Order intake grew threefold to Rub 26.0 billion, compared with Rub 8.6 
billion. Backlog increased also threefold to Rub 36.9 billion, compared with 
Rub 11.9 billion last year. The growth of orders portfolios was based on 
both the recurring business and large contracts. 
 
Revenue was down by 33% yoy to Rub 8.9 billion, compared with Rub 13.3 
billion. EBITDA declined by 10% yoy to Rub 1.1 billion, compared with Rub 
1.3 billion for 9 months 2019. EBITDA margin was up to 12.9%, compared with 
9.5% for 9 months 2019. 
 
In the first three quarters of 2019 there was a drop in order intake that 
led to lower financial results for 9 months 2020. The situation has 
recovered, based on the current order portfolio. 
 
Construction[iv] 
 
in         9m 2020 9m 2019 Change yoy 3Q 2020 2Q 2020 Change qoq 
millions 
of Rub 
Orders         215     129        66%       5       7       -26% 
Backlog      1,652   1,256        32%   1,652     690       139% 
Revenue        580   1,098       -47%     174     169         3% 
EBITDA        (20)      49         na    (59)      17         na 
EBITDA       -3.4%    4.5%             -34.0%    9.8% 
margin 
 
Order intake equaled Rub 215 million. Backlog was up to Rub 1.7 billion. 
 
Revenue was down to Rub 580 million, compared with Rub 1.1 billion for 9 
months 2019. EBITDA was Rub (20) million, compared with Rub 49 million last 
year. 
 
Working capital and Capital expenditures 
 
in millions   9m 2020 9m 2019    Change 3Q 2020 2Q 2020  Change 
of Rub                              yoy                     qoq 
Working         8,715  11,522      -24%   8,715  10,486    -17% 
capital 
Working         18.9%   20.1%             18.9%   22.1% 
capital / 
Revenue LTM 
Capex           1,141   1,203       -5%     399     408     -2% 
Acquisition         0     670                 -       - 
 
Working capital declined to Rub 8.7 billion, by 24% yoy, compared with Rub 
11.5 billion for 9 months 2019, due to a quarterly volatility, related to 
execution of large contracts. As a share of revenue, working capital was 
down to 18.9%, compared with 20.1% for 9 months 2019. 
 
HMS continued reducing its maintenance capital expenditures. They were 
decreased to Rub 1.1 billion, by 5% yoy, compared with Rub 1.2 billion last 
year. 
 
DEBT POSITION 
 
in         9m 2020 9m 2019 Change yoy 3Q 2020 2Q 2020 Change qoq 
millions 
of Rub 
Total debt  22,832  21,115         8%  22,832  22,752         0% 
Net debt    13,897  16,960       -18%  13,897  16,177       -14% 
Net debt /    2.89    2.98               2.89    3.25 
EBITDA LTM 
 
Total debt increased to Rub 22.8 billion, by 8% yoy, compared with Rub 21.1 
billion for 9 months 2019. Net debt, in contrast, was down to Rub 13.9 
billion, by 18% yoy, compared with Rub 17.0 billion for 9 months 2019. 
 
Net debt to EBITDA LTM ratio decreased to 2.89x compared with 2.98x for 9 
months 2019. 
 
SIGNIFICANT EVENTS AFTER THE REPORTING DATE & FINANCIAL MANAGEMENT 
 
FINANCIAL MANAGEMENT 
 
After the reporting date, HMS Group shifted a number of debt repayments from 
2022 to 2023. 
 
HMS' debt repayment schedule, Rub mn 2020  2021   2022 2,023 
Debt to be repaid                     167 1,229 13,187 7,233 
 
LARGE CONTRACTS 
 
After the reporting date, in November 2020, HMS announced the signature of a 
compressor contract worth Rub 3.2 billion to manufacture gas transportation 
units to be installed at a client's oil & gas condensate field. 
 
Also, in December 2020, the company announced the signature of a Rub 1.3 
billion contract to engineer and manufacture pumping stations to be 
installed at a client's gas condensate field. 
 
*** 
 
     HMS GROUP WILL NOT HOLD THE WEBCAST DUE TO THE COVID-2019 SITUATION AND 
            WORKING IN THE REMOTE MODE. 
 
            Contacts: ir@hms.ru [1] 
 
*** 
 
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 
 
=--------------------------------------------------------------------------- 
 
[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] Construction and design and engineering services of subcontractors 
 
[3] 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. 
 
ISIN:           US40425X4079 
Category Code:  QRT 
TIDM:           HMSG 
LEI Code:       254900DDFETNLASV8M53 
OAM Categories: 1.3. Payments to governments 
                2.2. Inside information 
                2.3. Major shareholding notifications 
Sequence No.:   89560 
EQS News ID:    1154665 
 
End of Announcement EQS News Service 
 
 
1: mailto:ir@hms.ru?subject=Re%20conf%20call

(END) Dow Jones Newswires

December 11, 2020 09:00 ET (14:00 GMT)