ACRA upgrades Evropeyskaya Elektrotekhnica's credit rating to the BBB-(RU) investment level, with a stable outlook
ACRA upgrades Evropeyskaya Elektrotekhnica's credit rating to the BBB-(RU) investment level, with a stable outlook
February 1, 2019. Moscow
The Analytical Credit Rating Agency (ACRA) upgraded PJSC Evropeyskaya Elektrotekhnica's credit rating (hereinafter, the "Company" or "Group") to the BBB-(RU) investment level, with stable outlook. The credit rating was assigned according to the national scale for the Russian Federation.
The Company's low debt load, high level of debt coverage, as well as high levels of liquidity and profitability support this rating.
Sergey Dubenok, Head of the Board of Directors of PJSC Evropeyskaya Elektrotekhnica, commented on the event: “We welcome the decision taken by ACRA. It is clear evidence of our full transparency for both the agency and investment community and close cooperation in terms of information.
Today the Russian market offers us new opportunities for implementation of large projects which will allow us to obtain a comparable profitability margins in the field of Oil&Gas equipment production and not require the Company to attract large external borrowings to its own balance sheet.
ACRA's analysts took into account the positive dynamics of financial indicators (revenue, profitability) and the operational results of our Company. Their growth rates in 2018 are estimated at double-digit values. We continue to take a conservative approach to borrowings. As of the date the rating was upgraded, PJSC Evropeyskaya Elektrotekhnica still has no debt to external creditors.
We intend to use the upgraded credit rating of our Company, which has reached investment level, as a factor in our investment attractiveness in the course of communication with our traditional banks, as well as with new financial and business partners, including domestic and international leasing companies and international export-import agencies.”[1]
The full text from ACRA's press release can be found here.
[1] Credit ratings starting with the BBB rating category are recognized by the investment community as “investment” ratings; ratings below this category are generally classified as “speculative”. Information about the rating scale of the credit rating agency ACRA is available here: “Methodology for assigning credit ratings to non-financial companies according to the national scale for the Russian Federation”, link (free registration is required on the agency's website).
About the Group of Companies PJSC Evropeyskaya Elektrotekhnica
PJSC Evropeyskaya Elektrotekhnica (MOEX: EELT) provides comprehensive services in the sphere of creating energy and electric power supply systems, electric lighting systems, and low current systems at all types of facilities, as well as industrial electric heating systems.
The Company has been working in the electrical engineering market since 2004, and at present has its own engineering and production facilities. The Company is one of the leading distributors of electrical equipment in Russia, offering customers a wide range of products made both in Russia and abroad. Thanks to a well-organized and efficient logistics system, the Company is able to supply products (including oversize loads) all over Russia, including to hard-to-reach areas of the North, as well as Belarus, Kazakhstan, Turkmenistan, Kyrgyzstan and Uzbekistan. The company established its own production of transformer substations, electric switchboard equipment of any complexity (up to 6300 A), electric lighting systems and electric heating systems.
The Company implements projects in the oil and gas sector, electric power sector, nuclear industry, metal industry, mining industry, and manufacturing industry and at transport infrastructure facilities. Evropeyskaya Elektrotekhnica's customers include companies such as Rosneft, Gazprom, NOVATEK, LUKOIL, and Nizhnekamskneftekhim. The Company's projects include Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, and the Domodedovo, Sheremetyevo, and Pulkovo airports, etc.
Since 2018, the Company has been producing highly efficient modular process equipment for clients in Oil&Gas and petrochemical markets at the site of its subsidiary ROG-Engineering, a research and production Company in Ufa (Republic of Bashkortostan, Russia).
Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):
|
|
Revenue (RUB billion) |
Profit for the period (RUB million) |
Total assets (RUB billion) |
|
9m 2018 |
2.6 |
224.3 |
1.47 |
|
2017 |
2.6 |
134.7 |
1.15 |
The number of employees is about 400 (as of June 30, 2018). Since September 2017, common shares of PJSC Evropeyskaya Elektrotekhnica are traded on the Moscow Exchange with trading code EELT.
In June 2018, the Company was named "Leader of Import Substitution" at the "Leader of Competitive Sales" annual national awards, in which 450 domestic suppliers from various industries took part.
Contacts:
PJSC Evropeyskaya Elektrotekhnica
Tel .: +7 (495) 640-93-48
Mailing address: Building 3, 1 Lyotchika Babushkina St., Moscow, 129344
Press contact Contact for investors and analysts
www.euroet.ru www.euroetpao.ru
For more information, please contact:
Stanislav Martyushev
Director for Corporate Communications and Investor Relations
PJSC Evropeyskaya Elektrotekhnica
Tel. +7 (495) 640-93-48, ext. 164
