David Mitch, President and CEO of TMK’s American Division, Comments on Friday’s Determination by the U.S. Department of CommerceHOUSTON - Monday, July 14th 2014 [ME NewsWire]
The following contains forward looking statements concerning future events. These statements are based on current information and assumptions of TMK management concerning known and unknown risks and uncertainties.
(BUSINESS WIRE)-- “We are encouraged by the Department of Commerce’s findings regarding duties on low priced imported Oil Country Tubular Goods (OCTG) from Korea of between 9.89% and 15.75%, as well as the duties assessed against the other eight countries. We are optimistic that these findings will be supported by the final ruling of the International Trade Commission, David Mitch, president and CEO of TMK IPSCO, the American division of TMK, said today. “As this result was anticipated, and because welded OCTG, the product category mostly affected by Korean imports, represents a small portion of TMK’s overall EBITDA, the company is not making any adjustments to its sales and profitability forecasts.”
Over the past year, the American division has been shifting sales toward greater value-added products, and working to develop products for the offshore and other premium market segments. In parallel, the division has continued to scale back production of lower margin products and increase operating efficiencies. Other factors contributing to this unchanged outlook are planned reductions in capital expenditures and anticipated lower raw material costs.
“We believe the trade case sets a precedent which will have a positive impact on future import prices, as the affected countries will want to avoid any further trade case investigations. There will be annual reviews in all these cases, especially Korea, if the ITC upholds the DOC decision,” Mitch continued.
Longer term, TMK remains optimistic as several indicators point to increased gas demand, which will result in greater application of TMK UP premium connections.
Note to Editors: See the Department of Commerce’s announcement in the OCTG trade case here: http://enforcement.trade.gov/download/factsheets/factsheet-multiple-OCTG-ad-cvd-final-071114.pdf
About TMK
TMK (LSE: TMKS) is a leading global manufacturer and supplier of steel pipe for the oil and gas industry, operating 28 production sites in the United States, Russia, Canada, Romania, Oman, UAE, and Kazakhstan and two R&D centers in Russia and the USA. In 2013, TMK’s pipe shipments totaled 4.3 million tonnes. The largest share of TMK’s sales belongs to high margin oil country tubular goods (OCTG) shipped to customers in over 80 countries. TMK delivers its products as well as an extensive package of services in heat treating, protective coating, premium connections threading, warehousing and pipe repair.
TMK’s securities are listed on the London Stock Exchange, the OTCQX International Premier trading platform in the U.S. and on the Moscow Exchange MICEX-RTS.
TMK’s assets structure by division:
Russian division Volzhsky Pipe Plant Seversky Tube Works Taganrog Metallurgical Works Sinarsky Pipe Plant TMK-CPW TMK-Kaztrubprom TMK-INOX TMK-Premium Service TMK Oilfield Services
American division 12 plants of TMK IPSCO OFS International LLC European division TMK-ARTROM TMK-RESITA Middle East Division TMK GIPI (Oman) Threading & Mechanical Key Premium LLC (Abu-Dhabi
Contacts
TMK IR Department:
Marina Badudina, +7 (495) 775-7600
IR@tmk-group.com
TMK PR Department:
Ilya Zhitomirsky, +7 (495) 775-7600
PR@tmk-group.com
TMK IPSCO Communications:
Roger Bentley, +1 832-678-5064
rbentley@tmk-ipsco.com
Permalink: http://www.me-newswire.net/news/11613/en
No comments:
Post a Comment