Business news from Ukraine

UKRAINIAN INDUSTRIAL COMPANY INTERPIPE RAISES OUTPUT OF STEEL BY 10%

The Ukrainian industrial company Interpipe in January-May this year increased steel production by 10.6% compared to the same period last year, to 368,200 tonnes.
According to the company’s monthly report, for the five months of 2021, pipe production increased by 6.4%, to 206,700 tonnes, the output of railway products decreased by 24.1%, to 68,000 tonnes.
In May, steel smelting amounted to 86,000 tonnes (in April – 89,200 tonnes), pipe production – 51,600 tonnes (48,300 tonnes), railway products – 13,000 tonnes (14,700 tonnes).
It is also reported that pipes in January-May of this year were sold in Europe (29%), the MENA region (25%), Ukraine (17%), the CIS (12%), the American continent (14%) and other regions (3%). In May, pipes were sold in Europe (24%), Ukraine (14%), the MENA region (30%), the CIS (11%), the American continent (17%) and other regions (4%).
Railway products for the five months of 2021 were sold in the CIS (48%), Europe (32%), Ukraine (8%), the MENA region (3%), the American continent (7%) and other regions (3%). In May – in the CIS (48%), Europe (29%), Ukraine (7%), the MENA region (2%), the American continent (4%) and in other regions (10%).
According to Interpipe’s commentary, in May 2021, the company’s trading activity continued to recover in all key products and markets in connection with the lifting of quarantine restrictions in the world and the recovery of business activity.
At the same time, the total sales of the company’s pipe products in May increased by 9.1% compared to the previous month, to 48,900 tonnes, and by 6.1% in the five months of 2021, to 198,800 tonnes.

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UKRAINIAN INTERPIPE PROCEEDS TO EXPAND PRESENCE IN EXPORT MARKETS

The Ukrainian industrial company Interpipe proceeds to expand its presence in the export markets, signing a three-year contract with Société Nationale Industrielle et Minière (SNIM) for supplying of 1,076 mm locomotive wheels according to the AAR standard.
The company said in a press release on Tuesday that SNIM is the only owner of 704 km railway infrastructure in Mauritania and is mainly operates large-scale freight transport.
The railway line connects the city of Zouérat, the center of country’s iron ore industry, with the port of Nouadhibou. The length of a single rolling stock consisting 200 wagons may be up to 2.5 km, so from two to four locomotives are usually used at the head of the railway train.
Director of Interpipe Railway Products Division Oleksndr Garkavij said that locomotive wheel is a technically complex product for North African countries. “Their wear resistance indicators have to be at a high level in sandy deserts. Moreover, Mauritanian trains are one of the longest and heaviest in the world. Our strategy is to continue increasing the share of export deliveries of railway products,” he said.
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East. In 2020, Interpipe supplied 662,000 tonnes of finished goods, including 192,000 tonnes of railway products.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.

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INTERPIPE SEES EBITDA FALL BY 53% IN Q 1

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.

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INTERPIPE INCREASES STEEL PRODUCTION BY 4%

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.

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INTERPIPE SUPPLIES PREMIUM PIPES TO UZBEKISTAN

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.

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UKRAINIAN INTERPIPE DELIVERS WHEELSETS TO ONE OF THE LARGEST RAILCAR BUILDING COMPANIES IN FRANCE

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.

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