Borusan first-half performance skyrockets, sees pre-war prices return

Turkish pipemaker Borusan Mannesmann grew shipments and earnings significantly in the first half of 2022, Kallanish notes.

Revenue in the second quarter alone more than trebled on-year to TRY 4.88 billion ($272.2 million), while net profit soared 271% to TRY 276.65m.

Prices fell back below pre-Ukraine war levels by the end of Q2 due to the decline in Chinese iron ore demand and India’s supply of low-priced feedstock to the market, Borusan says. The problem of supplying steel feedstock stemming from the Russia-Ukraine crisis was largely resolved, with supplies coming instead from Asian markets.

In H1, Turkish pipe exports rose 17% on-year to 1.11 million tonnes, with increased supply to the US, Israel and Egypt worthy of particular attention, the firm observes.

Borusan’s prime-quality product sales in H1 rose 8% to 338,000t, with 66% exported.

The share in total prime products revenue of high value-added pipes, especially pressure, special and spiral pipes, was 67%, while high value-added drilling and well pipe sales, especially in the American market, took 32%.

Shipments of spiral welded pipes with high added value increased by 32% versus H1 2021, and the share of these in total premium product revenue was 8%, Borusan says without providing tonnages. Automotive industry pipe shipments rose 12%, with a 21% share in total premium product revenue.

The share of H1 shipments to the infrastructure and project segment was 4%, to construction and general industry 42% and to automotive 54%. The new product and service segment took 9%.

H1 revenue thus almost trebled to TRY 8.55 billion, while net profit surged 150% to TRY 385.3m.

Adam Smith Poland