In the second quarter of the current year, Sinarsky Pipe Works, a subsidiary of Russia's largest pipe producer TMK, recorded a net loss of RUB 36 million ($0.996 million), against a net profit of RUB 2.4 million ($0.066 million) in the first quarter this year, according to the company's statement. Also in the second quarter, the sales revenues of Sinarsky Pipe Works decreased by 62 percent compared to the first quarter to RUB 3.67 billion ($101.533 million).
In the first half of the current year, Sinarsky Pipe Works saw a net loss of over RUB 33.74 million ($0.933 million) against a net profit of RUB 862 million ($23.848 million) in the same period last year. The revenue of Sinarsky Pipe Works in the first half of this year declined by six percent year on year to RUB 13.265 billion ($0.367 billion).
The negative financial results were mainly caused by the rise in steel billet prices, the lower level of average sales prices for finished products, the decline in production and shipment of pipes in conjunction with the overhaul of main technological equipment and with changes in the structure of sales.