In its financial results according to international financial reporting standards (IFRS) for the first three months of the current year, the net loss of Russian pipemaker TMK totaled $16 million compared to a net profit of $85 million in the same quarter last year and a net profit of $55 million in the fourth quarter last year. A foreign exchange loss in the amount of $63 million contributed to the net loss recorded in the first quarter this year.
In the first quarter of the current year, TMK's sales revenues decreased by 15 percent year on year to $1.466 billion, mostly due to lower large diameter (LD) pipe volumes as well as the negative effect of currency translation, and was down seven percent compared to the fourth quarter last year mainly due to lower welded pipe sales and a negative currency translation effect.
In the first quarter this year, TMK's adjusted EBITDA decreased by 25 percent compared to the previous quarter to $184 million, mainly due to lower volumes and an unfavorable product mix of welded pipe in the Russian division and decreasing prices in the American division coupled with growing coil prices. Adjusted EBITDA fell by 32 percent year on year mostly due to unfavorable pricing and product mix of seamless pipe and lower LD pipe volumes in the Russian division.
The adjusted EBITDA margin was 13 percent for the first quarter this year, down from 16 percent in the fourth quarter of 2013 and declining from 16 percent in the first quarter of 2013.
