TMK announces 2008 IFRS consolidated results

Monday, 04 May 2009 12:00:53 (GMT+3)   |  
       

Russia's largest oil and gas pipe producer TMK has released its consolidated results for 2008 under International Financial Reporting Standards (IFRS).

Accordingly, in 2008 TMK's revenue went up by 36 percent year on year to $5.7 billion as a result of the acquisition of US IPSCO's tubular assets and favorable pricing in seamless pipe segments. In addition, TMK saw an 11.6 percent increase year on year in its gross profit to $1.44 billion, and a 10.8 percent rise in its EBITDA to $1 billion, due to TMK IPSCO's strong operational performance in the second half of 2008.

However, TMK's net profit went down by 61 percent to $199 million, compared to the data of 2007. According to the company's release, TMK's net profit was negatively affected by foreign exchange losses of $99.8 million, which stemmed from the devaluation of the Russian ruble against the US dollar. In 2008, the Russian rubles depreciated against the US dollar and the euro by 19.7 percent and 15.3 percent respectively, which led to a foreign exchange loss primarily related to the revaluation of US dollar and euro-denominated debt. Another factor which adversely affected TMK's 2008 net profit was an impairment charge on goodwill, property, plant and equipment and financial assets to the amount of $87 million following significant deterioration of the economic outlook and volatility on the financial markets.

Within the framework of its Strategic Investment Programme which focuses on increasing the efficiency of production processes and increasing seamless pipe production, TMK recorded $981.9 million in capital expenditure in 2008, including $675.4 million in its seamless pipe segment. Pipe production capacity increased by more than one million mt in 2008 compared to 2007 and, in particular, seamless pipe production capacity increased by 450,000 mt.

In 2008, TMK's total pipe sales volume increased by 4.5 percent year on year to 3.227 million mt, including 1.98 million mt of seamless pipes - down 2.9 percent, and 1.247 million mt of welded pipes - up 18.9 percent, both compared to 2007. In 2008, TMK's share of the Russian market for value-added seamless OCTG pipes amounted to 59 percent, while, globally, TMK had a six percent share in the seamless pipe market and an 11 percent market share in the seamless OCTG segment, its core business.

In 2008, TMK's exports amounted to 547,000 mt of pipe products, i.e. 44 percent of total Russian steel pipe exports.


Similar articles

US OCTG exports up 26.8 percent in January

27 Mar | Steel News

India’s VSTL setting up greenfield steel pipe making unit in Odisha

27 Mar | Steel News

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

India’s Welspun secures $62 million steel pipe supply contract in Saudi Arabia

26 Mar | Steel News

Some EU flat steel import quotas about to be exhausted near end of period

26 Mar | Steel News

Canada initiates review on line pipe from S. Korea

25 Mar | Steel News

India’s Welspun and Saudi Arabia’s Aramco terminate steel pipe supply contract

25 Mar | Steel News

US and Canadian rig counts both decline week-on-week

22 Mar | Steel News

US structural pipe and tube exports down 41.7 percent in January

22 Mar | Steel News

Tata Steel Nederland plans to close precision tube operations

22 Mar | Steel News