Russian oil and gas pipe producer TMK has prepared a development strategy for its American assets in which it plans to at least keep the U.S. market share, Deputy CEO for strategy Vladimir Shmatovich said.
“We see a strategic goal to at least keep the market share in the U.S. in the key segments or to raise it, and there are market preconditions for this. This is realistic in our opinion because we are coping with this crisis better than competitors and we have strong support from our Russian and partially European divisions”, Shmatovich said.
He said that the key business for TMK in the U.S. was premium and semi-premium seamless pipes of oil and gas gauge.
TMK plans to reach a breakeven of its U.S. assets in 2017.
“The 2016 report is likely to be with a loss”, he said.
“Because it will be hard to offset negative $54 million earnings before interest, taxes, depreciation and amortization (EBITDA) for the third and fourth quarters. But if we talk about the losses in a given moment, not in reports, we are setting the task for the U.S. division to break even by the end of 2016, and even more so in 2017”.
According to Shmatovich, TMK plans to solve the current issue of large distances between the facilities making semi-finished goods and those manufacturing ready pipes.
“This will be optimized. I mean finishing works on a pipe will be made where it is produced, if possible”. The official said he did not rule out asset sales in the U.S. (PRIME/Ukrainian metal)