Annual Report 2020

Chairman’s statement

I can state the fact, with a huge sense of relief, that we have passed 2020 almost without losses

In 2020 we have met the pandemic on such a scale that it has affected absolutely all spheres of our life not only business.

HMS Group is one of the largest machine-building producer. The vast majority of our
13-thousand personnel are engaged in manufacturing. One of our priorities is social responsibility, and we pay a greater attention to our personnel’s security and health issues.

In spring 2020, as soon as alarm news about the COVID-19 pandemic started to spread, HMS froze manufacturing operations for several weeks, whereby we analyzed and developed appropriate security measures. HMS procured individual protective equipment, sanitizers, organized temperature screening at entrance checkpoints of our production facilities and offices. Huge work on organization of trouble-free operations of the majority of our office personnel in the remote mode was carried out.

And I can state the fact, with a huge sense of relief, that we have passed this tough time almost without losses.

HMS Group ended the 2020 year with order intake at Rub 54.2 billion. Though revenue was down to Rub 46.5 billion, EBITDA grew to Rub 4.9 billion thanks to the optimization program implemented in the 2nd half of 2019.

Our EBITDA margin grew to 10.6% despite weak results of the oil & gas equipment business segment.

A development team, consisted of representatives of Gazprom and HMS Group, was rewarded with the Russian Federation Government Prize in Science and Engineering for development and implementation of a modular compressor unit, intended for boosting of gas pressure in gas-collecting systems of oil and gas condensate fields.

HMS Group successfully launched a new type of a compressor — a flash gas compressor — for the 4th stage of the Yamal LNG project (NOVATEK). That was the first solution of that kind, made in Russia, and made fully of equipment made in Russia.

We signed the large Rub 7.5 billion contract for the delivery of equipment for the helium concentrate membrane recovery unit. The contract was follow-up, owing to a successful realization of the first one, unique and the first of this kind in Russia project on development and manufacture of such a unit. The unit, developed and made by HMS, allows to extract helium concentrate - the strategically valuable element - directly from produced natural gas.

We also take part in a range of interesting projects, and plan to further advance our competences in realization of high-scale projects.

Yours faithfully,
Nikolay Yamburenko