We delivered what we promised. And we managed to increase revenue by 18 percent to Rub 52.6 billon, prevent net income from significantly falling, maintaining the level of Rub 1.9 billion.
2018 was the year in which we celebrated the 25th anniversary of HMS Group. Looking back, I’m very proud of the kind of company HMS Group has turned into.
Once again, we delivered what we promised. Our team delivered good results in 2018, surpassing the historic success of last year. We managed to increase revenue by 18 percent to Rub 52.6 billon, and prevent net income from significantly falling, maintaining the level of Rub 1.9 billion.
In recent years, we have observed a decline in profit margin for recurring products because of a significant increase in competition on limited markets in Russia caused by slower economic growth. Despite this, we are optimistic about the company’s prospects.
The compressor business has been fully integrated into HMS Group and started to deliver a significant part of EBITDA. In 2018, we became a supplier of gas transportation units for Gazprom. Moreover, we built a sounding portfolio of orders in this regard, which will allow the compressors to generate more profit.
In 2018, we signed a number of contracts to deliver pumping units to nuclear power plants located both in Russia and abroad.
We continue to strengthen our presence on the extremely competitive and technically sophisticated market of solutions based around pumps, compressors and oil and gas equipment. And we are very proud that NOVATEK has become one of our main customers along with Rosneft, Gazprom and Gazprom neft.
In 2018, HMS further continued to reduce interest expenses and extend its debt portfolio duration. At the end of 2018, our average interest rate was decreased to 8.7% p.a. compared with 9.8% in 2017.
We feel well equipped for 2019, and will take advantage of the opportunities on the market.