In its financial results according to international financial reporting standards (IFRS) for the full year of 2017, Russian pipe producer TMK registered a net profit of $29.57 million compared to a net profit of $165.62 million registered in the previous year.
In 2017, the company's sales revenues increased by 31.6 percent year on year to $4.93 billion, supported by strong sales and improved pricing at the American division and the positive effect of currency translation.
In the given year, TMK's adjusted EBITDA rose by 14 percent compared to the previous year to $605 million, driven by a much stronger performance from the American division, resulting from growing US drilling activity.
TMK stated that in Russia it believes seamless OCTG consumption will remain strong in the current year with some upside potential, while it expects large diameter pipe consumption to remain weak, due to the completion or rescheduling of a number of major pipeline construction projects.
Meanwhile, in the US, TMK expects its American division will demonstrate further improving results for 2018 supported by growing OCTG demand on the back of resumed increase in the number of rigs and a higher share of rigs used for horizontal drilling. The European division anticipates its financial results to further improve in 2018 due to stable pipe demand, better product mix and pricing environment. While EBITDA margin is expected to be broadly in line with 2017, TMK anticipates higher EBITDA for the current year supported by further improvements in the performance of the American division.