Hms Hydraulic S Regulatory News (HMSG)

29 Jul 2013 13:50

HMS GROUP TO PROVIDE PUMP-BASED SOLUTIONS FOR ZAPOLYARYE – PURPE PIPELINE

Moscow, Russia – HMS Hydraulic Machines & Systems Group PLC (LSE: HMSG), today announces that it has concluded the agreement with Transneft for production and delivery of 8 trunk pipeline pump units for 2 pump stations of the Zapolarye – Purpe Oil Pipeline totaled Rub 1.5 bn (USD 47 mln). The 500 km pipeline located in Yamalo-Nenetsk region and has the projected capacity of 45 mln tonnes of oil per year.

According to the contract the Group will provide a wide scope of works and services including production, testing and delivery of trunk pipeline pump units, booster pumps units, delivery of spare parts, as well as assembling and commissioning on the customer’s sites. The project will be executed in harsh arctic environmental conditions, including permanent frost areas, which required a development of customized technological solutions in accordance with strict client’s requirements.

Previously, HMS Group participated in a number of projects in the oil transportation infrastructure development, including East Siberia – Pacific Ocean pipeline, Purpe-Samotlor and Baltic Pipeline System.

Artem Molchanov, Managing Director (CEO) of HMS Group, commented:

“I’m proud to say that we regularly prove our capability to successfully execute the most technologically demanding projects, which shape a future of the Russian oil industry and continue an effective cooperation with our key customer.“

The HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are key elements of projects in a diverse range of basic industries. The Group reported revenues of RUB 7.3 billion, adjusted EBITDA of RUB 854 million and profit for the period of RUB 26 million for the 3 months ended March 31, 2013. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.

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