3 October 2022

Despite the war one of the biggest European pipes and railway wheels producer keeps demonstrating profitable activity.

After suspension of production activity in March, starting from April Interpipe started to look for opportunities to export pipes and wheels through the new export routes – mainly via Danube. Of course, logistics expenses of the company grew by 2-3 times, but it allowed Interpipe to restart and increase production. In May-June pipes output by Interpipe reached 60-70% of pre-war level, railway wheels output – 40-50%.

Total Interpipe revenues in H1 2022 made $461M – almost at the level of previous year. We additionally note that in Q2 revenues of the company made $222M, which was just by $17M lower than in previous quarter.

As expected profitability of activity decreased – EBITDA decreased from $111M in H1 2021 to $50M. Despite this decrease such an EBITDA is not bad taking into account all the circumstances and the war.

From the balance sheet structure point of view we note decrease of Inventory by $50M vs. 31/12/21 to $163M and Receivables by about $50M to $143M. On the other hand cash balance by 30/06/22 increased up to $157M, which provides for margin of safety in activity by the company for the coming months (total external debt of the group as of 30/06/22 stood at $425M).