In its financial results according to international financial reporting standards (IFRS) for the first nine months of the current year, RussianpipeproducerTMKregistered a net profit of $45.58 million compared to a net profit of $81.43 million registered in the same period of 2016.
In the January-September period this year, the company's sales revenues increased by 31 percent year on year to $3.19 billion, supported by a positive effect of currency translation and strong sales at the American division, resulting from growing US drilling activity.
In the given period,TMK's adjusted EBITDA rose by 14 percent year on year to $444.47 million, driven by a much stronger performance from the American division, while the adjusted EBITDA margin in the January-September period this year was 14 percent compared to the 16 percent recorded in the corresponding period of the previous year.
InRussia, in the fourth quarter,TMKanticipates marginal growth inpipesales compared to the previous quarter, resulting from the start of the seasonal stock-up period by oil and gas majors.
In the US, despite the recent stabilization of the rig count the company expects its North American division will achieve strong results in the current quarter supported by OCTG and linepipedemand. Meanwhile, the European division anticipates stablepipedemand in the fourth quarter this year, and financial results to improve due to a better product mix.TMKexpects overall stronger financial results for the full year compared to the previous year, with some pressure on margins resulting from higher raw materials prices and weak large diameter (LD)pipedemand, with margins expected to expand in the first quarter of 2018.