HMS Group signs a large contract with Surgutneftegaz

Sibneftemash, a subsidiary of HMS Group, signed a lump-sum contract for the production and delivery of a stationery cement silos for Surgutneftegaz.

According to the contract the Group will deliver a stationery cement silos for loading, storage and discharging of cement. This storage is the second facility of this type designed and produced to the client specifications for harsh climate conditions. Total volume of these two storages is 10 thousand tones.

Surgutneftegaz is one of the largest customers of the equipment for cement storage which is used in well and remedial cementing. Also, the company purchases broad range of pumps and oil and gas equipment produced by the HMS Group. In 2011-2012 Group`s subsidiaries have delivered a set of block modular units for water injection, tanks and vessels as well as other technological equipment for this customer.

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. 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 for the period of RUB 485 million for the 3 months ended March 31, 2012. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.