On June 6, Russia-based TMK, one of the world's leading oil and gas steel pipe producers, announced its consolidated financial results for the three months ending March 31, 2011.
In the first quarter of 2011, TMK's revenue increased by 35 percent year on year to $1.669 billion, while its gross profit reached $391 million, up 34 percent compared to the same period of the previous year. Both increases were driven by an improvement in pricing and product mix as well as by growth in sales volumes.
In the first three months of the current year, net income of the company amounted to $104 million compared to a net loss of $1 million in the first quarter of 2010, as a result of higher gross profit, lower net finance costs and a lower loss from changes in the fair value of derivative financial instruments.
Regarding sales volume, the total pipe sales of TMK increased by 14 percent year on year to 1.060 million mt, mostly as a result of the increase in industrial seamless and large diameter (LD) pipe volumes in the Russian division.
In the given period, while seamless pipe sales increased by nine percent compared to the first quarter of 2010 and amounted to 590,000 mt, welded pipe sales increased by 22 percent to 470,000 mt on the back of robust demand for LD pipe in Russia due to the ongoing construction of large-scale Russian pipeline projects.