DJ HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021
HMS Group (HMSG) HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021 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: - Revenue: Rub 11.2 bn (+23% yoy) - EBITDA[1]: Rub 1.3 bn (+21% yoy), EBITDA margin at 11.7% - Operating profit: Rub 566 mn (+114% yoy) - Profit for the period: Rub 52 mn - Total debt: Rub 22.2 bn (+3% yoy) - Net debt: Rub 13.1 bn (+7% yoy) - Net debt-to-EBITDA LTM ratio: 2.52x Operational highlights 3m 2021: - Backlog[2]: Rub 59.0 bn (+25% yoy) - Order intake[3]: Rub 18.4 bn (+50% yoy) Forecast FY 2021: - Revenue: Rub 60.0 bn - EBITDA: Rub 6.5 bn 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 - Order intake was up to Rub 18.4 billion, by 50% yoy, compared with Rub 12.3 billion for 3m 2020. All business segments, excluding the compressors, demonstrated growth. In terms of contracts type, large contracts increased almost six-fold mainly due to a Rub 7.5 billion oil & gas equipment contract signed in 1Q 2021. - Backlog was Rub 59.0 billion, up by 25% yoy, compared with Rub 47.2 billion at the end of 3m 2020, mainly due to the oil & gas equipment and compressors business segments. In terms of contracts type, both recurring business and large contracts grew, by 6% yoy and 50% yoy respectively, compared with the end of 3m 2020. - Revenue was Rub 11.2 billion, up by 23% yoy, compared with Rub 9.1 billion for 3m 2020, supported by the oil & gas equipment and compressors business segments. - EBITDA was Rub 1.3 billion, up by 21% yoy, implying an EBITDA margin of 11.7%. - Revenue generated by large projects almost tripled (+173% yoy) compared with 3m 2020. This increase was partly offset by lower revenue from recurring business (-18% yoy). EBITDA from large contracts increased 206% yoy, and EBITDA from recurring business declined 71% yoy. - Profit for the period was Rub 52 million, compared with loss for the period at Rub 153 million for 3m 2020. - Free cash outflow was Rub 1.2 billion, compared with free cash inflow of Rub 2.1 billion for 3m 2020, due to working capital requirements for execution of large contracts. 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 - Cost of sales was Rub 9.1 billion, up by 28% yoy, compared with Rub 7.1 billion for 3m 2020, supported by higher
materials and components costs (+43% yoy). Materials and components outpaced the growth in Cost of sales due to a
higher share of material-intensive large contracts under execution.
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% - Gross profit grew to Rub 2.1 billion, by 5% yoy, compared with Rub 2.0 billion for 3m 2020. - SG&A expenses[5] declined by 11% yoy due to decrease in distribution & transportation expenses. Distribution &
transportation expenses were down 34% yoy, mainly due to lower transportation costs and expenses on insurance and
advertising. As a share of revenue, they declined to 2.9%, compared with 5.4% for 3m 2020.
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. - All in all, this led to an operating profit of Rub 566 million, up by 114% yoy, compared with Rub 265 million
during 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% - Finance costs were Rub 459 million, down by 4% yoy, compared with Rub 481 million for 3m 2020. The main reason was
lower interest expenses (-10% yoy) due to a lower level of average total debt within the reporting period compiled
with reduced interest rates, compared with 3m 2020. - Average interest rate was reduced to 7.99% p.a., compared with 8.23% p.a. last year.
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] - Order intake was Rub 4.7 billion, up by 5% yoy, compared with Rub 4.5 billion for 3m 2020. - Backlog was Rub 19.2 billion, down 8% yoy, compared with Rub 21.0 billion at the end of 3m 2020. - Revenue stood at Rub 3.6 billion, down by 2% yoy. - Lower recurring business margins compiled with less EBITDA generated by large contracts, consequently, led to the
pumps' EBITDA of Rub 339 million, down by 29% yoy. EBITDA margin was 9.4%, compared with 12.8% during 3m 2020.
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] - Order intake grew to Rub 11.4 billion, by 132% yoy, compared with Rub 4.9 billion during 3m 2020, due to a large
Rub 7.5 billion contract signed in the reporting period. - Backlog was Rub 16.2 billion, up by 90% yoy, compared with Rub 8.5 billion at the end of 3m 2020, supported by both
large contracts and regular business. - Revenue was Rub 4.4 billion, up by 43% yoy, compared with Rub 3.1 billion for 3m 2020. - EBITDA stood at Rub 457 million, up by 29% yoy, compared with Rub 354 million for 3m 2020 due to the recovery of
the oil & gas business segment. EBITDA margin stood at 10.4%, compared with 11.5% for 3m 2020.
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] - Order intake stood at Rub 337 million, compared with Rub 2.6 billion for 3m 2020, due to less contracts signed in
the reporting period. - Backlog increased to Rub 22.3 billion, compared with Rub 16.9 billion at the end of 3m 2020, supported by large
contracts. - Revenue was Rub 3.3 billion, up by 51% yoy, compared with Rub 2.2 billion, due to large contracts. - EBITDA was Rub 486 million, up by 120% yoy, compared with Rub 221 million for 3m 2020, fully due to execution of
large contracts. EBITDA margin was up to 14.7%, compared with 10.1% for 3m 2020.
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%
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DJ HMS Group Reports Rub 1.3 billion EBITDA for 3 -2-
Construction[iv] - Order intake equaled Rub 2.0 billion. Backlog stood at Rub 1.4 billion. - Revenue was down to Rub 193 million, compared with Rub 237 million for 3m 2020. EBITDA was Rub (18) million,
compared with Rub 23 million last year.
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 - Working capital increased to Rub 8.2 billion, by 17% yoy, compared with Rub 7.1 billion at the end of 3m 2020. As a
share of revenue LTM, working capital stood at 16.9%, compared with 13.6% for 3m 2020. - Maintenance capex was Rub 440 million, up by 32% yoy, compared with Rub 334 million during 3m 2020
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 - Total debt up to Rub 22.2 billion, by 3% yoy, compared with Rub 21.5 billion at the end of 3m 2020. - Net debt was Rub 13.1 billion, up by 7% yoy, compared with Rub 12.2 billion at the end of 3m 2020. - Net debt to EBITDA LTM ratio stood at 2.52x.
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 - After the reporting date, no GDRs have been purchased under the buyback program.
DIVIDENDS - The Board of Directors at the meeting on April 21, 2021, recommended payment of the final dividends in respect of
FY 2020 in the amount of Rub 4.25 per one ordinary share (Rub 21.25 per one GDR). The dividends are subject to the
approval at the AGM on June 24, 2021. Subject to such approval, the dividends may be paid on July 1, 2021, to
shareholders on the HMS' register at close of business (UK time) on June 18, 2021 (the "Record date").
MOEX LISTING - On May 21, 2021, HMS Group's GDRs have been listed on the Moscow Exchange. - On May 25, 2021, the Moscow Exchange commenced trading of HMS' GDRs under the "HMSG" ticker. These GDRs continue
trading on the Main Market of the London Stock Exchange.
***
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 Three months
ended ended
31 March 31 March
2021 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)
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