Russian pipe maker TMK has posted a 1Q 2011 net profit of $104 million under IFRS.
The bottom line compares with the 1Q 2010 net loss of $1 million, with 1Q adjusted EBITDA rising 44% year on year to $293 million, as 1Q 2011 revenues rose 35% year on year to $1.669 billion.The company attributed the result to sales volume growth and a favorable change in prices and product mix. The company said the 14% pipe sales increase was driven mostly by an increase in industrial seamless and large-diameter (LD) pipe volumes in the Russian division. The recovery in demand for industrial seamless pipe was supportive of a 9% increase in sales of seamless pipes.TMK hailed winning of an auction for the acquisition of a 25.5% stake in OAO Volgograd River Port which will allow TMK to optimize logistics for the Volzhsky plant and will facilitate shipments of oil and gas pipe to the Caspian region.