OREANDA-NEWS. PJSC Mostotrest (Mostotrest, the Company or, together with its consolidated subsidiaries, the Group) publishes its financial and operating results for the first half of 2016.

Mostotrest, the leading group of companies in the Russian infrastructure construction market, delivered improved operating and financial results for the first half of 2016.

Key Operating and Financial Results

  • Backlog stood at RUB343.5 billion (+15% to the beginning of the year), with new contract additions totaling RUB112.4* billion
  • Revenue grew 31% year-on-year, to RUB67.9 billion, driven by increased construction volumes
  • Gross profit increased 2x from RUB4.8 billion in 1H2015 to RUB9.8 billion in 1H2016. Gross margin rose from 9.2% in 1H2015 to 14.4% in the reporting period, driven by increased share and profitability of in-house volumes
  • EBITDA grew 3x on a like-for like basis, to RUB6.2 billion
  • Net profit increased 5x to RUB476 million
  • RUB3 billion dividend was paid out for 2015, representing 71% of IFRS profit for 2015
  • Capital expenditure increased 2.6x on a like-for-like basis.

Mostotrest CEO Vladimir Vlasov comments on the results:

«Mostotrest delivered excellent 1H2016 results despite continued macroeconomic instability that means the industry environment remains challenging, the continued financial problems of a number of construction players, and ongoing issues in the banking sector. The Group posted a significant increase in revenue and recorded multiple increases in gross profit, EBITDA and net profit compared to the same period last year. In addition, we significantly improved the profitability of our business, mainly by stepping up in-house construction volumes and improving their profitability.

We benefited from the improving market trend for public tenders, meaning that we were able to increase our backlog by 15% in 1H2016. This growth was primarily driven by two new large contracts, consisting of further construction work on the M-11 “Moscow – Saint Petersburg” at Festivalnaya Street – Dmitrovskoye Avenue segment and the contract to construct Kerch Bridge. In addition, in Q3 2016, our subsidiary TSM entered into another large contract for the construction of the final segment of the M-11 “Moscow – Saint Petersburg” Highway (km 58 – km 149). Before the end of the year, member companies of the Group expect to participate in a number of other tenders, which should also ensure a strong backlog level at the end of 2016.

Excellent operating and financial results, combined with a strong Ba3 credit rating assigned to the Company by Moody's and the subsequent completion of two highly successful bond offerings in Q3 2016 reaffirm our position of a market leader. Even in what is a challenging market environment Mostotrest continues to implement large, technically complex projects, while pursuing a conservative financial policy and a weighted development strategy».