TMK Announces 4Q 2015 and FY 2015 Operational Results

• In 2015, TMK shipped a total of 3,873 thousand tonnes of steel pipe, down 11.5% y-o-y. The decline was due to a significant drop in shipments in the American division, driven by a slowdown in drilling across the United States. In 4Q 2015, shipments were down 4.0% q-o-q to 938 thousand tonnes.
• In 2015, seamless pipe shipments fell by 5.0% y-o-y to 2,413 thousand tonnes. Shipments in 4Q 2015 increased by 4.6% q-o-q to 613 thousand tonnes.
• Welded pipe shipments in 2015 dropped by 20.5% y-o-y to 1,460 thousand tonnes due to lower shipments of welded OCTG in the American division, being hardly recouped by increased LDP shipments in the Russian division. In 4Q 2015, welded pipe shipments were down 16.8% q-o-q to 325 thousand tonnes.
• In 2015, OCTG pipe shipments dropped by 23.6% y-o-y to 1,480 thousand tonnes. The drop was due to a significantly lower demand for these products in the American market as well. In 4Q 2015, OCTG shipments were up 14.4% q-o-q, reaching 388 thousand tonnes, due to seasonal procurement of tubular products by Russian oil and gas companies.

• In 4Q 2015, shipments of TMK UP™ premium threaded connections amounted to 152 thousand joints, down 9.3% q-o-q. In 2015, shipments of TMK UP™ premium threaded connections totalled 684 thousand joints, a drop of 23.3% y-o-y. The decline resulted from suspension of many oil and gas production projects in the United States, due to the decline in global oil prices.

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