Major Turkish steel pipe producer Borusan Birleşik Boru Fabrikaları Ticaret A.Ş. has announced its financial results for the first nine months of this year.
In the given period, the company achieved a net profit of TRY 311.38 million ($10.51 million), compared to a net profit of TRY 3.09 billion in the same period last year, while its sales revenues rose by 67.0 percent year on year to TRY 42.98 billion ($1.34 billion). Borusan said that its financial results in the aforementioned period were below expectations, due to weaker demand, challenges in pricing policies and cost pressures in the third quarter.
In the January-September period this year, Borusan’s total sales volume came to 907,000 mt, increasing by 32.2 percent compared to the first nine months of 2023, while its exports accounted for 81.0 percent of total sales revenues. In the meantime, the company’s revenues from sales of high value-added pipes, including pressure, special and spiral pipes, accounted for 83.0 percent of the total sales revenues, while its revenues from high value-added drilling pipe sales accounted for 22.0 percent, reflecting a balance in market supply and demand.
Borusan has stated in its financial report that profit margins are becoming normalized amid the balance in the market. According to Borusan, underutilization in the automotive and construction sectors related to weak demand and increasing pressure from production costs keeps negatively affecting steelmakers’ profitability.
The company has revised its forecast for its total sales volume to 1-1.12 million mt for the full year of 2024, down from the previous forecast of 1.05-1.20 million mt. Borusan also expects to record $1.6-1.8 billion in sales revenue in 2024, compared to the previous estimates at $1.7-2.0 billion.
The company stated that the value of its investments in the first nine months was TRY 1.57 billion ($49.33 million).