Interpipe's EBITDA down 63% to USD 15 million, revenue up 19% to USD 239 million in Q1

In the first quarter of 2022, the Interpipe pipe and wheel holding reduced Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) by 63% year over year to USD 15 million, and increased its revenue by 19% to USD 239 million.

The company has said this in a statement, Ukrainian News Agency reports.

The increase in revenue from product sales was driven primarily by a 47% increase in revenue from sales of products from the company’s pipe division to USD 181 million.

"In addition to the loss of sales volumes and additional logistics and transportation costs due to the invasion, the financial results were additionally negatively affected by the rise in the cost of the main raw materials: scrap metal, electricity, and natural gas. For example, in Q1 2022, the price of natural gas in Ukraine increased on average more than 6 times compared to last year,” the report said

In the first quarter compared to the first quarter of 2021, sales decreased by 10% to 140,000 tons.

In the first quarter of 2022 compared to the first quarter of 2021, steel production decreased by 16% to 163,000 tons, pipes - by 12% to 97,000 tons, and railway products - by 43% to 23,000 tons.

“At the end of March, Interpipe began to cautiously resume shipments and began a phased launch of production in April. Pre-war production volumes, since the war has broken the usual supply chains, since the Black Sea seaports of Ukraine are blocked, the country has a large shortage of fuel, the transport infrastructure is constantly being destroyed by missile strikes,” said Andrii Korotkov, the Acting General Director of Interpipe.

According to him, since the beginning of the full-scale invasion, Interpipe has consistently paid wages to all employees, including the idled ones.

In addition, the company, with the support of the Victor and Olena Pinchuk Foundations, joined the large-scale assistance to the Armed Forces of Ukraine, doctors and civilians, having sent more than USD 35 million for these purposes during the 126 days of the war.

As Ukrainian News Agency earlier reported, in 2021, compared to 2020, Interpipe reduced its EBITDA by 16.3%, or by USD 44.6 million, to USD 228.4 million.

In 2021, compared to 2020, the company reduced profit by 2.1 times, or by USD 103.8 million, to USD 91.3 million, and increased revenue by 31%, or by USD 267.8 million, to USD 1.133 billion.

In 2021, compared to 2020, the holding increased sales of pipe and railway products by 17% to 776,000 tons.

Interpipe is the largest producer of pipes and wheels in Ukraine, controlling the Nyzhniodniprovskyi Pipe Rolling Plant, the Novomoskovsk Pipe Plant, and the Niko Tube Nikopol Seamless Pipe Plant (all in the Dnipropetrovsk region).

In October 2012, Interpipe put into operation the steelmaking complex Interpipe Steel.