As per its financial results according to international financial reporting standards (IFRS) for the first half of the current year, Russia-based steel pipe producer ChTPZ Group recorded a net profit of RUB 2.1 billion ($35.41 million), decreasing by 64 percent compared to the same period of 2016.
The company's revenues rose by six percent year on year in the first six months of the current year to RUB 72.56 billion ($1.22 billion).
In the first half of this year, the group's gross profit decreased by 21 percent year on year to RUB 17.29 billion ($291.52 million) and its EBITDA fell by 35 percent year on year to RUB 11 billion ($185.38 million). In the given period, the EBITDA margin decreased from the 24.7 percent recorded in the first half of 2016 to 15.2 percent. The company’s EBITDA was affected by a decrease in marginal revenue in the seamless pipe segment due to higher metal prices for billet production and a delayed increase in prices for pipes, as well as a reduction in large diameter (LD) pipe consumption in the Russian market due to postponement of the implementation of projects of Russian state-owned gas supplier Gazprom.