Russian leader in the production of steel pipes TMK has announces results of operations for the six months ended June 30, 2021. TMK CEO Mr Igor Korytko said “TMK demonstrated strong results in the first half and second quarter of 2021, showing strong growth in revenue and EBITDA compared to the previous quarter and the first half of last year. This was facilitated by the improved economic situation in key markets for TMK, as well as the implementation of a strategic acquisition of the ChTPZ Group, as a result of which we strengthened our leading position in the Russian market, expanded our product portfolio and optimized costs. We expect an improvement in financial performance over 2021 due to stable demand for our high-tech products in the Russian market amid increasing complexity of hydrocarbon production, as well as a further recovery in activity in key export markets. " Highlights Sales in April-June 2021Seamless pipes – 853KT up by 57% QoQWelded pipes - 277853KT up by 73% QoQTotal sales - 1130853KT up by 60% QoQ Sales in January-June 2021Seamless pipes - 1398853KT up by 33% YoYWelded pipes - 437853KT up by 23% YoYTotal sales - 1835853KT up by 31% YoY Revenue for the 2nd quarter of 2021 increased by 68% compared to the previous quarter and amounted to 109.2 billion rubles, against the background of an increase in sales due to the results of the ChTPZ Group enterprises and an increase in product prices. Revenue in the 1st half of 2021 increased by 56% compared to the same period last year to RUB 174.3 billion. due to the gradual recovery of economic activity in key markets and segments of the Group, as well as due to the consolidation of the results of the enterprises of the ChTPZ Group. Adjusted EBITDA in the 2nd quarter of 2021 increased by 64% compared to the previous quarter and amounted to RUB 14.1 billion mainly due to the consolidation of the results of the enterprises of the ChTPZ Group. Adjusted EBITDA in the 1st half of 2021 amounted to RUB 22.7 billion, an increase of 11% compared to the same period last year, due to the consolidation of the results of the ChTPZ Group, which compensated for the sharp increase in raw material prices in the 1st m half of 2021 In June, ChTPZ Pipe Service signed a three-year contract with Udmurtneft, operated by Rosneft and KNHK Sinopek, for the maintenance of tubing, under which it will repair and supply more than 170 thousand tubing , which will account for about 50% of the region's market. In July, the ETERNO enterprise, which is part of TMK, manufactured and delivered to the Aksu Ferroalloy Plant in Republic of Kazakhstan 15 steel-pouring ladles of the ETERNO INGENIUM product line, made of low-alloy structural steel. In June, TMK decided to allocate more than RUB 500 million for the modernization of equipment for heat treatment of pipes at the Pervouralsk New Pipe Plant, which will allow the company to reduce resource consumption and expand the range of high-tech products. During 2021, PNTZ also plans to upgrade two furnaces in the pipe-drawing shops of the enterprise. Modernization makes it possible to produce new types of pipes, including for the aviation, space and automotive industries, as well as consume 1.5-2 times less protective and natural gas, which will increase the environmental performance of production and give a significant economic effect. In July, TMK launched an investment project to modernize the electric steel-making production at the Volzhsky Pipe Plant. The company will allocate RUB 1.5 billion for technological re-equipment, which will allow the company to produce new corrosion-resistant and stainless steel grades used in various fields of mechanical engineering, as well as steel for the production of pipes for operation in aggressive environments. The renovation of the workshop is scheduled to be completed in the second half of 2022.