Ukrainian industrial company Interpipe intends to maintain its position in eastern markets, particularly in Saudi Arabia, India, Turkey and Thailand, according to Interpipe’s corporate Facebook page on Wednesday.
According to the press release, Interpipe took part in the international exhibition Eurasia Rail 2023 together with its Turkish partner Özar Group Railway Systems.
It is noted that this is a major exhibition of the railway industry in the region and one of the largest in the world. Every year the leading rolling stock manufacturers, infrastructure technology suppliers and rail logistics operators of Asia gather on this platform in Istanbul.
“For Interpipe, the Turkish market in particular and the Asian market in general are extremely important. The company has a long history of cooperation with Turkish Railways (TCDD), as well as with logistics operators in other countries in the region, such as Saudi Arabia, India and Thailand,” the Facebook post states.
And it is emphasized that “Our goal is to hold our positions, and participation in the exhibition is a good opportunity to maintain relationships with partners and clients.”
“Interpipe is a Ukrainian industrial company, producer of seamless pipes and railway wheels. The company supplies its products to over 80 countries via a network of sales offices located in key markets in 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.
The international vertically integrated pipe and wheel company Interpipe received $204.441 million of net profit in 2022, which is 2.2 times more than the previous year ($91.316 million).
According to the company’s annual report, last year’s pretax profit amounted to $220.579 million compared to $110.907 million in 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 increased its free cash flow from $109.627 mln to $153.777 mln during the year.
As previously reported, due to the war, Interpipe’s EBITDA in 2022 decreased by 11% YoY to $204 mln. Steel output in 2022 decreased 39% to 595 thousand tons, pipes – 36%, to 393 thousand tons, railroad products – 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. Revenue from sales decreased by 13% to $981 mn, net leverage remained at a strong and stable level of 1.1x.
It was noted, however, that 2022 was an extremely difficult year for the company. After a large-scale invasion by Russian troops at the end of February, Interpipe’s management was forced to halt all production facilities for employee safety reasons. It was only in April and May that production was gradually resumed at all enterprises of the group.
However, it was not possible to reach the pre-war production level because Interpipe had to rearrange the logistics chain of shipping finished products through the ports of the European Union due to the blockade of the Black Sea ports, Russian bombing of the transport infrastructure and shortage of fuel. This led to a 2.5-3.5-fold increase in transportation costs, depending on the route.
In the fourth quarter of 2022, Russia began regularly attacking Ukraine’s power infrastructure, which led to several blackouts at the national and regional levels. As a result of the resulting power shortages in the country, strict limits were imposed on power consumption by industrial consumers, including Interpipe’s enterprises, which had a negative impact on production.
CEO of Interpipe Andrei Korotkov noted that in the last year’s very difficult conditions, the company retained its workforce and industrial assets.
“Unfortunately, we have not managed to return to the pre-war level of finished product production. At the same time we expect to somewhat improve production results in 2023, including due to the extension of the cancellation of all quotas and duties on Ukrainian goods by the USA and the EU. In addition, Interpipe remains a conscientious and reliable partner to its creditors and investors. The company continues to service and repay its loan obligations in full since the beginning of the full-scale invasion,” the CEO explained.
“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 key markets in 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.
Ukrainian industrial company Interpipe shipped a shipment of over 2,600 wheels to Moroccan railroads – Office National des Chemins de Fer (ONCF).
According to the company’s press release, Interpipe continues to hold the country’s economic front, increasing its exports, in particular to African countries.
It is specified that ONCF usually holds tenders once in three years, concluding long-term agreements with suppliers. Under this contract, the Moroccan railroads use Ukrainian products to update the fleet of passenger cars Fiat AnsaldoBreda electric train and freight cars.
Alexander Garkavy, director of Interpipe’s railway products division, stated that the group has been cooperating with ONCF for about 15 years.
“During this time the company has managed to prove itself a reliable supplier of wheels. Morocco is increasing its rolling stock fleet as part of the construction of a high-speed electric train line, so Interpipe hopes to further develop its partnership with Moroccan railroads,” said the division’s director, quoted by the press service.
He added that the African continent as a whole is a promising market for the development of rail supplies.
“We are already cooperating with Mauritania, Gabon, Egypt and intend to expand our presence in other countries of the region,” Garkavy explained.
“Interpipe is a Ukrainian industrial company producing seamless pipes and railway wheels. The company supplies its products to over 80 countries all over the world through a network of commercial offices located in the key markets of the CIS, Middle East, North America, and Europe. The sales of railway products are carried out under the KLW brand.
Interpipe has 10 thousand employees.
The company consists of five industrial assets: “Interpipe Nizhnedneprovsky Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the brand name “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
In January-March 2023, the Ukrainian industrial company Interpipe transferred almost UAH 623 million to the budgets of all levels and off-budget funds, which is 3% more than in the same period last year.
According to the company’s press release on Thursday, payments to the state budget in 1Q2023 amounted to about UAH 406 million (+24%), and to local budgets – UAH 107 million (-28%). Another UAH 110 million (-14%) was transferred as unified social tax.
