OREANDA-NEWS. On June 04, 2007 OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) has announced its audited consolidated financial results for 2006 in accordance with International Financial Reporting Standards (IFRS), reported the press-centre of  OMZ.

According to the company’s financial results, OMZ’s operating profit from continuing operations has doubled in comparison with 2005 (continuing operations exclude the operations of Izhora Plant and Komplekt-Atom Izhora, which are to be contributed to a JV with AtomEnergoMash, with OMZ having a minority stake).

In 2006 the company’s revenues rose 11% to US$ 667 million. Profit for the year before results from discontinued operations reached US$ 28,6 million.

The company’s business in the Specialty Steel segment (production of semi-finished metallurgical products for machine building and other sectors) has experienced stable and positive growth. Revenues in this business sector reached US$ 357,1 million. OMZ is actively developing and investing in its metallurgical business. One of the key investment projects launched in 2006 was the construction of an advanced 120 ton electric steel furnace by OMZ Specialty Steel. Construction of the furnace will be undertaken during 2007.

Revenues from the production and maintenance of mining equipment reached US$ 132,4 million.

Despite the overall positive dynamics and expected orders in connection with the Federal Program for Development of Russia’s Nuclear Energy Industrial Complex In The Period 2007-2015, the completion of existing contracts and the stagnation of the company’s nuclear business had a negative impact on the OMZ’s business in 2006.

In line with its strategy of diversification, OMZ plans to develop production of equipment for the petrochemical industry. The company intends to take a leading position in this market and in 2006 OMZ organized a separate business unit focusing on the petrochemical equipment market which has recently concluded contracts with companies such as LUKOIL, Rosneft, Ufimsky Oil Processing Plant, LENNIIKHIMMASH and others.

The 2006 consolidated financial results of the Company were audited to International Financial Reporting Standards (IFRS) by PriceWaterhouseCoopers. The complete set of accounts can be viewed on the Company’s website www.omz.ru and will be available at the Document Viewing Facility of the UKLA at The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS, UK.