In its financial results according to international financial reporting standards (IFRS) for the three months of the current year, the net profit of Russian pipemaker TMK totaled $85 million, down 19 percent compared to the same quarter last year, but up 170 percent quarter on quarter.
In January-March this year, TMK's sales revenues increased by four percent year on year to $1.725 billion, mainly due to the growth of large diameter (LD) pipe and welded line pipe sales in the Russian division, and was up six percent compared to Q4 2012 on higher volumes and improved product mix of seamless pipe and a favorable currency translation effect.
In the first quarter this year, TMK's adjusted EBITDA increased by 24 percent compared to the previous quarter to $273 million, supported by an improved product mix of seamless pipe and lower operational expenses in the Russian division. Adjusted EBITDA fell by seven percent year on year due to lower sales and weaker pricing in the American division in the first quarter of 2013.
The adjusted EBITDA margin was 16 percent for the first quarter this year, up from 13 percent in the fourth quarter of 2012 but down from 18 percent in the first quarter of 2012.