Bilbao Spain based Spanish seamless tube supplier Tubos Reunidos has returned to profit in January-June 2022 with EUR 1.9 million earnings, after 8 years in losses and receiving EUR 112.8 million from the Companies Solvency Support Fund a year ago Sepi strategies. The group’s shipments reached 120,663 tonnes in H1, 64% more than in the previous six months and 84% higher YoY. The sales revenue in H1 moved up by 113% versus July-December 2021 to EUR 228.7 million and by 99% YoY, with the North American market representing EUR 104.9 million. The company posted Ebitda of EUR 14.5 million in H1, an improvement of EUR 25.4 million compared to a negative UR 10.9 million in the same period of 2021.Tubos Reunidos has attributed it to an improvement in activity as a result of strong demand and the passing on of increased costs to sales prices, together with efficiency measures in its Strategic Plan. Tubos Reunidos said “This increase in sales is due to the strong demand for tubes by the oil and gas sector and the pass-through to prices of rising costs and raw materials, which has led to record tube prices.”Tubos Reunidos said “The preliminary anti-dumping measures announced by the US against a number of countries that are major exporters of OCTG to the upstream sector, such as Mexico, Argentina, Russia and South Korea, have led to price increases and shortages. Concern about potential difficulty procuring OCTG is benefiting Tubos Reunidos’s sales. In this scenario, the Group’s portfolio is mainly based on commodity products, albeit at prices significantly higher than usual due to the current rising costs as well as the upbeat signs from the demand point of view.”Tubos Reunidos said remains focused on selling OCTG green pipe for the upstream sector and pipe for the midstream and mechanical sectors, which is likely to be extended until the end of the year. It will pivot towards higher value-added and alloyed pipe in 2023, as downstream order intake recovers supported by the resumption of large power generation, as well as refining and petrochemical projects.Tubos Reunidos said “The improvement seen in H1 2022 means that we can look to the rest of the year with moderate optimism. We have a large order book and the market is showing positive signs in terms of demand, but weathering the uncertainty and the challenges that it brings will undoubtedly remain the key focus.”
Bilbao Spain based Spanish seamless tube supplier Tubos Reunidos has returned to profit in January-June 2022 with EUR 1.9 million earnings, after 8 years in losses and receiving EUR 112.8 million from the Companies Solvency Support Fund a year ago Sepi strategies. The group’s shipments reached 120,663 tonnes in H1, 64% more than in the previous six months and 84% higher YoY. The sales revenue in H1 moved up by 113% versus July-December 2021 to EUR 228.7 million and by 99% YoY, with the North American market representing EUR 104.9 million. The company posted Ebitda of EUR 14.5 million in H1, an improvement of EUR 25.4 million compared to a negative UR 10.9 million in the same period of 2021.Tubos Reunidos has attributed it to an improvement in activity as a result of strong demand and the passing on of increased costs to sales prices, together with efficiency measures in its Strategic Plan. Tubos Reunidos said “This increase in sales is due to the strong demand for tubes by the oil and gas sector and the pass-through to prices of rising costs and raw materials, which has led to record tube prices.”Tubos Reunidos said “The preliminary anti-dumping measures announced by the US against a number of countries that are major exporters of OCTG to the upstream sector, such as Mexico, Argentina, Russia and South Korea, have led to price increases and shortages. Concern about potential difficulty procuring OCTG is benefiting Tubos Reunidos’s sales. In this scenario, the Group’s portfolio is mainly based on commodity products, albeit at prices significantly higher than usual due to the current rising costs as well as the upbeat signs from the demand point of view.”Tubos Reunidos said remains focused on selling OCTG green pipe for the upstream sector and pipe for the midstream and mechanical sectors, which is likely to be extended until the end of the year. It will pivot towards higher value-added and alloyed pipe in 2023, as downstream order intake recovers supported by the resumption of large power generation, as well as refining and petrochemical projects.Tubos Reunidos said “The improvement seen in H1 2022 means that we can look to the rest of the year with moderate optimism. We have a large order book and the market is showing positive signs in terms of demand, but weathering the uncertainty and the challenges that it brings will undoubtedly remain the key focus.”
