Russia's largest oil and gas pipe producer TMK has released its Russian Accounting Standards (RAS) financial results for 2008.
During the year in question, TMK's net losses amounted to Ruble 9 billion (approx. $268 million) compared with net profit of Ruble 19.2 billion (approx. $572 million) in 2007. According to the company's release, the 2008 net losses were due to the drop in market value of some of TMK's subsidiaries, as well as to the revaluation of debts in line with the fluctuations of the US dollar-ruble exchange rate.
In the fourth quarter of 2008, TMK registered a net loss of Ruble 7.4 billion (approx. $220.3 million) compared to the net profit of Ruble 11.4 billion (approx. $339 million) in the same quarter of 2007.
TMK's subsidiaries, Volzhsky Pipe Plant, Seversky Tube Works, Sinarskiy Pipe Works and Taganrog Metallurgical Works, all registered a decline in their 2008 net profits year on year, due to the worsening economic situation and the decrease in pipe product demand in the fourth quarter of 2008.
The 2008 RAS financial results are not consolidated and do not include the financial results of TMK's subsidiary companies, nor do they reflect the company's manufacturing and pipe production businesses.