DGAP-News

TMK Announces 1Q 2014 Operational Results - Seite 2

pipe in the first quarter of 2014.

In the first quarter, TMK's Russian division shipped 682 thousand tonnes(1)
of tubular products, down 9% and 10% quarter-on-quarter and year-on-year
respectively.

The Russian division's seamless pipe shipments decreased by 5%
quarter-on-quarter to 454 thousand tonnes. The Russian division increased
seamless OCTG pipe shipments by 5% quarter-on-quarter and 7% year-on-year,
with a total of 272 thousand tonnes shipped.

Seamless line pipe shipments were down by 22% quarter-on-quarter and by 31%
year-on-year.

Shipments of seamless industrial pipe fell by 7% quarter-on-quarter, but
rose by 3% year-on-year.

In the first quarter of 2014, large diameter pipe shipments amounted to 77
thousand tonnes, down 19% quarter-on-quarter. This decline is due to the
completion of several pipeline projects in late 2013.

(1) This includes shipments from TMK's Russian facilities, TMK-Kaztrubprom
and TMK GIPI to the Russian, CIS and non-CIS markets (excluding the North
American market)

American Division

Due to expansion of horizontal drilling and an increasing number of active
rigs in the U.S. and Canada, the demand for OCTG pipe in the American
market grew by 4% in the first quarter of 2014. Nevertheless, the market
continues to be affected by considerable volumes of tubular product
imports, the majority of which is under current review by the U.S.
Department of Commerce to determine compliance to fair trade practices.

In the reporting period, TMK's American division increased its shipments by
14% year-on-year, reaching a total of 298 thousand tonnes of tubular
products(2). As compared to the fourth quarter of 2013, the total shipments
fell by 7% due to a decline in shipments of welded OCTG and line pipe
related to the extreme winter weather conditions in the U.S. and Canada,
which impacted both railroad and truck service.

Seamless OCTG pipe shipments amounted to 98 thousand tonnes, virtually
unchanged quarter-on-quarter and up 21% year-on-year.

In the first quarter of 2014, the American division shipped 114 thousand
tonnes of welded OCTG pipe, down 13% quarter-on-quarter, but up 15%
year-on-year.

Welded line pipe shipments went down by 33% quarter-on-quarter due to a
seasonal decline in demand, as well as, the impact on transportation
logistics previously mentioned. The same factors accounted for the drop in
welded industrial pipe shipments, which were down 7% quarter-on-quarter.
Also, during the first quarter of 2014, the American division took a series