HMS pumps up 1H 2011 net income to 2.08 billion roubles

HMS Group posts 1H 2011 net income of 2.08 billion roubles under IFRS
Russian pump maker, HMS Group, has posted a 1H 2011 net income of 2.08 billion roubles under IFRS.

The net result up more than 5 fold from the 1H 2010 result of 387.8 million roubles, with 1H EBITDA rising 175% year-on-year to 3.13 billion roubles, as 1H revenues jumped 51% to 13.86 billion roubles.

The Company attributed its higher financials mostly to the growth in industrial pump and design sub-segment growth.Artem Molchanov, CEO of HMS Group, was upbeat commenting on the results, noting its substantial order book.

“I’m pleased to say that over the first half of 2011 the company consecutively hit the goals that we set for the year and continued to strengthen our positions in the most profitable market segments.

We continued working on several large projects in oil upstream and transportation and by now have already managed to build up sound orders backlog for a mid-term perspective, having signed several significant contracts. Over the rest of the year we plan to keep it growing primarily owing to participation in large scale greenfield and brownfield projects in oil upstream, oil transportation and water utilities.”

Molchanov also noted its M&A activity in the reporting period, with acquisition of Sibneftemash, an oilfield equipment manufacturer in Tyumen Region, completed in June 2011 and August purchase of a 57% stake in Bobruisk Machine Building Plant, saying it would help diversification.

“Implementing our growth strategy, this summer we completed two M&A deals. For attractive multiples we have acquired companies with complementary business profile that would allow us to enhance existing product portfolio in oil equipment, pumps for oil refineries and metals and mining.”

Molchanov concluded by noting the strong 1H financial posting reflected those provided to investors as part of its IPO preparations.

“All in all it’s worth mentioning that the company demonstrated another half-year of stable growth, consecutively executing development plans that were presented to the investors during IPO process. I hope that the good results that we achieved will help to bolster investor’s confidence in the company notwithstanding volatility in the global economy.”