Grupo Tubos Reunidos reported group earnings results for the first quarter ended March 31, 2016. The sharp fall in oil prices continues to impact global demand for seamless steel piping, particularly in North America, and the results of Tubos Reunidos. The net turnover amounted to €69.7 million representing a decrease of 32% compared with the same period last fiscal year. EBITDA amounted to a negative figure of €1.2 million in the period. Investment payments, both those contracted this fiscal year and in previous ones amounting to €11.5 million have affected the increase in net financial debt, which amounts to €179.4 million as of March 31, 2016, €12.3 million more than in December 2015. The financial result deteriorated as a result of the depreciation of the USD during this quarter, which generated losses due to exchange differences amounting to €0.4 million for the group, compared with the reported profit of €0.9 million in the same period of 2015.
Smaller outstanding payments for the second half of the year coupled with the continued streamlining of working capital ­which has decreased by €3 million in the quarter­ should result in the group's debt not increasing in December 2016 compared to 2015 levels.