DJ HMS Group Reports FY 2020 EBITDA of Rub 4.9 billion
HMS Group (HMSG) HMS Group Reports FY 2020 EBITDA of Rub 4.9 billion 28-Apr-2021 / 11:00 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- HMS Group Reports FY 2020 EBITDA of Rub 4.9 billion Moscow, Russia - April 28, 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 twelve months ended December 31, 2020. Financial highlights 2020: - Revenue: Rub 46.5 bn (-10% yoy) - EBITDA[1]: Rub 4.9 bn (+3% yoy), EBITDA margin at 10.6% - Operating profit: Rub 1.3 bn (-35% yoy) - Loss for the period: Rub 816 mn - Loss for the period adj.[2]: Rub 265 mn - Total debt: Rub 22.2 bn (-9% yoy) - Net debt: Rub 11.8 bn (-18% yoy) - Net debt-to-EBITDA LTM ratio: 2.39x Operational highlights 2020: - Backlog[3]: Rub 53.9 bn (+20% yoy) - Order intake[4]: Rub 54.2 bn (+4% yoy) GROUP PERFORMANCE FY 2020 financial Results - Order intake grew to Rub 54.2 billion, by 4% yoy, compared with Rub 52.2 billion for 2019. The compressors business segment was the main contributor to this growth. In terms of contracts type, large contracts were the main drivers of the growth (+9% yoy). - Backlog reached Rub 53.9 billion, up by 20% yoy, compared with Rub 44.7 billion last year, based on the compressors and the oil & gas equipment business segments. In terms of contracts type, recurring business grew by 13% yoy and large contracts was up 30% yoy, compared with 2019. - Revenue was Rub 46.5 billion, down by 10% yoy, compared with Rub 51.4 billion for 2019, because of less revenue generated by the oil & gas equipment and the compressors business segments. - EBITDA, in contrast, was Rub 4.9 billion (+3% yoy), due to increased margins of pumps and compressors contracts. EBITDA margin grew to 10.6%, compared with 9.4% for 2019. Consolidated revenue from recurring business declined by 9% yoy, and revenue from large projects was down by 11% yoy. EBITDA from recurring business declined by 12% yoy, and, in contrast, EBITDA from large contracts increased 26% yoy. - Loss for the period was Rub 816 million, compared with profit for the period at Rub 151 million for 2019. Included in this loss is an impairment of goodwill of Rub 425 million, recognized on acquisition of TMCP in the beginning of 2019. The goodwill was impaired as a result of not meeting targeted synergies with HMS Neftemash in executing large contracts, due to the Covid-19 pandemic and general situation on the oil and gas market. - Loss for the 2020 year adj. was Rub 265 million. - Free cash inflow was Rub 3.0 billion, compared with Rub 23 million in 2019, despite lower revenue due to the implemented cost-optimization program. in millions of Rub 2020 2019 Change yoy 4Q 2020 3Q 2020 Change qoq Orders 54,205 52,196 4% 15,304 19,359 -21% Backlog 53,851 44,693 20% 53,851 56,580 -5% Revenue 46,476 51,413 -10% 15,000 11,978 25% EBITDA 4,947 4,824 3% 1,576 1,264 25% EBITDA margin 10.6% 9.4% 10.5% 10.6% (Loss)/Profit for the period adj. (265) 151 na (41) 90 na Impairment of goodwill (note 9) (426) (426) Impairment of previously recognised deferred tax assets (n.22) (126) (126) (Loss)/Profit for the period (816) 151 na (593) 90 na Free cash inflow 2,958 23 na 2,074 2,397 -13%
Expenses and Operating profit - Cost of sales was down by 11% yoy to Rub 37.1 billion, compared with Rub 41.8 billion for 2019, due to lower
materials and components costs and labour expenses. Materials and components declined 15% yoy because of lower
revenue. Labour costs were down by 2% yoy due to the cost-cutting program.
in millions of Rub 2020 2019 Change yoy Share of 2020 revenue Share of 2019 revenue Cost of sales 37,071 41,804 -11% 79.8% 81.3% Materials and components 23,760 27,957 -15% 51.1% 54.4% Labour costs incl Social taxes 6,906 7,060 -2% 14.9% 13.7% Depreciation and amortization 2,122 1,954 9% 4.6% 3.8% Construction and design [5] 2,557 2,467 4% 5.5% 4.8% Others 1,726 2,365 -27% 3.7% 4.6% - Gross profit declined to Rub 9.4 billion, by 2% yoy, compared with Rub 9.6 billion for 2019. - SG&A expenses[6] declined by 2% yoy due to decrease in general & administrative expenses. Distribution &
transportation expenses were up by 1% yoy, mainly due to higher transportation expenses and labour costs. General &
administrative expenses declined to Rub 5.2 billion by 3% yoy, compared with 2019, mainly due to decrease in labour
costs and business trips expenses. - Operating profit was down to Rub 1.3 billion by 35% yoy, compared with Rub 2.1 billion in 2019.
