TMK announced 2010 IFRS consolidated results

TMK , one of the world’s leading producers of pipes for the oil and gas industry, announced its IFRS audited consolidated results for 2010.

2010 Highlights
Financials:
Revenue grew by 61% to U.S.$ 5,578 million as a result of strong recovery in demand across all key markets and pricing improvement.
Gross profit amounted to U.S.$ 1,293 million, an increase of 133% compared to 2009 as a result of higher volumes and prices for pipe products.
Adjusted EBITDA almost tripled to U.S.$ 942 million.
Net Debt amounted to U.S.$ 3,711 million, a 6% increase compared to December 31, 2009, as a result of higher working capital levels driven by recovery in demand and financing of certain capital projects. Net-Debt-to-EBITDA ratio improved to 3.9x.
Sales Volumes:
Total pipe sales volumes increased by 43% to 3,962 thousand tonnes, including 2,119 thousand tonnes of seamless pipes. The American division sales volumes amounted to 804 thousand tonnes, a 125% increase over 2009.
OCTG sales volumes increased by 43% to 1,478 thousand tonnes, which was driven by recovery in drilling activity in both Russia and the U.S.
Line pipe sales volumes grew by 52% to 761 thousand tonnes on the back of strong demand from Russian and the U.S. oil and gas companies.
Large-diameter pipe sales volumes more than doubled over 2009 and came in at 700 thousand tonnes, driven by the ongoing construction of major pipeline projects in Russia.

Corporate developments:
In May 2010, TMK IPSCO opened a new ULTRATM Premium Connections facility in Brookfield, Ohio (U.S.A.) to address the growing demand from the development of the Marcellus Shale, the largest gas shale play in the United States.
In June 2010, TMK established TMK Africa Tubulars, a trading subsidiary incorporated in Cape Town, South Africa, to strengthen its commercial presence in the sub-Saharan oil and gas markets and provide additional support to established relationships in northern Africa.
In August 2010, TMK IPSCO opened a new sales office, TMK IPSCO Canada, in Calgary, Canada which functions as a head office for sales in Canada and supports conventional and unconventional hydrocarbon exploration and development programs in Canada.
In December 2010, TMK and RUSNANO established a strategic venture TMK-INOX to support the production of precision stainless steel and alloy tubes. The joint project aims to produce modern high-tech pipes for special applications.
During 2010, ТМК acquired an additional 0.11% of Sinarsky shares, 0.15% of Seversky shares and 0.04% of Tagmet shares. As of December 31, 2010, TMK’s effective equity share in Sinarsky, Seversky and Tagmet stood at 94.27%, 94.37%, and 96.10%, respectively.