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Rosgeo expects 11%revenue growth in 2018 to $725.38 mln

The volume of Rosgeo investments in 2017 amounted to 4.5 bln rubles

MOSCOW, January 19. /TASS/. State geological holding Rosgeo expects to see an increase of revenues of 10.8% under the International Financial Reporting Standards (IFRS) by the end of 2018 compared with the indicator for 2017 - up to 41 bln rubles ($725.38 mln), Head of the holding Roman Panov told reporters.

"In terms of the forecast for revenue for 2018 it reaches 41 bln rubles ($725.38 mln)," he said.

According to Panov, revenue for 2017 is expected at 37 bln rubles ($654.61 mln), the share of state contracts in it will reach around 37%. EBITDA margin will remain at the level of 2016 - 12.5-13%, net income margin will be about 3%. At the beginning of 2018, EBITDA margin was around 14%, net profit was 3.5-4%.

The volume of Rosgeo investments in 2017 amounted to 4.5 bln rubles ($79.61 mln), for the current year a similar amount was pledged.

Last year, Rosgeo renegotiated banking agreements for 2018 with all key partners - VTB, Sberbank and Gazprombank, Panov said. The loan portfolio reaches around 60 bln rubles ($1.06 bln), which allows the holding to feel comfortable enough in terms of operating flow, and ensuring investment, he added.

According to him, the net debt to EBITDA ratio did not exceed 1x, this year the state holding intends to keep it at the same level.

Following the results of 2017, Rosgeo has increased the drilling volumes by approximately 50% against the figure of 2016, the volume of production of solid minerals increased by 30%.

"Last year we completed 88 contracts on minerals, including state contracts. Despite reduction of the limits of financing under the state program, kept the growth rates for all strategic types, primarily gold, silver and a metal-platinum group," Head of the holding said.

Rosgeo is a multi-profile geological holding established in 2011. The holding provides a full range of services related to geological exploration. Rosgeo also works abroad - in Asia, Europe, Africa and Latin America. 100% of the company's capital is owned by the state.