RAEX affirmed STROYGAZMONTAZH’s ‘A’ rating
Expert RA Rating Agency (RAEX) rating agency affirmed ‘A’ level of STROYGAZMONTAZH’s credit rating, which means its high long-term creditworthiness at the first sub-level. The rating outlook is stable, thus it’s highly possible that the rating position in the mid-term will remain the same.
The key factors which positively influence the credit score comprise the low level of the total debt load (CFO for 2015/debt (as of June 30, 2016) is 63.7%; Debt (as of June 30, 2016)/EBITDA (for the last 12 months) is 1.50) and relatively low level of current debt load (CFO for 2015/debt payments due in the next 12 months is 88.6; Debt payments due in the next 12 month/EBITDA for 2015 is 1.08; Percentages due in the next 12 month/EBITDA for 2015 is 0.18). The agency underlines an extremely high cash flow numbers at year-end 2015 as a result of several large facilities completion. It’s expected the cash flow will fall back. The company maintains high level of profitability (for the period from 30.06.2015 to 30.06.2016 ROA is 14.5%, ROE — 112.8%, ROS — 11.6%, EBITDA margin — 16.9%) and low level of exchange rate risks (all assets and obligations are in rubles). Company’s wide scope of activities, high level of cost diversification to partners, high quality strategic planning and budgeting and high fixed-asset investments positively influence the rating score.
“Every year the Company demonstrates high financial results and positive operating cash flows. High possibility of Arkady Rotenberg’s support, the Owner of the Company, still positively influences the rating,” – says Pavel Mitrofanov, RAEX’s Managing Director on Corporate Risks.
Among limiting factors there were defined rather low liquidity level (as of June 30, 2016 an absolute liquidity ratio is 0.04; quick assets ratio is 0.68; day-to-day liquidity ratio is 0.86) and low level of liquidity stress (0.63 as of June 30, 2016). The major portion of profit is distributed in form of dividends, thus affecting the liquidity as well. The other limiting factors are low diversification of debts (95% credits and loans are of PAO Mosoblbank, as of June 30, 2016), high level of dependency on major client (Share of PAO Gazprom and its subsidiaries in the Company’s profit is 85% at year-end 2015), low level of disclosure of financial information about the Company in the free access resources, as well as decreasing of oil and gas construction scope of works, the main area of activities for the Company.
The core activities of STROYGAZMONTAZH Limited Liability Company include cross-country pipeline construction, gas field development, gas and oil processing plants development, Russian regions gasification, major repairs and gas pipeline diagnostics. The Company is engaged in several projects of federal importance implemented in the oil and gas construction as well as civil infrastructure construction sector.
As of June 30, 2016 the Company’s assets totaled 195 billion rubles, and corporate capital is 23 billion rubles. The revenue at year-end 2015 is 227 billion rubles, and net profit is 28 billion rubles.