The Russian division continues to have a strong order backlog for the remainder of 2012 and the beginning of 2013, particularly in OCTG and line pipe as Russian oil and gas companies continue to implement drilling programs.
The Company continues to be positive about the long-term US market outlook however, the recent dynamics were mixed as customers were adjusting buying behavior going through the Q3 of 2012. The US market environment in the Q4 of 2012 is expected to remain challenging due to a lower rig count, a high level of imports and customers' focus on inventory management.
Despite certain challenges on the US and European markets, strength in Russian demand for oil and gas pipe should allow the Company to demonstrate stronger results in the Q4 compared to the third quarter of 2012. Overall, full year 2012 EBITDA is expected to be slightly better than 2011.
