In its financial results according to international financial reporting standards (IFRS) for the first quarter of the current year, Russian pipe producer TMK registered a net profit of $14 million, up 53.3 percent year on year.
In the given period, the company's sales revenues decreased by 33 percent year on year to $761 million, reflecting weaker sales in the US division due to falling US drilling activity, a negative effect of currency translation. In the given year, TMK's adjusted EBITDA decreased by 35 percent compared to the same quarter of the previous year to $120 million.
In Russia, TMK anticipates its second quarter sales will be in line with the previous quarter, as seasonally lower OCTG consumption will be offset by higher demand for industrial pipe. In the US, the company expects a moderate increase in drilling activity during the second half of the year. Although demand for OCTG is expected to improve, TMK anticipates demand for new production and shipments will lag behind temporarily as a result of a larger distributor inventories buildup due to a continuously decreasing rig count.