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ChelPipe Group Announces Financial and Operating Results for H1 2020

Steel News - Published on Wed, 12 Aug 2020

Image Source: ChelPipe
Leading Russian producer of tubular products and a supplier of integrated solutions for the oil and gas industry Chelyabinsk Pipe Plant has published its operating and financial IFRS results for H1 of 2020. CEO Boris Kovalenkov said “ChelPipe Group is closely monitoring the market and retains its focus on maintaining business stability and epidemiological safety of its workforce. We are meeting our obligations to our customers in full, while preserving a high standard of sales and service. Despite the complicated macroeconomic situation caused by the COVID-19 pandemic and lowered demand for pipe products both domestically and internationally, ChelPipe Group reported strong financial performance in the first half of 2020, first of all thanks to its operational efficiency programme. External challenges became an additional driver for client-centric transformation, which is our priority today. Being subject to the lifting of quarantine restrictions, we expect demand to partially restore across sectors in the second half of 2020.”

Key financial results for H1 of 2020
in RUB million, unless otherwise statedH1 2020H1 2019YoY
Operating profit11,25010,8533.7%
Net profit4,4804,1797.2%
EBITDA margin21.60%18.40%3.2p.p.
Operating cash flow1,334532150.8%
Net debt73,90673,7090.3%
Capital investment3,1122,62318.6%

Operating results
kt, unless otherwise statedH1 2020H1 2019YoY
Seamless industrial pipes254270-6%
Line pipes (O&G)6774-10%
Other welded pipes201625%

Outlook 2020 - ChelPipe Group plans to focus on achieving the key goals outlined in its strategy to 2024: developing a high-margin product line, improving operational efficiency, improving customer experience and enhancing the offering while increasing the Group’s presence in adjacent markets and expanding its target geography. ChelPipe Group expects that the spread of COVID-19 will continue to adversely affect the macroeconomic situation in 2020. However, the Group’s anti-crisis measures and its operational efficiency programme as well as forecasted rebounding demand in H2 2020 in a number of segments will allow ChelPipe to maintain its stable financial condition.

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Posted By : Yogender Pancholi on Wed, 12 Aug 2020
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