HMS Holding Ordinary shares MAR notification by HMST Ordinary shares MAR notification by HMS Holding Major holdings notification (for Cypriot regulatory purposes) by HMST Major holdings notification (for Cypriot regulatory purposes) by HMS Holding TR-1 notification (for UK regulatory purposes) by HMST       *** WEBCAST TO DISCUSS 2018 FY IFRS FINANCIAL RESULTS    Date:  Friday, April 26, 2019 Time: 1.00 PM (MOSCOW) / 11.00 AM (London) / 12.00 PM (CET)   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:   [phone]   UK Local:  [phone] UK Toll Free:  0800 376 6183   US Local:  [phone] US Toll Free:  [phone]   Conference ID: 62266395# Title: HMS Group 2018 FY IFRS results   Webcast meeting: To access the live event, click on the link: https://webcasts.eqs.com/hmsgroup20190426   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, [e-mail]     *** 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 2018 (in thousands of Russian Roubles, unless otherwise stated)     31 December 2018 31 December 2017 Restated* ASSETS     Non-current assets:     Property, plant and equipment 15,492,896 14,563,544 Other intangible assets 1,898,781 663,616 Goodwill 3,092,257 2,937,695 Investments in associates 93,265 84,829 Deferred income tax assets 424,004 377,902 Other long-term assets 26,004 20,541 Investment property 196,480 222,929 Total non-current assets 21,223,687 18,871,056   Current assets:     Inventories 9,088,680 7,776,096 Trade and other receivables and other financial assets 12,267,843 11,540,164 Contract assets 4,611,700 5,374,888 Current income tax receivable 257,409 178,566 Cash and cash equivalents 6,295,159 4,620,601 Total current assets 32,520,791 29,490,315 TOTAL ASSETS 53,744,478 48,361,371       EQUITY AND LIABILITIES EQUITY     Share capital 48,329 48,329 Share premium 3,523,535 3,523,535 Treasury shares (461,630) (404,994) Other reserves 122,730 122,730 Currency translation reserve 123,918 (652,109) Retained earnings 7,847,636 7,073,645 Equity attributable to the shareholders of the Company 11,204,518 9,711,136 Non-controlling interests 3,386,155 3,145,950 TOTAL EQUITY 14,590,673 12,857,086       LIABILITIES     Non-current liabilities:     Long-term borrowings 18,198,084 13,065,129 Deferred income tax liability 1,622,627 1,617,238 Retirement benefit obligations 468,324 525,436 Provisions for liabilities and charges 168,687 116,835 Other long-term payables 432,915 204,394 Total non-current liabilities 20,890,637 15,529,032   Current liabilities:     Trade and other payables 13,224,940 11,642,805 Contract liabilities 1,843,380 3,438,395 Short-term borrowings 1,162,133 2,977,261 Provisions for liabilities and charges 709,252 771,877 Retirement benefit obligations 67,497 67,314 Current income tax payable 57,684 72,610 Other taxes payable 1,198,282 1,004,991 Total current liabilities 18,263,168 19,975,253 TOTAL LIABILITIES 39,153,805 35,504,285 TOTAL EQUITY AND LIABILITIES 53,744,478 48,361,371 HMS Hydraulic Machines & Systems Group plc Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018  (in thousands of Russian Roubles, unless otherwise stated)       2018 2017         Revenue   52,618,880 44,422,177 Cost of sales   (40,617,376) (32,535,607) Gross profit   12,001,504 11,886,570         Distribution and transportation expenses   (1,915,880) (1,784,967) General and administrative expenses   (5,635,585) (4,999,086) Other operating expenses, net   (250,135) (547,307) Operating profit   4,199,904 4,555,210         Finance income   182,188 168,660 Finance costs   (1,610,545) (1,775,092) Share of results of associates   (570) (331)         Profit before income tax   2,770,977 2,948,447         Income tax expense   (825,028) (878,349)     Profit for the year   1,945,949 2,070,098         Profit attributable to: Shareholders of the Company     1,688,473 1,834,264 Non-controlling interests   257,476 235,834 Profit for the year   1,945,949 2,070,098         Other comprehensive income/(loss):       Items that will not be reclassified to profit or loss       Remeasurement of post-employment benefit obligations   101,017 (23,313)         Items that may be reclassified subsequently to profit or loss       Currency translation differences   830,112 (69,526) Currency translation differences of associates   9,006 (3,564) Other comprehensive