Interpipe NTRP plant EBITDA plunged 60% qoq in 4Q20

EBITDA at Interpipe NTRP, a subsidiary of Ukraine’s
largest pipe and railway wheel producer Interpipe (INTHOL), plunged 59.9% qoq
to USD 8.9 mln in 4Q20, according to the plant’s standalone financial report
published on April 29. The plant’s revenue added 3.1% qoq to USD 73.2 mln in
4Q20.

The prices for railway wheels, which Interpipe
produces only at its NTRP plant, were 1,210 USD/t in 4Q20, a 3% qoq drop.

Dmytro Khoroshun: The 3% qoq
drop in railway wheel prices in 4Q20 at NTRP was close to the 1% qoq increase we expected
from Ukraine’s export prices but substantially weaker than the 15% jump in Interpipe’s consolidated
4Q20 prices, which is puzzling.

We expect Interpipe’s railway product export volumes
to drop about 14% qoq in 1Q21 due to
Russia’s ban on imports from Ukraine. However, Ukraine’s export prices for
railway products seem to have stabilized qoq in January-February.

In 2021 the financial performance of NTRP and
Interpipe’s railway product segment should weaken substantially yoy because of
the 33% drop in prices during 2020 and the possible loss of up to 30% in
sales volumes due to Russia’s ban.