The Russian division continues seeing a strong order backlog through the end of 2012 as Russian oil and gas companies continue their drilling plans. The Company therefore expects the demand for OCTG and line pipe in Russia to remain strong in the second half of 2012 and in the H1 of 2013.

While the Company feels positive about the long term US market outlook, the H2 of 2012 is more uncertain. We expect to see continued adjustments in the drilling behavior of customers as a result of low gas prices. This coupled with distributors and customers closely managing their inventories will lead to continued pressure on volumes.

In general the company confirms its cautiously positive outlook for the remainder of the year and expects the Q4 results to by and large offset the usual slowdown in the Q3.

Source - TMK

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