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HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021

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HMS Group (HMSG)
10-Jun-2021 / 10:02 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

 

HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021

 

Moscow, Russia - June 10, 2021 - HMS Hydraulic Machines & Systems Group Plc (the "HMS Group", or the "HMS", or 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 the three months ended March 31, 2021.

 

Financial highlights 3m 2021:

 

 

Operational highlights 3m 2021:

 

Forecast FY 2021:

 

 

 

HMS GROUP PERFORMANCE

The end of March in 2020 was the start of the outbreak of the COVID-19 pandemic. So the financial effect for the period was very limited due to the short period of time between the start of economic downturn and the end of 3m 2020. In the first three months of 2020, HMS Group ran its business as usual.

 

3 months 2021 financial Results

 

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Orders

18,439

12,285

50%

18,439

15,304

20%

Backlog

59,029

47,240

25%

59,029

53,851

10%

Revenue

11,191

9,115

23%

11,191

15,000

-25%

EBITDA

1,308

1,077

21%

1,308

1,576

-17%

EBITDA margin

11.7%

11.8%

 

11.7%

10.5%

 

Profit/(Loss) for the period

52

(153)

na

52

(593)

na

Free cash flow

(1,193)

2,091

na

 (1,193)

2,074

na

 

Expenses and Operating profit

in millions of Rub

3m 2021

3m 2020

Change yoy

Share of  3m 2021 revenue

Share of 3m 2020 revenue

Cost of sales

9,104

7,127

28%

81.4%

78.2%

Materials and components

6,081

4,246

43%

54.3%

46.6%

Labour costs incl Social taxes

1,806

1,832

-1%

16.1%

20.1%

Depreciation and amortization

537

526

2%

4.8%

5.8%

Construction and design [4]

510

734

-31%

4.6%

8.1%

Others

170

(211)

na

1.5%

-2.3%

 

General & administrative expenses stood at Rub 1.2 billion, down by 1% yoy. As a share of revenue, these expenses were down to 10.7%, compared with 13.3% for 3m 2020.  

in millions of Rub

3m 2021

3m 2020

Change yoy

Share of  3m 2021 revenue

Share of 3m 2020 revenue

Gross profit

2,087

1,988

5%

18.6%

21.8%

 Distribution & transportation

323

493

-34%

2.9%

5.4%

 General & administrative

1,203

1,217

-1%

10.7%

13.3%

SG&A expenses

1,526

1,709

-11%

13.6%

18.8%

 Other operating expenses

(5)

14

-134%

0.0%

0.2%

Operating expenses ex. Cost of sales

1,521

1,723

-12%

13.6%

18.9%

Operating profit

566

265

114%

5.1%

2.9%

Finance costs

459

481

-4%

4.1%

5.3%

 

 

in millions of Rub

3m 2021

3m 2020

Change yoy

Finance costs

459

481

-4%

   Interest expenses

431

476

-10%

Interest rate, average

7.99%

8.23%

 

Interest rate Rub, average

8.11%

8.37%

 

 

BUSINESS SEGMENTS PERFORMANCE

Industrial pumps[i]

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Orders

4,722

4,515

5%

4,722

4,429

7%

Backlog

19,203

20,961

-8%

19,203

18,227

5%

Revenue

3,617

3,693

-2%

3,617

6,311

-43%

EBITDA

339

474

-29%

339

1,116

-70%

EBITDA margin

9.4%

12.8%

 

9.4%

17.7%

 

Oil and Gas equipment & projects (OGEP)[ii]

 

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Orders

11,424

4,934

132%

11,424

3,331

243%

Backlog

16,156

8,517

90%

16,156

9,318

73%

Revenue

4,390

3,076

43%

4,390

2,890

52%

EBITDA

457

354

29%

457

(49)

na

EBITDA margin

10.4%

11.5%

 

10.4%

-1.7%

 

 

Compressors [iii]

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Orders

337

2,633

-87%

337

7,511

-96%

Backlog

22,312

16,928

32%

22,312

24,765

-10%

Revenue

3,306

2,194

51%

3,306

6,080

-46%

EBITDA

486

221

120%

486

796

-39%

EBITDA margin

14.7%

10.1%

 

14.7%

13.1%

 

 

Construction[iv]

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Orders

1,955

203

866%

1,955

32

6002%

Backlog

1,358

834

63%

1,358

1,541

-12%

Revenue

193

237

-19%

193

138

40%

EBITDA

(18)

23

-179%

(18)

(43)

na

EBITDA margin

-9.2%

9.5%

 

-9.2%

-31.2%

 

 

Working capital and Capital expenditures

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Working capital

8,183

7,019

17%

8,183

6,752

21%

Working capital / Revenue LTM

16.9%

13.6%

 

