North American OCTG Demand Lifts TMK Profits
"(The first quarter) marked a turnaround for our U.S. division, which returned to sustainable profit as TMK continues to benefit from the improving market conditions in the U.S., where we are one of the leading suppliers of premium tubular products for oil and gas producers," said TMK chief executive Alexander Shiryaev.
On the quarter, TMK’s revenue grew 24% over the same quarter last year to US$944 million. During the same period, net profits rose from US$14 million.
In its North American division, sales more than doubled to US$128 million on a rising rig count and spending growth in exploration and production. During the same period, shipments more than doubled, too, increasing to 154,000 metric tons.
As a result, TMK added a second shift at its welded mill in Wilder, Ky., and re-started an idled welded line at its Blytheville, Ark., facility, it said.
TMK said it expects conditions to continue to improve as the year progresses.
"The oil and gas industry in the United States and Canada will demonstrate further recovery, with OCTG consumption in North America growing and inventories staying at pre-downturn levels. TMK’s American division comes through the crisis and anticipates further growth in shipments as selling prices for tubular products are edging up and its customers, oil and gas companies, are extending their planning horizons," the company said.