Stalprofil foresees further pipeline business after sales soar

Stalprofil reported a 3.6% on-year rise in steel product sales in the first half of 2018 to 107,424 tonnes, while steel structures sales surged 53.7% to 1,514t. Sales of anti-corrosion coated pipe soared 138% to over 1 million m2. Pipeline service sales ballooned 263.1% to PLN 14.63m.

Consolidated revenue increased 9% on-year in H1 to PLN 667.22 million ($183.2m). Sales in the domestic market grew 8.5% to PLN 608.5m and exports surged 19.5% to PLN 58.77m. The EU took a 89.7% share in exports, unchanged on-year, while European countries outside the EU increased their share to 10.1% from 5.3% at the expense of non-European countries. Net profit surged 73% to PLN 14.92m.

ArcelorMittal Poland accounted for 35.1% of Stalprofil’s product procurement in H1, and Gaz-System took a 38.3% share of the firm’s sales.

The firm’s oil & gas pipeline-related business benefited from the acceleration of Polish pipeline project activity that had previously stalled. “Following a long-term stagnation in the pipeline construction market observed until 2016, Stalprofil’s unit in Zabrze is gradually rebuilding its order-book, and the realised contracts are stabilising the unit’s financial situation,” distributor Stalprofil says in a report seen by Kallanish.

Polish steel consumption should grow faster than the EU average in the second half of 2018 thanks to EU-funded infrastructure investments, Stalprofil says. Investments will continue into gas pipelines, and road and rail infrastructure, this helping to support steel prices, it adds.

The firm says it has observed in recent months a significant increase in demand for medium-diameter coated pipe used to modernise and build new low-pressure gas pipelines. The firm also foresees positive developments in export sales.