DGAP-News

TMK Announces 9M 2014 Operational Results

EquityStory.RS, LLC-News: OAO TMK / Key word(s): Miscellaneous
TMK Announces 9M 2014 Operational Results

20.10.2014 / 09:05

---------------------------------------------------------------------

October 20, 2014 PRESS RELEASE

TMK Announces 9M 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 nine months of
2014.

3Q 2014 and 9M 2014 Highlights

- During the nine months of 2014, TMK shipped a total of 3,159 thousand
tonnes of steel pipe, down 1.3% year-on-year. In 3Q 2014, shipments
grew by 6.7% quarter-on-quarter.

- During the nine months of 2014, seamless pipe shipments grew by 2.3%
year-on-year to 1,848 thousand tonnes. Shipments in 3Q 2014 increased
by 3.3% quarter-on-quarter to 621 thousand tonnes.

- During the nine months of 2014, welded pipe shipments dropped by 5.9%
year-on-year to 1,311 thousand tonnes due to weaker demand for large
diameter pipe (LDP) and industrial pipe. In 3Q 2014, welded pipe
shipments were up 11.4% quarter-on-quarter, reaching 482 thousand
tonnes.

- Shipments of OCTG pipe, TMK's core product, were up 5.5% year-on-year,
reaching 1,417 thousand tonnes in the nine months of 2014. In 3Q 2014,
the shipments of this product dropped by 7.1% quarter-on-quarter to 446
thousand tonnes due to a seasonal reduction in oil and gas drilling in
Russia.

- Shipments of premium connections for the nine months of 2014 increased
to 649 thousand joints, up 13.3% year-on-year. In 3Q 2014, shipments of
premium products were up 20.7% quarter-on-quarter, reaching 245
thousand joints.

3Q 2014 and 9M 2014 Summary Results

(thousand tonnes)

Product         3Q 2014   2Q      Q-o-Q, %   9M 2014   9M 2013   Y-o-Y, %

                          2014

Seamless pipe

                    621     601       3.3%     1,848     1,806       2.3%

Welded pipe

                    482     433      11.4%     1,311     1,393      -5.9%

Total

                  1,103   1,034       6.7%     3,159     3,200      -1.3%

including

OCTG                446     480      -7.1%     1,417     1,343       5.5%

3Q 2014 and 9M 2014 Market Overview and Performance by Division

Russian Division

In the nine months of 2014, TMK's Russian division shipped 2,144 thousand