TMK Group – 2014 Results Highlights
OAO TMK, one of the world’s leading producers of tubular products for the oil and gas industry, announces today its audited consolidated IFRS financial results for the twelve months ending December
31, 2014. To see the full break down please click here
Russia
4Q 2014 vs. 3Q 2014
Revenue decreased by $65 million or 6% to $948 million from the third quarter of 2014, mainly as a result of a negative effect of currency translation, which totaled $283 million. Excluding this negative effect revenue growth would have amounted to $218 million.
Gross profit increased by $2 million or 1% to $224 million, due to stronger volumes of LD pipe, resulting in a better product mix of welded pipe, higher seamless OCTG and line pipe sales. Gross profit growth was offset by a negative effect of currency translation in the amount of $64 million. Gross profit margin increased to 24% from 22% in the prior quarter.
Adjusted EBITDA increased by $11 million or 7% to $162 million compared to the third quarter of 2014. Adjusted EBITDA margin increased to 17% compared to 15% in the prior quarter.
FY 2014 vs. FY 2013
Revenue dropped by $510 million or 11% year-on-year to $3,973 million, largely due to a negative currency translation effect in the amount of $788 million. Excluding this effect revenue would have increased by $278 million.
Gross profit decreased by $201 million or 18% year-on-year to $891 million, mainly as a result of a negative currency translation effect and higher raw materials prices. Gross profit margin decreased to 22% from 24% for the full year 2013.
Adjusted EBITDA fell by $162 million or 21% year-on-year to $614 million, due to a decrease in gross profit partially offset by lower selling, general and administrative expenses. Adjusted EBITDA margin declined to 15% compared to 17% for the full year 2013.
