25 July 2014
Large-diameter pipes producer Khartsyzsk Pipe (HRTR UK) more than doubled its revenue in 1H14 to USD 127 mln (+133% yoy), according to a company report released on July 24. The enterprise generated EBITDA of USD 48 mln during the period, which is 2.4x as much as a year before, and more than tripled its bottom line to USD 14 mln. The half-year results of Khartyzsk Pipe, driven by a 2.1x increase in pipe sales, imply that revenue leaped 2.3x qoq to USD 98 mln in 2Q14, net income surged from USD 0.1 mln in 1Q14 to USD 14 mln (EPS of USD 0.01 per share), while EBITDA decreased in dollar terms to USD 22 mln (-16% qoq).
Roman Topolyuk: Khartsyzk Pipe’s solid 1H14 financial performance was the result of increasing capacity load for new orders for pipeline construction projects in Central Asia, such as East-West in Turkmenistan and Beyneu-Shimkent from Kazakhstan to China. In June, monthly production at the plant reached 31 kt, while in February, Khartsyzk Pipe stood virtually idle. We expect production volumes to remain stable qoq in 3Q14, which will positively impact the company’s financials in the short term, while capacity load may decrease by the year end along with delivered contracts.