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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.
4Q 2019 shipments data is preliminary and may be adjusted.
TMK, one of the world’s leading producers of tubular products for the
oil and gas industry, announces its operational results for the fourth
quarter and twelve months of 2019.
The Group’s operational results include the operational results of the
American division (IPSCO Tubulars Inc.) for twelve months of 2019. On
January 2, 2020, TMK closed the sale of 100% of the shares of IPSCO
Tubulars Inc. to Tenaris. Under the Stock Purchase Agreement with
Tenaris signed on March 22, 2019, the transaction price amounted to US$
1,209 million on an aggregate, cash-free, debt-free basis and included
$270 million of working capital.
In connection with the closing of the transaction, the parties entered
into a 6-year master distribution agreement whereby, beginning on
January 2, 2020, Tenaris will be the exclusive distributor of TMK’s OCTG
and line pipe products in the United States and Canada.
Following this transaction, the Group now comprises its Russian and
European divisions represented by production assets located in Russia,
Romania and Kazakhstan.
FY 2019 and 4Q 2019 Summary Results
|
Product (thousand tonnes) |
FY 2019 |
FY 2018 |
Change |
4Q 2019 |
3Q 2019 |
Change |
|
Seamless pipe |
2,625 |
2,767 |
-5% |
621 |
651 |
-5% |
|
Welded pipe |
1,176 |
1,244 |
-5% |
249 |
290 |
-14% |
|
Total |
3,800 |
4,010 |
-5% |
870 |
941 |
-8% |
|
Including: |
|
|
|
|
|
|
|
OCTG |
1,738 |
1,958 |
-11% |
375 |
416 |
-10% |
FY 2019 vs. FY 2018
Total pipe shipments declined by 5% year-on-year, due to lower overall
shipments of both seamless and welded pipe (down 5% and 5% year-on-year,
respectively), reflecting a weaker performance by the American division.
The impact of lower total shipments at the American division was
partially offset by the strong performance of the Russian division,
where total pipe shipments increased by 5% year-on-year, driven by a 4%
increase in shipments of seamless OCTG pipe and a 56% increase in large
diameter pipe shipments.
Total OCTG shipments were down 11% year-on-year. However, OCTG shipments
at the Russian division grew by 3% year-on-year (by 4% year-on-year net
of welded OCTG shipments from TMK GIPI, which was deconsolidated in 4Q
2018), reflecting an increasing complexity of hydrocarbon production
projects in Russia and a higher share of horizontal drilling.
Total shipments of premium-threaded connections declined 10%
year-on-year, while the Russian division increased shipments of
premium-threaded connections by 15% year-on-year.
Source from
TMK |
