TMK’s sales revenues up 56% in H1 amid gradual recovery in key markets

Thursday, 26 August 2021 11:24:48 (GMT+3)   |   Istanbul

Russian steel pipe producer TMK has announced its financial results for the second quarter and first half of this year.

In the second quarter this year, the company’s sales revenues amounted to RUB 109.22 billion ($1.47 billion), up by 68 percent compared to the previous quarter, supported by higher sales volumes and increased selling prices. In the given quarter TMK’s adjusted EBITDA rose by 64 percent compared to the previous quarter to RUB 14.11 billion ($190.63 million), while the company’s adjusted EBITDA margin was stable quarter on quarter at 13 percent.

In the first half this year, TMK’s sales revenues amounted to RUB 174.28 billion ($2.35 billion), up by 56 percent year on year, due to a gradual recovery of business activity in the company’s key markets and segments. In the given half, the company’s adjusted EBITDA rose by 11 percent year on year to RUB 22.70 billion ($306.61 million), due to the consolidation of the results from ChelPipe Group’s enterprises, which offset a noticeable increase in raw material prices in the first half this year, while the company’s EBITDA margin was 13 percent compared to 18 percent in the first half last year.

In the second quarter this year, the company’s total sales amounted to 1.13 million mt, up 60 percent compared to the first quarter, while its total sales amounted to 1.83 million mt, increasing by 31 percent year on year.

TMK said it anticipates a continued recovery of export volumes to the CIS and the Middle East. It expects demand for OCTG pipes from Russian oil and gas companies to remain stable, supported by the continued development of their existing and new projects. A recovery in demand in the machinery sector, including power engineering, is expected to support sales in the industrial pipe segment, the company said.

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