TMK Announces Operating Results of its Russian Division for 2014

TMK, a leading global manufacturer and supplier of steel pipes for the oil and gas industry and industrial use, operating at 28 production sites in Russia, Romania, USA, Canada, Oman, United Arab Emirates, Kazakhstan, reported its results for the 4th quarter and the whole of 2014.

In 2014, the Russian pipe market expanded 9 percent YoY, supporting TMK's leadership in the domestic pipe industry. Last year, the Russian division of TMK delivered 2,984 thousand tons of pipe products, which indicates the preservation of the volume of supplies in the previous year. In the 4th quarter of 2014, deliveries were 10.3 percent higher than in the previous quarter and reached 841,000 tons.

In 2014, shipments of industrial seamless pipes decreased by 10.7 percent YoY as a result of lower demand from engineering companies. Welded pipe shipments rose 0.5 percent to 1,161 thousand tonnes in 2014, while large-diameter pipe shipments rose 3.8 percent over the same period to 461 thousand tonnes.

Seamless pipe deliveries amounted to 1,824 thousand tonnes, which is in line with the 2013 production level. In the 4th quarter of 2014, shipments increased by 12.4 percent on a quarterly basis. Seamless line pipe shipments were up 9.1 percent year on year. In the fourth quarter, deliveries increased by 29.2 percent quarter-on-quarter due to the launch of pipeline construction and related infrastructure projects.

In 2014, seamless OCTG pipe shipments were down 1.4 percent year on year to 997,000 tonnes. In the 4th quarter, shipments rose 11.9 percent quarter-on-quarter due to the start of winter purchases by oil and gas companies.