NRA Confirms Creditworthiness Rating of Stroygazmontazh
OREANDA-NEWS. National Rating Agency confirmed AA-level сreditworthiness rating of LLC "STROYGAZMONTAZH" according to the national scale.
The level of the Company's сreditworthiness rating is supported by the leading positions of the Group in its market segment, high financial indicators and operational results as well as positive assessment of business prospects. Under moderately high profitability and a low debt load the Company has stable and sufficient liquidity, impressive order portfolio in different types of construction in the oil and gas industry. The Agency also remarks the positive trends in the Group activity regarding to the business diversification and optimization of the ownership structure, which shows even greater transparency of the Company's business.
High concentration of order portfolio to serve OAO Gazprom usually influences the rating assessment while there are political risks that are peculiar to the state-controlled gas monopolist. Moreover, according to the results of 2013 the Agency noted the negative dynamics of some financial indicators while they maintain high level.
LLC "STROYGAZMONTAZH", which was founded in November of 2007, is a managing company of SGM Group of Companies. The core business of the Group is the management and implementation of projects in the construction of trunk pipelines, development of gas fields, gas and oil processing industries, gas supply system development of constituent entities of the Russian Federation as well as overhaul and diagnostic inspection of the gas pipelines.
Nowadays the Group participates in the construction of large-scale projects such as South European Gas Pipeline (Pisarevka - Anapa and Pochinki - Anapa), Bovanenkovo - Ukhta Trunk Gas Pipeline, 2nd String, Urengoy - Pur - Pe, Urengoy - Surgut Condensate Pipelines and lateral gas pipelines from Eastern Siberia-Pacific Ocean (ESPO) pipeline on Komsomolskiy Refinery. Works on reconstruction of Chusovoy - Bereznyaki - Solikamsk and Okhansk - Kirov Gas Pipeline Laterals are performed.
In 2012-2013 SGM Group of Companies laid over 1 500 km trunk gas pipelines and over 3 000 km gas network in more than 20 constituent entities of the country within the framework of the Program of Regions Gasification of the Russian Federation as well as 19 onshore facilities are put into operation. SGM Group of Companies took part in particularly all major trunk gas pipelines and onshore facilities of the oil and gas infrastructure on the territory of the Russian Federation. SGM's key customers are Gazprom's Group of Companies. However, recently there has been diversification of order portfolio due to the participation of OJSC Rosneft in the projects.
The Company's activity involves in the implementation of large-scale projects (over 1 year project period) that is why financial indicators can vary from time to time depending on construction terms and the stage of facility completion.
In 2012, thanks to the completion of 7 several major projects such as Sakhalin - Khabarovsk - Vladivostok Trunk Gas Pipeline, Ukhta - Torzhok Gas Pipeline System (1st stage of construction) and Bovanenkovo - Ukhta (1st string) Trunk Gas Pipelines and others, the Company managed to achieve very high financial indicators in accordance with IFRS. In 2013, three projects of linear construction were completed. These facilities form from 45% to 65% of the Company's revenue. At the present day near 6 projects are under the implementation (including those started in 2013) that will enable to increase the volume of revenue in relation to the figures of 2013. Other areas of activity don't have any positive or negative dynamics. Such areas of business as overhaul and other construction and installation works, onshore construction and gasification provide sustainable revenue. Taking into account entering the construction market of oil transportation facilities and field development facilities the Company plans to get additional revenue in these construction areas.
According to the Company's IFRS data as of December 31, 2013, the Company asserts accounts for 138.7 billion rubles, the equity decreased up to 27.7 billion rubles (fell by 30% in relation to 2012 due to the dividends payment). In 2013 the overall revenue totaled over 188.1 billion rubles, in 2012 it amounted to about 283.3 billion rubles. The net profit for the year accounted for 12.8 billion rubles, in 2012 it totaled 34.1 billion rubles. The Group's total debt declined and equaled 16.6 billion rubles (fell by 32% in relation to 2012), the net profit contracted by 77% in relation to 2012 and amounted to 4.59 billion rubles. The debt load is estimated as a modest one. Net profit divided by EBITDA doesn't exceed a ratio of 1. The only credit bank of the Company is OAO Gazprombank.
National Rating Agency (NRA) operates since 2002 and is one of leading independent rating agencies of Russia. Over 350 legal entities are the NRA clients by assigned contact ratings. More than 1.000 companies and banks participate in other information project of NRA.
NRA certified by the Ministry of Finance of the Russian Federation. NRA ratings are recognized by the Central Bank of the Russian Federation, Moscow Exchange, The Ministry of Economic Development and Trade, the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), State Corporation "Russian Corporation of Nanotechnologies" (ROSNANO), the Agency for Housing Mortgage Lending (AHML), the Russian National Association of Securities Market Participants (NAUFOR), the National Fund Association (NFA), the National Securities Market Association (NSMA), the National League of Management Companies (NLMC), the Association of Russian Banks (АRB).
Since 2011 NRA is a member of the European Association of the Credit Rating Agencies (ЕАСRA). Since 2011 NRA complies with the code of professional ethics of the Russian Rating Agencies, approved by Council of the Self-Regulated Organization of the National Fund Association.
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