Ukrainian steel pipe and railway wheel producer Interpipe has announced its financial results for the third quarter and the first nine months this year.
In the third quarter this year, Interpipe’s total sales revenues rose by 14 percent compared to the second quarter to $296 million, while its EBITDA was $40 million, up by 44 percent quarter on quarter. In the third quarter, there was bullish sentiment across all key markets in which Interpipe operated, which partially offset the negative impact of the global appreciation of production inputs and raw materials.
In the first nine months, the company’s total sales revenues totaled $757 million, up by 15 percent year on year, while its EBITDA declined by 30 percent year on year to $151 million. Despite a 54 percent year-on-year growth in the pipe segment revenue, the embargo on imports of Ukrainian railway products imposed in Russia in February this year caused a 28 percent drop in Interpipe’s railway product segment revenues.
According to the statement, in the third quarter this year scrap and natural gas prices increased by 20 percent and 65 percent, respectively, both quarter on quarter, putting additional pressure on the company’s performance.
“We have been enjoying a continuous growth of OCTG demand worldwide, and especially in the US, Ukraine and the CIS, which has enabled the company gradually to offset the negative effects of appreciation of production inputs and new trade barriers,” Fadi Hraibi, CEO at Interpipe, stated, commenting on the results.