Executive overview

The principal activities of our company are the production and distribution of seamless and welded pipes, including pipes with the entire range of premium connections backed by extensive technical support.

USD 4127 m
total consolidated revenue in 2015
by 36%
sales of LD pipe grew in 2015 to 636 thousand tonnes

Our plants produce almost the entire range of existing pipes used in the oil-and-gas sector, the chemical and petrochemical industries, energy and machine-building, construction and municipal housing, shipbuilding, aviation and aerospace, and agriculture.

We created an up-to date technological complex based on advanced scientific research, manufacturing high-quality competitive products.

Our operations are geographically diversified with manufacturing facilities in Russia, the United States, Canada, Romania, Kazakhstan and the Sultanate of Oman. We operate R&D centers in Russia and the U.S. Our global market presence is supported by a wide distribution network. In 2015, we delivered 71% of our tubular products to our customers located in Russia and 15% in North America. We estimate our share on global market of seamless OCTG at 11%.

We are the largest exporter of pipes in Russia. Exports of pipes produced by our Russian plants accounted for 13% of our total sales in 2015.

In 2015, we sold 3,871 thousand tonnes of steel pipes. Seamless pipes comprised 62% of our sales volumes. Sales of seamless and welded OCTG reached 1,456 thousand tonnes, a 25% year-on-year increase, sales of LD pipe grew by 36% year-on-year to 636 thousand tonnes.

Our total consolidated revenue decreased by 31% to $4,127 million as compared to 2014. Adjusted EBITDA1 declined to $636 million as compared to $804 million in the previous year. Adjusted EBITDA margin increased to 15% from 13% in 2014.

1Adjusted EBITDA - See “Selected financial data”.