World's leading suppliers of tubular products for the oil and gas Russian seamless pipe maker TMK has announced fperformance in 2021. TMK CEO Mr Igor Korytko said “TMK delivered a strong performance in 2021, doubling revenue from the previous year and posting a significant increase in EBITDA, due to the improved economic situation in TMK’s key markets, as well as synergies unlocked from the acquisition of the ChelPipe business. That acquisition has become an important step for the implementation of TMK’s long-term strategy aimed at expanding production facilities and sales markets, diversifying its production portfolio, developing R&D and innovative competences, as well as increasing the operational efficiency of our business. During the year, our debt metrics fluctuated as a result of the acquisition of new assets, however, by the end of the year we managed to deliver a decline in leverage and to confirm our commitment to further debt reduction.”--------------------2021 Hightlights--------------------Sales Seamless – 3.073 million tonne up 52% YoYSale Welded – 1.187 million tonne up 51% YoYTotal sales – 4.260 million tonne up 52% YoYRevenue- RUB 428.981 billion up 93% YoYRevenue in 2021 almost doubled compared to FY 2020, mainly due to higher sales volumes (+52% year-on-year), driven by more favourable conditions in TMK’s key markets, and a valuable contribution of ChelPipe Group’s enterprises to the overall result, with their share in TMK Group's total revenue in 2021 being at 37%. Revenue at the Russian division increased 96% year-on-year. It was supported by our efforts to deliver higher sales of OCTG, despite the overall Russian market trend, increased sales of industrial and large diameter pipe, higher pipe selling prices, driven by elevated raw material prices, as well as the contribution of ChelPipe Group’s enterprises to the overall result and continued synergies from the acquisition. Reven.ue at the European Division grew by 47% year-on-year, driven by higher pipe prices and increased sales volumes (+11% year-on-year), due to a more favourable global economic environment and recovery in pipe demand in the European and US markets. Adjusted EBITDA – RUB 62.381 billion up 47% YoYAdjusted EBITDA was up by 47% year-on-year, mainly due to the contribution of ChelPipe Group’s enterprises to the overall result, as well as the Company’s efforts to offset a significant increase in raw material prices. Adjusted EBITDA at the Russian division increased by 45% year-on-year. An improved sales mix, with a higher share of seamless line and industrial pipe, supported adjusted EBITDA margin. Adjusted EBITDA at the European Division grew 3.2 times year-on-year, driven by stronger sales and higher selling prices. Adjusted EBITDA margin - 15%
World's leading suppliers of tubular products for the oil and gas Russian seamless pipe maker TMK has announced fperformance in 2021. TMK CEO Mr Igor Korytko said “TMK delivered a strong performance in 2021, doubling revenue from the previous year and posting a significant increase in EBITDA, due to the improved economic situation in TMK’s key markets, as well as synergies unlocked from the acquisition of the ChelPipe business. That acquisition has become an important step for the implementation of TMK’s long-term strategy aimed at expanding production facilities and sales markets, diversifying its production portfolio, developing R&D and innovative competences, as well as increasing the operational efficiency of our business. During the year, our debt metrics fluctuated as a result of the acquisition of new assets, however, by the end of the year we managed to deliver a decline in leverage and to confirm our commitment to further debt reduction.”--------------------2021 Hightlights--------------------Sales Seamless – 3.073 million tonne up 52% YoYSale Welded – 1.187 million tonne up 51% YoYTotal sales – 4.260 million tonne up 52% YoYRevenue- RUB 428.981 billion up 93% YoYRevenue in 2021 almost doubled compared to FY 2020, mainly due to higher sales volumes (+52% year-on-year), driven by more favourable conditions in TMK’s key markets, and a valuable contribution of ChelPipe Group’s enterprises to the overall result, with their share in TMK Group's total revenue in 2021 being at 37%. Revenue at the Russian division increased 96% year-on-year. It was supported by our efforts to deliver higher sales of OCTG, despite the overall Russian market trend, increased sales of industrial and large diameter pipe, higher pipe selling prices, driven by elevated raw material prices, as well as the contribution of ChelPipe Group’s enterprises to the overall result and continued synergies from the acquisition. Reven.ue at the European Division grew by 47% year-on-year, driven by higher pipe prices and increased sales volumes (+11% year-on-year), due to a more favourable global economic environment and recovery in pipe demand in the European and US markets. Adjusted EBITDA – RUB 62.381 billion up 47% YoYAdjusted EBITDA was up by 47% year-on-year, mainly due to the contribution of ChelPipe Group’s enterprises to the overall result, as well as the Company’s efforts to offset a significant increase in raw material prices. Adjusted EBITDA at the Russian division increased by 45% year-on-year. An improved sales mix, with a higher share of seamless line and industrial pipe, supported adjusted EBITDA margin. Adjusted EBITDA at the European Division grew 3.2 times year-on-year, driven by stronger sales and higher selling prices. Adjusted EBITDA margin - 15%
