Khartsyzsk Pipe reports strong 1Q12 results

Khartsyzsk Pipe (HRTR) reported a 53% yoy increase in revenue to USD 260 mln in 1Q12. EBITDA grew 61% yoy in the quarter to USD 35 mln, while its bottom line rose 81% yoy to USD 25 mln. The company supplied 218 kt of pipes during the period, with Kazakhstan (126 kt) and Turkmenistan (79 kt) accounting for 94% of deliveries.

Roman Topolyuk: As we expected, the company refocused on Central Asian markets after its main traditional consumers in Russia temporarily halted orders. We believe the company will continue to perform strongly over the rest of 2012, beating its USD 99 mln bottom line recorded last year.