in millions of Rub 2020 2019 Change yoy Share of 2020 revenue Share of 2019 revenue Gross profit 9,405 9,609 -2% 20.2% 18.7% Distribution & transportation 1,986 1,961 1% 4.3% 3.8% General & administrative 5,243 5,395 -3% 11.3% 10.5% SG&A expenses 7,228 7,356 -2% 15.6% 14.3% Other operating expenses 412 196 111% 0.9% 0.4% Operating expenses ex. Cost of sales 7,641 7,552 1% 16.4% 14.7% Operating profit 1,338 2,057 -35% 2.9% 4.0% Finance costs 1,926 1,785 8% 4.1% 3.5% - Finance costs increased to Rub 1.9 billion by 8% yoy, compared with Rub 1.8 billion in 2019. The main reason was
the 5% increase in interest expenses due to the higher level of average debt within 2020, compared with 2019. - Average interest rates decreased to 8.00% p.a., compared with 8.57% p.a. last year.
in millions of Rub 2020 2019 Change yoy Finance costs 1,926 1,785 8% Interest expenses 1,848 1,764 5% Interest rate, average 8.00% 8.57% Interest rate Rub, average 8.12% 8.69%
BUSINESS SEGMENTS PERFORMANCE
Industrial pumps[i] - Order intake declined by 22% yoy to Rub 17.8 billion, compared with Rub 22.8 billion for 2019, due to less regular
orders received and no large contracts signed. Backlog was down by 7% yoy to Rub 18.2 billion, compared with Rub
19.6 billion in 2019. Demand for pumps was impacted by the COVID-19 pandemic. - Revenue grew to Rub 20.3 billion by 2% yoy, based on the recurring business. EBITDA was up to Rub 2.9 billion, by
13% yoy, compared with Rub 2.6 billion in 2019, due to a larger share of regular orders with higher profitability.
EBITDA margin was 14.5%, compared with 13.1% in 2019.
in millions of Rub 2020 2019 Change yoy 4Q 2020 3Q 2020 Change qoq Orders 17,773 22,792 -22% 4,429 5,329 -17% Backlog 18,227 19,572 -7% 18,227 19,749 -8% Revenue 20,256 19,770 2% 6,311 5,657 12% EBITDA 2,931 2,599 13% 1,116 797 40% EBITDA margin 14.5% 13.1% 17.7% 14.1%
Oil and Gas equipment & projects (OGEP)[ii] - Order intake grew to Rub 13.6 billion, by 14% yoy, compared with Rub 11.9 billion in 2019, due to large contracts. - Backlog was up by 25% yoy to Rub 9.3 billion, compared with Rub 7.4 billion for 2019, due to both large contracts
and regular business. - Revenue declined to Rub 11.3 billion, by 14% yoy, compared with Rub 13.2 billion in 2019. EBITDA was down to Rub
241 million, compared with Rub 430 million in 2019. The main reasons were the COVID-19 pandemic and postponement of
projects for 2021.
in millions of Rub 2020 2019 Change yoy 4Q 2020 3Q 2020 Change qoq Orders 13,568 11,887 14% 3,331 3,514 -5% Backlog 9,318 7,426 25% 9,318 9,916 -6% Revenue 11,284 13,160 -14% 2,890 3,241 -11% EBITDA 241 430 -44% (49) 47 -204% EBITDA margin 2.1% 3.3% -1.7% 1.4%
Compressors[iii] - Order intake grew by 30% to Rub 22.6 billion, compared with Rub 17.4 billion in 2019. Backlog increased to Rub
24.8 billion, compared with Rub 16.1 billion in 2019. Both recurring business and large contracts grew. - Revenue was down by 16% yoy to Rub 14.9 billion, compared with Rub 17.9 billion, due to less revenue generated by
recurring business. - EBITDA grew by 25% yoy to Rub 1.9 billion, compared with Rub 1.5 billion in 2019, due to higher margins generated
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