Ukraine's Pipe Output Up 12.6% In 2005.

The growth leaders among traded companies were Dnipropetrovsk Pipe (DTRZ: BUY), Khartsyzk Tube (HRTR: SELL) and Nyzhnyodniprovsky Pipe Rolling (NITR: BUY).

   ths mt

         Company                                             2005                       2004               yoy change

Nyzhnyodniprovsky Pipe Rolling (NITR: BUY)  539.0                     476.3                   13.2%

Dnipropetrovsk Pipe (DTRZ: BUY)                  228.0                    172.7                    32.0%

Novomoskovsk Pipe (NVTR: BUY)                  178.1                     213.8                  -16.7%

Khartsyzk Tube (HRTR: SELL)                       544.8                     448.1                    21.6%

Kominmet                                                    126.2                      143.5                   -12.1%

Total                                                           2,293.3                   2,036.9                  12.6%

Concorde Capital: Production by Novomoskovsk Pipe did not live up to our projections (213.8 ths mt) due to weaker demand for the company’s pipes last year. NVTR’s core product is large-diameter (Ø1,020 mm) and middle-diameter (Ø159 – 529 mm) welded pipes for oil & gas and general purpose pipelines. So far we have not revised our forecasts for 2006 for the company, expecting an average price growth for its pipes of 2% and pipe production output at 216 ths mt. We maintain a BUY recommendation and a target of USD 8.82.