The Group built its backlog at Rub 24,035 million, down 2 percent yoy due to the decline in the compressors business segment.
|Backlog, Rub mn||2016 FY||2015 FY||Change yoy|
|Oil & Gas equipment||8,512||5,716||49%|
|Project and design||1,011||1,121||-10%|
In the pumps business segment, the backlog increased 2 percent yoy to Rub 10,318 million because of inflow of contracts for recurring products. In the oil & gas equipment business segment, the backlog increased by 49 percent yoy to Rub 8,512 million due to the increase in the number of signed contracts for recurring products. The compressors’ backlog declined to Rub 3,476 million because of revenue recognition of two large contracts signed in 3Q 2015 and 1Q 2016 and fewer contracts signed for recurring products. The EPC backlog increased by a minor 2 percent to Rub 1,730 million due to better performance of the construction sub-segment.
|Order intake, Rub mn||2016 FY||2015 FY||Change yoy|
|Oil & gas equipment||17,125||7,919||116%|
|Project and design||1,557||1,698||-8%|
Order intake1 grew by 23 percent and equalled Rub 40,624 million based on growth of all segments except the compressors. Order intake for industrial pumps increased by 4 percent because of more orders for recurring products. The oil & gas equipment grew by 116 percent not only because of large contracts signed but also due to 72 percent growth of recurring business.
In 2016, HMS Group signed three large contracts: two contracts worth almost Rub 5.6 billion in the oil & gas business segment, and a Rub 2.8 billion contract - in the compressors segment.
Order intake for compressors decreased by 36 percent because the large contract signed in the reporting period (Rub 2.8 bn) was smaller than the large one signed in the comparative period (Rub 3.7 bn) combined with fewer recurring contracts signed. The latter was less because Kazankompressormash slowed down its activity in the area of recurring business to keep its productive capacity free as there were several large contracts under discussion. One of these discussed contracts was signed in 1Q 2017, adding Rub 3.9 billion to the compressors’ order intake and backlog.
In the EPC segment, TGS (the construction sub-segment) signed a number of new contracts.___________________________