Help Desk -
9958816305, 9810335381
Email
Password

TMK Announces Q1 Results

Steel News - Published on Fri, 22 May 2020

Image Source: TMK
World’s leading producers of tubular products for the oil and gas industry PAO TMK announced its interim consolidated IFRS financial results for the three months ended March 31, 2020. TMK CEO Igor Korytko said “In 1Q 2020, the Group demonstrated a weaker quarter-on-quarter performance across the Russian and European divisions, being negatively impacted mainly by lower sales volumes. The extremely challenging global macro environment caused by the COVID-19 pandemic and oil price volatility resulted in a decline in activity by customers in our main markets and put serious pressure on pipe consumption in the key segments. We are witnessing a more challenging market situation in the second quarter, which continues to depress demand for our products, including seamless OCTG pipe. However, we are confident that thanks to the improved balance sheet, our strong position in the major markets and our investment in R&D, TMK is well- positioned for recovery of its financials in a longer-term perspective.”

Q1 2020 Highlights

Q1 Revenue down 33% year-on-year and down 21% quarter-on-quarter at RUB 55.3 billion, largely due to the disposal of the American division

Q1 Adjusted EBITDA at RUB 8.7 billion: down 24% year-on-year, largely due to the disposal of the American division, and down 22% quarter-on-quarter, due to a weaker performance of the Russian and European divisions

Adjusted EBITDA margin at 16% in 1Q 2020 compared to 14% in 1Q 2019 and 16% in 4Q 2019

(thousand tonnes)1Q20201Q2019Change4Q 2019Change
Seamless526685(23)%641(18)%
Welded188293(36)%255(26)%
Total sales714978(27)%896(20)%
 


2Q 2020 Outlook - In the second quarter of 2020, TMK expects overall demand for the Group’s products to remain under pressure both in Russia and Europe, due to the continued unfavourable macroeconomic environment caused by the COVID-19 pandemic and oil price volatility.

Source :

Posted By : Yogender Pancholi on Fri, 22 May 2020
Related News from Steel segment