Antimonopoly Committee of Ukraine (AMCU) initiated a case against Interpipe industrial group, which includes Interpipe Ukraine LLC and Interpipe NTZ PJSC, on charges of violation of legislation on protection of economic competition through abuse of monopolistic position in the primary commodity sale market.
According to AMCU information on Friday, the case was initiated on November 23.
It specifies that signs of violations consist in unreasonable increase of commodity prices and in establishing different conditions for similar deals with commodity purchasers by the companies of the group without any reasonable grounds.
The Committee found that the Interpipe group has signs of a monopolistic (dominant) position in the nationwide market of primary sale of goods.
“Having analyzed the pricing behavior of the Interpipe group, the Committee did not identify objective reasons (factors) that could be the reason for increasing prices for the group’s goods during the investigated period. In addition, the Committee found no correlation between the dynamics of selling prices of goods and their cost components, in particular – changes in the cost of procurement, changes in wages, etc.,” stated in a press release.
The Committee also found no correlation in the contracts of Interpipe Ukraine LLC between the amount of goods purchased by different buyers and its price under otherwise identical contract conditions.
The press service reminds that in connection with the introduction of martial law in Ukraine, the information on residents of Ukraine in the part concerning the specification of the type of activity is not made public until the end of martial law in Ukraine.
“Interpipe is a Ukrainian industrial company producing seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries worldwide through a network of sales 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.
Interpipe has about 10 thsd employees. In 2021 the company paid to the budgets of all levels nearly 3 billion hryvnias.
The company has five industrial assets: “Interpipe Nizhnedniprovsk Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko-Tube”, “Dnepropetrovsk Vtormet” and electric steelmaking complex “Dneprostal” branded “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.
The international vertically integrated pipe and wheel company Interpipe in January-June of this year reduced its net profit by 33.8% compared to the same period last year – to $19.532 million from $29.431 million.
According to the company’s interim report on operating and financial results for the second quarter and as a whole for the first half of 2022, pretax profit in January-June decreased by 51%, to $24.899 million from $50.766 million for the same period in 2021.
At the same time, operating profit increased by 6%, to $66.567 million from $62.847 million.
Interpipe in the first half of this year received $50.429 million EBITDA, which is 54.7% lower than in the same period last year ($111.209 million). The company’s revenue for this period decreased by 9.9%, to $595.638 million from $661.055 million.
In addition, Interpipe reduced free cash from $206.008 million at the beginning of this year to $156.767 million by the middle of the year.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2021, Interpipe sold 602,000 tonnes of pipe products and 174,000 tonnes of railway products. Railway products are sold under the KLW brand.
The international vertically integrated pipe and wheel company (TKK) “Interpipe” in January-March of this year reduced EBITDA by 63% compared to the same period last year – to $ 15.139 million, but increased revenue from product sales by 19% – up to $239.185 million
According to the company’s press release for the first quarter, steel production decreased by 16% – to 163 thousand tons, pipes – by 12%, to 97 thousand tons, railway products – by 43%, to 23 thousand tons. At the same time, sales of products decreased by 10%, to 140 thousand tons.
The press release notes that the first two months of 2022, the global market conditions were positive for Interpipe. However, after February 24, when Russia invaded Ukraine and launched its first missile strikes, the company’s management decided to completely suspend production. The main task was to ensure the safety of employees and maintain all production facilities. This led to a decrease in pipe production in the first three months of 2022 by 12%, and railway products by 43%.
Despite the decline in operating performance, Interpipe increased its sales revenue by 19% in the first three months, mainly due to a 47% increase in sales revenue from the pipe division, to $181 million.
At the same time, EBITDA fell by 63%. In addition to the loss of sales volumes and additional logistics and transportation costs due to the intrusion on financial results, an additional negative impact was made by the rise in prices for the main raw materials: scrap metal, electricity and natural gas. For example, in the first quarter of 2022, the price of natural gas in Ukraine on average increased more than six times compared to last year, the press release states.
And about. Andrey Korotkov, General Director of Interpipe, explained that at the end of March the company began to cautiously resume shipments, and from April it began a phased launch of production. In May, Interpipe Steel’s electric steel-smelting complex started operating, and the company began to gradually increase the volume of production and shipment of finished products.
