Russian steel pipe producer TMK has announced its financial results for the first quarter this year.
In the first quarter this year, the company’s sales revenues amounted to RUB 65.1 billion ($901.74 million), up by 18 percent year on year and by nine percent compared to the previous quarter, due to a gradual recovery of business activities.
In the given quarter TMK’s adjusted EBITDA rose by 12 percent compared to the previous quarter to RUB 8.6 billion ($119.09 million), while the company’s adjusted EBITDA margin was stable quarter on quarter at 13 percent.
In the first three months this year, the company’s total sales amounted to 710,000 mt, down by one percent year on year and by three percent compared to the fourth quarter last year.
Meanwhile, in March this year, TMK completed the acquisition of an 86.54 percent stake in PJSC ChelPipe. The deal was an important step for the company in implementing its long-term strategy aimed at expanding its production base and sales markets, diversifying its product portfolio and developing the scientific, technical and innovative components of its business.
The company expects demand for OCTG pipe from Russian oil and gas companies to remain stable, supported by the continued development of their existing and new projects. A recovery in demand in the machinery sector, including power engineering, is expected to support sales in the industrial pipe segment. The company expects consumption of industrial pipe in the European market to recover gradually after the lifting of lockdowns and stimulated by government measures to support industrial companies in the euro zone countries.