Production of pipes amounted to 393,000 tons, and railway products – 84,000 tons
Interpipe, a global producer of steel pipes and railway products, in 2022, has reduced steel production by 39% compared to 2021 – to 595 thousand tons. GMK Center was informed about it from the company’s press service.
Production of pipe products for the year decreased by 36% compared to the previous year – to 393 thousand tons, and railway products – by 51% y/y, to 84 thousand tons.
Sales decreased by 37% y/y – to 524,000 tons. In particular, 384,000 tons of pipes were sold during the year, which is 36% less y/y, and railway products – 87,000 tons (-50% y/y).
Interpipe for 2022 reduced the income from the sale of products by 13% y/y – to $981 million, the company’s EBITDA decreased by 11% y/y – up to $204 million.
«2022 was extremely difficult for the company. After the large-scale invasion, all capacities were suspended, and only in April and May was there a gradual resumption of production at all the company’s enterprises. However, it was not possible to reach the pre-war level of production due to the blockade of ports, the shelling of the infrastructure by the Russian army and the lack of fuel. Interpipe was forced to rebuild the supply chains of finished products through EU ports, which led to an increase in transport costs by 2.5-3.5 times, depending on the route,» the company notes.
According to the CEO of Interpipe Andriy Korotkov, although the company did not manage to reach the pre-war level of production, but in 2023 the results are expected to improve due to the cancellation of all quotas and duties on Ukrainian goods by the USA and the EU.
As GMK Center reported earlier, in 2021 Interpipe increased production of steel by 28.1% compared to 2020 – up to 971,000 tons. Production of railway products decreased by 9.7% y/y – to 172.1 thousand tons, and pipes – increased by 32.5% y/y, up to 614.8 thousand tons.
Interpipe is an international vertically integrated pipe and wheel company, one of the top 10 global manufacturers of seamless pipes and one of the top 3 manufacturers of wrought wheels.