Press releases

Mostotrest Announces First Half 2013 Results

OJSC Mostotrest (hereinafter – "Mostotrest", "the Company" or together with the consolidated subsidiaries "the Group") publishes its financial and operating results for the period ended 30 June 2013(a).

Mostotrest, Russia’s leading integrated infrastructure construction group, delivered strong financial results in 1H 2013, increasing revenue and EBITDA(b) by 32% and 14%, respectively compared to 1H 2012. The Services segment increased its share of overall Group revenue over the period to 8% from 1% in 2012, as the Group continued to build momentum in the support services segment.

Key Operating and Financial Results:

  • Backlog(c) of RUB 249.7* billion, including RUB 13.5* billion(d) in new projects
  • Revenue increased by 32% to RUB 45.1 billion compared to the same period last year, driven by increase in construction volumes.
  • Gross profit rose by 16% to RUB 6.1 billion in the first half 2013 from RUB 5.2 billion in first half 2012
  • EBITDA(b) increased by 14% to RUB 4.7 billion compared to the same period last year
  • Net profit was RUB 1.3 billion
  • 2012 dividend was RUB 2.2 billion or 51% of 2012 IFRS net profit announced in June and paid out.

Mostotrest CEO Vladimir Vlasov comments on the results:

“The level of tendering activity in the first half of the year was disappointing. However, the second half of the year has started well with Mostotrest winning a number of important tenders including the Phase 1 reconstruction of a major section of the M-11 “Narva” Highway with a contract value of RUB 4.1 billion and reconstruction of the Don River Bridge in Rostov-on-Don where the contract is worth RUB 5.0 billion. And between now and the end of the year, we intend to participate in a number of other tenders, including for PPP-based schemes, which if successful could significantly increase our backlog.

I would also draw attention to the fact that during the period under review Avtodor announced that construction of the new Moscow - St. Petersburg Highway was to be an Avtodor priority. The construction of this highway is expected to be a key market driver over the coming 4 years. The trickle down effect of this news is already apparent in 2H 2013 with Avtodor announcing tenders involving two sections of the highway worth approximately RUB 240 billion.

As regards other parts of our business, I would also like to highlight the success of Mostotrest-Service (NITP before rebranding), which was by far the biggest contributor to the results of our Services segment, as well as the entry into cash generation phase of our toll road operation subsidiary UTS. The Services segment share of Group revenue in the period under review increased to 8% from 1% in 1H 2012.

We are optimistic about the strong growth prospects for our backlog, on the back of tenders that may be held in 2H 2013 and next year”.

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 2013 and 2012, 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 2013 and 2012.

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) 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.

c) 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.

d) Excluding VAT.


Mostotrest is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had a 9.4% share of the total Russian infrastructure construction market in 2012.

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.

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