16.9%

14.5%

 

Maintenance  capex

440

334

32%

440

250

76%

Acquisitions

-

-

 

-

-

 

 

DEBT POSITION

in millions of Rub

3m 2021

3m 2020

Change yoy

1Q 2021

4Q 2020

Change qoq

Total debt

22,209

21,501

3%

22,209

22,175

0%

Net debt

13,053

12,228

7%

13,053

11,814

10%

Net debt / EBITDA LTM

2.52

2.26

 

2.52

2.39

 

 

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

BUYBACK PROGRAM

DIVIDENDS

MOEX LISTING

 

***

Webcast to discuss 3 months 2021 IFRS results

 

Date:  Thursday, June 10, 2021

Time:  2.30 PM (MOSCOW) / 12.30 PM (London) / 7.30 AM (NY)

HMS Group 3m 2021 IFRS results

Conference passcode: 6189356

 

To participate in the conference call, please dial in:

 

Russia Local:   +7 499 609 1260

Russia Toll Free: 8 800 100 9471

 

UK Local:  +44 (0)330 027 1846

UK Toll Free:  0800 031 4838

 

US Local:  +1 334 777 6978

US Toll Free:  800 367 2403 

 

Live link

https://www.webcast-eqs.com/hmsgroup20210610 

 

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 and the Moscow 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

 

Consolidated Statement of Financial Position at 31 March 2021 (unaudited)

in thousands of Russian Roubles, unless otherwise stated

 

31 March 2021

31 December 2020

ASSETS

 

 

Non-current assets:

 

 

Property, plant and equipment

14,669,855

14,684,279

Other intangible assets

1,686,765

1,743,399

Goodwill

3,229,718

3,255,984

Right-of-use assets

180,671

183,211

Investments in associates

96,327

94,307

Deferred income tax assets

785,583

786,455

Other long-term assets

32,104

42,252

Investment property

174,421

176,833

Total non-current assets

20,855,444

20,966,720

 

Current assets:

 

 

Inventories

9,807,812

8,847,749

Trade and other receivables and other financial assets

15,544,287

15,598,766

Contract assets

6,744,322

6,201,354

Current income tax receivable

169,566

94,972

Cash and cash equivalents

9,156,029

10,360,588

Total current assets

41,422,016

41,103,429

TOTAL ASSETS

62,277,460

62,070,149

 

 

 

EQUITY AND LIABILITIES

EQUITY

 

 

Share capital

48,329

48,329

Share premium

3,523,535

3,523,535

Treasury shares

(93,775)

(33,055)

Other reserves

129,392

129,392

Currency translation reserve

710,901

646,427

Retained earnings

5,553,565

5,510,974

Equity attributable to the shareholders of the Company

9,871,947

9,825,602

Non-controlling interests

3,536,933

3,518,674

TOTAL EQUITY

13,408,880

13,344,276

 

 

 

LIABILITIES

 

 

Non-current liabilities:

 

 

Long-term borrowings

18,398,671

20,452,736

Deferred income tax liability

1,415,292

1,421,489

Retirement benefit obligations

663,438

646,213

Provisions for liabilities and charges

200,894

228,199

Lease liabilities

150,902

153,048

Other long-term payables

278,683

230,581

Total non-current liabilities

21,107,880

23,132,266

 

Current liabilities:

 

 

Trade and other payables

18,642,755

17,969,950

Contract liabilities

3,636,178

4,304,845

Short-term borrowings

3,638,794

1,548,574

Provisions for liabilities and charges

555,459

589,762

Retirement benefit obligations

79,265

77,859

Lease liabilities

20,683

20,440

Current income tax payable

94,250

134,080

Other taxes payable

1,093,316

948,097

Total current liabilities

27,760,700

25,593,607

TOTAL LIABILITIES

48,868,580

48,725,873

TOTAL EQUITY AND LIABILITIES

62,277,460

62,070,149

 

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the three months ended 31 March 2021 (unaudited)

in thousands of Russian Roubles, unless otherwise stated

 

 

 

Three months ended

31 March 2021

Three months ended

31 March 2020

Revenue

 

11,190,623

9,115,230

Cost of sales

 

(9,103,584)

(7,127,211)

Gross profit

 

2,087,039

1,988,019

 

 

 

 

Distribution and transportation expenses

 

(322,858)

(492,562)

General and administrative expenses

 

(1,202,761)

(1,216,646)

Other operating income/(expenses), net

 

4,705

(13,732)

Operating profit

 

566,125

265,079

 

 

 

 

Finance income

 

46,385

93,068

Finance costs

 

(459,418)

(481,025)

Share of results of associates

 

90

165

 

 

 

 

Profit/(loss) before income tax

 

153,182

(122,713)

 

 

 

 

Income tax expense

 

