OREANDA-NEWS. July 11, 2012. In 2011 INTERPIPE has improved its main financial results in comparison with results of 2010. The sales of pipe and wheel products grew by 10% and 6% respectively. At the same time the revenue grew by 32.7% and EBITDA rose by 86 million USD , reaching 255.5 million USD . This is demonstrated by  FY 2011 consolidated financial statements approved by the Board of Directors of INTERPIPE LIMITED (INTERPIPE). Consolidated financial statements of the company are audited by Ernst&Young.

FY 2011 Highlights

·         Total pipe sales increased by 10% to 911.7 thousand tons compared to 2010.

·         Total wheels sales increased by 6% to 170.3 thousand tons compared to 2010.

·         Revenue increased by 32.7% to USD  1,670 million driven by higher sales volumes.

·         Gross profit increased by 52% to USD 310 million.

·         Adjusted EBITDA increased from USD 169.5 million for 2010 to USD 255.5 for 2011. Adjusted EBITDA margin amounted to 15.3% for 2011.

·         Net profit was USD 41 million for 2011 as compared to USD (24) million for 2010.

In November 2011 the Company has finalized the restructuring of its USD 887 million credit portfolio. As a part of the restructuring, lenders provided the Company with the additional funding in the amount of USD 136 million for implementation of the Interpipe’s investment program.

“Financial results of 2011 verify the efficiency of our strategy and stable financial status of the Company, – Alexander Kirichko, INTERPIPE CEO, says. – We continued the construction of the new Dneprosteel electric steel melting complex, which will provide the company with its own steel billets, and also created a foundation for the growth of our sales at the top-priority markets – the NAFTA region and the Middle East. These factors will become the basis for our further development.”

As it has been already mentioned before, INTERPIPE will soon commission its new 1.3 million tons Electric Arc Furnace Mill (EAF), the largest electric steel melting complex in Eastern Europe. This will allow the company to be self-sufficient in steel billets and will improve its vertical integration.

On 18 June 2012 Fitch Ratings-London has upgraded the company’s Long-term Issuer Default Rating (IDR) to 'B-'. The company has been removed from Restricted Default (RD). Fitch has also assigned a 'B-' senior secured rating to the Company's 2017 Eurobonds (RR4). The Outlook on the Long-term IDR is Stable.