Russia-based TMK, one of the world's leading oil and gas steel pipe producers, has announced its operational results for the first nine months of the current year.
In the January-September period, TMK shipped 3.2 million mt of steel pipes to customers, representing a 1.7 percent increase compared to the same period of last year on the back of stronger demand for welded OCTG pipe and large diameter pipe (LDP). Shipments in the third quarter declined by 2.1 percent quarter on quarter to 1.060 million mt.
In the first nine months of the year, seamless pipe shipments fell by 2.8 percent year on year to 1.807 million mt. Shipments of seamless pipes in the third quarter fell by nine percent quarter on quarter to 563,000 mt due to the scheduled repairs of rolling mills at Seversky Tube Works and Volzhsky Pipe Plant.
TMK's welded pipe shipments rose by 8.3 percent year on year in the first nine months, reaching 1.393 million mt, mainly driven by increasing demand for LDP and line pipe from Russian customers as well as for welded OCTG in the US. The third quarter welded pipe shipments were up by 7.1 percent compared to the second quarter, totaling 497,000 mt.
In the January-September period of the current year, TMK's oil country tubular good (OCTG) shipment volumes increased by 4.2 percent year on year to 1.343 million mt, while in the third quarter shipment volumes registered 4.1 percent decline compared to the second quarter, falling to 445,000 mt.
Shipments of premium connections rose to 573,000 joints for the first nine months of 2013, up 22.7 percent year on year, with shipment volumes down 1.9 percent quarter on quarter in the third quarter.
The company confirms earlier announced expectations that the Russian division will continue to see strong demand for OCTG and line pipe until the end of 2013 as Russian oil and gas players fulfill their production plans. The company maintains its positive long-term US market outlook. In general, the company confirms its cautiously positive outlook for the physical volumes in the current year and expects 2013 shipments to be at least the same as in 2012.
