TMK group, the leading pipe maker operating in Russia and Europe expects demand for OCTG pipe to remain stable in H2 2021 amid successive development of current and new projects in Russia. Demand will also be driven by government stimulus and the lifting of COVID-19 lockdowns in the European countries. Consumption of industrial pipe in the domestic market, as well as exports to CIS and the Middle East, are expected to stay strong.
Sales of tubes and pipes in both the seamless and welded product segments rose in H1 2021. Total sales including that of ChelPipe jumped up by 31pc to 1.83mn mt from 1.40mn mt in H1 2021 boosted by the acquisition of ChelPipe Group. Seamless pipes shipments were 1.39mn mt and welded pipes at 0.437mn mt in H1 2021.
TMK’s financials were boosted due to the consolidation of the results from ChelPipe Group’s enterprises post the acquisition.
In Q2 2021 (Apr-June), revenue rose by 68pc from Q1 to RUB109.2bn ($1.47bn), supported by higher sales volumes due to the contribution of ChelPipe’s numbers and the increase in selling prices. EBITDA was up by 64pc from Q1 at RUB14.1bn.
Revenues in H1 2021 increased by 56pc from prior year to RUB174.3bn due to a gradual recovery of business activity from the impact of the pandemic last year. Adjusted EBITDA was up by 11pc at RUB22.7bn. Operating profits for both Russia and Europe division totaled $11,681mn, up by 57pc from H1 2020. The net debt was at RUB251.8bn ($3.4bn) as on June 30, 2021.
In June, ChelPipe, which is part of TMK, signed a three-year tubing services contract with Udmurtneft (managed by Rosneft and Sinopec) for the maintenance of tubing and supply, which is more than 170 thousand tubes or about 50pc of the regional market.
In July, TMK launched an investment project worth RUB1.5bn to modernise the electric steel-making production at the Volzhsky Pipe Plant (VTZ) and produce new corrosion-resistant and stainless-steel grades.