Turkish pipe maker Erciyas Çelik Boru Sanayi A.Ş. has announced its financial results for the first nine months of 2023.
Accordingly, in the given period Erciyas registered a net profit of TRY 22.7 million ($1.04 million), compared to a net profit of TRY 88.88 million in the same period of 2022. In the first nine months this year, the company’s sales revenues were TRY 6.4 billion ($290 million), around 2.6 times more compared to TRY 2.5 billion in the same period last year, while it recorded an operating profit of TRY 911.94 million ($41.28 million), compared to an operating profit of TRY 546.33 million in the first nine months of the previous year.
The company stated that in 2023 the cargoes shipped to foreign countries growing larger in terms of both material size and tonnage have resulted in a surge in shipment and export expenses.
In the January-September period of this year, Erciyas sold 178,000 mt of pipes, compared to 86,000 mt recorded in the same period of the previous year. In the given period, 87 percent of the company’s total pipe sales tonnage consisted of export sales.
According to Erciyas, the oversupply in Southeast Asia with shorter lead times and lower prices as a consequence has steered producers to import material, while the Turkish producers have significantly increased their capacity with new plants starting in the second half of the year.