Tubos Reunidos, a leading Spanish seamless tube and pipe producer, has announced its financial results for the first three months of the current year, announcing an 86 percent year-on-year fall in its consolidated net profit to €1.16 million, compared to €8.1 million in the first quarter last year.
In the first quarter this year, Tubos Reunidos' sales revenues decreased by 25.6 percent to €95.2 million and its EBITDA fell by 49 percent to €10.6 million, both year on year. The EBITDA margin on sales revenues in the quarter in question was 11.1 percent, compared to 16.4 percent in the same quarter last year.
At a meeting with its shareholders, Tubos Reunidos stated that business activity slumped in Europe, the company's main market, with the exception of Russia due to developments in the energy production market. Also in North America, the decrease in active rig counts generated a decrease of sales. Meanwhile, Tubos Reunidos is still focused on its €150 million investment plan for the 2012-2016 period which should allow it to focus on high-added value products such as special steel seamless pipes widely used by the energy and petrolchemical industries.
As communicated in the company's press release, in August this year Tubos Reunidos will launch a new Pilger mill, allowing the production of special steel tubular products up to 28" in diameter, and a new RH plant which is aimed at producing special steel grades used particularly in power plants and in oil and gas fields.