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TMK Forecasts Improving Conditions in 2017
01/16/2017 - Oil country tubular goods maker TMK said it expects the U.S. oil and gas market will continue to recover this year on the back of global rebalancing, spurring increased pipe consumption.
In announcing its 2016 operating results, the Russian company said the latter half of 2016 brought about steady improvement in drilling, and as a result, shipments rose almost 70 percent over the last six months of 2015.
“Most of this growth happened in (the third quarter) on the back of active inventory build-up by dealers,” the company said. “In (the fourth quarter), we saw a decline in shipments of tubular products, which fell 14.4 percent quarter-on-quarter to 116,000 metric tons. This fourth-quarter decline, however, is a one-off phenomenon as we continue seeing a very strong growth while entering 2017.”
Despite the tailwinds in the second half, the company still saw shipments from its U.S. division decline during the year, falling approximately 30 percent to 403,000 metric tons of tubular goods.
“The drop was due to further declines in drilling activity during (the first half of) 2016,” the company said.
“Most of this growth happened in (the third quarter) on the back of active inventory build-up by dealers,” the company said. “In (the fourth quarter), we saw a decline in shipments of tubular products, which fell 14.4 percent quarter-on-quarter to 116,000 metric tons. This fourth-quarter decline, however, is a one-off phenomenon as we continue seeing a very strong growth while entering 2017.”
Despite the tailwinds in the second half, the company still saw shipments from its U.S. division decline during the year, falling approximately 30 percent to 403,000 metric tons of tubular goods.
“The drop was due to further declines in drilling activity during (the first half of) 2016,” the company said.
