HMS Group to produce block modular equipment for Surgutneftegaz

HMS Neftemash, a subsidiary of HMS Group, concluded an agreement with Surgutneftegaz for production and delivery of a large run of automated group measure units Mera Massomer and water distribution units for the number of Surgutneftegaz subsidiaries.

A bulk of Mera Massomers including more than 170 units, will be delivered to the customer in the course of 2012. Thus unit is a block modular skid and is used for automated measurement of gas and oil well capacity.

Water distribution units (valve manifold) totaling more than 190 items will be delivered to the customer during first three quarters of 2012 and are used for distribution and measurement of flow and pressure of the water injected to the wells of reservoir pressure maintenance system.

Surgutneftegaz is one of the key customers of the Group. In 2011 HMS Group has carried out number of deliveries to this customer, including the equipment of oil and gas fields development such as gas reduction units, equipment for reservoir pressure maintenance systems and a pumping station used in water intake and distribution systems.

The 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. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. The Group reported revenues of RUB 20 billion, adjusted EBITDA of RUB 4.4 billion and profit for the period of RUB 2,9 billion for the nine months ended September 30, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.