Russian steel pipe producer TMK CEO Mr Igor Korytko said “TMK has delivered a solid performance in the third quarter and nine months of 2021, with strong growth in our revenue and EBITDA on both a quarterly and a year-on-year basis. This was supported by a recovery in business activity in our key geographic markets, as well as continued synergies unlocked from the acquisition of the Chelpipe assets, which allow the Company to respond flexibly to any changes in the market, optimise production capacities, and manage risks in conditions when production planning horizons have significantly decreased. This helped us, in particular, mitigate pressure from increased raw material prices and post an increase in our EBITDA margin, which was 14.3% as at the end of 3Q.”Q3 Sales - In 3Q 2021, the Russian pipe market declined by 11% compared to the previous quarter. Increased shipments of large diameter pipe and higher demand for line pipe were offset by lower shipments of industrial pipe, due to the market saturation, and decline of the total OCTG pipe market, following slower purchasing activity by the oil and gas companies, and OPEC+ oil production cuts. At the same time, the share of horizontal drilling increased by 5 p.p. to almost 58% in 3Q 2021. In 3Q 2021, pipe demand in Europe continued to improve after the lifting of major COVID-19 lockdowns, supported by extensive stimulus measures adopted by European countries, while pipe selling prices were on the rise, mainly driven by elevated raw material prices.Seamless – 823 KT, down 4% QoQWelded – 331 KT, up 11% QoQTotal sales - 1,154 KT, up 0% QoQ9M Sales - The Russian pipe market declined by 5% year-on-year. Increased shipments of large diameter pipe were offset by decline of the total OCTG pipe market, as drilling volumes in 9M 2021 were down year-on-year following OPEC+ oil production cuts, while the share of horizontal drilling increased from 50% as of the end of 9M 2020 to 54% as of the end of 9M 2021. In 9M 2021, European pipe producers saw a further increase in orders and higher pipe selling prices, driven by high raw material prices.Seamless - 2,221\t KT, up 44% YoYWelded – 788 KT, up 48% YoYTotal sales - 3,009 KT, up 45% YoY3Q Revenue up by 7% quarter-on-quarter at RUB 117.3 billion, supported by stable sales volumes and increased selling prices. 9M Revenue up by 79% year-on-year at RUB 291.5 billion, due to a gradual recovery of business activity in the Group’s key markets and segments, as well as the consolidation of the results from ChelPipe Group’s enterprises.3Q Adjusted EBITDA up by 19% quarter-on-quarter at RUB 16.8 billion. Adjusted EBITDA margin in 3Q 2021 improved by 1.4 p.p. quarter-on-quarter to 14.3%. 9M Adjusted EBITDA up by 13% year-on-year at RUB 39.5 billion, due to the consolidation of the results from ChelPipe Group’s enterprises, which offset a noticeable increase in raw material prices in 9M 2021.4Q 2021 Outlook - The Group expects demand in its key market segments in Russia, seamless OCTG and industrial pipes, to remain stable until the end of the year. Consumption of industrial pipe in the European market is expected to increase further on the back of the ongoing economic recovery. Overall, the Group expects FY 2021 EBITDA to increase significantly YoY, supported by the gradual recovery of business activity in the Group’s key markets and segments, as well as the consolidation of the results from ChelPipe Group’s enterprises. The Group also expects its EBITDA margin to improve further in 4Q 2021.