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Motor Sich reports on 5% growth in order book in 2014
The leading engine producer for Russian helicopters, Motor Sich (MSICH UK), completed building its order book for 2014, the Interfax-Ukrayina news agency reported on March 17, citing a top company manager. The order book is estimated at USD 950 mln, which is 5% bigger yoy, according to the source. The company continues to work on all of its contracts, the source reported, adding that it is hard to predict the further development of events.
Engine orders for 2014 increased between 7-20% compared to 2013 and the company is successfully fulfilling all its contract obligations to its Russian clients, Motor Sich President Viacheslav Boguslayev said in a March 12 statement. Motor Sich plans to produce about 1,000 aviation engines, including 400 units for its Russian clients, according to Boguslayev.
Alexander Paraschiy: Russian helicopter producers are dependent on engine supplies from Motor Sich and they are very unlikely to unilaterally stop their orders. Only a severe escalation of the conflict between Russia and Ukraine, involving official war declarations, could undermine supplies of Motor Sich engines for Russian helicopter plants. Thus far, the Ukrainian side is doing its best to solve the conflict in a way that doesn’t involve the military.
While Russia will remain interested in purchases of Ukrainian helicopter engines (especially military ones, with more advanced Motor Sich-made engines) even in case of war with Ukraine, the current situation already adds risks to Motor-Sich’s non-helicopter products. In particular, the apparently worsened business relations between the two countries throws into question a series of prospective civil aviation projects, like the AN-124 and AN-148 planes equipped with Motor Sich engines. We have to conclude that the risks for Motor Sich‘s order book is higher for the mid term than for the short term.
Источник: Конкорд Капитал
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