ChelPipe Group announces financial results as of H1 2017 in accordance with IFRS
Chelyabinsk Pipe-Rolling Plant Public Joint-Stock Company (ChelPipe PJSC), a leading Russian manufacturer of pipe products and provider of integrated solutions for companies of the fuel and energy complex, announces its consolidated financial results for the six months ending June 30, 2017, in accordance with International Financial Reporting Standards (IFRS).
- The total sales of pipe products in H1 2017 were equal to 977,000 tonnes, 12% higher than the volumes of the same period in 2016 (876,000 tonnes).
- The export of pipes increased by 315% up to 270,000 tonnes, supply to the Russian market was equal to 707,000 tonnes (−13%). The decrease was affected by the change in the schedule of LDP supply for Gazprom projects (Power of Siberia and Nord Stream). However, the share of ChelPipe Group in the total shipments of Russian pipe manufacturers increased by 2.3% compared to the same period in 2016 and amounted to 18.6%.
- The company sold 389,000 tonnes of welded pipes including 371,000 tonnes of large diameter pipes (LDP), which is 9% and 12% higher than the respective figures for January–June 2016.
- The sales volumes of seamless products increased by 14% and was equal to 588,000 tonnes of pipes.
- The company increased the shipments of pipe fittings by 2,300 tonnes (+51% compared to the same period last year). The growth was determined by the increase of laterals sales to Gazprom PJSC and oil and gas companies.
- The revenue of H1 2017 increased by 6% compared to the same period in 2016 and amounted to 72,566 million rubles.
- Gross profit decreased by 21% and amounted to 17,297 million rubles, EBITDA — 11,001 million rubles.
- EBITDA margin decreased by 9.5% and is equal to 15.2%. EBITDA was affected by the decrease of marginal revenue in seamless pipes segment due to an increase in prices of the metal for billet production, a lagging increase in prices for finished pipes, as well as the decrease of LDP consumption in the Russian market due to the rescheduling of Gazprom projects.
- For January–June 2017 ChelPipe Group earned a profit of 2,101 million rubles (H1 2016 —5,810 million rubles). Also, during H1 2017 the Group generated a positive net operating cash flow of 5,183 million rubles (H1 2016 —7,611 million rubles)
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