TMK pipe sales go up 16%

March 6, 2015. Pipe Metallurgical Company (TMK) sold 20% more pipes in the last quarter of 2014 compared with Q3’14: the figure was 702,000,000 kg thanks to betters sales of weldless OCTGs and line pipes on the home market occasioned by growing seasonal demand. The company’s weldless OCTG sales rose by 12% compared with the previous quarter, TMK’s press service reports.

Welded pipe sales increased by 11% compared with the third quarter of 2015 and reached 534,000,000 kg thanks to better LDP sales on the domestic market and better welded OCTG sales in the United States.

Overall pipe sales rose by 16% and stood at 1,237,000,000 kg thanks to better LDP and weldess pipe sales on the home market.

The company’s revenues, however, decreased by 2%, or $26m, compared with the previous quarter, and came to $1.5bn: the decrease mainly had to do with loss of $289m because of the changes in the ruble/dollar exchange rate. Had the ruble not devaluated, the revenues would be $263m bigger.

TMK’s adjusted EBITDA went up by 13%, or $25m, against Q3’14 and reached $227m. The increase was primarily brought about by improved sales of LDPs, weldless OCTGs, and line pipes on the Russian market and of welded OCTGs on the U.S. market.

Net loss stood at $254m against $7m in the third quarter; the company lost $198m on the exchange rate fluctuations in Q4’14 against $73m in Q3’14.

As of December 31, 2014, the company’s consolidated debt shrank by $323, down to $3.223m compared with $3.546m on September 30, 2014 because of the devaluation of the ruble against the dollar.

TMK’s net debt also declined by $539m in the last quarter of the year and came to $2.969bn on December 31, 2014 compared with $3.508bn on September 30, 2014. The net debt/EBITDA ratio was 3.69 by the end of the year against 4.26 at the end of the third quarter.


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