Home / Press Releases / TMK Announces 4Q and 12M 2019 IFRS Results

TMK Announces 4Q and 12M 2019 IFRS Results

Press Releases
351
0

Inside Information: This press release does not contain inside information.

Forward-looking statements: The information contained in this press release includes forward-looking statements events. These statements are based on the current opinions and assumptions of the Company's management, taking into account known and unknown risks and uncertainties.

PJSC TMK (“TMK” or the “Group”), one of the world's leading manufacturers of pipes for the oil and gas industry, announces its audited consolidated financial results for the year ended December 31, 2019, in accordance with international financial reporting standards (IFRS).

Key indicators for 12 months of 2019

Financial results

- Revenue for 2019 decreased by 7% and amounted to USD 4,767 million; Revenue for the Russian division in 2019 increased by 6% to USD 3,641 million. - Adjusted EBITDA for 2019 was USD 688 million, down 2% from the previous year. Adjusted EBITDA of the Russian division was USD 636 million, which is 31% higher than in 2018 - Adjusted EBITDA margin was 14%, and Adjusted EBITDA margin of the Russian division reached 17%. - Net debt as of December 31, 2019 amounted to USD 2,503 million. - The ratio of net debt to EBITDA as of December 31, 2019 was 3.64 times.

Major events of the Company in the 4th quarter of 2019 and after the reporting date

- January 2, 2020 TMK completed the sale of 100% of IPSCO Tubulars Inc. by Tenaris. The remuneration received by TMK, taking into account all adjustments under the sale and purchase agreement concluded on March 22, 2019, amounted to USD 1,067 million (as of the date of the closing of the transaction).

Following the closing of the transaction, both The parties entered into a general agreement for six years, according to which, starting January 2, 2020, Tenaris will act as the exclusive distributor of TMK OCTG pipes and line pipes in the United States and Canada.

- In January 2020, rating Standard & Poor's (S&P) has upgraded the company's long-term ratings from B + to BB- with a Stable outlook. Earlier, the rating agency Moody 's Investors Service (Moody ' s) changed the outlook on TMK's credit ratings from “Stable” to “Positive” and affirmed the corporate rating of the company at “B1”.

- In January In 2020, a new complex for heat treatment of pipes with a capacity of 300 thousand tons of pipes per year was launched at the Seversky Pipe Plant. Total investment in the project amounted to about 5.5 billion rubles. The pipe heat treatment complex is intended for the production of premium pipe products used in the development of hard-to-recover fields, as well as when drilling wells in corrosive environments and in the Far North.

- In February 2020, TMK completed the placement of a seven-year Eurobond issue worth 500 million US dollars at a coupon rate of 4.30% per annum. The Group's successful return to the international bond market follows the completion of the IPSCO sale, which marked the start of the structural transformation of the Group's business.

As previously announced, most of the proceeds from the IPSCO Tubulars Inc. sale will be directed to reducing the Company's debt burden, while proceeds from the placement of Eurobonds will be used to refinance TMK's USD 500 million Eurobond issue due in April 2020. In addition, the successful completion of the deal on the placement of the Eurobond issue allowed TMK to maintain its presence in international debt capital markets.

Forecast until the end of 2020

TMK expects that in 2020 the consumption of pipes by the fuel and energy complex in Russia will remain at a stable level, despite the negative macroeconomic factors in the first quarter. The increased complexity of hydrocarbon production projects in Russia is expected to lead to an increase in demand for high-tech products.

TMK expects the volume of shipments of seamless industrial pipes in the European division to remain stable compared to 2019, mainly in demand for high-margin pipe products.

Comment of TMK CEO Igor Korytko:

“In 2019, TMK maintained its position as one of the leading suppliers of pipe products in the world market, despite the difficulties markets of North America and Europe. Throughout the year, we continued to focus on expanding our high-tech product offering to meet the changing needs of major consumers, and strengthened our R&D and product innovation capabilities by introducing

Partner news
Сomments
Добавить комментарий
Комментарии (0)
To comment
Войти с ВК Войти с ФБ Войти с Яндекс
Sign in with:
Войти с ВК Войти с ФБ Войти с Яндекс