DGAP-News: TMK Announces 2011 Second Quarter and First Half Production Results and Trading Update

(firmenpresse) - EquityStory.RS, LLC-News: OAO TMK / Key word(s): Quarter Results
TMK Announces 2011 Second Quarter and First Half Production Results
and Trading Update

12.07.2011 / 15:45

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July 12, 2011
Press Release

TMK Announces 2011 Second Quarter and First Half Production Results and
Trading Update

The following contains forward looking statements concerning future events.
These forward looking statements are based on current information and
assumptions of TMK management concerning known and unknown risks and
uncertainties.

OAO TMK ('TMK' or 'the Company'), one of the world's leading oil and gas
steel pipe producers, today announces its production results for the period
ending June 30, 2011.

For the first six months of 2010, TMK shipped a total of 2,166 thousand
tonnes of steel pipes to customers representing a 16.2% increase over the
same period of 2010.

Volume of shipped pipe products

(thousand tonnes)

Product         2Q 2011   1Q 2011   Q-o-Q, %  1H 2011   1H 2010   Y-o-Y, %
Seamless Pipes      627       593      5.7%     1,220     1,058     15.3%
Welded Pipes        462       484     -4.5%       946       805     17.5%
Total Pipes       1,089     1,077      1.1%     2,166     1,864     16.2%
including OCTG      403       380      6.1%       783       729      7.4%

In the second quarter of 2011, almost all TMK's major markets maintained
its positive trend of the previous period. OCTG pipes shipment volumes
increased by 6.1% quarter-on-quarter reflecting the positive dynamics of
oil and gas fields development in Russia and the United States. In the
first half of 2011 shipment volumes of OCTG pipes increased by 7.4%
compared to the same period of 2010.

For the first six months of 2011, large-diameter pipes shipment volumes


amounted to around 377 thousand tonnes that is 33.7% more compared to the
same period of 2011. At the same time in the second quarter of 2011,
large-diameter pipes shipment volumes declined quarter-on-quarter following
the completion of several projects of Gazprom and Transneft as well as the
maintenance of the mill at Volzhsky Pipe Plant.

Industrial seamless pipes segment also demonstrated an upward trend in the
reporting period due to the demand growth largely from machine building
industry as well as from nuclear power generation, chemical and
petrochemical sectors. Thus, in the first half of 2011, shipment volumes of
industrial seamless pipes increased by 22.9% and 10.6% over the first six
months of 2010 and the first quarter of 2011 respectively.

In the first half of 2011, pipe products shipment volumes of TMK IPSCO
amounted to around 479 thousand tonnes exceeding the level of the same
period of 2010 by 16.3%. In the second quarter of 2011, shipment volumes
increased by 6.3% quarter-on-quarter. Line pipes segment grew with the
highest rate due to the need of transportation of the increased
hydrocarbons volumes to processing and storage sites. An increasingly
active development of shale deposits in the US, where the share of TMK
IPSCO's shipments of premium connections used for shale gas production
exceeds 30%, allows the Company to have enough positive view on further
utilization of its US division.

The US drilling activity remained high throughout 2Q 2011 with active
drilling rigs amounting to 1,886 as of 1 July 2011 (source: Baker Hughes)
that represents a 25.2% year-on-year growth and a 6.2% increase compared to
the rig count as of 1 April 2011. The increase was mainly driven by the oil
drilling activity with an oil rig share growing to more than 53% supported
by high crude oil prices.

Demand for premium products is growing due to the gradual shift of Russian
and US oil and gas companies to more complex drilling. In the first half of
2011, TMK shipped around 226 thousand of premium connections developed by
the Company's Russian (TMK Family) and US (ULTRA) divisions that represents
a 3.2% growth compared to the first half of 2010. In May-June 2011, TMK
successfully certified two of its premium connections (TMK PF and ULTRA-QX)
in accordance with the ISO 13679 CAL IV standard that enabled the Company
to become one of the three world leaders in terms of premium product mix
supply for oil and gas sector.

The Company confirms its previously announced guidance that in the second
quarter of 2011, Adjusted EBITDA and Adjusted EBITDA margin will remain
more or less flat compared to the first quarter of 2011.

TMK (www.tmk-group.com)

TMK is a leading global manufacturer and supplier of steel pipes for the
oil and gas industry, operating 24 production sites in the United States,
Russia, Romania and Kazakhstan. Among global leaders, TMK has the largest
steel pipe production capacity. The largest share of TMK's shipments
belongs to high margin oil country tubular goods (OCTG). In 2010, TMK's
pipe sales totaled approximately four million tonnes, shipped to customers
in more than 65 countries.

TMK's ordinary shares are listed on Russia's MICEX and RTS stock exchanges.
Its GDRs are traded on the London Stock Exchange, and its ADRs - on the
OTCQX International Premier trading platform in the U.S.

Volzhsky Pipe Plant
Sinarsky Pipe Plant
Seversky Tube Works
Taganrog Metallurgical Works
TMK-Kaztrubprom
TMK IPSCO
TMK-INOX
TMK-Europe
TMK-Premium Service
TMK Oilfield Services

For further information regarding TMK, please, visit www.tmk-group.com or
contact:

TMK PR Department
Ilya Zhitomirsky
Tel: +7 (495) 775-7600
Email: PR@tmk-group.com


End of Corporate News

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Datum: 12.07.2011 - 15:45 Uhr
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News-ID 439812
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