OREANDA-NEWS. INTERPIPE has improved its financial results in 2012 as compared to 2011. The sales of pipe and wheel products grew by 12% and 24% respectively. At the same time revenue grew by 6% and EBITDA increased by USD 51 million to USD 305 million. This is demonstrated by FY 2012 consolidated financial statements approved by the Board of Directors of INTERPIPE LIMITED (INTERPIPE). The consolidated financial statements are audited by Ernst&Young.

FY 2012 Highlights

Total pipe sales increased by 12% to 1,022 thousand tons year-on-year

Total wheel sales increased by 24% to 211 thousand tons year-on-year.

Revenue increased by 6% to USD 1,770 million driven by higher sale volumes.

Adjusted EBITDA increased from USD 253 million in 2011 to USD 305 million for 2012. Adjusted EBITDA margin amounted to 17% for 2012.

Net loss was USD 72 million for 2012 as compared with net profit of USD 41 million in 2011 driven by recognition of impairment loss on property, plant and equipment as a result of regular independent revaluation for the compliance with the INTERPIPE accounting policies. The previous revaluation took place in 2008.

“The increase in main financial indicators in 2012 was largely driven by the growth in export sales and gradual conversion to energy-efficient steel melting technologies. In 2012, the percentage of export in total sales volume was 79% - Alexander Kirichko, INTERPIPE CEO, said. - In January 2012, the state-of-the-art electric steel-melting complex with production capacity of 1.32 million tons of round steel billets per year was launched. Over the first year the mill produced half a million tons of steel. The steel-melting production facility has and will continue to significantly influence the company’s performance indicators”.

On 14 June 2013 Fitch Ratings-London has confirmed the company’s Long-term Issuer Default Rating (IDR) at ‘B-‘. Fitch has also confirmed a ‘B-‘ senior secured rating for the Company’s 2017 Eurobonds (RR4). The Outlook on Long-term IDR is Stable.