31 July 2012
Stroytransgaz has analyzed its financial results for the first half of 2012.
The key financial figures compared to the first half of 2011 are as follows:
The company’s improved operating activity and proceeds from the non-core assets sales became the main factors of the net profit growth for the first half of 2012. The gross profit margin for the first half of 2012 made 7.2% of the revenue, which is 1.87% higher than the result of the first half of 2011. EBIT margin has reached 13.79%. Compared to the same period of the last year, the company’s revenue gained from the construction works has decreased by 27.9% reaching 12.83 bn RUR. The revenue decline was caused by change in the company’s focus towards more profitable industries and reduction of the projects portfolio in low-yield construction segments. Short-term and long-term liabilities in the amount of nearly 12 bn RUR settled in March 2012 with the funds gained from STG’s sold non-core assets had a positive effect on the indices of financial stability and liquidity. It also allowed to arrange for all STG’s payments planned for the settlement of principal debt and current interest up to April 2013.
Both debt/revenue and short-term debt/revenue ratios have improved. In particular, the ratio of short-term liabilities to revenue (by year) reached 0.07 (0.41 in 2009) as of July 01, 2012. Interest Coverage Ratio (EBIT to interest payments) reached 1.45 in the first half of 2012. Long-term credits and loans, which are the most reliable way of investment financing, take a major (78%) part in STG’s investment portfolio, which decreases short-term debt load and enhances financial stability. As of 01.07.2012, the current liquidity index has reached 1.41, which is 0.05 higher than the index in the beginning of the year. Besides, the share of STG’s ruble-denominated credits and loans currently makes 100%, which minimizes currency risks when financial markets are unstable.
The business diversification currently carried out by the company produces a considerable positive effect. STG has started to work dynamically in such high-yield industries as infrastructure, industrial, and road construction, thus enhancing its resistance to industry risks. The share of the company's revenue in the new construction segments reached 11.1% in the first half of 2012.
Additional Information
PJSC Stroytransgaz is a major Russian construction and engineering company. It implements and manages investment and construction projects in oil and gas, power energy and other fields of industrial and civil construction in seven Russian regions and fourteen foreign countries.
In 2011, Stroytransgaz took an active part in oil and gas and power energy projects with total contract value over 150 bln RUR. The company’s profit in 2011 reached 41.4 bln RUR, 27.4% more than in 2010. The increase in the scope of construction works (22% of them were carried out at overseas projects) during the business year accounted for 28.6 % of the profit.