Power Machines IFRS net profits soar 141% to $138 mln in H1
MOSCOW. Sept 5 (Interfax) - OJSC Power Machines increased its first-half net profits by 141% year-on-year to $138 million, the company reported.
Sales revenues were up 122% at $866.9 million and pretax profits 145% at $166.8 million.
"Thanks to the implementation of a large-scale investment program aimed at cost-cutting and minimizing production expenses, the company's EBITDA [earnings before interest, taxes, depreciation, and amortization] exceeded the same figure for 2010 by 34% and amounted to $198 million," the company said.
The company's production costs increased 120% over the half to $598.7 million, gross profits 126% to $268.3 million, and operating profits 145% to $173 million. the EBITDA (earnings before interest, taxes, depreciation, and amortization) margin was virtually unchanged year-on-year at 22.8%.
Russia has traditionally contributed the most to Power Machines sales revenues (roughly 85%). In the first half of this year, Russian contracts brought the country $734.4 million, or 29% more year-on-year. India increased its contribution 9-fold to $55.8 million. (As reported, an additional agreement on expanding the contract pricing on the Bahr thermo-power station in India was signed in H1.)
Central and South America, on the other hand, decreased their contribution 89% to $6.7 million. That of Europe and China/Central Asia were almost unchanged at a respective $45.6 million and $20.5 million.
Other countries brought the company $3.1 million in sales revenues, 66% less than the amount they contributed in H1 2010.
Power Machines builds and supplies equipment for hydropower, thermal energy, and nuclear power stations, as well as power stations with combined steam-to-gas cycles. It has production assets in the Leningrad and Pskov regions, in St. Petersburg and Kaluga. The entrepreneur Alexei Mordashov's Highstat Ltd. holds 69.92% of its stock and Siemens another 25%.
As reported, Siemens will be selling its stake Power Machines to Highstat Ltd, a deal to be wrapped up after Russia's Federal Antimonopoly Service (FAS) gives the go-ahead. At the same time, Power Machines and Siemens will be setting up in Russia a joint venture for the production and servicing of large gas turbines. The German company will own 65% of its charter capital and Power Machines 35%.