Stalprofil raises sales, anticipates new Gaz-System investments

Stalprofil increased sales 17% on-year in the third quarter to 65,000 tonnes. This was supported by modernised logistics facilities that increased handling capacity at its Dabrowa Gornicza and Krakow sites, as well as strong operations at fabricator subsidiary Kolb,Kallanish learns from the Polish distributor.

The firm’s infrastructure segment, which supplies pipe and services to the gas industry, recorded the largest revenue increase, driven mainly by sales to Gaz-System as part of a consortium with subsidiary Izostal. The consortium has taken part in supplying 620km out of the framework agreement signed in 2015 for 766km of pipeline. This show’s Stalprofil’s competitiveness versus the other ten consortiums from Europe and Asia that are qualified to supply Gaz System, the firm says.

Stalprofil’s steel segment revenue rose 21% on-year in Q3 to PLN 185.5 million ($49.1m) but gross profit fell -4% to PLN 15.8m due to increased cost of sales. Infrastructure segment revenue surged 175% to PLN 238.3m and gross profit soared 186% to PLN 24.2m. Consolidated revenue thus rose 76% to PLN 423.8m and net profit rose 14% to PLN 10.6m.

In the coming months Gaz-System is expected to launch its third round of investment that will see the construction of around 2,000km of pipeline between 2019 and 2028.

Stalprofil’s steel sales in the nine months through September rose 5% on-year to 172,251t, while steel structures sales grew 23% to 2,307t. Nine-month revenue increased 28% to PLN 1.09 billion and net profit grew 43% to PLN 25.5m.