Tubos Reunidos, a seamless tube and pipe producer based in Spain's Basque region, has announced its financial results for the first nine months this year. In this period, the group's net profit increased by five percent year on year to €19.2 million, compared to a 1.4 percent year-on-year growth in H1.
In January-September, Tubos Reunidos' sales revenues rose 0.3 percent to €337.2 million and EBITDA increased by 5.2 percent to €46.4 million, year on year. The EBITDA margin for the period was 13.8 percent.
Tubos Reunidos stated that it recorded a positive business performance in the oil and gas sector and also in the power generation field, particularli in emerging regions. The group's positive financial results were mainly supported by cost reductions and high value-added product sales which accounted for over 70 percent of its sales.
According to the company's outlook, in the next few months global markets will be characterized by increased uncertainty due to the weakness of European economies and due to a certain slowdown in North American demand, which the company believe is a temporary factor related to US presidential elections and federal expenditures. Despite this, the mid-to-long term scenario continues to be positive as the global seamless steel tubes market will be underpinned by strong demand form the energy sector. Tobos Reunidos also believes that overall investments in the oil and gas sector will be intense due to the high quotations of oil and due to the policy of self-sufficiency in the US.