TMK Sees Pipe Sales Up by 20%

TMK, the country's largest steel pipe maker, said Wednesday that it expected 2007 revenues to have risen about 20 percent year on year to more than $4 billion on strong demand and higher prices for pipes.

The company said it expected 2007 earnings before interest, taxation, depreciation and amortization to rise about 15 percent. It did not give an EBITDA number.

The EBITDA margin for the full year would be slightly lower than in the first half of 2007 and the whole of 2006, TMK said.

TMK, or Trubnaya Metallurgicheskaya Kompania, shipped 1.9 percent more steel pipes last year than in 2006. It sold its seamless oil country tubular goods and large-diameter welded pipes at prices 20 percent higher than a year ago.

Prices rose 14 percent on seamless line pipes, 12 percent on seamless industrial pipes and were flat on industrial welded pipes.

"Despite some weakness observed in global markets, particularly in North America, the Russian seamless pipe market remained strong," TMK said.

"Given the more favorable situation in the Russian market, TMK increased its domestic sales by decreasing exports from its Russian plants by 8 percent. Consequently, the share of non-Russian sales volumes decreased to 28.5 percent," it said.

TMK will announce final 2007 results in May.