Interpipe increased its profit by 70% in Q1 2022

According to the results of the first quarter of 2022, the Interpipe increased its net profit by 69.8% compared to the same period in 2021, to $21.8 million, the consolidated statements published on the company’s website reads.

The revenue from the sale of the company’s products increased by 19% compared to January-March 2021, to $239.2 million. Interpipe’s EBITDA during this period decreased by 63%, to $15.14 million.

Capital investments at the end of three months amounted to $6.29 million, which is 63.6% lower than in 2021. The company’s net debt increased 8.4 times, to $7.25 million.

According to the results of the first quarter, the company reduced the production of steel by 16%, to 163 thousand tons, pipes – by 12%, to 97 thousand tons, railway products – by 43%, to 23 thousand tons. At the same time, sales fell by 10%, to 140 thousand tons.

As Interpipe notes, the first two months of 2022 were marked by a positive situation on world markets. However, after the invasion of the Russian Federation into Ukraine, the company’s management decided to completely stop production for the sake of the safety of employees and capacities. This resulted in a 12% reduction of pipe output in the first three months of 2022, and a 43% reduction in rail products.

In addition to the loss of sales volume and additional logistics and transport costs due to the invasion, the decrease of EBITDA was also negatively affected by the basic raw materials price growth.

According to the acting CEO of Interpipe Andriy Korotkov, since April, the company have been gradually restarting production, and at the end of May, it started to resume shipments. In May, the Interpipe Steel complex was relaunched, and the volume of production and shipment of finished products started to gradually increase.

“However, unfortunately, the company cannot yet return to pre-war production volumes. The war has broken the usual supply chains, as the Black Sea seaports of Ukraine are blocked, the country has a large fuel shortage, and the transport infrastructure is constantly destroyed due to missile strikes. New supply and logistics chains are in the process of being rebuilt and formed,” he added.

Earlier GMK Center reported that at the end of 2021, Interpipe reduced its net profit by 53.2% compared to 2020, to $91.32 million. Capital investments reached $62.7 million (+42.3%), and net debt increased by 96.8%, to $23.63 million.

In 2021, Interpipe increased steel production by 28.1% compared to 2020, to 971 thousand tons. The output of railway products for the year decreased by 9.7%, to 172.1 thousand tons, and pipes – increased by 32.5%, to 614.8 thousand tons.

Sales of railway products in 2021 decreased by 9.6% compared to 2020, to 174,000 tons. The sales volume of pipe products increased by 28.1%, to 602,200 tons.

Interpipe is an international vertically integrated pipe and wheel company, which is among the top 10 manufacturers of seamless pipes in the world and among the top 3 manufacturers of solid-rolled railway wheels.