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 2017.
In 2017, TMK shipped 3.80 million mt of steel pipes to customers, representing a 10.6 percent increase compared to the previous year. This growth was driven by significantly higher shipments at the American division stimulated by market recovery in North America. Shipments in the fourth quarter decreased by 2.8 percent quarter on quarter to 985,000 mt, mainly due to seasonally weak demand for welded industrial pipe.
In the full year, seamless pipe shipments rose by 11.6 percent year on year to 2.67 million mt, primarily due to increased shipments of oil country tubular good (OCTG). Shipments of seamless pipes in the fourth quarter increased by 4.5 percent quarter on quarter to 680,000 mt.
TMK's welded pipe shipments increased by 8.4 percent year on year in 2017 to 1.12 million mt, with a significant decline in large diameter shipments fully offset by higher shipments of other types of welded pipe in the American division. The fourth quarter welded pipe shipments were down 15.9 percent compared to the third quarter, totaling 305,000 mt, due to seasonally weak demand for industrial pipe and lower consumption of large diameter pipe by oil and gas companies in Russia.
In 2017, TMK's OCTG shipment volumes went up by 25.9 percent year on year to 1.76 million mt, supported by strong demand in the North American and Russian markets, while in the fourth quarter shipment volumes remained stable compared to the previous quarter at 453,000 mt.
Shipments of premium connections rose to 787,000 joints in 2017, up 43 percent year on year, with shipment volumes almost stable at 204,000 mt in the fourth quarter of the year, on quarter-on-quarter basis.
Alexander Shiryaev, TMK’s CEO, stated that 2017 was a good year for the company, with total shipments of products increasing by more than 10 percent, largely driven by strong demand for OCTG in TMK’s key markets, Russia and the US. Mr. Shiryaev added that they expect this trend to continue, with TMK delivering higher shipment volumes and a stronger financial performance in the current year.