OREANDA-NEWS. September 28, 2007. OAO “TMK” (TMK), one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, today announces its reviewed IFRS financial results for the six months ended June 30, 2007.
1H 2007 Highlights
Financials:
 • Revenue grew by 28% to USD 2,030.0 million
 • Gross profit came in at USD 657.9 million, an increase of 30% compared to first half 2006 results.
 • EBITDA up 27% to USD 499.5 million as a result of a strong pricing environment and increasing operating efficiency

Sales Volumes:
 • Total pipe sales volumes were nearly 1.54 million tonnes, including 1.02 million tonnes of seamless pipes
 • Seamless pipe sales volumes rose 5.1%, OCTG pipes, the highest margin products, had a slight increase of 2.8% and amounted to 497 thousand tonnes.
 • Welded pipe sales volume grew by 5.9%, driven by an increase in sales of large-diameter welded pipes.

Acquisitions / Joint Ventures:
 • On January 25, 2007, OAO “Seversky Pipe Plant” and Corinth Pipeworks S.A., the largest pipe manufacturer in Greece, established a company ZAO “TMK-CPW” for the production of longitudinally welded pipes to be used in the oil and gas, machine building and construction industries. OAO “Seversky Pipe Plant” holds 51% and Corinth Pipeworks S.A. holds 49% of the company.

 
1 Moscow, September 27th, 2007
 • On March 5, 2007, TMK purchased a 76.33% interest in OAO “Russian Research Institute of the Tube and Pipe Industries” (“RosNITI”) for USD 3.1 million. “RosNITI” is the only pipe research institute in Russia. In June and July 2007, TMK purchased an additional 21.03% in “RosNITI” for USD 864.5 thousand increasing its stake to 97.36%
 • In the first six months of 2007, TMK purchased 0.15% of OAO “Sinarsky Pipe Plant” shares and 0.13% of OAO “Seversky Pipe Plant” shares for a total amount of USD 2.0 million

Recent Developments:
 • On August 29, 2007, TMK signed an agreement for the purchase of 100% interest in OOO “Predpriyatiye “Truboplast” for USD 24.0 million via entities under common control with TMK who themselves acquired this interest in July 2007.

More detailed information provided on the following web-site http://www.tmk-group.com/news.php?act=show_news_item&id=588