The reason is a gain in sales of railway products
In 2019, Ukrainian Interpipe increased revenue by 4% to $1.112 billion against the previous year due to a gain in sales of railway products,
according to the press release on the Company’s website.
In particular, its railway products revenues boosted by 49% to $425 million over the year. The reason is high demand in the CIS and EU markets.
Tubular goods sales revenues thinned out by 13% to $658 million in 2019 against 2018 due to a 28% cut in OCTG sales, the Company says.
EBITDA increased by 64% to $259 million against 2018 due to production results of the Company’s railway shop. Specifically, EBITDA of the railway shop almost quadrupled, with its weight in the total indicator of 77%.
The Company ramped up the amount of capital investment last year by 37% to $60 million.
The cash balance at last year end grew by 95% to $256 million against 2018 due to steady operating cash flow in the railway shop.
In 2019, Interpipe cut its gross debt by $338 million and net debt to $82 million,
showing the best results in the recent years. “We have launched a strategic investment program with a view to develop premium products for the oil and gas and railway sectors,” explains Fadi Hraibi, Interpipe CEO.
Interpipe is a Ukrainian industrial producer of seamless pipes and railway wheels. The Company’s products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, the Middle East, North America and Europe. The Company employs 12 thousand people.
In 2019, Interpipe decreased pipe and railway product sales in tons by 7% to 798 thousand tons against 2018 amid a drop in demand in the global market in H2 2019. The export share in sales was 76%.