TMK expanded steel pipes shipments in 3Q

During the first nine months of 2015 total seamless pipe shipments fell by 2.7% y-o-y to 1.799 million tons. In 3Q 2015, shipments decreased by 1.3% q-o-q to 586.000 tons. At the same time, TMK’s share grew on the back of total seamless pipe consumption decrease at Russian

In 9M 2015, total welded pipe shipments were down 13.4% y-o-y, amounting to 1.135 million tons, mainly due to a decline in sales of welded OCTG and welded line pipe across the American Division. In 3Q 2015, welded pipe shipments rose 6% q-o-q to 391.000 tons as a result of the increased shipments of welded industrial and line pipe by the Russian Division.

During the first nine months of 2015, total shipments of premium threaded connections amounted to 482.000 joints, down 31.2% y-o-y. In 3Q 2015, shipments of premium products were down 25.3% q-o-q, totalling 119.000 items. The decrease in shipments of premium products was triggered by the suspension of a number of complex oil and gas projects in North America due to the slump in global hydrocarbon prices.

Strong performance of the Russian division, more efficient working capital management and better financial terms of contracts with key Russian customers allowed TMK to generate strong cash flow and significantly reduce debt in 3Q.