Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first half of the current year.
In the first half of the year, TMK shipped 2.05 million mt of steel pipes, increasing by 14 percent year on year, mainly driven by higher shipments of welded pipe at the American division on the back of increased drilling activity in North America and the ramp-up of TMK’s US facilities. In particular, in the first half this year the company’s seamless pipe shipments rose by four percent to 1.39 million mt and its welded pipe shipments increased by 43 percent to 662,000 mt, both year on year.
In the first six months this year, TMK's oil country tubular good (OCTG) shipment volumes increased by 11 percent to 952,000 mt compared to the same period of the previous year.
The company expects demand for OCTG in Russia to remain strong for the remainder of this year, supported by stable drilling activity and high oil prices. Demand for large diameter pipe (LDP) in 2018 is not expected to fall below 2017 levels.
In Europe, TMK expects shipments of seamless pipe to increase. This is in part due to the launch of a new heat treatment facility at its Romania-based subsidiary TMK-ARTROM, which will increase the division’s offering of premium pipe as a share of the sales mix.
Overall, the group expects pipe shipments to increase in the current year compared to 2017, building a foundation for TMK’s stronger financial performance throughout 2018 in line with the company's guidance.