Outlook: Interpipe to report 2Q20 results on Sept. 22

Ukraine’s largest pipe and railway wheel producer
Interpipe (INTHOL) will report its 2Q20 results on Sept. 22, according to the
company’s website.

Dmytro Khoroshun: We expect
Interpipe’s 2Q20 EBITDA to amount to about USD 48 mln, a 44% qoq plunge.
Contributions to 2Q20 EBITDA by segment (before reallocation of steel segment
EBITDA) are expected to be as follows: negative USD 5 mln from pipes (flat
qoq), USD 38 mln from railway products (a 45% plunge qoq), and USD 15 mln from
steel (26% less qoq).

Interpipe’s 2Q20 revenue is expected to drop 16% qoq
to USD 212 mln.

Revenue from seamless pipe sales should have inched up
3% qoq to about USD 104 mln in 2Q20, driven by a 6% increase in sales volumes
to 103 kt, offset by a 3% drop in average sales price to USD 1,015/t.

We estimate revenue from welded pipe sales will jump 49%
qoq in 2Q20 to USD 16 mln, due to a 43% gain in volume to 22 kt and a 4% rise
in price to USD 746/t.

We calculate Interpipe’s railway product segment
revenue will plunge 34% qoq to USD 84 mln in 2Q20, as a 20% drop in sales
volume to 46 kt will be exacerbated by a 17% drop in price to USD 1,822/t.