TUBACEX, the second global manufacturer of seamless stainless steel tubes, obtained consolidated net profits of 3.53 million Euros between January and March 2013, thus trebling the amount recorded in the same period of 2012, according to the information sent by the company to the Spanish Securities Exchange Commission (CNMV).
The gross operating profit (EBITDA) of the quarter has risen to 14.37 million Euros, 38.6% over the one registered in the first three months of 2012. It is worth highlighting the increase in profitability levels, with a quarterly EBITDA on sales of 9.9%, contrasting sharply with the figure (7.7%) registered in the first quarter of 2012 and for the entire year 2012 (8.6%).
From January to March the Group’s consolidated sales stood at 145.51 million Euros, which implies an increase of 7.6% as regards the 135.17 million Euros registered during the first quarter of 2012, with a significant increase in the sale of high value-added products for oil and gas exploration and extraction and for power generation. This increase takes place in a scenario in which the prices of raw materials are dropping significantly, especially nickel, with average prices falling by 12% in the first quarter of 2013, when compared to the same period in 2012.
The company’s efforts to reduce working capital, has allowed for the reduction of net debt by 9.8 million Euros, despite the increase in activity registered in the first quarter.
This year, TUBACEX expects to continue the path of progressive increase in earnings, based on the good tube demand prospects, especially in high value-added products, the increase in OCTG tube production capacity s and the operational improvement that the company has been undertaking in the different Group plants.