TMK’s pipe shipments up 1.5 percent in 2014

Friday, 23 January 2015 18:03:55 (GMT+3)   |   Istanbul
       

Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the fourth quarter and the full year of 2014.
In 2014, TMK shipped 4.37 million mt of steel pipes to customers, representing a 1.5 percent increase compared to the previous year. Shipments in the fourth quarter increased by 10.4 percent quarter on quarter to 1.21 million mt.
In the whole year, seamless pipe shipments grew by 3.8 percent year on year to 2.54 million mt. Shipments of seamless pipes in the fourth quarter increased by 11.5 percent quarter on quarter to 693,000 mt.
TMK's welded pipe shipments dropped by 1.5 percent year on year in 2014 to 1.83 million mt, due to lower demand for welded industrial and line pipe. The fourth quarter welded pipe shipments were up by 8.9 percent compared to the third quarter, totaling 525,000 mt.
In 2014, TMK's oil country tubular good (OCTG) shipment volumes increased by 5.5 percent year on year to 1.93 million mt, while in the fourth quarter shipment volumes registered a 16.4 percent increase compared to the third quarter, rising to 519,000 mt.
Shipments of premium connections rose to 892,000 joints in 2014, up 15.2 percent year on year, with shipment volumes remaining flat at 243,000 joints in the fourth quarter of the year.
According to TMK, the pipe market environment is strongly affected by global oil prices, which have a direct impact on oil and gas companies' capital expenditure. With the current oil prices, the company expects pipe consumption in Russia might decline slightly. However, major pipeline projects in Russia such as Southern Corridor and Power of Siberia will enable TMK to boost shipments and improve its product mix in the welded large diameter pipe segment. In the American market, TMK expects demand for OCTG to drop in line with the decrease in rig count.