OMZ ups Q1 RAS net profit 175% to 33 mln rubles
MOSCOW. May 17 (Interfax) - OJSC United Heavy Machinery (OMZ) made 33 million rubles in net profits to Russian Accounting Standards (RAS) in the first quarter of this year, a 175% jump from the 12 million rubles it made in the same quarter last year, the company reported.
Sales revenues plunged 84% year-on-year to 146.6 million rubles.
"The main positive factor influencing net profit growth was a reduction in overhead charges. Management and commercial expenditures decreased by 31 million rubles, or 22% [compared to Q1 2010]," the company said.
Pretax profits almost doubled to 43.2 million rubles. Income from services provided accounted for 92% of overall Q1 revenue, product sales for the rest, in a reverse from the same quarter last year.
OMZ's short-term obligations stood at 8 billion rubles on March 31, up 30% over the quarter. Long-term obligations totaled 3.3 billion rubles. "The main reason for the increase in short-term obligations was shifting a bond loan of 1.5 billion rubles from long-term to short-term [in accordance with the redemption date]," the report says.
The company made 80 million rubles in RAS net profits in 2010, 560% more than in 2009. Sales revenues were up 45% at 4.87 billion rubles, pretax profits 240% at 123.7 million rubles.
OMZ builds, installs, and services equipment for the nuclear power, oil and gas, and mining industries and makes special steels. It has production facilities in both Russia and the Czech Republic. The group commands a 41% share of heavy-machinery market for the oil and gas industry and 55% of that for cryogenic air-separation units.
CJSC Forpost Management holds 46.31% of the group's charter capital (49.9% of ordinary shares), Investresurs LLC 18.54% (19.98%), Lindsell Enterprises Ltd 5.56% (5.99%), and OMZ B.V. 17.84% (11.55%). OMZ is controlled by Gazprombank.