MOSCOW: TMK, Russia's largest maker of steel pipes for the oil and gas industry, reported a 82-percent fall in its 2017 net profit to $30 million on Thursday due to one-off items such as a smaller foreign exchange gain.
The company's top-line increased, supported by strong demand in the United States and an improvement in the Russian market, TMK, controlled by Russian businessman Dmitry Pumpyansky, said.
Its 2017 adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 14 percent to $605 million and were expected to continue their growth in 2018 due to further improvement in the US market. Its 2018 EBITDA margin is expected to remain at around 14 percent.
In February, TMK's US subsidiary, IPSCO Tubulars, halted an initial public offering (IPO) of its shares in New York, just as a sharp global sell-off in shares gripped global markets.
On Thursday, TMK made no mention of whether IPSCO would come back to its share sale plan, but said that results at its US division would improve in 2018 due to higher demand.
TMK also expects improved results from its European assets in 2018 due to stable pipe demand, better product mix and pricing environment. In Russia, TMK believes consumption of seamless pipes for the oil and gas industry will remain strong in 2018 with some upside potential.
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