Open Joint Stock Interpipe Nizhnedneprovsky Tube Rolling Plant : 2021-12-20 - Interpipe releases its report on operations for November 2021

PRESS RELEASE

December 20, 2021

Interpipe releases its report on operations for November 2021

Interpipe, a global producer of steel pipes and railway products, has released (via Interpipe Holdings Plc) its monthly report on operations for November 2021.

Highlights

In November 2021, the Company's trading activity in the pipe segment recovered from the previous month's slump and exhibited the best performance in 2021, while the railway product segment sales effectively stayed at the October level.

Overall pipe product saleshiked 61.1% m-o-m and were 22.8% y-o-y higher for the first eleven months 2021.

As anticipated, OCTG salesboosted by 159.2% m-o-m after the drop last month. Almost the entire growth came from the US, where the robust demand was supported by thin inventories in the local market amid the rising crude oil production and further plans to boost oil supply in the coming months. Total sales volumes for the first eleven months 2021 outperformed results of the same period 2020 more than in twice (by 110.6% y-o-y).

Linepipe salesrecovered surging by 55.7% m-o-m amid larger deliveries to Europe, the US and Middle East. Stirring up oil & gas projects supported the market demand. Sales for the first eleven months 2021 grew by 12.5% y-o-y.

Mechanical pipe salesgained 6.4% m-o-m amid improved interest from Turkey and the domestic market. Sales volumes since the beginning of 2021 rose by 36.1% y-o-y.

Welded pipe salesdeclined by 14.9% m-o-m on the back of subdued demand in Europe and Ukraine due to destocking process in November. Sales for the first eleven months 2021 were lower by 30.5% y-o-y.

Sales volumes of railway productsslid by 3.1% m-o-m mainly due to lower deliveries to the CIS region and Europe in November, however yet remained at 14,000 tons. For the first eleven months of 2021 sales volumes of railway products contracted by 10.6% y-o-y.

Report On Operations

								October			November			11 months			11 months				Change
	#				Product			2021			20213			2020			2021
									Thousand tons					% m-o-m			For 11 months
																	2020, % y-o-y
											Production
1.				Steel	63,1		87,7	696,9	877,6	39,1%		25,9%
2.				Pipes, o/w:	56,2		52,1	425,6	551,6	-7,3%		29,6%
2.1.				Seamless, o/w:	50,9		45,8	350,1	498,7	-10,2%		42,5%
2.1.1.			OCTG	19,6		13,0	67,1	176,1	-33,7%		162,6%
2.1.2.			Linepipe	29,1		30,4	265,9	299,9	4,5%		12,8%
2.1.3.			Mechanical	2,2		2,3	17,1	22,8	6,2%		32,9%
2.2.				Welded	5,3		6,3	75,5	52,9	20,0%		-29,9%
3.				Railway products	13,9		14,7	174,0	156,1	5,9%		-10,3%
3.1.				Wheels1	11,1		11,8	152,3	129,1	6,0%		-15,3%
3.2.				Wheelsets1	2,2		2,2	16,2	21,7	0,8%		34,4%
3.3.				Axles1	0,4		0,2	3,7	3,5	-39,7%		-6,3%
3.4.				Tyres	0,2		0,5	1,9	1,9	122,2%		0,7%
											Sales
1.				Steel2	1,1		1,4	30,3	49,7	28,1%		64,2%
2.				Pipes, o/w:	39,7		64,0	425,8	522,9	61,1%		22,8%
2.1.				Seamless, o/w:	32,6		58,0	350,4	470,4	77,7%		34,3%
2.1.1.			OCTG	8,0		20,7	74,0	155,7	159,2%		110,6%
2.1.2.			Linepipe	22,5		35,0	260,0	292,4	55,7%		12,5%
2.1.3.			Mechanical	2,2		2,3	16,4	22,3	6,4%		36,1%
2.2.				Welded	7,1		6,1	75,5	52,4	-14,9%		-30,5%
3.				Railway products	14,5		14,0	175,4	156,9	-3,1%		-10,6%
3.1.				Wheels1	11,4		11,5	151,2	128,7	0,8%		-14,9%
3.2.				Wheelsets1	2,5		1,8	18,3	22,7	-26,7%		23,7%
3.3.				Axles1	0,3		0,2	3,5	3,4	-43,4%		-4,1%
3.4.				Tyres	0,2		0,5	2,4	2,1	122,2%		-12,0%
					TOTAL	55,3		79,5	631,5	729,5	43,6%		15,5%

1. Wheels and axles are inter alia utilized as components (semi-products) for wheelset production

2. For steel - only external sales

3. The figures for the month are operational data and might be subject to further updates following ultimate accounting verifications of primary documents

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Regional Sales Data. Pipe products

November 2021. Pipes sales by region, th.tons	11m 2021. Pipes sales by region, th.tons

Regional Sales Data. Railway products

November 2020. Railway products sales by region, th.tons

11m 2021. Railway products sales by region, th.tons

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About the company:

Interpipe is global producer of steel pipes and railway products, based in Ukraine. The company's products are marketed in more than 80 countries all around the world via the network of sales offices located in key markets of Ukraine, Europe, North America and the Middle East.

IR contact details:

Andrii Okolnych

Head of Investor Relations

Phone: [phone]

E-mail:[e-mail]

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