Interpipe NTRP plant EBITDA rebounds 27% qoq in 3Q20

EBITDA at Interpipe NTRP, a subsidiary of Ukraine’s
largest pipe and railway wheel producer Interpipe (INTHOL), improved 27.1% qoq to
USD 22.3 mln in 3Q20, according to the plant’s standalone financial report
published on Oct. 30. The plant’s revenue lost 18.0% qoq to USD 70.9 mln in
3Q20.

The prices for railway wheels, which Interpipe
produces only at its NTRP plant, were 1,244 USD/t in 3Q20, a 29% qoq plunge.

Dmytro Khoroshun: The qoq
increase in EBITDA in 3Q20 is puzzling because of the accompanying qoq plunges
in revenue and railway wheel prices. One explanation might be the net other
operating income and losses, which amounted to positive USD 12.7 mln in 3Q20
compared to negative USD 6.5 mln in 2Q20.

Preliminarily, we expect the consolidated 3Q20 EBITDA
(before reallocation from its steel segment) of Interpipe’s railway product
segment to drop to about USD 30 mln, or 27% qoq. This estimate reflects the expected 10% qoq drop in prices
and an 8% qoq drop in Interpipe’s sales volume
in 3Q20.