Market Position in 2012

In 2012, we maintained our global leadership position having sold 4,238 thousand tonnes of pipes, 2,495 thousand tonnes of which were seamless pipes and 1,722 thousand tonnes of which were OCTG pipes.

In 2012, our sales to the oil and gas industry amounted to 75% of the total sales (compared to 74% in 2011). Our five major customers accounted for 26% of the 2012 sales volumes

In 2012, our sales represented approximately 6% of the worldwide market for seamless pipes and 10% of the worldwide market for seamless and welded OCTG. We also remain a national leader in Russia with 25% market share, including 52% of the seamless pipe market and 62% of the seamless OCTG market.

Seamless pipes remain our priority segment, with particular emphasis on the oil and gas industry (line and OCTG pipes) and high value-added premium connections. In 2012, seamless pipes accounted for 73% of our gross profit, with an average margin of the segment totalling 26% against 15% in the welded pipe segment.

In 2012, our sales to the oil and gas industry amounted to 75% of total sales (compared to 74% in 2011). Our five major customers accounted for 26% of 2012 sales volumes, those being Rosneft, Surgutneftegaz, Lukoil, TNK-BP, and Gazprom. Our Top 5 customers remained unchanged when compared to 2011, although Gazprom moved from first to fifth place due to a significant decrease in its consumption of large diameter pipes.

We remain the largest Russian exporter of steel pipes supplying our products to more than 80 countries. In 2012, export from our Russian plants amounted to 19% compared to 14% in the previous year. We also intended to diversify our sales geographically. And in 2012 we increased our sales in the US to 30% from 27% in 2011 while decreasing the share of Russian sales to 54% from 60%.

In 2012, export from our Russian plants amounted to 19% comparing to 14% in the previous year

We strive to increase our presence in the Middle East having acquired a production facility in Oman and established a service joint venture in the United Arab Emirates.

Pipe sales by TMK division, thousand tonnes

Russian DivisionUS DivisionEuropean Division
20122011Change, %20122011Change, %20122011Change, %
Seamless pipes2,0511,8839 %268281(5) %176178(1) %
Welded pipes1,1081,232(10) %6356114 %
incl. large diameter pipes408608(33) %--
Total3,1593,1151 %9038921 %176178(1) %
Russian DivisionUS DivisionEuropean Division
20122011Change, %20122011Change, %20122011Change, %
Seamless pipes2,0511,8839 %268281(5) %176178(1) %
Welded pipes1,1081,232(10) %6356114 %
incl. large diameter pipes408608(33) %--
Total3,1593,1151 %9038921 %176178(1) %

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