Russian steel pipe producer TMK has announced its financial results for the first quarter of 2020.
The company’s its sales revenues in the first quarter decreased by 33 percent to RUB 55.3 billion ($773.74 million), largely due to the disposal of the American division. TMK posted an operating profit of RUB 2.99 billion ($41.82 million), down 45.2 percent year on year.
In the second quarter of 2020, TMK expects overall demand for the company’s products to remain under pressure both in Russia and Europe, due to the continued unfavorable macroeconomic environment caused by the COVID-19 pandemic and oil price volatility.
“We are witnessing a more challenging market situation in the second quarter, which continues to depress demand for our products, including seamless OCTG pipe. However, we are confident that thanks to the improved balance sheet, our strong position in the major markets and our investment in R&D, TMK is well-positioned for recovery of its financials in a longer-term perspective,” Igor Korytko, CEO of TMK.