HRTR Sets New Output Record In 2006, EGM Announces 95% Dividend Payout

At their EGM on December 23, Khartsyzsk Pipe’s (HRTR: Susp) shareholders voted to pay dividends in the amount of USD 28 mln or 95% of the company’s profits for 2003, 2004, and 2005 (Cumulative dividend yield 3.5%, dividend yield for 2005 3.4% – DPS USD 0.011). Additionally the company announced that it had increased its output of large diameter pipes (LD) by 9.2% yoy in 2006 to 596 ths mt. In December, the company more than doubled production compared to December 2005 to produce 62 ths mt of pipe. According to HRTR’s General Director, the company plans to increase output by an additional 20% in 2007 to 730 ths mt, of which 100-120 ths mt of LD pipes will be produced on the company’s new assembly line. Russia’s new 8% import duty on large-diameter pipes went into effect in December.