Press releases

PJSC Mostotrest announces 2014 results

PJSC Mostotrest (Mostotrest, the Company or, together with its consolidated subsidiaries, the Group) publishes financial and operating results for 2014(a).

Mostotrest, Russia’s leading integrated transport infrastructure construction group, delivered strong financial results in 2014, increasing revenue by 29%, EBITDA(b) by 63% and net profit by 2.7x, compared to the previous year. The start of the operational phase for a number of long-term investment contracts drove an almost three-fold increase in the Group’s road services backlog.

Key Operating Results:

  • The Group's market share rose to 13.4%(c) in 2014 from 9.9% in 2013, driven by a 31% increase in in-house volumes(d);
  • Backlog(e) stood at RUB352.0* billion, with new order intake totaling RUB99.8* billion(f). Over the same period, the road services backlog grew almost 2.7x to RUB56.5 billion, as a number of long-term investment contracts reached operational phase.

Key Financial Results:

  • Revenue was RUB150.5 billion, up 29% year-on-year, driven by increased construction volumes;
  • Gross profit grew 47% to RUB20.6 billion, up from RUB14.0 billion in 2013. Gross margin rose to 13.7% from 12.0% in 2013, driven by more efficient deployment of resources;
  • EBITDA(b) increased by 63% year-on-year, to RUB15.4 billion. EBITDA margin rose from 8.1% last year to 10.2% in the reporting period, supported by the decrease in provisions for doubtful receivables;
  • Net profit was RUB6.1 billion, a 2.7x increase year-on-year. Net profit attributable to the owners of the Company was RUB5.6 billion;
  • The Group increased capital expenditure by 21% compared to the previous year, including for implementation of major projects added at the end of 2013;
  • Net cash (i.e. cash and cash equivalents(g) net of debt) at the end of 2014 amounted to RUB21.2 billion, driven by customer advances.

Mostotrest CEO Vladimir Vlasov comments on the results:

”In 2014, the Group delivered strong operating and financial results. The professionalism of Mostotrest staff, a balanced approach to development of own production capacity and to participation in new projects, as well as our status as a financially healthy borrower helped the Group to withstand negative market trends and to cope with a deteriorating macroeconomic environment in Russia. We were able to consolidate our reputation as a reliable partner for large government contracts, reaffirm the strength of our business and improve our competitiveness.

The Company benefitted significantly from the early completion and delivery of a number of large construction projects in 2014. The Company was able to direct these freed up resources in a far more effective way, boosting their utilisation and leading to a substantial increase in productivity while minimising the risk that the inflation rate exceeded that agreed in the contracts.

The opening to traffic of the km 15 – km 58 segment of the М-11 “Moscow – Saint Petersburg” Highway was one of our most significant achievements last year. Despite initial delays due to construction site clearance issues, we made substantial efforts and opened to traffic on time. In the first half of 2015, we will complete the installation of the route equipment, including toll stations, and commence commercial operation of the toll segment.

In terms of financial results for 2014, I would like to emphasize that in addition to delivering traditionally strong revenue growth (+29%), Mostotrest managed to “recover” its profitability. Gross margin of the Group was 13.7%, a 1.7 pp increase year-on-year. EBITDA margin was also up 2.1 pp, to 10.2%. The efficiency improvement was achieved through optimal use of resources and decrease in bad debt provisions.

As regards 2015, our expectation is that it will undoubtedly be a challenging year for the industry as a whole, both in terms of reduced funding and weaker tendering activity, but also in terms of the effect that high inflation is likely to have on the cost base of construction companies. Equally, we are confident that key motorway projects currently under construction where Mostotrest is a major participant, such as the M-11 “Moscow – Saint Petersburg", the M-4 "Don" and the‎ M-9 "Baltic", are unlikely to suffer interruption and construction will therefore continue this year.  At the same time, the current level of our backlog will help ensure that our capacity utilisation and revenue streams remain stable in 2015».

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 2014 and 2013, 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 2014 and 2013.

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.

с) Calculated as the amount of work performed in-house (revenue net of other revenue and cost of services of third-party subcontractors) in 2014, divided by 2014 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).

d) In-house volumes are calculated as revenue net of cost of subcontractor services.

e) 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.

f) Excluding VAT.

g) Including bank deposits with maturities over 3 months.


Mostotrest is a major, diversified infrastructure construction company, with 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 2014 Mostotrest held a 13.4% 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 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 the M-4 “Don”, M-9 “Baltic” and M-11 “Narva” highways, construction of Businovskaya Interchange in Moscow, Bor Bridge in Nizhny Novgorod and Voroshilovsky Bridge in Rostov-on-Don.

Mostotrest Ownership Structure:

38.6%: Marc O’Polo Investments (beneficiary shareholders: Igor Rotenberg and top-managers of N-Trans, including Konstantin Nikolaev, Nikita Mishin and Andrey Filatov);

29.3%: AM companies for Blagosostoyanie Pension Fund;

32.1%: 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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