ChTPZ: financial results in 2014 under IAS

Sale:

- Total sales of pipes increased by 24% as compared to the same period in 2013 and made up 2 073 thousand tons. The share of ChTPZ in total shipments of Russian pipe producers made up 18%. Driver of the growth was the increase in the supply of LDP to the Russian market and in shipments of OCTG to the CIS countries.

 - The shipments to the Russian market increased by 440 thousand tons (+ 32%) and amounted to 1 824 thousand tons. The volume of the export deliveries was 249 thousand tons, which is by 15% less as compared to 2013 (294 thousand tons), this is due to lower shipments to the CIS countries. The reduced deliveries to the CIS countries are an industry-wide trend because of a lack of large-scale projects for the construction of main pipelines.

- The company supplied 1 038 thousand tons of welded pipes, which is by 38% more than in 2013, and LDP made up 1 million tons of them (+ 40%). The growth was caused by implementation of large-scale projects of Gazprom: Southern Corridor, Power of Siberia, Bovanenkovo-Ukhta, Transneft: Kuyumba – Taishet, and increase of the supply for repair and maintenance needs of the existing pipelines of Gazprom and Transneft.

- ChTPZ sold 1 035 thousand tons of seamless pipes, which is by 12% more than in 2013, the OCTG deliveries made up 267 thousand tons (+ 9%). In this segment, the shipments grew at the expense of all directions of the sales: in Russia, the CIS countries and abroad.