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28 Aug 2012 08:50
HMS Group Investor Relations ReleaseMoscowAugust 28, 2012
HMS Hydraulic Machines & Systems Group plc(the "Company", and together with its subsidiaries, the "HMS Group")
HMS Group signs US$ 85 mn contract for "turn-key" project in Turkmenistan
Moscow, Russia - August 28, 2012 - HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, announces today that it has signed a contract for reconstruction of 3 water-pumping stations worth US$ 85 mn with the Ministry of Water Resources of Turkmenistan.
In accordance with the contract, HMS Group will carry out all the works associated with a full reconstruction of water-pumping stations of the irrigation channel "Zakhmet-Turkmenkala" in the Mary province. These pumping stations will transmit water to the river Murgap for improving water supply to agricultural lands to the south of the river Kara-Kum.
The reconstruction represents the "turn-key" construction of new pumping stations, replacing the old ones, in the area with high seismicity at 7.0 on the Richter scale. There will be 50 specially designed-and-produced-by-HMS D12500 type pumps installed, with nominal power rate of 40 MW and capacity over 515 thousand cubic meters per hour in total. Blueprint design, production and delivery of unique pump-based integrated solutions will be completely executed by the Group's subsidiaries, representing different business units of the company. The project is to be completed in 2014.
According to Kirill Molchanov, Chief Financial Officer (CFO) and co-founder of HMS Group:
"At the beginning of 2011, we completed a turn-key construction of a similar water-lift pump station at the Yylgynagyz water channel in Lebap province, having proved HMS' capability to design and construct the demanding technical solutions for water utilities in harsh desert conditions. All equipment installed was designed and produced by HMS specifically for this project.
The signing of the follow-up contract fully corresponds to our strategy of developing export business and further strengthening the company's market positions in Central Asia".
For more information, please contact:Investor Relations: Inna Kelekhsaeva, Deputy Head of Investor RelationsPhone: +7 (495) 730-6601 x 1318, Kelekhsaeva@hms.ru
Media Relations: Nozima Karimova, Head of Press ServicePhone: +7 (495) 730-6610, Karimova@hms.ru
The "Zakhmet-Turkmenkala" water irrigation machine channel is a part of the 1445 kilometers long Turkmenbashi channel (former the Kara-Kum channel) - the main source of water in southern and southwestern provinces of Turkmenistan.
HMS Group is the leading pump manufacturer and 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. HMS' products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia's core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of Rub 7.3 billion, adjusted EBITDA of Rub 1.4 billion and profit of Rub 485 million for the 3 months ended March 31, 2012. HMS Group's global depositary receipts ("GDRs") are listed under the symbol "HMSG" on the London Stock Exchange.
DISCLAIMER
THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR, GDRs OR OTHER SECURITIES TO ANY PERSON IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL AND, IN PARTICULAR, IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION.
THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OF ANY SECURITIES IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE HMS GROUP HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY PORTION OF ANY OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF ANY SECURITIES IN THE UNITED STATES.
THIS COMMUNICATION IS ONLY BEING DISTRIBUTED TO AND IS DIRECTED ONLY AT (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER") AND (III) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED, FALLING WITHIN ARTICLE 49(2) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THE SECURITIES REFERRED TO IN THIS ANNOUNCEMENT ARE ONLY AVAILABLE TO, AND ANY INVITATION, OFFER OR AGREEMENT TO SUBSCRIBE, PURCHASE OR OTHERWISE ACQUIRE SUCH SECURITIES WILL BE ENGAGED IN ONLY WITH, RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS.
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