ChelPipe Group Carries Financial Report 2018
7 March 2019 (09:23)
UrBC, Chelyabinsk, March 7, 2019. ChelPipe Group recently published its financial report for the year 2018; the report was drawn up according to the International Accounting Standards, the company’s press service reports.
According to the report, the Group sold 1,916,000,000 kg of pipes last year; 498,500,000 kg got exported and 1,417,000,000 kg got sold on the Russian market. 16.5% of all sales made by Russian pipe manufacturers got made by ChelPipe Group in 2018.
The company sold more than 4,800,000 kg of stamp-welded items (fittings, joints, and T-pieces) to customers in 2018, along with 12,400,000 kg of connecting fittings.
The company’s revenues rose by 13% compared with the year 2017 and reached RUB 178.84 billion. The Group’s net profit increased by 29%, up to RUB 7.726 billion. Gross profit rose by 18% and amounted to RUB 44.286 billion, whereas EBITDA went up by 19%, up to RUB 28.223 billion.
The Group’s net debt amounted to RUB 68.4 billion last year. The net debt/EBITDA ratio dropped from 2.9 down to 2.4 on December 31, 2018. The company also collected the second tranche from a syndicated credit line opened by seven international banks ($24m and €10m); the money has to get paid back within four years’ time. ChelPipe Group doesn’t currently have any of its assets assigned to loan book security.
Fitch Ratings recently changed the Group’s long-term IDR outlook from Negative to Stable and affirmed the rating at BB-. Expert RA affirmed the Group’s credit rating at ruA+, with Stable rating outlook.
‘The Group made RUB 5.5 billion worth of capital investments last year; around RUB 270 million got directed to innovations and R&D, some RUB 260 million went to upgrades and operational efficiency improvements. Quite a lot - nearly RUB 550 million — got allocated for production automation and digital transformation projects. The company’s strategy now focuses on further diversification of the business’s customer base (including through e-trading channels) and raising exports to avoid being affected by fluctuating demand and fierce competition on the internal markets,’ says ChelPipe Group’s Director-General Boris Kovalenkov.
According to the report, the Group sold 1,916,000,000 kg of pipes last year; 498,500,000 kg got exported and 1,417,000,000 kg got sold on the Russian market. 16.5% of all sales made by Russian pipe manufacturers got made by ChelPipe Group in 2018.
The company sold more than 4,800,000 kg of stamp-welded items (fittings, joints, and T-pieces) to customers in 2018, along with 12,400,000 kg of connecting fittings.
The company’s revenues rose by 13% compared with the year 2017 and reached RUB 178.84 billion. The Group’s net profit increased by 29%, up to RUB 7.726 billion. Gross profit rose by 18% and amounted to RUB 44.286 billion, whereas EBITDA went up by 19%, up to RUB 28.223 billion.
The Group’s net debt amounted to RUB 68.4 billion last year. The net debt/EBITDA ratio dropped from 2.9 down to 2.4 on December 31, 2018. The company also collected the second tranche from a syndicated credit line opened by seven international banks ($24m and €10m); the money has to get paid back within four years’ time. ChelPipe Group doesn’t currently have any of its assets assigned to loan book security.
Fitch Ratings recently changed the Group’s long-term IDR outlook from Negative to Stable and affirmed the rating at BB-. Expert RA affirmed the Group’s credit rating at ruA+, with Stable rating outlook.
‘The Group made RUB 5.5 billion worth of capital investments last year; around RUB 270 million got directed to innovations and R&D, some RUB 260 million went to upgrades and operational efficiency improvements. Quite a lot - nearly RUB 550 million — got allocated for production automation and digital transformation projects. The company’s strategy now focuses on further diversification of the business’s customer base (including through e-trading channels) and raising exports to avoid being affected by fluctuating demand and fierce competition on the internal markets,’ says ChelPipe Group’s Director-General Boris Kovalenkov.
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