Assets
Pipe Metallurgical Company (TMK) is the largest Russian pipe manufacturer, one of the three leaders in the global pipe business. TMK, combining 27 enterprises located in,, and Russia USA, USA, Romania Kazakhstan To Canada Oman, has the largest among the world leaders in the production of the entire range of steel pipes. The largest share in the Company's shipping structure is occupied by high-yield rifled oil and gas pipes.
TMK supplies products in combination with a wide range of services for heat treatment, application of protective coatings, cutting of premium connections, supervision, warehousing and repair of pipes.
TMK shares are traded on the London Stock Exchange, in the US OTC trading system (OTCQX), as well as on the Russian exchange platform - MICEX-RTS.
Performance indicators
2023: Decrease in revenue by 13.5% to 544.27 billion rubles
The revenue of the Pipe Metallurgical Company (TMK) for 2023 decreased by 13.5% compared to 2022 and amounted to 544.27 billion rubles. Such data in accordance with international financial reporting standards (IFRS) were published in early March 2024.
TMK's net profit in 2023 reached 39.38 billion rubles, which is 6% less than the profit a year ago (41.93 billion rubles). Adjusted EBITDA during this time remained practically unchanged and amounted to 130.1 billion rubles.
The fall in revenue at TMK was associated with the allocation of part of the assets of the Volga Pipe Plant (VTZ) and the Chelyabinsk Pipe Rolling Plant (ChelPipe) for the production of large-diameter pipes (LDP) in the form of reorganization with the simultaneous joining of pipeline solutions to TMK, as well as the sale of the European division in 2022.
The volume of sales of pipe products in 2023 amounted to 4.19 million tons, of which the volume of sales of seamless pipes amounted to 3.43 million tons, and welded pipes - 762 thousand tons.
The total debt amounted to 316 billion rubles, net debt was at the level of 246 billion rubles as of December 31, 2023. The ratio of net debt to adjusted EBITDA was 1.9x.
As Vedomosti writes with reference to TMK materials, the cost of products sold by the company in 2023 amounted to 387.12 billion rubles. Compared to 2022, it decreased by 17%. The company's gross profit at the end of 2023 decreased by 3.57% to 157.15 billion rubles.
TMK's commercial expenses for 2023 decreased by 18% on an annualized basis and amounted to 31.3 billion rubles. General and administrative expenses decreased by 1% to 27.54 billion rubles.
By the end of 2023, TMK is the largest pipe manufacturer in the Russian Federation, one of the three leaders in the global pipe business.[1]
History
2023
Raising 3.97 billion rubles for SPO
The Pipe Metallurgical Company (TMK) raised 3.97 billion rubles during the secondary placement of ordinary shares (SPO) on the Moscow Exchange. The press service of the Russian pipe manufacturer announced this at the end of September 2023.
As part of the SPO, 18 million ordinary shares of TMK were sold, which corresponds to 1.74% of the company's total securities. The offering price amounted to RUB 220.68 per share, which corresponds to a level above the middle of the originally announced price range.
As noted in TMK, each buyer after six months receives the right to purchase at the price of SPO one additional share for each share purchased under SPO. In the future, the company plans to issue additional shares by private subscription in favor of the main shareholder of MK TMK Steel Holding LLC selling its shares during the SPO at the SPO price. The main shareholder plans to acquire all additional issue of shares, with the exception of shares that will be acquired by minority shareholders as part of the preemptive right. By participating in an additional issue of shares, the main shareholder will transfer the funds raised under the SPO to the company, the TMK press service added.
 | The company expects that the placement of shares will strengthen TMK's position in the public equity market due to the influx of new investors into the shareholder structure, an increase in free float, as well as an increase in liquidity of the company's shares, the press release said. |  |
An increase in free float will be a step towards getting TMK shares into the calculation base of a number of Mosbirzhi indices, TMK expects. By the end of September 2023, the company's free float is 9.4% of the shares, the remaining 90.6% is owned by TMK Steel Holding LLC, which is controlled by management. The papers are included in the second-level quotation list on the Moscow Exchange.[2]
Re-registration of legal entities from Cyprus to Russia
TMK Steel Holding, which owns a controlling stake in TMK, has re-registered from Cyprus to Russky Island in Primorsky Krai. The corresponding entry in the Unified State Register of Legal Entities (USRUL) appeared on June 9, 2023.
According to the Unified State Register of Legal Entities, in June, as part of the redomication, the International Company Limited Liability Company (MK LLC) TMK Steel Holding was registered on Russky Island in the Primorsky Territory.
According to TASS in the press service of TMK, the decision belongs to the competence of the holding company and it will not affect the asset management structure of TMK. All TMK enterprises continue to operate normally. The general director of TMK Steel Holding is Alla Korobkova.
The opportunity to move to Russian offshore companies has existed since 2018. Initially, only foreign companies could register in special administrative regions. Under a number of conditions, they received the status of international holding companies (MHC), which gives the right to receive tax benefits. Against the background of anti-Russian sanctions to support domestic business, the authorities adopted norms that allow obtaining the status of the MHK and Russian companies "registered" in special areas.
According to analysts at Promsvyazbank, the transition to Russian jurisdiction will increase the investment attractiveness of shares. TMK is the main beneficiary of the reorientation of Russian oil and gas to the East and is well protected from sanctions pressure.
Shares of the Pipe Metallurgical Company (TMK) surged after reports that Cyprus-based TMK Steel Holding had re-registered to Russian jurisdiction. On July 19, 2023, at a maximum, they added 6.47%, rising to 174.4 rubles at 16:17 Moscow time. At 16:58 Moscow time, growth slowed down, shares are traded at the Moscow Exchange at 173.28 rubles (+ 5.7[3]
2022: Sale of European assets to Serbian company
On January 23, 2023, it became known about the sale of European assets of the Pipe Metallurgical Company (TMK). They were acquired by the Serbian investment company Hefestos Capital. The latter told Interfax about the deal. Read more here.
2021: Creation of TMK-Sinara CCU
TMK and Sinara Group together created the TMK-Sinara business services center. This became known on April 22, 2021. Read more here.
2020
2016
The total volume of pipe shipments in 2016 amounted to 3.4 million tons.
2010
The total volume of pipe sales in 2010 amounted to about 4 million tons. TMK supplies products to more than 65 countries of the world.
Information Technology at TMK
Main article: Information technology at the Pipe Metallurgical Company (TMK)
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