Updated TMK data for Q2 and H1 2014

Pipe Metals Group's European operations increased revenue by 7 percent in Q2 compared to the previous quarter to $ 71 million as a result of higher sales of steel billets. Gross profit increased by 11 percent compared to Q1 2014 to $ 15 million. However, in the first half of 2014, when compared with the annual comparison, revenue decreased by 9 percent to $ 138 million. Gross profit increased by 7 percent compared to the same period in 2013 to $ 28 million, driven by increased production of seamless pipes.

TMK's Russian operations in the second quarter increased by 5 percent year-on-year to $ 1,030 million mainly as a result of increased sales of welded pipes. Gross profit decreased 1 percent QoQ to $ 221 million on the back of an unfavorable welded pipe sales structure. In the first half of 2014 compared to the same period in 2013, revenue decreased by 18 percent to 2011 million dollars. Gross profit declined 27 percent year-on-year to $ 445 million as a result of unfavorable pricing for the seamless pipe product range and negative currency effects.

TMK's revenues from US operations in Q2 2014 were $ 415 million compared to Q1, down 1 percent quarter-on-quarter, mainly due to lower sales of seamless and welded pipes. Gross profit rose 11 percent quarter-on-quarter to $ 49 million, driven mainly by an improved sales mix of welded and seamless pipe. In 1H 2014 year-on-year, revenue increased 6 percent to $ 833 million driven by increased sales of seamless pipes. Gross profit rose 7 percent to $ 93 million on the back of increased volumes and prices for the seamless pipe range.