The Russian producer of oil and gas pipes has replaced rival Vallourec of France to become the second most profitable pipemaker after Luxembourg based Tenaris.
The company’s EBITDA rose 24% to $273 million in the first
quarter of this year compared to the previous quarter, TMK
reports. Its close competitor the French Vallourec saw a decrease
of 19% to $191mn over the same period. Luxembourg Tenaris remains
the leader with earnings of at $699 mn.
TMK’s 1st quarter revenue increased by 6% to $1.7 billion, profit
rose almost three- fold to $85mn. As a result, the
company’s profitability by EBITDA reached 16%.
Dmitry Pumpyanskiy, the head of TMK, says that the company
will continue to develop the production of pipes with high added
value. He also pointed out that the task was to make TMK the
leader by market capitalization, but it is “a long, tedious,
hard, but understandable way”, Vedomosti quotes.
On Thursday TMK capitalization on the London Stock Exchange
was $2.6bn. For comparison the capitalization of Vallourec
is $6.8bn (on the Paris stock exchange), and Tenaris
is $26,1bn (NYSE).TMK started developing the premium pipe
segment about 2 years ago, while Tenaris and Vallourec has
been working in this market for many years – since the US
began to develop complex oil and gas deposits, Vedomosti quotes
Vasiliy Kuligi from Renaissance Capital as saying.
TMK has work to do and where to develop. Tenaris currently earns
more than $700 on 1 tonne of premium pipes, while the Russian
company makes only $250-300, the analyst says.TMC intends to
continue investing into premium pipe production, Vedomosti quotes
a company representative.
This year its American division has launched a new production
facility in Edmonton, and the company bought several service
assets in Texas. TMK also has production plants in Russia,
Romania and Kazakhstan and has an annual production capacity of
more than 6 million tonnes of pipe products that it delivers to
companies in more than 65 countries.
TMK clients include oil and gas companies Gazprom, Transneft,
Lukoil, Rosneft, Royal Dutch Shell, Total, Wintershall,
Repsol, and Statoil.
This article originally appeared on: RT