TMK Announces 2Q 2013 and 1H 2013 IFRS Results
TMK, one of the world’s leading producers of tubular products for the oil and gas industry, announces today its interim consolidated IFRS financial results for the six months ending June 30, 2013
Financials
*Revenue for the second quarter was $1,649 million, a decrease of 4% over the first quarter of 2013, mainly due to an unfavorable sales mix mostly in the Russian division, weaker pricing in all other markets except the Russian one and a negative effect of currency translation. Sales of seamless pipe, the core business of the Company, generated 62% of total revenue.
*Adjusted EBITDA decreased by 8% quarter-on-quarter to $250 million due to an unfavorable sales mix. Adjusted EBITDA margin was 15%.
* Net income was $40 million for the second quarter, as compared to $85 million in the first quarter of 2013, being negatively impacted by a $40 million foreign exchange loss in the second quarter of 2013. Net income margin was 2% for the second quarter of 2013.
*As of June 30, 2013, total debt decreased to $3,769 million compared to $3,849 million as of March 31, 2013, mainly due to the Rouble’s depreciation against the U.S. dollar. Net repayment of the debt amounted to $36 million for the quarter. TMK’s weighted average nominal interest rate decreased to 6.67% as of June 30, 2013 from 7.02% as of March 31, 2013.
* Net debt decreased by $95 million in the second quarter of 2013 to $3,632 million as of June 30, 2013, while the Net Debt-to-EBITDA ratio3 was 3.7x.
