Khartsyzsk Pipe boosts output 5x y-o-y in 1Q11

Khartsyzsk Pipe’s (UX: HRTR UK) production figures for 1Q11 were published on Friday by Ukrrudprom, production rose to 155.7 ths mt, up 5x y-o-y. Overall, total Ukrainian pipe output rose to 550.8 ths mt, up 58% y-o-y. Dnipropetrovsk Pipe (UX: DTRZ UK) and Nyzhnyodniprovsk Pipe (UX: NITR UK) also boosted pipe production, by 48% y-o-y and 28% y-o-y, respectively. Andriy Gerus: These production figures for Khartsyzsk are in line with our expectations, see our report dated November 30, 2010. We reiterate our BUY recommendation on the stock.

Pipe production in Ukraine, 1Q11 vs. 1Q10
Company, ths mt                   1Q10    1Q11  Chg,yoy
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Khartsyzsk Pipe (HRTR)           31.1   155.7       5x
Nyzhnyodniprovsk Pipe (NITR) 77.9    99.8      28%
Kominmet (DMZK)                  38.4    45.2      18%
Novomoskovsk Pipe (NVTR)     41.5    47.3      14%
Dnipropetrovsk Pipe (DTRZ )   17.8    26.3      48%
ММК Illicha Steel (MMKI)        21.3    10.6     -50%
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Total                                    348.4   550.8      58%
Source: Ukrrudprom