The international vertically integrated steel pipe and railway wheel company Interpipe in January – March this year increased its net profit by 2.6 times against the same period last year – up to $57.142 mn from $21.779 mn.
According to the interim report of the company on the operating and financial results for the first three months of 2023, its pretax profit amounted to $74.448 million compared to $29.202 million in the first quarter of 2022.
At the same time, Interpipe in January-March 2023 increased its free cash and cash equivalents from $153.777 million on January 1, 2023 to $207.824 million on March 31, 2023 (January 1, 2022 was $109.627 million, March 31, 2022 – $165.561 million).
EBITDA in Q1-2023 amounted to $79.427 million, while in Q1-2022 it was $15.139 million.
At the same time, the company cut its revenue by 4% to $229.291 mln from $239.185 mln.
As it was reported, steel output in January-March 2023 increased by 13% to 184 thnd mt compared to January-March 2022, pipes – by 12% to 105 thnd mt, but the railway production decreased by 13% to 20 thnd mt. The sales of products decreased by 23%, to 108 thousand tons, including pipes – by 20%, to 82 thousand tons, railway products – by 27%, to 19 thousand tons, steel billets – by 50%, to 6 thousand tons.
Net leverage ratio strengthened to 0.7x.
At the same time, the press release noted that in early 2023, production at all Interpipe enterprises was negatively affected by tight limits on electricity consumption by industrial consumers. However, already in March the situation improved due to removal of these restrictions.
Andriy Korotkov, the general director of Interpipe, stated that starting from the middle of the quarter, the company’s plants returned to stable operation, without any “broken” schedules. This made it possible to increase production at the end of the quarter, and in some segments, for example, in the pipe division, to get somewhat closer to the pre-war level.
“Even in difficult military conditions, Interpipe continues to fulfill all orders and delivers products to customers quickly and on time. Significant support is provided by the extension of the cancellation of all quotas and duties on Ukrainian goods by the United States and the EU,” the top manager noted.
“The net profit of Interpipe in 2022 is $204.441 mln, which is 2.2 times more than for the previous year ($91.316 mln). The pre-tax profit for last year was $220.579 million compared to $110.907 million for 2021. The revenue in 2022 decreased by 13.4% to $981.330 million from $1 billion 132.9 million a year earlier. At the same time, Interpipe has increased its free cash flow from $109.627 mln to $153.777 mln during the year.
“Due to the war, in 2022, Interpipe reduced EBITDA by 11% compared to the previous year – up to $204 million. Steel output in 2022 decreased 39% to 595 thousand tons, pipes – by 36% to 393 thousand tons, railway products – by 51% to 84 thousand tons.
Sales of products in the reporting period decreased by 37%, to 524 thousand tons, including pipes – by 36%, to 384 thousand tons, railway products – by 50%, to 87 thousand tons. Its sales revenues decreased by 13% to $981 mln, while net leverage remained at a strong and stable level of 1.1x.
“Interpipe is a Ukrainian industrial company producing seamless pipes and railroad wheels. The company supplies its products to over 80 countries all over the world through a network of sales offices located in the key markets of the Middle East, North America and Europe. In 2022, the company sold 384 thnd mt of tubes and 87 thnd mt of railroad products. The company sells its railroad products under the KLW brand.
Interpipe has 10 000 employees. In 2022 the company transferred 2.8 billion hryvnias to the budgets of all levels.
The company has five industrial assets: “Interpipe Nizhnedniprovsk Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko-Tube”, “Dnepropetrovsk Vtormet” and the electric steelmaking complex “Dneprostal” under the “Interpipe Steel” brand.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
