Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the fourth quarter and the full year of 2015.
In 2015, TMK shipped 3.87 million mt of steel pipes to customers, representing an 11.5 percent decrease compared to the previous year. The decline was due to a significant drop in shipments in the American division, driven by a slowdown in drilling across the United States. Shipments in the fourth quarter decreased by four percent quarter on quarter to 938,000 mt.
In the whole year, seamless pipe shipments fell by five percent year on year to 2.41 million mt. Shipments of seamless pipes in the fourth quarter increased by 4.6 percent quarter on quarter to 613,000 mt.
TMK's welded pipe shipments dropped by 20.5 percent year on year in 2015 to 1.46 million mt, due to lower shipments of welded oil country tubular good (OCTG) in the American division. The fourth quarter welded pipe shipments were down by 16.8 percent compared to the third quarter, totaling 325,000 mt.
In 2015, TMK's oil country tubular good (OCTG) shipment volumes decreased by 23.6 percent year on year to 1.48 million mt, due to a significantly lower demand for these products in the American market as well, while in the fourth quarter shipment volumes registered a 14.4 percent increase compared to the third quarter, rising to 388,000 mt, thank to seasonal procurement of tubular products by Russian oil and gas companies.
Shipments of premium connections declined to 684,000 joints in 2015, down 23.3 percent year on year, with shipment volumes decreasing by 9.3 percent to 152,000 mt in the fourth quarter of the year, on quarter-on-quarter basis. The decline resulted from suspension of many oil and gas production projects in the United States, due to the decline in global oil prices.
According to TMK, there will be no major changes in 2016 in the Russian market. Oil and gas pipe consumption will remain at the 2015 level, while large diameter pipe (LDP) will be in demand both to meet repair and maintenance needs and support trunk pipeline construction projects. The industrial pipe segment will most probably show a further decline, although at a lower rate.