EquityStory.RS, LLC-News: ChelPipe Group
/ Key word(s): Annual Results
13 February 2020
ChelPipe Group announces operating results for FY 2019
PJSC Chelyabinsk Pipe Rolling Plant ("ChelPipe Group" or "the Company"), a leading Russian steel pipe maker and provider of integrated solutions to companies in the fuel and energy sector, today announces its operating results for the 12 months ending December 31, 2019 (FY 2019).
FY 2019 highlights
"In 2019, ChelPipe Group delivered robust growth in shipments of tubular products. The Company strengthened its position as the largest LDP manufacturer in the Russian market while also continuing to expand its international presence, with exports hitting a 25-year high.
"In response to increased competition, ChelPipe Group is taking a number of steps to boost operational efficiency and put the customer at the heart of the transformed business model, in line with the Company's 2024 strategy. Over the next five years, we will focus on strengthening our customer proposition, primarily in the high added value segments; developing services and integrated engineering solutions; a smoother customer experience; and diversifying our sales channels.
"Delivering in these areas will give us a significant competitive edge over our Russian and international peers, and strengthen ChelPipe Group's appeal as a long-term partner for our clients."
Shipments by product
In 2019, Pervouralsk New Pipe Plant and Chelyabinsk Pipe Rolling Plant (both part of ChelPipe Group) shipped 2,070 kt of pipes to customers. As a result, the Company accounted for 18% of total shipments by Russian pipe producers.
Exports increased to 36% of all shipments on the back of the Group's successful international expansion, reflecting high demand for ChelPipe Group products and consistent efforts to enhance the Company's customer proposition. The increase in pipe shipments was largely driven by the Company's involvement in the construction of major international trunk pipelines. ChelPipe Group contributed to the Saryarka gas pipeline project to supply gas to the Kazakh capital, Nur-Sultan, and took part in the construction of the Turkmenistan section of the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline, for which it was the exclusive LDP supplier.
These projects were among the drivers of the 33% increase in LDP y-o-y, strengthening ChelPipe's position as Russia's largest LDP producer.
In 2019, OCTG shipments rose by 3% to 469 kt, offsetting lower profitability in the industrial segment. Shipments of pipes with ChelPipe Prime threaded connections were up 23%, driven by an anticipated increase in oil exploration and production.
Domestic shipments were 1,334 kt, down 6% y-o-y. The decrease was due to a larger share of exports and a slight decrease in demand for seamless pipes.
In 2019, ChelPipe Group sold 21.3 kt of trunk pipeline division products, up 17% y-o-y.
Shipments of pipeline connecting bends increased by 22% y-o-y from 12.4 kt to 15.2 kt. A significant part of these shipments - 2.6 kt - were export sales, which doubled from the previous year.
Shipments by production site:
Outlook for 2020
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About Chelpipe Group
ChepPipe Group is one of Russia's leading groups of iron and steel companies, with a highly diversified client portfolio. The company produced 18% of all pipes manufactured by Russian companies in 2019. Its market share for large-diameter pipes and oil country tubular goods, both high-margin sectors, was 31% and 19%, respectively.
Chelpipe Group comprises iron and steel plants such as Chelyabinsk Pipe Plant, Pervouralsk New Pipe Plant, a complex of warehouses supplying the Group's pipe products to Russian regions, a company specializing in sourcing and processing scrap metal (META), facilities producing pipeline equipment (SOT, ETERNO, MSA (Czech Republic)), and the Rimera Group, responsible for oilfield services.
By employing safe technologies and materials, Chelpipe Group's modernized enterprises have a minimal environmental impact and produce environmentally friendly products. The company supports the community and provides conditions that allow its employees to enjoy a healthy lifestyle.
13.02.2020 MSK Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
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|Listed:||Foreign Exchange(s) Moscow|
|EQS News ID:||974533|
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974533 13.02.2020 MSK