HMS Group 3Q 2015 operating results

5th Nov 2015 09:00

HMS Hydraulic Machines & Systems Group plc (the “Company”, and together with its subsidiaries, the “HMS Group”)

HMS GROUP 3 QUARTER AND 9 MONTHS 2015 ORDER INTAKE

Moscow, Russia – HMS Group (LSE: HMSG), the leading pump and compressor manufacturer as well as a 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 releases the statement regarding orders received for the 3rd quarter and 9 months of 2015.

9M 2015 HIGHLIGHTS:

Total order intake amounted to Rub 26.9 bn, up 10% yoy Industrial pumps business segment grew to Rub 12.4 bn, by 12% yoy Oil & gas equipment business segment, in contrary, decreased by 41% yoy to Rub 6.2 bn Compressors business segment increased its order intake by 364% yoy to Rub 6.9 bn EPC business segment stayed flat at Rub 1.4 bn

Order intake for 9 months 2015

Order intake Rub mn		9M 2014		9M 2015		Change yoy		3Q 2014		3Q 2015		Change yoy
Industrial pumps		11,075		12,399		+12%		3,777		3,805		+1%
Oil & Gas equipment		10,579		6,195		-41%		951		2,810		+196%
Compressors		1,485		6,893		+364%		208		4,762		+2,194%
Engineering		1,375		1,381		0%		898		558		-38%
Construction		315		0		-100%		212		1		-100%
Project & design		1,060		1,381		+30%		686		557		-19%
Total		24,513		26,867		+10%		5,833		11,935		+105%
Order intake excl. large projects		18,068		22,370		+24%		5,833		8,457		+45%

Note: Totals may differ from the sum of numbers due to the rounding-off rule

The Group’s order intake under management accounts for 9 months 2015 amounted to Rub 26.9 bn (+10% yoy) while in quarter terms it grew more than twofold, from Rub 5.8 bn to Rub 11.9 bn. When excluding large contracts signed, order intake for standard equipment grew both in 9 months and quarter terms (+24% yoy and +45% yoy correspondingly).

Industrial pumps business segment

For 9 months 2015, order intake increased by 12% yoy to 12.4 bn, driven by an inflow of small- and middle-size contracts.

In 3Q 2015, order intake for industrial pumps showed a increase of 1% yoy.

Oil & gas equipment business segment

For 9 months 2015, order intake decreased by 41% to Rub 6.2 bn mainly due to a high base effect in the period for comparison, when a large oil & gas contract was signed in 2Q 2014. If it is excluded from the consideration, oil & gas equipment order intake, in contrary, grew by 25% yoy.

In 3Q 2015, order intake increased more than twofold year-on-year and reached Rub 2.8 bn (+196% yoy) with a growth for 3 quarters running.

Compressors business segment

For 9 months 2015, order intake amounted its record high Rub 6.9 bn (+364% yoy) not only because of a large Rub 3.5 bn contract signed in 3Q 2015, but also due to a growing inflow of orders for standard compressors.

Engineering business segment

For 9 months 2015, order intake remained unchanged at Rub 1.4 bn. The project & design sub-segment’s order intake grew by 30% yoy that compensated a decrease in the construction sub-segment. A lack of orders in construction is explained by problematic situation on the construction market and that, in general, contracts are signed at the year-end.

In 3Q 2015, the engineering business segment’s order intake decreased by 38% yoy to less than Rub 0.6 bn due to within-year variability.

***

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.

For further information, please contact:

Inna KelekhsaevaDeputy Head of Capital marketsTel: +7 (495) 730-66-01 x 1318[email protected]

Anna ObotninaHead of Marketing communicationsTel: +7 (495) 730-66-01 x (600)3304[email protected]

Disclaimer

The information contained herein has been prepared using information available to HMS Hydraulic Machines & Systems Group Plc (“HMS Group” or “HMS” or “Group” or “Company”) at the time of preparation of the press release. External or other factors may have impacted on the business of HMS Group and the content of this press release, since its preparation. In addition all relevant information about HMS Group may not be included in this press release. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This press release should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements.

This press release does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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