HMS Group posted strong results in line with the market consensus

Revenue increased by 19% y-o-y to RUB 27.5bn. The growth was mainly triggered by an increase in revenue from the industrial pump segment, which saw revenue rise by 39% y-o-y to RUB 15bn. Revenue in the oil and gas equipment segment grew by 7% y-o-y to RUB 6.2bn as revenue from the Vankor project began to be recognized in 4Q, and the Sibneftmash acquisition also contributed. However, revenue in the engineering, construction and procurement segment decreased by 3% y-o-y to RUB 6bn.

Rising revenue anticipated on strong growth in the industrial pump segment

HMS is expected to post 2011 IFRS results on Wednesday, April 25th. We expect to see 2011 revenue increase by 21% y-o-y to RUB 28bn, driven by a 49% y-o-y rise in revenue from the industrial pump segment arising mainly from the ESPO contract. According to our estimates, revenue from the oil & gas equipment division was down by 3.6% y-o-y to RUB 5.6bn as orders for integrated solutions have fallen off. Revenue from the engineering, procurement and construction segment remained flat at RUB 6.1bn.

Портфель заказов ОАК увеличился на 10% благодаря военным заказам на сумму 10 млрд. долл. США от Министерства обороны РФ и Сирии

В период с января по март 2012 г. ОАК подписала два крупных контракта на сумму 4 млрд. долл. США, благодаря чему, по нашим расчетам, портфель заказов компании вырос на 10% и составил 45 млрд. долл. США. В частности, ОАК подписала контракт с Сирией на сумму 550 млн. долл. США на поставку 130 учебно-боевых самолетов Як-130, а также контракт с Министерством обороны РФ на поставку 92 фронтовых бомбардировщика Су-34. Несмотря на то, что сумма последнего контракта не была раскрыта, мы предполагаем, что она составляет порядка 3,4 млрд. долл. США.

UAC backlog expanded by 10% due to USD 4bn military orders for Russian Defense Ministry and Syria

From mid January to mid March 2012 United Aircraft Corporation (UAC) signed two large contracts worth USD 4bn, increasing its backlog by 10% to USD 45bn, according to our estimates. UAC signed a USD 550mn contract with Syria to deliver 36 Yak-130 training aircraft as well as a contract with the Russian Defense Ministry to deliver 92 SU-34 bombers. Although the value of the latter contract was not disclosed, we estimate its value at around USD 3.4bn.

HMS Group has placed a RUB 3bn bond issue

HMS Group announced the placement of a RUB 3bn bond issue with a maturity of 3 years and semi-annual coupon payments. The coupon rate was set at 10.75%.