PJSC Power Machines announces its financial results for 2016 in accordance with the International Financial Reporting Standards (IFRS)

PJSC Power Machines announces its consolidated financial results of Power Machines Group of Companies incorporating the subsidiaries based on the 12 months’ period of 2016. Financial statements were audited by KPMG.

The Group’s revenues for the twelve months of 2016 has amounted to 77 bn. rubles, showing a growth by 29.4% as compared to the same period of the previous year (2015: 59.8 bn. rubles). Revenues’ increase was mainly driven by the active phase in implementation of such projects as Kudankulam NPP, Belarusian NPP, Barh TPP, as well as by completion of construction and delivery of the second phase of "Moscow City Block" residential complex, undertaken by Power Machines’ subsidiary Power Machines – Development.

The EBITDA indicator for the Group decreased down by 4.5% compared to the previous year and comprised 7.1 bn. rubles (2015: 7.4 bn. rubles). Gross profit increased by 80% up to 15.3 bn. rubles (2015: 8.5 bn. rubles). Net loss amounts to 4 bn. rubles (2015: 1.3 bn. rubles). Loss for the company is essentially attributable to negative foreign exchange differences (3.8 bn. rubles) and interest accruing on the financing raised (4.9 bn. rubles).  

Operating cash flow decreased down to -19.6 bn. rubles (2015: 4.1 bn. rubles), which resulted from postponement of the scheduled contracting of major projects until 2017–2018.

Power Machines’ book of orders as at December 31-st 2016 remained unchanged compared to the previous period and equals 5.5 bn. USD.

— The current status of the global economy, the general trend for reduction in interest charged for monies advanced for long cycle contracts and foreign exchange differences have adversely impacted the financial performance, — said Vadim Chechnev, Director for Economics and Finance of Power Machines. — Nevertheless, the stable position of the Company as Russian foremost manufacturer of power engineering products, provides balanced out utilization for the manufacturing facilities throughout the whole year. The Company’s capital investments in 2016 come to 2.3 bn. rubles, which is by 21% more than in 2015. Emphasis was made on renewal of property, plants and equipment of the enterprises, manufacturing power engineering products. During 2016, we also focused on raising business efficiency, cutting down costs and enhancing product quality. An important role in dealing with these tasks is expected to be played by Power Machines’ Business System, aimed at analyzing and optimizing all the Company’s processes by improving Company culture and operations.

Key financials of PJSC Power Machines for the 12 months of 2016 in accordance with International Financial Reporting Standards

12 months of 2016,
thousand rubles  
12 months of 2015,
thousand rubles
77 365 491
59 816 473
Production cost
(62 057 261)
(51 319 703)
Gross profit
15 308 230
8 496 770
Net Profit (Loss) 
(4 047 440)
(1 316 112) 
EBITDA 7 077 735
7 398 165