Sergiy Kuzmenko, Interpipe’s Chief Financial Officer, noted that the company continues to hold Ukraine’s economic front during the war.
“The formula is quite simple: the higher the volume of production and export of finished goods, the higher the total amount of taxes paid. Stably operating Interpipe enterprises provide jobs for 10,000 people in the frontline region and fill the budgets of all levels,” Kuzmenko said, as quoted by the press service.
As reported, in 2022, Interpipe transferred UAH 2.816 billion to the budgets of all levels and off-budget funds. At the same time, payments to the state budget for the year amounted to about UAH 1.74 billion (-7% compared to 2021), and to local budgets – about UAH 623 million (+1%). Another UAH 454 million (-4%) was transferred as unified social tax.
At the same time, Interpipe’s Director of Economics and Finance noted that in 2022, each ton of pipe and railway products produced by the company brought more than UAH 5909 to the Ukrainian budget, which is more than half the previous year’s figure.
“Interpipe is a Ukrainian industrial company that manufactures seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in key markets in the CIS, Middle East, North America and Europe. Railroad products are sold under the KLW brand.
Interpipe employs 10 thousand people.
The company has five industrial assets: “Interpipe Nizhnedniprovsky Pipe Rolling Plant (NTZ), Interpipe Novomoskovsk Pipe Rolling Plant (NMPP), Interpipe Niko Tube, Interpipe Vtormet and Dnipro Steel, an electric steelmaking complex under the Interpipe Steel brand.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.
Ukrainian industrial company Interpipe intends to increase supplies of pipes to Saudi Arabia and expand its presence in the Middle East.
According to the company’s Facebook post on Wednesday, Interpipe holds the economic front and continues to grow “no matter what.”
The other day, Interpipe, supported by its regular partner Al Sayed Center (ASCO), presented Ukrainian pipe products to construction companies and government organizations in Saudi Arabia, while informing them about the situation in Ukraine, the war, the company’s work in the new environment and the restructuring of supply chains.
Mr. Artem Artemov, Deputy Director for Middle East Sales, stated that Interpipe is well known in the macro-region as a supplier of quality pipes for the construction industry. Its products are used for air-conditioning systems, fire-fighting and as structural constructions.
“Saudi Arabia is one of the key countries for the company’s development and expansion in the region. We already have quite a history written over the past decade. Among the landmark projects in which Interpipe products have been used are the construction of the King Abdullah Financial District in Riyadh, the King Abdulaziz International Airport near Riyadh, the construction of the King Abdullah Financial District in Riyadh, and the construction of the King Abdullah International Airport near Riyadh. King Abdulaziz International Airport near Jeddah, Riyadh metro, buildings of Princess Nora bint Abdel Rahman University and King Fahd University of Oil and Minerals”, – noted Artemov, quoted by the press service.
It is specified that the business event was attended by 140 representatives of local construction and engineering companies, as well as the Ukrainian Ambassador to the Kingdom of Saudi Arabia Anatoly Petrenko.
“Let’s hold the economic front! Together we will overcome everything!”, the company’s information summarizes.
“Interpipe is a Ukrainian industrial company, producer of seamless pipes and railway wheels. The company supplies its products to over 80 countries all over the world via a network of commercial offices located in the key markets of the CIS, Middle East, North America, and Europe. The sales of railway products are carried out under the KLW brand.
Interpipe employs about 10 thousand people.
The company consists of five industrial assets: “Interpipe Nizhnedniprovsk Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the Interpipe Steel brand.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
in January-September 2022, the international vertically integrated steel and pipe company Interpipe cut its capital investments by three times as against the similar period of the last year – to $15 mn from $45 mn.
According to a presentation of the company’s operations for the nine months of last year, capital investments in the period under review amounted to $7mn ($6mn in 9M2021), $8mn in steelmaking and $31mn in pipe production, while there were no investments in railroad operations ($8mn).
We would like to note that the figures for 9M-2022 are unaudited.
As we informed, in January-September 2022, Interpipe earned $185.952 mln, while during the same period last year it amounted to $32.338 mln (5.75 times more). The company made $199.975 mln of profit after tax, compared to $56.505 mln for the first nine months of 2021 (a 3.5 times increase). At the same time, revenues decreased by 9.3% to $686.634 mln. The company increased its free cash flow to $126.476 mln as of September 30, 2022, from $103.007 mln at the end of September 2021.
EBITDA at the end of September 2022 was $123.023 million ($51.508 million for the pipe segment, “minus” $3.287 million for the rail segment, $74.222 million for the steel segment, $580 thousand for other operations), compared to $150.876 million (“minus” $36.040 million, “plus” $15.351 million, $169.483 million and $2.082 million respectively at the end of 2021).
“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 via a network of commercial offices located in the key markets of the CIS, the Middle East, North America, and Europe. In 2021, the company sold 602 thnd mt of tubes and 174 thnd mt of railroad products. The company sells its railroad products under the KLW brand.
There are about 10 thsd. employees in Interpipe.
The company consists of five industrial assets: “Interpipe Nizhnedneprovsky Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko Tube”, “Interpipe Vtormet” and the electric steelmaking complex “Dneprosteel” under the brand name “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
