Press releases

Mostotrest Announces First Half 2012 Results


Mostotrest, Russia’s leading infrastructure construction group delivered a strong financial performance in the first half of 2012, increasing revenue by 25% and net profit by 14%. The Company continued its drive into related business segments in line with its strategy, maintained a stable financial position and increased capital investments.

Key operating and financial results:

  • Backlog(b) of RUB 299.7* billion, with RUB 25.7* billion(с)  in new project additions
  • Revenue grew 25% to RUB 45.7 billion, mainly driven by an increase in construction volumes
  • Gross profit rose by 6% to RUB 6.0 billion in the first half of 2012, from RUB 5.7 billion in the first half of 2011, on the back of construction volumes growth coupled with an increase in the share of works performed using services of subcontractors(d)
  • EBITDA(e) rose 7% to RUB 4.5 billion
  • Net profit grew 14% to RUB 1.8 billion
  • Net cash (cash and equivalents less debt) as at June 30, 2012 was RUB 0.3 billion
  • 2011 dividend of RUB 2.0 billion or 54% of 2011 IFRS net profit announced in June 2012
  • The Group continued implementation of its investment program, increased capital expenditure by 45%.

Mostotrest CEO Vladimir Vlasov comments on the results:
“In first half, actual tendering volumes were disappointingly low, with a number of major tenders previously earmarked for the first half of 2012 being postponed, including in regions where the Group has a strong market footprint.

In the period, the Group took a number of important steps towards implementing its strategy.  In particular, we acquired a stake in NITP, a company that specialises in road repair and maintenance services, including road marking and road and bridge overhauls.  The road repair and maintenance market is growing rapidly, driven also by introduction of full life-cycle contracts and operating contracts. Having a presence in this sector allows us to control the costs of long-term maintenance contracts and better assess them at the tendering stage. In addition repair and maintenance business provides us with stable, recurring cash flows.

In terms of organic growth we set up a separate project planning department, whose main role will be to manage all aspects of the pre-construction preparation stage, including running the permit approval process and fine tuning project documentation. These tasks are becoming an integral requirement for general contractors implementing large complex projects.

In terms of future development, we continue to look at diversification options both in our core areas of operation and in related segments. We aim at being able to perform highly profitable works with own forces as well as at building up our expertise and experience in related segments with the involvement of public private partnerships that offer stable cash flows and further opportunities for growth”.


a) The press-release has been prepared on the basis of the condensed interim consolidated financial statements prepared in accordance with the IFRS as at and for the six months ended 30 June 2012 and 2011, as well as on the basis of the management accounts as at and for the same periods, as this set of financial statements in their entirety provide a comprehensive overview of the Group’s performance for the six months ended 30 June 2012 and 2011.

To make the information in the press-release user friendly special notes are used. The information based on management accounts is marked with {*}.

The detailed “basis of presentation” description can be found in the Appendix nr. 2 at the end of the press-release.

b) Backlog is not a measure defined by IFRS or RAS. The company’s backlog represents its management’s estimate of the contract value of its projects that remain to be completed as at a particular date, excluding VAT. Such value is calculated as the total contract value for each project that remains to be completed less the amounts already received under the contracts for such projects. The total contract value of a particular project represents the total amount that the relevant entity expects to receive under the contract for such project, assuming the contract is performed in accordance with its terms. A project is included in the backlog of a relevant entity when either a firm letter of commitment is executed by the customer or a letter is received confirming its bid has been successful. Backlog may not be indicative of the relevant entity’s future operating results.

с) Excluding VAT.

d) Share of works performed using services of subcontractors is calculated as costs of services of subcontractor divided by total revenue less other revenue.

е) EBITDA is defined as net profit from continuing operations net of income tax, net finance costs and depreciation. EBITDA is not defined by, or presented in accordance with, IFRS. EBITDA has limitations as an analytical tool, and one should not consider it in isolation, or as a substitute for analysis of the Group’s operating results as reported under IFRS.


Mostotrest (including LLC Corporation Engtransstroy and LLC TRANSSTROYMEKHANISATSIYA) is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had an 8.6% share of the total Russian infrastructure construction market in 2011 (excluding road maintenance and rehabilitation). Mostotrest’s core competences include construction and rehabilitation of automobile, railway and urban bridges, automobile roads and other transport infrastructure.

The company was established in 1930 as a developer of complex and oversized bridges, and has built and rehabilitated more than 7,500 infrastructure projects (bridges, flyovers, tunnels and interchanges) to date.

Mostotrest is currently implementing major infrastructure development projects across Russia, including transport infrastructure for the 2014 Sochi Olympics, Enthusiasts Avenue traffic interchange in Moscow, as well as infrastructure projects along M-4 Don, M-7 Volga and other highways.

Mostotrest Ownership Structure:
38.6%: Marc O’Polo Investments (beneficiary shareholders: Arkady and Igor Rotenbergs and top-managers of N-Trans, including Konstantin Nikolaev, Nikita Mishin and Andrey Filatov);
27.1%: Transfingroup Asset Management Company, trustee of Blagosostoyanie Pension Fund
34.3%: free float.

For more detailed Company information, please visit


Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Mostotrest. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Mostotrest wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Mostotrest does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Mostotrest, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian infrastructure construction market, as well as many other risks specifically related to Mostotrest and its operations.

The information contained in this document is not for release, publication or distribution in whole or in part in or into the United States. These materials do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States.  The securities referred to in this document have not been and will not be registered under the US Securities Act of 1933, as amended, (the Securities Act) and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

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