TMK announces first quarter results

PJSC TMK, the world's leading manufacturer of tubular products for the oil and gas industry, announces interim consolidated financial results under IFRS for the three months ended March 31, 2020. TMK CEO Igor Korytko said: “In Q1 2020, the Group showed a weaker quarter compared to the same period last year. quarterly results for Russian and European divisions, which were negatively impacted mainly by a decrease in sales volumes. The extremely challenging global macroeconomic environment caused by the COVID-19 pandemic and oil price volatility has resulted in weaker customer activity in our core markets and put severe pressure on pipe consumption in key segments. We are seeing a more challenging market situation in the second quarter, which continues to reduce demand for our products, including seamless OCTG pipes. However, we are confident that due to the improved balance

Q1 2020 Highlights

First quarter revenue decreased by 33% year-on-year and 21% year-on-year to RUB 55.3 billion, mainly due to the disposal of the American division.

QI Adjusted EBITDA at RUB8.7bn: a 24% decrease year-on-year. -year, mainly due to the divestiture of the American division, and 22% lower than the previous quarter, due to weaker performance of the Russian and European divisions.

Adjusted EBITDA margin of 16% in Q1 2020 compared to 14% in Q1 2019 and 16% in Q4 2019.

Forecast for the second quarter of 2020. In the second quarter of 2020, TMK expects overall demand for the Group's products to remain under pressure in both Russia and Europe, due to the continuing unfavorable macroeconomic environment caused by the COVID-19 pandemic and volatility in oil prices.