Interpipe increased steel output by 14.5% y/y in January-September

Interpipe, a global producer of steel pipes and railway products, increased steel production by 14.5% in January-September 2023 compared to the same period in 2022, to 530 thousand tons. This is stated in the interim report on the company’s website.

The production of pipe products for 9 months remained at the level of January-September 2022 – 309 thousand tons, and railway products increased by 14.1% y/y – up to 73 thousand tons.

“Overall, production performance in all segments was relatively stable, reflecting stable demand on global markets. The only more noticeable change was recorded in the steel segment, where production recovered at a faster pace due to the creation of steel billets as a preventive measure to ensure sufficient semi-finished products in case of electricity shortages during the cold season,» the report said.

In the third quarter of 2023, Interpipe produced 186 thousand tons of steel (+16.2% q/q), 100 thousand tons of pipes (-4.8% q/q) and 26 thousand tons of railway products (-3.7% q/q).

Sales of pipes in January-September 2023 amounted to 300 thousand tons, while in the same period of 2022 the company sold 282 thousand tons of the relevant products. The bulk of the pipes were shipped to Europe (104 thousand tons), and another 100 thousand tons were shipped to the domestic market.

Sales of railway products increased by 7.7% y/y over 9 months to 70 thousand tons, including 45 thousand tons to European countries and 13 thousand tons to the domestic market.

During the third quarter, the company reduced pipe sales by 5.4% q/q – to 106 kt and rail products by 3.8% q/q – to 25 kt.

«Interpipe continues to operate at 60-70% of its pre-war capacity utilization rate. The company plans to gradually increase this level in the short term, provided there are no power outages.

In January-September 2023, Interpipe increased its net profit by 1.7% compared to the same period in 2022 – to $189.13 million. Revenues from sales of the company’s products in January-September 2023 increased by 14.4% y/y – to $785.4 million. Interpipe’s EBITDA for the period increased by 2.3 times year-on-year – to $287.54 million.

As GMK Center reported earlier, during 2022, Interpipe reduced production of steel by 39% compared to 2021 – to 595,000 tons. Production of railway products decreased by 51% y/y – to 84 thousand tons, and pipes – by 36% y/y, to 393 thousand tons.

Interpipe is an international vertically integrated pipe and wheel company, one of the top 10 global producers of seamless pipes and one of the top 3 producers of wrought wheels.