Press releases

Mostotrest Announces Full Year 2013 Results

Mostotrest (Mostotrest, the Company or, together with its consolidated subsidiaries, the Group) publishes its financial and operating results for 2013(a).

Mostotrest, Russia’s leading integrated transport infrastructure construction group, delivered strong operating and financial results in 2013. Group backlog grew by 26%, the revenue increased by 24% and gross profit rose by 7%.  In its first full year of operations, the Group’s services division contributed 9% to Mostotrest’s total revenue.

Key Operating Results:

  • The Group's market share rose to 9.9%(b) compared to 9.4% in 2012, driven by an 8% increase in in-house volumes(c);
  • Backlog(d) increased by 26% to RUB355.4* billion, with new project order intake totalling RUB190.8* billion(e);
  • The Group won the three largest tenders awarded in Russia's road and bridge infrastructure construction sector in 2013, with a total value of RUB148.2* billion(e), including construction, maintenance, repair and toll-based operation of the sixth section of the M-11 “Moscow - St. Petersburg” Highway (contract value: RUB122.5* billion(e)), reconstruction, maintenance and repair of the Usman Bypass on M-4 “Don” Highway (contract value: RUB14.7* billion(e)), and construction of a new bridge in Nizhny Novgorod (contract value: RUB11.0* billion(e)).

Key Financial Results:

  • Revenue grew 24% to RUB116.7 billion, driven by increased construction volumes;
  • Gross profit performance, up 7% at RUB14.0 billion, from 13.1 billion in 2012, was affected by the increased share of subcontracted volumes(f);
  • EBITDA(g) and Net Profit amounted to RUB9.4 billion (-16% year-on-year) and RUB2.3 billion (-45% year-on-year), respectively. That figures were affected by provisions for doubtful receivables;
  • Net cash position (cash and cash equivalents, net of debt) at the end of 2013 was RUB22.0 billion, driven by customer advances, including under new large contracts signed at the end of 2013.

Mostotrest CEO Vladimir Vlasov comments on the results: 

“The Group delivered strong operating results in 2013.  It was a significant year for us in terms of adding new contracts to our growing backlog, in particular, the largest contract awarded in the industry for construction of the sixth section of the Moscow - St. Petersburg Highway (M-11), with a value of RUB122.5* billion(e). This project, together with other major contract wins such as construction of the Usman Bypass on M-4 “Don” Highway and a new bridge in Nizhny Novgorod, have driven a 26% increase in the Group's backlog and critically, given the weak market environment for the second year running, secured full capacity utilization of Mostotrest’s divisions for several years to come.

Mostotrest's strong industry position is reflected in the continued growth of our market share, which in 2013 advanced to 9.9%(b) compared to 9.4% in 2012.

We managed to convert our operational achievements into strong financial results, reporting revenue and gross profit growth of 24% and 7%, respectively.

Particularly noteworthy are the results of our new businesses, that we acquired in 2012 and, above all, the performance of Mostotrest-Service (NITP before rebranding), which is engaged in road repair and maintenance, and UTS, the operator of the toll section of M-4 “Don” Highway. In 2013, revenue from the services segment increased almost four-fold to RUB10.7 billion, from RUB2.9 billion in 2012. The total length of roads serviced by Mostotrest-Service in 2013 was of the order of 3,500 kilometers. At the end of 2013, Mostotrest-Service launched the first intra-group contract for the repair and maintenance of the Voronezh Bypass. UTS virtually completed the task of installing toll stations and other related equipment on the M-4 “Don” Highway, and in 2013 started toll operations on the first highway sections. We see great development potential in the services segment, which offers stable cash flows and attractive profitability levels.

In 2014, we are keen to anticipate participating in tenders for the construction of new sections of the Moscow - St. Petersburg Highway (M-11), including the highway extension into the centre of Moscow (Festivalnaya Street – Dmitrovski Avenue section), as well as in tenders expected to be held by Avtodor State Company for further development of the road network, sections of which have already been built or are being built by the Group. This would allow us to maintain our backlog and keep our capacity utilization at optimal levels”.


a) The press-release has been prepared on the basis of the consolidated financial statements prepared in accordance with the IFRS as at and for the full year ended 31 December 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 full year ended 31 December 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) Calculated as the amount of work performed in-house (revenue net of other revenue and cost of services of third-party subcontractors) in 2013, divided by 2013 market volume (including road repair and maintenance), in accordance with the EMBS Report (an independent consultant providing, among others, information and research on developed and emerging markets).

c) The amount of in-house works is calculated as revenue net cost of subcontractor services.

d) 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.

e) Excluding VAT.

f) The share of subcontracted volumes is calculated as the ratio of cost of subcontractor services to revenue.

g) EBITDA is calculated as operating profit net of profits tax, net finance costs and depreciation. EBITDA is not defined by, or presented in accordance with IFRS. EBITDA as an analytical tool has limitations and should not be regarded separately from other indicators, or used instead of analyzing the results of operations of the Group, presented under IFRS.


Mostotrest is the largest diversified infrastructure and bridge-building company in Russia. According to EMBS Group, the independent industry consultancy, Mostotrest had an 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);

29.4%: Asset Management Companies for Blagosostoyanie Pension Fund

32.0%: 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 those 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.