Russian steel pipe producer TMK has issued its financial results in line with international financial reporting standards (IFRS) for the first quarter this year, announcing a net profit of $30 million, compared to a net loss of $16 million registered in the same quarter of 2014 and a net loss of $254 million in the last quarter of 2014.
In the first three months of this year, the company's sales revenues decreased by 24 percent year on year to $1.13 billion from $1.5 billion registered in the previous quarter, as a result of lower pipe sales and a negative effect of currency translation.
TMK's adjusted EBITDA decreased by 19 percent quarter on quarter to $185 million mainly due to the negative effect of currency translation coupled with weaker sales in the Russian and American divisions. Adjusted EBITDA margin increased to 16 percent compared to 15 percent in the previous quarter and 13 percent in the first quarter last year. As of the end of the first quarter of this year, net debt had increased by $11 million to $2.98 billion, compared to December 31, 2014.
In 2015, the company expects to maintain volumes and the margin at the level of 2014.