ChelPipe Group rises profit and reduces debt

According to its press release, the gross profit went up by 2% to 21,945 mln rubles, with EBIDTA growing by 2,503 mln rubles. The EBITDA margin rose by 5.7 percentage points to 24.7% as a result of the improved shipments structure, in particular, increased OCTG share and the Company’s improved performance through cutting down its permanent expenditure.

Thus, over January-June 2016 ChelPipe Group generated a profit amounting to 5,810 mln rubles (1H 2015 profit was 4,211 mln rubles) and a positive operating cash flow of 7,611 mln rubles (that of January-June 2015 was 10,286 mln rubles). The net profit margin grew up to 8.5%.

In the first half-year 2016, ChelPipe Group reduced its joint debt on loans and borrowings by 6,024 mln rubles to 88,080 mln rubles (as of December 31, 2015, it was 94,104 mln rubles).

The ChelPipe Group’s net debt went down to 79,820 mln rubles (as of December 31, 2015, it was 86,069 mln rubles). As of June 30, 2016, the net debt-to-adjusted EBITDA ratio went down to 2,5х versus 2,9х as of December 31, 2015.