Spanish special seamless tube supplier Tubos Reunidos (TR)’s performance deteriorated in 2019, as activity disappointed in main markets, Kallanish notes.
“The uncertainty and volatility of the market remains at the beginning of 2020,” TR says. “The evolution of the slowdown in the economy, the distortions in global value chains as a result of the imposition of tariffs, and the coronavirus outbreak reaffirm the need for Tubos Reunidos to reformulate its business plan.”
US OCTG demand continues its downward trend, with the main operators prioritising a return to investment and financial control versus increasing production. On the other hand, the upstream sector in the remaining regions is much more positive, with the possibility of TR closing larger agreements in the short term, the Spanish company comments.
The recovery in the downstream segment is sluggish due to a longer delay in the awarding of projects. Tubos Reunidos, however, maintains its positive prospects for the sector as well as for the midstream in 2020, the company adds.
TR shipments were at 171,707 tonnes in 2019, down -19% on-year. Of this total, shipments in the fourth quarter represented 42,869t, -10% down on-year. Group revenue amounted to €284.4 million ($320.7m), a decrease by -17% compared to €342.5m in 2018. Of this total, sales of tubes were €270.1m, or -14% less y-o-y.
Sales in North America and the Middle East/Africa decreased by -38% and -23% respectively last year to €94.4m and €17.3m. In Europe (without Spain), on the other hand, sales were €77.1m in the period, or 13% higher compared to 2018. Sales in the Spanish market fell by -3% to €28.5m.
TR’s Ebitda tumbled by -161.4% to negative €11.4m in 2019, while net loss widened to €41.4m from €34.4m in 2018.