Press releases

PJSC Mostotrest announces 1H2016 operating and financial results

PJSC Mostotrest (Mostotrest, the Company or, together with its consolidated subsidiaries, the Group) publishes its financial and operating results for the first half of 2016(a).

Mostotrest, the leading group of companies in the Russian infrastructure construction market, delivered improved operating and financial results for the first half of 2016.

Key Operating and Financial Results 

  • Backlog(b) stood at RUB343.5* billion (+15% to the beginning of the year), with new contract additions totaling RUB112.4* billion(c)
  • Revenue grew 31% year-on-year, to RUB67.9 billion, driven by increased construction volumes
  • Gross profit increased 2x from RUB4.8 billion in 1H2015 to RUB9.8 billion in 1H2016. Gross margin rose from 9.2% in 1H2015 to 14.4% in the reporting period, driven by increased share and profitability of in-house volumes(d)
  • EBITDA(e) grew 3x on a like-for like basis, to RUB6.2 billion
  • Net profit increased 5x to RUB476 million
  • RUB3 billion dividend was paid out for 2015, representing 71% of IFRS profit for 2015
  • Capital expenditure increased 2.6x on a like-for-like basis.

Mostotrest CEO Vladimir Vlasov comments on the results: 

«Mostotrest delivered excellent 1H2016 results despite continued macroeconomic instability that means the industry environment remains challenging, the continued financial problems of a number of construction players, and ongoing issues in the banking sector. The Group posted a significant increase in revenue and recorded multiple increases in gross profit, EBITDA and net profit compared to the same period last year. In addition, we significantly improved the profitability of our business, mainly by stepping up in-house construction volumes and improving their profitability.

We benefited from the improving market trend for public tenders, meaning that we were able to increase our backlog by 15% in 1H2016. This growth was primarily driven by two new large contracts, consisting of further construction work on the M-11 “Moscow – Saint Petersburg” at Festivalnaya Street – Dmitrovskoye Avenue segment and the contract to construct Kerch Bridge. In addition, in Q3 2016, our subsidiary TSM entered into another large contract for the construction of the final segment of the M-11 “Moscow – Saint Petersburg” Highway (km 58 – km 149). Before the end of the year, member companies of the Group expect to participate in a number of other tenders, which should also ensure a strong backlog level at the end of 2016.

Excellent operating and financial results, combined with a strong Ba3 credit rating assigned to the Company by Moody's and the subsequent completion of two highly successful bond offerings in Q3 2016 reaffirm our position of a market leader. Even in what is a challenging market environment Mostotrest continues to implement large, technically complex projects, while pursuing a conservative financial policy and a weighted development strategy».  

a) The press-release has been prepared on the basis of the unaudited consolidated interim condensed financial statements prepared in accordance with the IFRS for the six months ended 30 June 2016 and 2015, 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 2016 and 2015.

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, net of 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.

c) Exluding other revenue. Net of VAT.

d) The share of in-house volumes is calculated as the ratio of in-house volumes to total revenue. In-house volumes are calculated as revenue net of cost of subcontractor services. Profitability of in-house volumes is calculated as the ration of in-house volumes less cost of in-house volumes to in-house volumes. Cost of in-house volumes is calculated as the Group's total cost of sales less cost of subcontractor services.

e) EBITDA is defined as net profit from continuing operations net of income tax, net finance costs and depreciation and amortisation. 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 is a major, diversified infrastructure construction company, with an established presence in all core and related market segments, and a participant in Russia’s first public-private partnership projects. According to EMBS Group, an independent industry consultancy, in 2015 Mostotrest held a 13.9% share of the total Russian transport infrastructure construction market.

Mostotrest’s core competences include construction and reconstruction of bridges, roads and other transport infrastructure facilities; provision of road maintenance, repair and operating services. In 2012, Mostotrest also entered a new segment: management of road concessions.

The company was established in 1930 as a developer of complex and oversized bridges.

Mostotrest is currently participating in the implementation of a number of complex transport infrastructure development projects, such as construction of the Section 4 (km 208 – km 258) and Section 6 (km 334 – km 543) of the M-11“Moscow – St Petersburg” Toll Highway, construction and reconstruction of segments of the M-4 “Don” highway, construction of Kerch Bridge.

Mostotrest Ownership Structure:
94.2%: OJSC TFK-Finance;
5.8%: free float.

For more detailed Company information, please visit