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 2012.
For the first half of 2012, TMK shipped 2.105 million mt of steel pipes to customers, representing a 2.8 percent decrease compared to the same period of last year. The reduction in shipments was driven primarily by the continuously shrinking demand for large diameter pipes caused by the completion of a number of major projects and the postponement of new main pipeline construction projects. In the second quarter of 2012, total shipments remained virtually unchanged against the first quarter of 2012, standing at 1.051 million mt.
In the January-June period of 2012, TMK's oil country tubular good (OCTG) shipment volumes increased by 13.9 percent year on year to 892,000 mt, while in the second quarter shipment volumes registered a 0.2 percent growth compared to the previous quarter, rising to 446,000 mt. Volumes of large diameter pipe shipments decreased by 43.4 percent in the first half of this year compared to the same period of last year; while for the second quarter, the volumes decreased by 5.5 percent quarter on quarter.
In the January-June period of this year, TMK shipped about 303,000 premium connections, up 34.1 percent compared to the same period of 2011, while in the second quarter shipment volumes registered a 19.4 percent growth compared to the previous quarter.
Through the remainder of 2012, TMK expects continuing high demand for its key products, in particular OCTG and line pipe. Total 2012 shipments are expected to remain more or less unchanged as compared to 2011 amid the increasing volumes in the seamless segment of TMK's business.