Mostotrest Announces H1 2013 Financial and Operating Results
OREANDA-NEWS. OJSC Mostotrest (hereinafter - “Mostotrest”, “the Company” or together with the consolidated subsidiaries “the Group”) publishes its financial and operating results for the period ended 30 June 2013(a).
Mostotrest, Russia's leading integrated infrastructure construction group, delivered strong financial results in 1H 2013, increasing revenue and EBITDA(b) by 32% and 14%, respectively compared to 1H 2012. The Services segment increased its share of overall Group revenue over the period to 8% from 1% in 2012, as the Group continued to build momentum in the support services segment.
Key Operating and Financial Results:
Backlog© of RUB 249.7* billion, including RUB 13.5* billion(d) in new projects
Revenue increased by 32% to RUB 45.1 billion compared to the same period last year, driven by increase in construction volumes.
Gross profit rose by 16% to RUB 6.1 billion in the first half 2013 from RUB 5.2 billion in first half 2012
EBITDA(b) increased by 14% to RUB 4.7 billion compared to the same period last year
Net profit was RUB 1.3 billion
2012 dividend was RUB 2.2 billion or 51% of 2012 IFRS net profit announced in June and paid out.
Mostotrest CEO Vladimir Vlasov comments on the results:
“The level of tendering activity in the first half of the year was disappointing. However, the second half of the year has started well with Mostotrest winning a number of important tenders including the Phase 1 reconstruction of a major section of the M-11 “Narva” Highway with a contract value of RUB 4.1 billion and reconstruction of the Don River Bridge in Rostov-on-Don where the contract is worth RUB 5.0 billion. And between now and the end of the year, we intend to participate in a number of other tenders, including for PPP-based schemes, which if successful could significantly increase our backlog.
I would also draw attention to the fact that during the period under review Avtodor announced that construction of the new Moscow - St. Petersburg Highway was to be an Avtodor priority. The construction of this highway is expected to be a key market driver over the coming 4 years. The trickle down effect of this news is already apparent in 2H 2013 with Avtodor announcing tenders involving two sections of the highway worth approximately RUB 240 billion.
As regards other parts of our business, I would also like to highlight the success of Mostotrest-Service (NITP before rebranding), which was by far the biggest contributor to the results of our Services segment, as well as the entry into cash generation phase of our toll road operation subsidiary UTS. The Services segment share of Group revenue in the period under review increased to 8% from 1% in 1H 2012.
We are optimistic about the strong growth prospects for our backlog, on the back of tenders that may be held in 2H 2013 and next year”.
a) The press-release has been prepared on the basis of the condensed interim consolidated financial statements prepared in accordance with the IFRS as at and for the six months ended 30 June 2013 and 2012, as well as on the basis of the management accounts as at and for the same periods, as this set of financial statements in their entirety provide a comprehensive overview of the Group's performance for the six months ended 30 June 2013 and 2012.
To make the information in the press-release user friendly special notes are used. The information based on management accounts is marked with {*}.
The detailed “basis of presentation” description can be found in the Appendix nr. 2 at the end of the press-release.
b) EBITDA is defined as net profit from continuing operations net of income tax, net finance costs and depreciation. EBITDA is not defined by, or presented in accordance with, IFRS. EBITDA has limitations as an analytical tool, and one should not consider it in isolation, or as a substitute for analysis of the Group's operating results as reported under IFRS.
c) Backlog is not a measure defined by IFRS or RAS. The company's backlog represents its management's estimate of the contract value of its projects that remain to be completed as at a particular date, excluding VAT. Such value is calculated as the total contract value for each project that remains to be completed less the amounts already received under the contracts for such projects. The total contract value of a particular project represents the total amount that the relevant entity expects to receive under the contract for such project, assuming the contract is performed in accordance with its terms. A project is included in the backlog of a relevant entity when either a firm letter of commitment is executed by the customer or a letter is received confirming its bid has been successful. Backlog may not be indicative of the relevant entity's future operating results.
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