income/(loss) for the year   940,135 (96,403) Total comprehensive income for the year   2,886,084 1,973,695   Total comprehensive income attributable to:       Shareholders of the Company   2,537,407 1,768,256 Non-controlling interests   348,677 205,439 Total comprehensive income for the year   2,886,084 1,973,695           Basic and diluted earnings per ordinary share for profit attributable to the ordinary shareholders (RR per share)   15.10 16.32                     HMS Hydraulic Machines & Systems Group plc Consolidated Statement of Cash Flowsfor the year ended 31 December 2018 (in thousands of Russian Roubles, unless otherwise stated)   2018 2017 Restated* Cash flows from operating activities     Profit before income tax 2,770,977 2,948,447 Adjustments for:     Depreciation and amortisation 1,842,607 1,541,946 (Gain)/loss from disposal of property, plant and equipment and intangible assets (20,457) 45,822 Finance income (182,188) (168,660) Finance costs 1,610,545 1,775,092 Change in retirement benefits obligations 55,878 36,248 Change in warranty provision 102,966 (48,908) Change in ECL allowance and provision for impairment of trade and other receivables and other financial assets 59,546 3,815 Change in provision for obsolete inventories 98,617 163,520 Change in provision for legal claims (19,398) 195,830 Share-based compensation 155,989 93,218 Foreign exchange (gain)/loss, net (13,352) 72,300 Amortisation of government grants (30,806) (16,777) Change in provision for tax risks, other than income tax (12,366) 14,984 Impairment of taxes receivable - 6,204 Share of results of associates 570 331 Operating cash flows before working capital changes 6,419,128 6,663,412 Increase in inventories (1,067,279) (782,888) Decrease/(increase) in trade and other receivables 977,282 (949,658) Decrease/(increase) in contract assets 763,188 (1,808,366) (Decrease)/increase in contract liabilities (1,595,015) 2,718,357 Increase in current income tax receivable (78,843) (8,916) (Decrease)/increase in taxes payable (136,304) 247,774 (Decrease)/increase in accounts payable and accrued liabilities (722,970) 1,458,773 Cash from operations 4,559,187 7,538,488 Income tax paid (1,162,267) (739,534) Interest paid (1,618,021) (1,687,545) Interestreceived 177,390 121,142 Net cash from operating activities 1,956,289 5,232,551 Cash flows from investing activities     Repayment of loans advanced 74,914 65,884 Loans advanced (53,445) (57,507) Proceeds and expenses from sale of property, plant and equipment and intangible assets, net 51,266 12,215 Interest received 890 4,040 Purchase of property, plant and equipment, net of VAT (1,956,140) (1,921,001) Acquisition of intangible assets, net of VAT (378,521) (238,225) Inflow of cash and cash equivalents on acquisition of subsidiary 165,257 - Net cash used in investing activities (2,095,779) (2,134,594) Cash flows from financing activities     Repayments of borrowings (11,976,504) (18,561,873) Proceeds from borrowings 15,223,755 18,126,821 Proceeds from government grant 60,000 78,945 Payment for finance lease (16,580) (6,569) Buy back of issued shares (56,636) (81,438) Acquisition of non-controlling interest in subsidiaries (53,736) - Dividends related to Long-term Incentive Program (48,816) (17,696) Dividends paid to non-controlling shareholders of subsidiaries (48,319) (37,513) Dividends paid to the shareholders of the Company (1,336,860) (961,510) Net cash from/(used in) financing activities 1,746,304 (1,460,833) Net increase in cash and cash equivalents 1,606,814 1,637,124 Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency 67,744 (6,214) Cash and cash equivalents at the beginning of the year 4,620,601 2,989,691 Cash and cash equivalents at the end of the year 6,295,159 4,620,601   [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]SG&A expenses = Selling, General and Administrative Expenses = Distribution and transportation + General and administrative [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.

ISIN:	US40425X4079
Category Code:	FR
TIDM:	HMSG
LEI Code:	254900DDFETNLASV8M53
OAM Categories:	1.1. Annual financial and audit reports
	2.2. Inside information
	3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.:	8364
EQS News ID:	803603

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