ChTPZ's share in TMK's revenue was 25%

26.08.2021       

TMK, which after the acquisition of ChTPZ in March by a margin became the largest pipe producer in the country, for the first time reported its financial results after the merger. Although the company's revenue and EBITDA rose predictably, the business's profitability declined to 13%. TMK explains this by the effect of a high base in the first half of 2020, as well as rising metal prices. Analysts also note that by consolidating ChTPZ, the company has increased the share of low-margin products in its portfolio.
The company's net debt increased by 2.5 times in absolute terms compared to the beginning of the year — up to 251.8 billion rubles.
According to TMK, The volume of the Russian pipe market grew by 1% compared to the first half of 2020 due to growing demand in the industrial pipe segment and an increase in LDP shipments. At the same time, drilling volumes are declining due to the introduction of restrictions on oil production under the OPEC+ deal. TMK expects demand for OCTG to pick up slightly in the second half of the year. The company also notes that, despite volatile raw material prices, price conditions in the OCTG market are more dependent on long-term contracts with price formulas. “Under these conditions, we are seeing, in particular, a decrease in imports and the desire of consumers to increasingly use contracts with price formulas,” — concluded in TMK. Kommersant