Interpipe NTRP plant EBITDA plunges 67% qoq in 2Q20

EBITDA at Interpipe NTRP, a subsidiary of Ukraine’s
largest pipe and railway wheel producer Interpipe (INTHOL), plunged 67.2% qoq
to USD 17.5 mln in 2Q20, according to the plant’s standalone financial report
published on July 30. The plant’s revenue lost 30.5% qoq to USD 86.5 mln in
2Q20.

The prices for railway wheels, which Interpipe
produces only at its NTRP plant, were 1,749 USD/t in 2Q20, 15% less qoq.

Dmytro Khoroshun: This data
confirms that quarterly EBITDA (before reallocation from its steel segment) of
Interpipe’s railway product segment likely peaked at USD 70 mln in 1Q20.
We expect it to drop to USD 35 mln, or even lower, starting in 3Q20 because of
the recent drop in railway product prices
and the reintroduction of a 34.22% import duty by Russia
from June 2 that will likely depress Interpipe’s sales volumes.