Russian steel pipe producer TMK has announced its financial results for the third quarter and first nine months of this year.
In the third quarter this year, the company’s sales revenues amounted to RUB 117.3 billion ($1.59 billion), up by seven percent compared to the previous quarter, supported by stable sales volumes and increased selling prices. In the given quarter TMK’s adjusted EBITDA rose by 19 percent compared to the previous quarter to RUB 16.8 billion ($227.92 million), while the company’s adjusted EBITDA margin was up 1.4 percentage points quarter on quarter at 14.3 percent.
In the first nine months this year, TMK’s sales revenues amounted to RUB 291.5 billion ($3.95 billion), up by 79 percent year on year, due to a gradual recovery of business activity in the company’s key markets and segments. In the given half, the company’s adjusted EBITDA rose by 13 percent year on year to RUB 39.5 billion ($535.90 million), due to the consolidation of the results from ChelPipe Group’s enterprises, which offset a noticeable increase in raw material prices in the first nine months this year, while the company’s EBITDA margin was 17 percent compared to 21 percent in the January-September period last year.
In the third quarter this year, the company’s total sales amounted to 1.15 million mt, stable compared to the second quarter, while its total sales amounted to 3.01 million mt in the first nine months, increasing by 45 percent year on year.
TMK said it expects demand in its key market segments in Russia - seamless OCTG and industrial pipes - to remain stable until the end of the year. The company anticipates the consumption of industrial pipes in the European market to increase further amid the ongoing economic recovery. TMK expects its EBITDA for the financial year 2021 to increase significantly, supported by the gradual recovery of business activity in the company’s key markets and segments as well as the consolidation of the results from ChelPipe Group’s enterprises. It also anticipates its EBITDA margin will improve further in the fourth quarter this year.