TMK: Q1 2017 Results – TMK Ipsco Records a Profit for First Time Since 2015
PAO TMK, one of the world’s leading producers of tubular products for the oil and gas industry, today announces its unaudited interim consolidated IFRS financial results for the three months ended March 31, 2017.
1Q 2017 Highlights
Financial
- Revenue up 5% q-o-q and 24% y-o-y at $944 million
- Adjusted EBITDA up 1% q-o-q and 15% y-o-y at $142 million
- Adjusted EBITDA margin at 15%
- Net profit at $42 million
- Net debt at $2,640 million as at March 31, 2017
- Weighted average nominal interest rate at 9.07%
Developments
- In March 2017, TMK launched shipments of drill pipe with new TMK UP EXD connections, capable of withstanding higher torque loads and reducing assembly time, enabling cost savings in well drilling operations.
- In April 2017, TMK shipped the first batch of casing pipe with TMK UP MAGNA connections and GreenWell lubricant-free coating to LUKOIL.
- In April 2017, TMK placed a 5 billion rouble 10-year bond with 9.75% coupon rate.
- In April 2017, TMK received a RAEX credit rating of ruA, stable outlook.
Outlook
- TMK reiterates its previous guidance for FY 2017 of broadly flat margins y-o-y and overall stronger financial results compared to FY 2016 driven by a significantly improved performance of the American division.
Alexander Shiryaev, CEO of TMK, said:
“We are pleased to report a strong performance in the first quarter of 2017. 1Q marked a turnaround for our US division, which returned to sustainable profit as TMK continues to benefit from the improving market conditions in the US where we are one of the leading suppliers of premium tubular products for oil and gas producers.
We are confident that the increasingly favourable environment in the U.S. will support an even stronger Group performance in the second quarter, with further recovery driving growth in consumption of OCTG, one of TMK’s core products.”
