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TMK Announces 1H 2014 Operational Results

EquityStory.RS, LLC-News: OAO TMK / Key word(s): Miscellaneous
TMK Announces 1H 2014 Operational Results

22.07.2014 / 12:15

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July 22, 2014 PRESS RELEASE

TMK Announces 1H 2014 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 first half of
2014.

2Q 2014 and 1H 2014 Highlights

- In the first half of 2014, TMK shipped a total of 2,056 thousand tonnes
of steel pipe, down 3.9% and up 1.2% year-on-year and
quarter-on-quarter, respectively.

- Seamless pipe shipments fell by 1.3% year-on-year to 1,227 thousand
tonnes and by 3.9% quarter-on-quarter to 601 thousand tonnes.

- Welded pipe shipments dropped by 7.6% year-on-year to 829 thousand
tonnes due to lower demand for welded line pipe and large diameter pipe
(LDP). In the second quarter, welded pipe shipments were up 9.3%
quarter-on-quarter.

- Total shipments of OCTG pipe, TMK's core product, reached 971 thousand
tonnes, up 8.1% year-on-year, but down 2.1% quarter-on-quarter.

- Shipments of premium connections amounted to 404 thousand joints, up
9.2% and 9.5% year-on-year and quarter-on-quarter, respectively.

2Q 2014 and 1H 2014 Summary Results

(thousand tonnes)

Product          2Q 2014  1Q 2014   Q-o-Q, %  1H 2014  1H 2013  Y-o-Y, %



Seamless pipe

                     601       626     -3.9%    1,227    1,244     -1.3%

Welded pipe

                     433       396      9.3%      829      897     -7.6%

Total

                   1,034     1,022      1.2%    2,056    2,140    - 3.9%

including OCTG

                     480       491     -2.1%      971      898      8.1%

2Q 2014 and 1H 2014 Market Overview and Performance by Division

Russian Division

In the first quarter, TMK's Russian Division shipped 1,381 thousand
tonnes(1) of tubular products, down 8.4% year-on-year, but up 2.5%
quarter-on-quarter (699 thousand tonnes in 2Q).

Seamless pipe shipments were down 5.7% year-on-year to 888 thousand tonnes,
and 4.3% quarter-on-quarter to 434 thousand tonnes.

Shipments of seamless OCTG pipe rose by 3.9% year-on-year to 537 thousand
tonnes, while dropping by 2.4% quarter-on-quarter to 265 thousand tonnes