Who we are

HMS Group is one of the largest privately-owned machine-building companies in Russia and the CIS. The company’s profile is production of industrial machinery based around pumps, compressors and oil and 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. By 2013, HMS had completed a range of M&As and grown into a company with a sustainable place in the market and loyal high-profile customers, such as Rosneft, Transneft, Gazprom, Gazprom Neft, Rosatom, BP, ENI, and others.

In 2018, the Group fully integrated the compressor business, which started delivery of a substantial part of EBITDA.

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 c. 75-80% on average.

Revenue structure by contract's type, [%]


HMS has a well-diversified client base of over 6,000 names, including “blue-chip” clients, i.e. the largest oil and 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 industries, [%]

Revenue structure by client, [%]


Assets Geography

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 almost 15 thousand people.

The Group consists of

12

manufacturing facilities in Russia, CIS countries and Germany

6

Research & Development centres, including one of the largest pump-testing facilities in Europe

~14,500

employees

~6,000

well-diversified client base

HMS GROUP operates via four operating segments:

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
33%
contribution in consolidated
revenue
36%
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 development equipment
14%
EBITDA margin
39%
contribution in consolidated
revenue
44%
contribution in EBITDA

Description

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
12%
EBITDA margin
24%
contribution in consolidated
revenue
27%
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.
-8%
EBITDA margin
3%
contribution in consolidated
revenue
-2%
contribution in EBITDA