Power Machines reported its financial results for 2020
JSC "Power Machines" reports its financial results for 2020. The company's financial statements have been prepared as per the Russian Accounting Standards (RAS).
At the end of 2020, the net profit of JSC "Power Machines" amounted to 6.697 billion rubles compared to a net loss a year earlier (-21.325 billion rubles). Total revenue in 2020 amounted to 58.720 billion rubles, which is 48% higher than the same indicator in 2019. Gross profit reached 12.203 billion rubles (2019: gross loss of -3.533 billion rubles). The gross profit margin has moved from the negative zone to the positive one: from -8.9% to 20.8%. Cash inflows from operating activities in 2020 amounted to 46,459 billion rubles. Cash at the end of 2020 amounted to 8.153 billion rubles.
Despite the decline in economic activity due to the corona virus pandemic, the company successfully coped with the challenges of 2020 and for the first time in the last five years ended the financial year with a net profit. This was made possible due to the high level of operational efficiency and establishment of clear processes for managing executed projects within the company, as well as a set of measures to reduce costs and optimize production processes performed in the company since 2019.
The total order portfolio of JSC "Power Machines" at the end of 2020 amounted to 541 billion rubles, which is 39% more than the same indicator in 2019. In 2020, the signed contracts amounted to 186 billion rubles. In 2020, the total share of contracting in Russia and the CIS countries in amount of contracts concluded was about 25%, which is associated with large contracts in the foreign market. A significant part of the contracted equipment is manufactured at Power Machines enterprises. This ensures a 30% increase in utilization of its own production, and also allows for creating additional workplaces.
JSC "Power Machines" ranks second in the world in terms of contracting equipment for nuclear power. The company makes a significant contribution to the upgrade of the power capacities of thermal power plants in Russia under the state program of COMMod, which provides for upgrade of turbine, generator and boiler equipment, transition from the steam-power cycle to the combined cycle. Implementation of the program is designed for the period up to 2031. The Central Asian region is key for JSC "Power machines" in implementing projects for construction and upgrade of hydroelectric power plant equipment. The company participates in projects, including construction of small hydroelectric power plants, supporting the development of RES in Central Asia.
The investment program of JSC "Power Machines" in 2020 amounted to 4 billion rubles, which is 18% more than in 2019 (2019: 3.4 billion rubles). The investment program of 2020 was a continuation of the strategic development of the Company, the purpose of which is to create a modern industrial enterprise with updated, rationally located production assets, to reduce the cost of manufactured products, and to master new types of products with technical characteristics corresponding to or superior to world equivalents. The main investments are aimed at implementation of the projects that are strategically important for the Russian energy sector – creation of domestic gas turbines with a capacity of 65 and 170 MW, the first Russian low-speed turbine for nuclear power plants with a capacity of more than 1200 MW, process equipment of facilities, development of information technologies, and improving industrial safety.