Interpipe NTRP plant EBITDA doubles in 1Q20

Interpipe NTRP, a subsidiary of Ukraine’s largest pipe
and railway wheel producer Interpipe (INTHOL), boosted its EBITDA 98% yoy to
USD 64.0 mln in 1Q20, according to the company’s quarterly financial report
published on Apr. 30. The plant’s revenue slid 0.5% yoy to USD 124.4 mln in
1Q20.

The prices for railway wheels were 2,050 USD/t in
1Q20, which is 3% higher than the prices for 3Q19, according to Concorde
Capital’s analysis of Interpipe NTRP financial data.

Dmytro Khoroshun: Interpipe
NTRP’s 1Q20 wheel prices being only slightly above their 3Q19 values confirms
our conclusion from Ukraine’s export prices that prices for Interpipe’s railway
products had peaked in 4Q19.

From Interpipe’s consolidated 2019 financial results,
we calculate that prices for its railway products rose 16% qoq in 4Q19.
Interpipe NTRP has not yet published its full standalone 2019 financial
results.

Nevertheless, Interpipe NTRP’s 1Q20 EBITDA, USD 64.0
mln, was exceptionally strong, 74% more than its 3Q19 result and 10% higher
than Interpipe’s consolidated EBITDA for 4Q19. This suggests that 1Q20 might
turn out to be another quarter of strong EBITDA for Interpipe.