TMK Announces FY 2017 And 4Q 2017 Operational Results
The following contains forward looking statements concerning future events. These forward looking statements are based on current information and assumptions of TMK management concerning known and unknown risks and uncertainties. TMK, one of the world’s leading producers of tubular products for the oil and gas industry, announces its operational results for the full year 2017 and the fourth quarter of 2017.
FY 2017 Highlights
- In 2017, TMK shipped a total of 3,806 thousand tonnes of pipe, up 10.6% y-o-y. This growth was driven by significantly higher shipments at the American division stimulated by market recovery in North America.
- Seamless pipe shipments were up 11.6% y-o-y to 2,676 thousand tonnes primarily due to increased shipments of OCTG.
- Welded pipe shipments were up 8.4% y-o-y to 1,129 thousand tonnes, with a significant decline in LDP shipments fully offset by higher shipments of other types of welded pipe in the American division.
- In 2017, TMK shipped 1,765 thousand tonnes of OCTG (up 25.9% y-o-y), supported by strong demand in the North American and Russian markets.
- Shipments of premium threaded connections were up 43% y-o-y to 787 thousand joints. Strong demand for TMK’s products was driven by the increased production of hard-to-recover hydrocarbons in Russia and overall recovery in the US market.
4Q 2017 Highlights
- TMK shipped 985 thousand tonnes of steel pipe, down 2.8% q-o-q, mainly due to seasonally weak demand for welded industrial pipe.
- Seamless pipe shipments were up 4.5% q-o-q to 680 thousand tonnes, supported by higher shipments of OCTG and line pipe.
- Welded pipe shipments decreased by 15.9% q-o-q to 305 thousand tonnes due to seasonally weak demand for industrial pipe and lower consumption of large-diameter pipe (LDP) by oil and gas companies in Russia.
- OCTG pipe shipments were flat q-o-q at 453 thousand tonnes. At the same time, seamless OCTG shipments were up 2.6%.
- Shipments of premium threaded connections were almost flat q-o-q at 204 thousand joints.
- In December 2017, TMK IPSCO brought two new high torque connections to the market, the TMK UP ULTRA QX TORQ and the TMK UP ULTRA SF TORQ.
Alexander Shiryaev, TMK’s CEO, said:
“2017 was a good year for TMK, with shipments of products increasing by more than 10%. This growth was largely driven by strong demand for OCTG in our key markets, Russia and the USA. We expect this trend to continue, with TMK delivering higher shipment volumes and a stronger financial performance in 2018.”
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