OREANDA-NEWS. HMS Group (LSE: HMSG), 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, issues the statement regarding orders received during Q2 2013.

Please note, starting from Q1 2013 we provide the data split under management accounts, which corresponds with the Note “Segment Information” under IFRS, compared to a split by a type of products or services we used to provide in 2012. All numbers for 2012 are adjusted accordingly.

Please also notice that order intake performance can be volatile on a quarterly horizon due to uneven placement of orders for large projects in infrastructure

HIGHLIGHTS:

In Q2 2013, order intake under management accounts amounted to Rub 5.8 bn (USD 179 mn*), down 45% YoY, versus Rub 10.5 bn (USD 326 mn) in Q2 2012 due to a high-base effect of the last year’ ESPO contract and lower volume of orders for engineering and construction works

In the industrial pumps business segment order intake declined by 65% YoY and amounted to Rub 2.6 bn. Strong inflow of orders for pumps for water utilities was more than offset by weaker demand in pumps for power generation and a high-base effect resulted from the 4.6 bn follow-up contract for East Siberia - Pacific Ocean pipeline (ESPO) signed in Q2 2012.

In the oil and gas equipment business segment order inflow grew by 12% to Rub 1.7 bn mainly driven by orders for modular pump stations and oilfield equipment.

In the EPC business segment order intake declined by 52% YoY, primarily due to a drop in orders for engineering and construction works, which was partially offset by a stronger order flow for project and design services, which grew by 42% YoY.

In the compressor business segment, established in Q3 2012, order intake amounted to Rub 703 mn

In H1 2013, order intake under management accounts amounted to Rub 14.9 bn (USD 462 mn), down 19% YoY, versus Rub 18.372 bn (USD 569 mn) in H1 2012.