TMK announced its audited consolidated IFRS financial results for the fourth quarter ended December 31, 2016.
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Revenue increased by 10% $79 million compared to 3Q 2016, driven by higher sales of welded line pipe at the Russian division and increased consumption of seamless OCTG at the American division.
Adjusted EBITDA margin improved to 16% in 4Q 2016 compared to 15% in 3Q 2016. The growth of $14 million in EBITDA q-o-q was mostly attributable to higher sales of welded line pipe and seamless pipe at the Russian division as well as a more favourable product mix in LDP.
In 4Q 2016, net profit was $84 million compared to $11 million in the previous quarter, due to stronger results overall.
Total debt increased from $2,878 million as at September 30, 2016, to $2,897 million as at December 31, 2016, relating to ruble appreciation against the US dollar.
Net debt decreased by $48 million compared to September 30, 2016, and amounted to $2,539 million as at December 31, 2016.
FY 2016 vs. FY 2015
For FY 2016, revenue fell by $789 million year-on-year, mostly due to a negative currency translation effect, lower LDP volumes at the Russian division compared to a record high 2015, and weak sales at the American division as a result of falling US drilling activity and low E&P spending.
The same factors negatively affected adjusted EBITDA for FY 2016 which declined by $121 million compared to FY 2015. Adjusted EBITDA margin remained broadly in line year-on-year, at 16%.
Total debt increased from $2,776 million as at December 31, 2015 to $2,897 million as at December 31, 2016, relating to ruble appreciation against the US dollar. The weighted average nominal interest rate decreased by 3 bps to 9.03% as at the end of the reported period.
Net debt increased as at December 31, 2016 compared to December 31, 2015, and amounted to $2,539 million. Net repayment of borrowings amounted to $53 million for FY 2016.
Capex for FY 2016 was reduced to $175 million, compared with $208 million for FY 2015. ■