The international vertically integrated pipe and wheel company Interpipe in January-March of this year reduced its net profit by 90.4% compared to the same period last year, to $ 12.826 million from $ 133.064 million.
According to the company’s interim report on operating and financial results for the three months of 2021, in January-March 2021 revenue decreased by 19.9%, to $ 200.952 million.
According to the company’s press release, following the results of Q1, 2021, EBITDA decreased by 53%, to $ 40 million, the amount of capital investments increased by 58%, to $ 17 million.
Net debt was $ 53 million with a net leverage ratio (net debt to EBITDA) of 0.2x.
The press release notes that in the first quarter of 2021 Interpipe continued to operate in difficult market conditions, which affected its financial results. Total revenues decreased by 20%, mainly due to the deterioration in the performance of the railway division after the imposition by Russia of embargo on the import of Ukrainian railway products. Thus, the revenues of the railway products division fell by 53%, while sales volumes decreased by 32%.
As a result, EBITDA for the first quarter of 2021 decreased by 53%. An additional negative effect is associated with the continuing global growth in market prices for goods and metal products. At the same time, the selling prices for steel pipes and railway products lagged behind the rise in production costs.
At the same time, Interpipe increased its capital investment by investing $ 17 million in overhaul and production development.
As of March 31, 2021, the company’s total debt fell to $ 110 million following the full redemption of 2024 eurobonds on January 26, 2021, keeping the net leverage ratio (net debt to EBITDA) at a low 0.2x.
Electric steelmaking complex Interpipe Steel of international vertically integrated pipe and wheel company Interpipe (Dnipro) in January-April of this year increased steel production, according to recent data, by 3.9% compared to the same period last year, to 283,000 tonnes.
As the company told Interfax-Ukraine, 90,000 tonnes of steel were produced in April, while in the previous month – 79,500 tonnes.
In 2020, the company reduced steel production by 11.2% compared to 2019, to 758,700 tonnes.
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.
Interpipe, the international vertically integrated pipe and wheel company, continues to develop the export of premium pipe products by supplying premium pipes UPJ-F to Uzbekistan.
“We continue to develop the export of our premium products. This time, the Ukrainian industrial company Interpipe has successfully supplied casing pipes with a premium UPJ-F sleeveless connection to our permanent partner Uzbekneftegaz, the national holding corporation of Uzbekistan,” Interpipe said on Facebook.
At the same time, it is explained that this company is engaged in geological exploration, production and processing of oil and gas. Interpipe has been cooperating with it for several years, selling pipe products for the construction of oil and gas wells. But this order is special: Interpipe for the first time delivered 500 tonnes of UPJ-F casing to a client from the CIS, the report explains.
“The complexity of the order consisted not only in high-precision production, the client asked to ship the first batch as soon as possible. In total, over the past six months, Interpipe has supplied Uzbekneftegaz with almost 2,000 tonnes of pipes of various assortments,” the group said in a press release.
The company expects that the supply of premium products to gas wells in Uzbekistan will strengthen the position of Interpipe in the market of sleeveless connections in the Central Asian region.
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 key markets of the CIS, the Middle East, North America and Europe.
Ukrainian industrial company Interpipe signed a long-term contract for supplying of freight wheelsets to INVEHO UFO, one of the largest railcar building and carriage repair companies in France.
According to a company press release, the contract includes the delivery of 1,530 ULT-25 wheelsets to the French customer until September 2022.
INVEHO UFO is going to use them for manufacturing of new freight railcars. ULT-25 wheelsets were designed by Interpipe’s engineers for the European gauge, they are in great demand by clients both in France and Germany as well as in other European countries.
Interpipe Railway Products Division Director Oleksandr Garkavyi said that French INVEHO UFO is its regular customer. Interpipe has already shipped them twice large orders.
“ULT-25 wheelset is one of the most popular designs at the European market of freight trains with speeds up to 120 km/h. The low-stress design of the wheel disc enables to enhance its durability and life cycle. We expect not only to maintain, but also to expand our cooperation with INVEHO UFO with other types of products,” he said.
Interpipe, a Ukrainian industrial company, and Mubadala, the state investment fund of the government of Abu Dhabi, signed a memorandum of understanding on February 14, 2021.
Interpipe reported on Facebook the memorandum was signed during the visit of Ukrainian President Volodymyr Zelensky to the United Arab Emirates. On behalf of the company, the document was signed by First Deputy CEO Denys Morozov.
At the same time, it is noted that Interpipe has long been present in the Middle East markets.
“Every second building in Abu Dhabi was built with our pipes. Moreover, during the global crisis last year, this particular region showed growth, and the demand for steel pipes was maintained at a high level. This allowed us to start cooperation and ship the first pipe products to the address of one of the flagships of the world oil and gas business – National Oil Company of Abu Dhabi ADNOC,” the group said.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. 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.
Ukrainian industrial company Interpipe made a first supply of line pipes to Qatar Petroleum, one of the biggest oil producers in the Middle East.
According to a company press release, steel pipes are going to be applied for the QP’s onshore Dukhan Field oil and gas basin project.
According to Qatar Petroleum specification, pipes must comply with the highest level of sour service requirements and operate in the H2S environment.
It took us more than three years to become a prequalified supplier for Qatar Petroleum. On the final stage, Bureau Veritas, an international inspection company nominated by QP, conducted a detailed audit of Interpipe facilities to confirm that all specifications and technical requirements were met.
Andrey Burtsev, commercial director for Ukraine, Europe, Africa, Asia and the Middle East regions, said that the contract with Qatar Petroleum is an important milestone in Interpipe development in the Middle East.
“We have passed through a difficult and long path of negotiations, audits and prequalifications before first supply was made. QP is very selective and cautious when choosing vendors and this contract confirms Interpipe’s reputation as a reliable and first-class pipes supplier for the global Oil & Gas companies,” he said.
