HMS Group 4Q and FY 2013 Order Intake
HMS Group releases its order intake for fourth quarter and full year of 2013.
The Group’s order intake under management accounts for FY 2013 totaled Rub 34.8bn, up 5% year-on-year, while for 4Q 2013 it more than doubled versus 4Q 2012.
Signing a material Rub 5.7bn contract in December 2013 allowed HMS Group to build a solid order intake in the amount of Rub 34.8bn for FY 2013. The composition of order intake remained constant - large contracts composed 1/5 of all orders. As far as the new large contract is attributable to oil and gas business segment, the segment’s order intake grew substantially and reached Rub 12.6bn. The contribution of compressors segment to the Group’s total order intake became more noticeable. There was a new split between input of construction and project and design sub-segments to consolidated EPC order intake. The inflow of orders from construction sharply decreased as HMS is on its way out of construction business.
For FY 2013, in industrial pumps business segment order intake declined by 32% to Rub 13.1bn year-on-year due to the lack of large contracts in the reporting period. Slowing-down of investment activities in Russian oil and gas market led to delay of some projects targeted by the Group for its industrial pump business segment. As a result, only one large contract on supply of pump units for the Zapolyarye – Purpe Oil Pipeline for Rub 1.5bn supported the segment’s order intake in 2013. In 2012, there were two large contracts, which jointly added Rub 7.3bn to the segment’s order intake. These contracts included a contract on reconstruction of 3 water-pump stations in Turkmenistan (Rub 2.7bn) and ESPO-2 contract (Rub 4.6bn).
Meanwhile, the segment’s order intake for FY 2013 comprising exclusively small- and mid-sized contracts for standard equipment showed a minor decrease by 3% year-on-year and amounted to Rub 11.6bn versus Rub 12bn for FY 2012.
Compared with 4Q 2012, order intake in industrial pumps business segment grew by 12% year-on-year to Rub 3.4 bn.
Oil and Gas equipment
Orders received by oil and gas equipment business segment for FY 2013 increased substantially by 75% year-on-year to Rub 12.6bn due to signing a Rub 5.7bn contract on delivery of integrated solution for a major Siberian gasfield. As this contract was concluded in December 2013, the segment’s order intake for 4Q 2013 was four times as high as for 4Q 2012.
Compressors business segment demonstrated a noticeable growth in its order intake both for FY 2013 (+64% year-on-year to Rub 3.9 bn) and 4Q 2013 (+43% to Rub 0.5bn). The segment benefitted from a number of material contracts on delivery of compressor stations and units, which were signed last year, in line with the Group’s strategy aimed at accelerating development of compressor business.
The order intake in EPC business segment grew by 25% year-on-year to Rub 5.1bn for FY 2013, supported by strong results of project and design sub-segment. This segment almost doubled its order intake, which reached Rub 3.8bn for FY 2013. Decrease of order intake in construction sub-segment for FY 2013 by 37% year-on-year was related to gradual closing-down of non-core construction business finally resulted in disposal of construction subsidiary SKMN.
Source: HMS Group