PJSC Power machines reports financial results for the first quarter of 2020. The company's financial statements were prepared in accordance with Russian accounting standards (RAS).
The company's revenue for the first quarter of this year increased by 24% compared to the same period in 2019 and amounted to 9.092 billion rubles. Gross profit increased 2.4 times and reached RUB 2.380 billion, while the gross profit margin increased from 14% to 27%.
Revenue growth was achieved by removing barriers and obstacles to the implementation of the current portfolio of projects with catching up the backlog made in previous years. The growth of profitability was also positively affected by the measures to reduce costs and optimize production processes carried out in the company, starting from 2019.
Increasing efficiency led to the fact that at the end of the first quarter – for the first time in recent years – the company showed a positive result on operating activities. Profit from sales amounted to 1.204 billion rubles. A final loss (1.543 billion rubles) in the financial statements was caused by negative exchange rate differences.
The company's total portfolio of orders for the first quarter of 2020 is 459.0 billion rubles. At the same time, in the 1st quarter of 2020, additional project contracts were concluded for the sum of 28.4 billion rubles. Only a part of the contract volume for 2019 is accounted for by the projects of DPM-Shtrikh upgrade program for thermal power plants, which makes it possible to balance the workload in all directions. About 50% is accounted for by contracting in Russia and the CIS countries. The remaining share in the volume of orders is taken up by the projects abroad, including in the nuclear and hydro power sectors.
A significant part of the contracted equipment is manufactured at Power Machines enterprises. This ensures a 30% increase in the utilization of our own production, and also allows us to create additional workplaces. By the end of 2020, the company intends to increase the number of production and engineering personnel at Leningradsky Metallichesky Zavod and Electrosila plants by more than 600 people.
The company's investment program is aimed at implementing projects that are strategically important for the Russian energy sector – the creation of domestic gas turbines with a capacity of 65 MW and 170 MW, the first Russian half-speed turbine for NPP with a capacity of more than 1200 MW. New products and services were also launched in development in 2019: predictive diagnostics system, ORC turbogenerator units, ball cleaning system for condenser tubes, and new electrical products are under development.