“However, unfortunately, Interpipe cannot yet return to pre-war production volumes, since the war broke the usual supply chains, as the Black Sea seaports of Ukraine are blocked, the country has a large shortage of fuel, transport infrastructure is constantly being destroyed as a result of missile strikes. New chains supply and logistics are in the process of restructuring and formation,” Korotkov said, quoted by the press service.
According to him, since the beginning of the full-scale invasion, Interpipe has been steadily paying salaries to all employees, including those who are idle. At the same time, the company, with the support of the Victor and Elena Pinchuk Foundations, joined the large-scale assistance to the Armed Forces of Ukraine, doctors and civilians, allocating more than $35 million for these purposes during the 126 days of the war.
As reported, Interpipe received $91.316 million in net profit in 2021, while in 2020 this figure was $195.116 million (a decrease of 53.2%). Revenue increased to $1 billion 132.9 million from $865.131 million.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2021, Interpipe sold 602 thousand tons of pipe products and 174 thousand tons of railway products. Railway products are sold under the KLW brand.
Interpipe employs 10,000 people. In 2021, the company transferred almost UAH 3 billion to the budgets of all levels.
There are five industrial assets in the company’s structure: Interpipe Nizhnedneprovsk Pipe Rolling Plant (NTZ), Interpipe Novomoskovsky Pipe Plant (NMTZ), Interpipe Niko-Tube, Dnepropetrovsk Vtormet and the Dneprostal electric steel-smelting complex under the Interpipe Steel brand .
The international vertically integrated pipe and wheel company (TKK) Interpipe received $91.316 million in net profit in 2021, while in 2020 this figure was $195.116 million (a decrease of 53.2%).
According to the company’s annual report, pre-tax profit was $110.907 million compared to $227.405 million in 2020.
At the same time, last year’s revenue increased to $1 billion 132.9 million from $865.131 million.
At the same time, Interpipe increased free cash from $96.631 million to $109.627 million over the year.
In 2020, Interpipe reduced its net profit by 4.2 times compared to 2019 – to $195.116 million from $828.656 million, revenue decreased by 22.9% – to $865.131 million.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe.
The structure of the company includes five industrial assets: Interpipe Nizhnedneprovsk Pipe Rolling Plant (NTZ), Interpipe Novomoskovsky Pipe Plant (NMTZ), Interpipe Niko-Tube, Dnipropetrovsk Vtormet, and the Dneprostal electric steel-smelting complex under the Interpipe Steel brand .
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and members of his family.
The international vertically integrated pipe and wheel company Interpipe in January-September of this year saw $32.338 million in net profit, while for the same period last year it amounted to $162.458 million.
According to the interim unaudited consolidated financial statements according to IFRS for January-September 2021, pretax profit amounted to $56.505 million compared to $178.133 million in January-September 2020 (a decrease of 68.8%).
In addition, Interpipe has reduced free cash from $109.643 million at September 30, 2020 to $103.007 million at the end of September 2021.
As reported, Interpipe in January-September 2021 increased its revenue by 15% compared to the same period last year, to $757 million, reduced EBITDA by 30%, to $151 million and increased capital investments by 65%, to $45 million.
The company’s net debt was $301 million with a net leverage ratio (net debt to EBITDA) of 1.4x.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries around the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.
The electric steelmaking complex Interpipe Steel of the international vertically integrated pipe and wheel company Interpipe (Dnipro) in January-September of this year increased steel production, according to recent data, by 25.7% compared to the same period last year, to 727,400 tonnes from 578,500 tonnes.
As the company told Interfax-Ukraine, 97,000 tonnes of steel were produced in September.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries all over the world through a chain of commercial offices located in the CIS, Europe, the United States and the Middle East.
The company includes five industrial assets: Interpipe Nyzhniodniprovsky Pipe Rolling Plant, Interpipe Novomoskovsk Pipe Plant, Interpipe Niko-Tube, Dnipropetrovsk Vtormet and Dniprostal Steel Complex under the Interpipe Steel brand.
