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 $42.02 million, increasing from a net profit of $14.19 million recorded in the same quarter of 2016.
In the given period, the company's sales revenues increased by 24 percent year on year to $943.85 million, positively impacted by the appreciation of the ruble against the US dollar and higher volumes at the American division. In the given year, TMK's adjusted EBITDA rose by 15 percent compared to the same quarter of the previous year to $141.55 million, mostly attributable to the overall stronger performance of the American division.
In Russia, TMK anticipates seamless OCTG pipe consumption will remain strong in the current year with the potential for a moderate growth compared to 2016. At the same time, TMK expects large diameter (LD) pipe consumption this year to remain at low levels due to the completion or rescheduling of a number of major pipeline construction projects.
Meanwhile, in the US and Canada, the company expects to demonstrate a further recovery, with OCTG consumption in North America growing. Supported by the announced pricing increases, TMK anticipates the American division’s financial performance will further strengthen considerably in the next three quarters, assuming a stable oil price and a constant or softening hot rolled coil (HRC) price.