Interpipe increased sales by 12% in 2018

In 2018, the Ukrainian industrial company Interpipe increased sales of pipe and railway products in tons by 11.7%, demonstrating the best result over the past five years. Growth is noted across all types of products and in all key sales regions. The total sales volume reached 857 thousand tons. The export share in the sales structure was 72%, while the Ukrainian market share increased from 25% to 28%.



Sales of pipe products increased by 12% compared to 2017 and amounted to 668 thousand tons. The main points of growth are the markets of Ukraine, America and Europe.

Pipe deliveries to the Ukrainian market increased by 22% compared to 2017 and reached 179 thousand tons.

The main driver of growth was the increase in drilling volumes at Ukrainian fields and the number of operations to stimulate production by JSC Ukrgasvydobuvannya, incl. when implementing the 20/20 strategy. This increased sales of oil and gas products by 15%, including pipes with premium UPJ-M threaded connections, previously certified to the highest level of CAL IV requirements.

Last year, for the first time in almost half a century, the United States became the leader in average daily oil production, ahead of Saudi Arabia and Russia. In addition, the American market has traditionally been the largest in the world in terms of the number of new wells drilled. Thanks to the continued growth in oil production, the Company has managed to show the maximum result in the American region over the past 5 years, that is, since 2013. In total, in North and South America, INTERPIPE sold 124 thousand tons of linear and threaded pipes in 2018 (+ 37% compared to 2017).

Europe became another growth region in 2018, where demand for pipe products increased in almost all industries. Interpipe supplied 169 thousand tons of seamless and welded pipes to European customers (+ 24% by 2017). The Company plans to strengthen its positions in this high-margin segment through the implementation of the Vallourec Niko Tube JV project.

In the Middle East, Interpipe maintained sales at 83 thousand tons, the bulk of which falls on our key customers - large distributors in the UAE, Saudi Arabia, Turkey and Egypt. Among the most important projects are shipments of line pipes for the Riyadh metro, as well as the first deliveries of casing pipes for oil projects in the UAE.

At the same time, sales in the CIS last year decreased by 20%, to 113 thousand tons. The main reason is the excessive politicization of the market of the Customs Union countries, as well as the presence of customs and anti-dumping duties against the backdrop of the weakening ruble exchange rate. This was partially offset by an increase in supplies to Uzbekistan and Azerbaijan, incl. pipes with premium UPJ connection.



Sales of railway products - wheels, tires, axles and wheelsets - in 2018 increased by 10% compared to 2017 and amounted to 189 thousand tons.

Intensification of updated