Russia's largest oil and gas pipe producer TMK has released its unaudited results for H1 2010 under International Financial Reporting Standards (IFRS).
Accordingly, in H1 2010 TMK posted a net profit of $67.3 million as compared to a net loss of $203.8 million in the same period last year. TMK's H1 revenue increased by 73.6 percent year on year to about $2.57 billion from strong seamless and welded sales volumes growth in key markets, its gross profit went up by 161.7 percent year on year to $585.8 million, due to a combination of higher capacity utilization rates, volumes and prices for pipe products, and its adjusted EBITDA increased from $145.8 million in H1 2009 to $414.7 million in H1 2010.
In H1 2010, TMK sold about 1.89 million mt of pipe products, more than any other global pipe producer, including 1.075 million mt of seamless pipes and 745,900 mt of OCTG. TMK's sales volumes increased by 57.7 percent year on year as demand from principal end-markets returned following the global financial crisis, with the North American segment, where its TMK IPSCO unit supplies equipment for gas drilling in the Marcellus Shale field, demonstrating the most spectacular pace of recovery with sales volumes doubling in the first half of 2010.
Russia is TMK's key market and accounted for 59.7 percent of total ТМК sales volumes in H1 2010. TMK's Russian pipe market share remained strong with approximately 27 percent of the market. In its core seamless oil and gas pipe market, TMK retained its dominant position with an estimated 65 percent of the Russian seamless market even as the latter grew by 27 percent.
"Given the current positive momentum in oil and gas infrastructure investments, the company expects pipe demand to continue to increase in the second half of the year." reads TMK's statement, which adds that TMK management also expects the second half financial performance of the company to improve as compared to the first half of 2010.