Annual Report 2020

Who We Are

HMS Group is one of the largest privately-owned machine-building companies in Russia and the CIS. The company specializes in production of industrial machinery based around pumps, compressors as well as oil & gas equipment, including state-of-the-art and highly sophisticated solutions. HMS Group is the only machine-building company from Russia listed on the London Stock Exchange.

The company was established as a small trading company in 1993. Today, HMS is the company with a sustainable place in the market and loyal high-profile customers, such as Gazprom, Rosneft, NOVATEK, Transneft, Gazprom Neft, Rosatom, LUKoil, BP, ENI, and others.

The company produces both serial and/or standard models (recurring business) and customized configurations (large integrated projects). The execution of large projects includes implementation of the crucial project’s work as well as large-scale projects’ turnkey execution, from project and design to commissioning and launching. Revenue from recurring business contributes 74% on average.

A well-diversified client base includes “blue-chip” clients, i.e. the largest oil & gas companies in Russia and the CIS. Our clients operate through numerous contracts in different subsidiaries, which take independent purchasing decisions. A significant portion of HMS’ revenue is generated by the oil & gas industry, from downstream to upstream.

Revenue structure by contracts’ type, 2020

Revenue structure by contracts’ type, 2020

Revenue structure by industries, 2020

Revenue structure by industries, 2020

Revenue structure by client, 2020

Revenue structure by client, 2020


HMS is a dynamic engineering company with successful practice in the design, installation, construction and commissioning of complex oil and gas production and water facilities. It is a vertically integrated holding company with a modern corporate management system wherein the functions of the manufacturing companies’ shareholders and that of its business administration are traditionally separated.


The parent holding company is HMS HYDRAULIC MACHINES & SYSTEMS GROUP PLC (the Republic of Cyprus). It issued securities in the form of Global Depositary Receipts at the London Stock Exchange in February 2011.
The Group consists of 12 manufacturing facilities in Russia, CIS countries and Germany, plus six Research & Development centres, including one of the largest pump-testing facilities in Europe, and employs 14 thousand people.

HMS Group operates via four operating segments:

15%
EBITDA margin
43%
contribution in consolidated revenue
59%
contribution in EBITDA

Description

This is the oldest business segment, responsible for the project and design, engineering, manufacturing and supply of a diverse range of pumps and pump-based integrated solutions to customers in the oil and gas, power generation and water utilities sectors in Russia, the CIS countries and across the globe. It also provides aftermarket maintenance, repair services and other support for its products.

Core products and services:

  • Oil refineries
  • Nuclear and Thermal power
  • Water utilities
  • Water injection
  • Trunk pipelines
  • General industrial pumps
13%
EBITDA margin
32%
contribution in consolidated revenue
39%
contribution in EBITDA

Description

The compressor business segment was established after the acquisition of the leading Russian compressor producer, Kazankompressormash, in July 2012. The division is responsible for project and design, engineering, manufacture, and supply of a diverse range of compressors and compressor-based solutions to customers in the oil and gas, metals and mining and other core industries in Russia.

Core products and services:

  • Oil & gas production
  • Oil & gas transportation
  • Gas processing
  • Oil refineries
  • Oil & gas chemistry
  • Refrigeration applications for various industries
2%
EBITDA margin
23%
contribution in consolidated revenue
5%
contribution in EBITDA

Description

The oil & gas equipment business segment manufactures, installs and commissions modular pumping stations, automated metering equipment, and oil, gas and water processing and preparation units, as well as other equipment and systems, that are primarily used for the extraction and transportation of oil.

Core products and services:

  • Oil pumping stations and pump stations for water injection
  • Oil & gas and water processing units
  • High-precision and automated metering units
  • Tanks, reservoirs and vessels
  • Oil & gas chemistry
  • Oil development equipment
-9%
EBITDA margin
2%
contribution in consolidated revenue
-1%
contribution in EBITDA

Description

The fourth operating segment consists of only one facility, Tomskgazstroy. It focuses on the main and infield pipelines and oil and gas-condensate fields, facilities construction and overhaul.

Core products and services:

  • Construction, reconstruction and overhaul of the linear objects, e.g. namely oil pipelines, gas pipelines, product pipelines, water pipelines, condensate pipelines and power transmission lines.