Russian steel pipe producer TMK has issued its financial results in line with international financial reporting standards (IFRS) for the first half this year, announcing a net profit of $77 million, rising by 73 percent compared to the same period of the previous year.
In the first six months of this year, the company's sales revenues decreased by 23 percent year on year to $2.3 billion, mainly as a result of a negative effect of currency translation. Excluding this effect, revenue would have increased by $404 million year on year.
TMK's adjusted EBITDA decreased by five percent year on year to $356 million. Growth in the Russian and European divisions was offset by weaker adjusted EBITDA in the American division due to lower sales and weaker prices. The adjusted EBITDA margin increased to 16 percent compared to 13 percent in the same period of 2014. As of the end of the first half of this year, net debt decreased by $85 million to $2.88 billion, compared to December 31, 2014.
For the full year 2015, TMK expects large diameter pipe to remain a major driver in the Russian pipe market, offsetting weaker demand in other pipe segments, in particular, lower consumption of seamless and welded industrial pipe as a result of a slowdown in the construction and machine building industries. TMK believes it can further strengthen its position in the Russian OCTG market following its import substitution program.