the Information contained in this press release includes statements concerning future events. These statements are based on current views and assumptions of management of the Company subject to known and unknown risks and uncertainties.
pipe Metallurgical Company (TMK), one of the world's largest producers of pipes for the oil and gas industry, announces its operational results for the first quarter of 2020.
the Group's Results include the operating results of the Russian and European divisions, the company's production assets are located in Russia, Romania and Kazakhstan.
For comparative purposes, operating results of the Group presented the results of the American division.
Total results for the 1st quarter 2020
(thousand tons)
Products | Q1 2020 | Q1 2019 | Change |
| Q4 2019 | Change |
Seamless truby | 505 | 562 | (10)% | 553 | (9)% | |
Welded truby | 222 | 206 | 8% | 225 | (1)% | |
Just TRUB | 727 | 768 | (5)% |
| 778 | (7)% |
Results for the 1st quarter of 2020 in comparison with the 1st quarter of 2019
- Total pipe shipments decreased by 5% compared to the first quarter of 2019, up to 727 thousand tons, because of lower shipments of seamless pipes in the Russian and European divisions, due to adverse economic conditions and volatility in oil prices.
- shipment volumes of seamless pipes decreased by 10% compared to the same period last year because of lower shipments of seamless OCTG in the Russian division is 11% and weaker demand for seamless industrial pipe in the European division.
- shipments of welded pipe increased by 8% compared to the same period last year due to the increase in shipments of large diameter pipes, and welded industrial pipe in the Russian division.
Results for the 1st quarter of 2020 compared to the 4th quarter of 2019.
- Total pipe shipments decreased by 7% compared to the fourth quarter of 2019, mainly as a result of lower shipments of seamless pipes, which was due to adverse economic conditions and volatility in oil prices.
- shipment volumes of seamless pipes decreased by 9% compared to the previous quarter, due to weaker demand for seamless line pipe and OCTG in the Russian division (shipments of seamless OCTG dropped by 3%) and lower shipments of seamless industrial pipe in the European division.
- shipments of welded pipe remained almost flat compared to the fourth quarter of 2019 due to growth in shipments of large diameter pipes, which compensated for the lower demand for welded industrial pipe in the Russian division.
Comment of the General Director of TMK Igor Korytko:
"In the first quarter of 2020, we note the decrease in the total volume of shipments of pipes in the Russian and European divisions. The difficult macroeconomic situation in the world and considerable volatility in oil prices weighed on the level of demand for pipe products in our main markets.
Although the Russian oil and gas pipe market traditionally demonstrates the relative resilience to lower oil prices, we do not expect that in the second quarter of this year the situation may change for the better. The General condition of the market is likely to continue to have a negative impact on the demand for our pipe products, particularly seamless OCTG."
Forecast for the second quarter of 2020
In Russia and Europe, we expect that the continuing adverse macroeconomic environment and volatility in oil prices will continue to weigh on overall demand for the Group's products in the second quarter of 2020.
TMC announces operating results for the first quarter of 2020.
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