ChelPipe Announcing Operating Results for 1st Quarter of 2020
Leading manufacturer of tubular goods and provider of integrated solutions for the fuel and energy industry companies Chelyabinsk Pipe Plant, a Metal-Expo regular exhibitor, announced operating results for the 1st Quarter of 2020.
Total volume of shipments decreased by 15% compared to the 1st quarter of 2019 and amounted to 382 kt. The key factor that contributed to decrease in total volume of shipments was the reduction in LDP supply - both to the domestic market due to completion of large gas pipeline construction projects of PJSC Gazprom (Sakhalin - Khabarovsk - Vladivostok, North European Gas Pipeline) and foreign countries due to completion of European Union gas transportation infrastructure projects.
ChelPipe Group has decreased OCTG shipment for 16% - to 109 kt because some orders were postponed to late 2020. ChelPipe Group OCTG market share in Russia is 16% - the Group has maintained its status as one of the leaders in this segment.
Total seamless industrial pipes shipment for Q1 2020 decreased insignificantly and accounts for 118 kt. This reduction was also caused by some postponed tenders and orders. Despite this the ChelPipe Group remains the Russian market leader in the seamless industrial pipe segment.
Total volume of shipments of large diameter pipes (LDP) produced by the ChelPipe Group decreased by 30% compared to the same period last year and amounted to 106 kt. Also, shipments to the domestic market decreased by 17% or 16 kt. Volume of shipments to the market of the CIS countries increased by almost 2.5 times - by 11 kt due to deliveries to Uzbekistan. Deliveries to non-CIS countries decreased by 84% or 41 kt. As a result of 1st quarter of 2020, ChelPipe Group has become the largest supplier of large diameter pipes among Russian manufacturers with a market share of 22%.
ChelPipe Group shipments of line pipes in the 1st quarter of 2020 amounted to 39 kt, which is almost the same level as in the same period in 2019.
During the 1st quarter of 2020, total volume of shipments of Trunk Pipeline Equipment Subdivision of the ChelPipe Group increased by 20% compared to the 1st quarter of 2019 and amounted to 3.9 kt. Pipeline fittings (hot and cold bends, short-radius bends, pipe spools and stamp-welded parts) manufactured by JSC "Pipeline Bends" and ETERNO, LLC (companies of the ChelPipe Group) were delivered to customers as part of repair and maintenance programs and for field infrastructure development, including to the non-CIS countries. In addition, ChelPipe Group sold high-tech products of the ETERNO INGENIUM line for the Akkuyu nuclear power plant under construction in Turkey.