INTERPIPE, a global manufacturer of steel pipe and railway products, announced audited consolidated financial results to IFRS for the 12 months 2019.
financial highlights for the 12 months 2019
- Revenue INTERPIPE increased by 4% yoy, to 1,112 billion. USA;
- the Amount of capital investment increased by 37% yoy, to us $ 60 million. USA;
- Cash amounted to $ 256 million. USA, almost double the rise to the beginning of the year;
- Net debt fell to $ 82 million. The U.S. ratio of net leverage (Net debt to EBITDA) of 0.3 x.
EBITDA rose by 64% yoy to 259 million. USA;
the First half of 2019 was generally favorable for the Company as in the tube division, and in division of railway products. However, in the second half of indicators tube division began to decline amid weakening demand in key markets, while the division of railway products significantly increased their performance.
In 2019, the Company's revenue increased by 4% compared to the year 2018 – up to 1,122 billion. USA – due to growth in sales of railway products. Revenue from sales of railway products increased by 49% yoy, to $ 425 million. USA, due to the high demand in the markets of the CIS and the EU. At the same time, revenue from sales of tubes decreased by 13% yoy, to $ 658 million. USA, mainly due to the fall in sales of oil pipes (OCTG) by 28% yoy.
In 2019 EBITDA amounted to 259 million dollars. USA, which is 64% higher compared to 2018, mainly due to the positive results of railway division. Railway division EBITDA increased almost 4-fold, and its share in total EBITDA in 2019 reached 77%. At the same time, EBITDA tubular division declined by 47% and its share in the total EBITDA amounted to only 21% (compared to 66% in 2018).
as of December 31, 2019 cash balance amounted to $ 256 million. USA (+95% compared to 31 December 2018), thanks to the strong operating cash flow in the division of railway products (especially in the 4th quarter of 2019).
Completing the debt restructuring in October 2019 and paying off debt in the fourth quarter of 2019, the Company has reduced its gross debt to 338 million. USA and net debt to $ 82 million. The U.S., reaching a sufficiently strong and healthy ratio net leverage of 0.3 x as of December 31, 2019.
Fadi Hraibi, INTERPIPE chief Executive officer:
In 2019, INTERPIPE has demonstrated the best results in recent years, increasing EBITDA by 64% and formed at the beginning of 2020 reliable cash balance in the amount of $ 256 million. USA.
the completion of the debt restructuring allowed the Company to begin implementation of a strategic investment program, focuses on the development of premium products for the oil and gas and railway industries.
After passing the peak of debt payments in Q4 2019 INTERPIPE additionally repaid $ 121 million. USA in Q1 2020, reaching an unprecedented low level of net debt and net leverage for Ukrainian companies.
All of these factors allow the Company to be confident in your stability and flexibility in the difficult period of the pandemic COVID-19 and the collapse of oil prices.
INTERPIPE has implemented all security measures related to COVID-19, to ensure stable production activities at its facilities, with priority to protect the health and well-being of employees. The company continues to manufacture and supply products worldwide.
the Negative effects of flash COVID-19 have not affected the volume of production and sales in the first quarter of 2020, but we see a continuing decline in the key tube markets associated with the sharp fall in oil prices. Sales of railway wheels can also have a negative impact quarantine imposed in many countries and the suspension of engineering works.
Anticipating the impact of global challenges, INTERPIPE started the implementation of the cost optimization program, which includes: the transfer of decision-making on new development projects for the period after quarantine, freezing the variable part of remuneration management and training to staff reductions in case of the worst scenario.the
INTERPIPE is a global producer of steel pipes and railway products in Ukraine. The company's products are marketed in more than 80 countries through a network of sales offices located in key markets of the CIS, the Middle East, North America and Europe. In 2019, INTERPIPE sold 822 thousand tons of products, including 203 thousand tonnes of railway products.
INTERPIPE has 11 thousand employees. In 2019, the Company transferred to the budgets of all levels UAH 3.25 billion.