OAO TMK one of the world largest oil and gas pipe producers announces its production results for the Q3 period ended September 30th 2009.
| Product | Q3'09 | Q2'09 | Change |
| Seamless Pipes | 410 | 364 | 0.13% |
| Welded Pipes | 306 | 258 | 0.19% |
| Total Pipes | 716 | 622 | 0.15% |
| Including OCTG | 226 | 220 | 0.03% |
In ‘000 tonnes
January to September 2009.
| Product | Jan-Sep’09 | Jan-Sep'08 | Change |
| Seamless Pipe | 1,175 | 1,517 | -22% |
| Welded Pipes | 743 | 919 | -19% |
| Total Pipes | 1,918 | 2,436 | -21% |
| Including OCTG | 724 | 901 | -20% |
In ‘000 tonnes
TMK large diameter shipments started picking up in the Q2 due to the successful ramping up of Volzhsky LD longitudinal mill. TMK expects a significant growth in LD pipe shipments in the H2 of the year with the implementation of Gazprom and Transneft projects such as the Sakhalin Khabarovsk Vladivostok and the second phase of the Baltic Pipeline System.
Following a significant first half drop, pipe shipments from TMK IPSCO, the Company’s American division, increased 52% in the Q3 as compared to the Q2 and climbed to 96,000 tonnes on the back of increased oil and gas pipe demand, especially for OCTG products. The Company expects its US assets to reach a 70% utilization rate by the end of the year. These expectations are largely conditional to a recovery in US gas prices; given their current low levels, the Company forecasts a steep market upturn in 2010 as opposed to late 2009.
TMK expects to continue increasing shipment volumes in the Q4 of the year. This expected growth will be fuelled by the implementation of large-scale long-distance pipeline projects and the seasonality of OCTG and line pipe procurement in Russia. Positive oil and gas drilling and production dynamics in Russia and North America will further stimulate TMK shipment volumes. Nevertheless, as a result of the sharp demand contraction in the first half of the year, the Company expects full year 2009 shipment volumes to remain below 2008 volumes.
