(Adds outlook, details)
MOSCOW Aug 26 TMK, Russia's largest
maker of steel pipes for the oil and gas industry, said on
Tuesday it expected stronger results in the second half of 2014
as it posted a return to profit after a net loss in the first
TMK, controlled by businessman Dmitry Pumpyansky, said the
start of Gazprom's Power of Siberia project should
boost domestic demand for large-diameter pipes in the second
half of the year, while high commodity prices were expected to
support robust drilling activity in the United States.
"Overall, for the second half of the year TMK expects a
stronger set of results due to growing LD pipe sales, higher
seamless pipe prices in Russia in line with stable raw materials
prices as well as a gradual recovery on the U.S. market," it
The company reported a second-quarter net profit of $60
million thanks to a recovery in the rouble after a net loss of
$16 million in the previous quarter.
The bottom line improved during April-June thanks to a
foreign exchange gain of $32 million, compared with a $63
million loss in the first quarter due to rouble weakness.
TMK sold the majority of its products in Russia for roubles
in the second quarter and benefited from a strengthening of the
local currency against the U.S. dollar.
Its revenue grew 3 percent, quarter-on-quarter, to $1.5
billion. Adjusted earnings before interest, taxation,
depreciation and amortisation (EBITDA) also rose 3 percent to
stand at $190 million.
(Reporting by Andrey Kuzmin; Editing by Maria Kiselyova and