TMK Announces 3Q 2013 and 9M 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 nine months ending September 30, 2013.
Total pipe sales decreased by 9% quarter-on-quarter to 1,022 thousand tonnes, mainly due to a reduction in OCTG and line pipe sales in Russia.
• Seamless pipe sales decreased by 17% compared to the prior quarter and amounted to 534 thousand tonnes. Seamless OCTG pipe volumes fell by 17% quarter-on-quarter due to seasonally lower demand from oil and gas producers and performance of traditionally preplanned general overhauls at the Russian plants.
• Welded pipe sales grew by 3% from the prior quarter to 488 thousand tonnes mostly due to welded industrial and OCTG pipe volumes growth.
Financials
• Revenue for the third quarter was $1,487 million, a decrease of 10% over the second quarter of 2013, mainly due to lower sales of seamless pipe primarily in the Russian division and a negative effect of currency translation.
• Adjusted EBITDA decreased by 27% quarter-on-quarter to $182 million due to reduction of seamless pipe volumes in the Russian division as a result of seasonally lower demand and general overhauls. Adjusted EBITDA margin was 12%.
• Net income was $35 million for the third quarter, as compared to $40 million in the second quarter of 2013. Net income margin was 2% for the third quarter of 2013.
• As of September 30, 2013, total debt remained almost flat compared to the level as of June 30, 2013 and amounted to $3,775 million. TMK’s weighted average nominal interest rate amounted to 6.77% as of September 30, 2013 as compared to 6.67% as of June 30, 2013.
