Khartsyzk Tube Will Supply Pipes For Bogorodchany - Uzhgorod Pipeline Construction.

The company (HRTR: SELL) won a tender for this order from the International Gas Transporting Consortium established on par by Gazprom and Naftogaz Ukrainy. The total length of the pipeline will be 234.3 km. The first leg, 50 km long, is to be completed by the end of 2006 and will cost USD 130 mln.  Of this amount, Khartsyzk Tube?s pipes will account for ~USD 80 mln. HRTR?s lower prices helped it to beat its Russian and European competition. Concorde Capital: HRTR reported sales of USD 109.1 mln in 2004. Thus, the USD 80 mln proceeds from the Bogorodchany ? Uzhgorod contract would make up a significant share of its revenue in 2006. However, the company practices extensive transfer pricing and is not likely to report its true top-line in its official financials for 2006.