Annual Report 2013

Market Position

In 2013, we confirmed our leadership on the global pipe market: for the fifth time, the company was the largest global steel pipe producer, having sold 4,313 thous. tonnes, up 2.2% year-on-year.

TMK produces the following pipe types:

In 2013, we confirmed our leadership on the global pipe market: for the fifth time, the company was the largest global steel pipe producer, having sold 4,313 thous. tonnes, up 2.2% year-on-year
  • seamless oil country tubular goods (OCTG) used for drilling, operation and maintenance of oil and gas wells;
  • seamless line pipe used for the construction of oil and gas pipelines;
  • seamless industrial pipe used in the chemical, petrochemical, food and nuclear industries, as well as for the production of steam boilers, bearings and various machine parts and components;
  • welded oil country tubular goods (OCTG) used for drilling, operation and maintenance of oil and gas wells;
  • welded line pipe used for the construction of oil and gas trunk pipelines and low pressure steam lines;
  • welded large diameter pipe (LDP) used for the construction of oil and gas trunk pipelines, oil field pipelines, general purpose pipelines, and pipelines for heat supply networks and nuclear power stations;
  • welded industrial pipe used in engineering, construction, housing and utilities sector and in a wide range of other applications.

Our main focus is the production of goods for the oil and gas industry. TMK’s sales to the oil and gas industry account for 76% of our total sales.

2013 product portfolio

2013 sales by industry

2013 global drilling geography
(by rig count)

As of 2013 year-end, our sales represented 10.5% of the global OCTG market and 9% of the line pipe market (both seamless and welded)

Our production capacities are located in regions that account for 86% of total global drilling: in Russia, the United States, Canada and the Middle East. As of 2013 year-end, our sales represented 10.5% of the global OCTG market and 9% of the line pipe market (both seamless and welded).

Our top five customers continued to account for 30% of TMK’s total sales since 2012, and in 2013 included four Russian companies (Rosneft, Gazprom, Surgutneftegaz and Lukoil) and Bourland & Leverich, one of the leading American OCTG vendors.

2012 sales by customer

2013 sales by customer

2013 sales geography (by revenue)

We supply our products to over 80 countries

We supply our products to over 80 countries. In 2013, the Russian market represented 57% of our total revenue, the American market – 29%, the European market - 7%, and 3% for Central Asia, the Caspian region, Asia and the Far East each. Geographic diversification ensures our strong position, offsetting the negative impact of falling markets in one region by rising markets in another.

Pipe sales by division, thous. tonnes

Russian divisionAmerican divisionEuropean division
20132012Change, %20132012Change, %20132012Change, %
Seamless pipe
OCTG1,0791,104-2%27924315%10-
Line pipe485573-15%231374%2325-8%
Industrial pipe363374-3%171243%1521510%
Welded pipe
OCTG80-45737522%
Line pipe33830910%108115-6%
Industrial pipe370391-5%143145-1%
Large diameter pipe4424088%00-
Total3,0853,159-2%1,02790314%175176-0.3%