(101,069)

(30,078)

 

 

 

 

Profit/(loss) for the period

 

52,113

(152,791)

 

Profit/(loss) attributable to:

 

 

 

Shareholders of the Company

 

42,591

(142,408)

Non-controlling interests

 

9,522

(10,383)

Profit/(loss) for the period

 

52,113

(152,791)

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

Currency translation differences

 

72,126

688,595

Currency translation differences of associates

 

1,930

2,768

Other comprehensive income for the period

 

74,056

691,363

Total comprehensive income for the period

 

126,169

538,572

Total comprehensive income attributable to:

 

 

 

Shareholders of the Company

 

107,065

545,695

Non-controlling interests

 

19,104

(7,123)

Total comprehensive income for the period

 

126,169

538,572

 

Basic and diluted earnings/(loss) per ordinary share for profit/(loss) attributable to the ordinary shareholders (RR per share)

 

 

0.37

(1.26)

 

 

 

Consolidated Statement of Cash Flows for 3m 2021 (unaudited)

in thousands of Russian Roubles, unless otherwise stated

 

 

Three months ended 31 March 2021

Three months ended 31 March 2020

Cash flows from operating activities

 

 

 

Profit/(loss) before income tax

 

153,182

(122,713)

Adjustments for:

 

 

 

Depreciation and amortisation

 

617,872

609,317

(Gain)/loss from disposal of property, plant and equipment and intangible assets

 

(12,261)

14,381

Finance income

 

(46,385)

 (93,068)

Finance costs

 

459,418

481,025

Change in retirement benefits obligations

 

15,971

20,440

Change in warranty provision

 

(18,113)

43,233

Change in expected credit losses allowance for trade and other receivables and other financial assets and allowance for impairment of non-financial assets

 

(343)

17,896

Change in allowance for obsolete inventories

 

16,654

 (3,201)

Change in provision for legal claims

 

(10,387)

19,221

Share-based compensation

 

-

14,731

Foreign exchange gain, net

 

(47,451)

(86,381)

Amortisation of government grants

 

(7,781)

(7,744)

Share of results of associates

 

(90)

(165)

Operating cash flows before working capital changes

 

1,120,286

906,972

Increase in inventories

 

(925,567)

 (431,026)

Decrease in trade and other receivables

 

208,465

1,668,684

(Increase)/decrease in contract assets

 

(521,453)

366,310

(Increase)/decrease in income tax receivable

 

(74,552)

143,024

Increase/(decrease) in accounts payable and accrued liabilities

 

498,011

 (2,184,550)

(Decrease)/increase in contract liabilities

 

(668,667)

2,874,360

Increase/(decrease) in other taxes payable

 

214,070

 (226,866)

Cash (used in)/from operations

 

(149,407)

3,116,908

Income tax paid

 

(208,800)

 (248,466)

Interest paid

 

(460,365)

 (536,937)

Interest received

 

44,479

103,289

Net cash (used in)/from operating activities

 

(774,093)

2,434,794

Cash flows from investing activities

 

 

 

Repayment of loans advanced

 

641

2,320

Loans advanced

 

(503)

(17,205)

Proceeds from sale of property, plant and equipment, net of VAT

 

21,020

5,356

Purchase of property, plant and equipment, net of VAT

 

(393,370)

 (244,585)

Acquisition of intangible assets, net of VAT

 

(47,105)

 (89,701)

Net cash used in investing activities

 

(419,317)

(343,815)

Cash flows from financing activities

 

 

 

Repayments of borrowings

 

(491,930)

 (3,596,731)

Proceeds from borrowings

 

541,929

690,792

Repayment of the lease liabilities principal

 

(4,654)

 (9,220)

Buy back of issued shares

 

(60,720)

-

Dividends paid to non-controlling shareholders of subsidiaries

 

(363)

(92)

Net cash used in financing activities

 

(15,738)

 (2,915,251)

Net decrease in cash and cash equivalents

 

(1,209,148)

 (824,272)

Effect of exchange rate changes on cash and cash equivalents and effect of translation to presentation currency

 

4,589

145,232

Cash and cash equivalents at the beginning of the period

 

10,360,588

9,952,118

Cash and cash equivalents at the end of the period

 

9,156,029

      9,273,078

 

 

[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] Backlog - Portfolio of uncompleted orders and contracts

[3] Order intake - Portfolio of contracts and orders signed for a period

[4] Construction and design and engineering services of subcontractors

[5] 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:

QRF

TIDM:

HMSG

LEI Code:

254900DDFETNLASV8M53

OAM Categories:

2.2. Inside information

3.1. Additional regulated information required to be disclosed under the laws of a Member State

Sequence No.:

110369

EQS News ID:

1206330


 

End of Announcement

EQS News Service

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