The Ukrainian industrial company “Interpipe” has successfully overcome the negative consequences of the RF embargo on the import of Ukrainian railroad products. This was announced by the general director of the company, Fadi Hraibe, whose words are quoted in a financial press release.

Interpipe

“The moderate growth in sales of railroad products in the 3rd quarter clearly indicates that Interpipe successfully overcame the negative consequences of the embargo imposed in the Russian Federation on the import of Ukrainian railroad products, increasing sales volumes in the CIS and Europe,” said the top -manager.

Moreover, according to him, in Q3, sales of Interpipe’s railway products to the domestic market increased significantly compared to Q2 (+ 66% QoQ).

“However, the total sales for 9 months of 2021 are 30% lower compared to the same period last year due to the stagnation of the car-building industry in Ukraine,” said F.Hraibe.

As stated in the press release, EBITDA for 9M2021 decreased by 30% YoY to USD 151 million due to constantly rising prices for scrap metal and natural gas. “Sales prices for pipe and railroad products did not keep pace with the rapid rise in prices for raw materials. The EBITDA of the pipe division and the railway product division for 9 months demonstrated the same dynamics as in the case of revenue. The pipe division through-going EBITDA rose 54% YoY, while the railway division through-going EBITDA fell 60% YoY”, reports Railway Supply citing the document

“In the 4th quarter, the negative impact on our costs only increased due to the rapid rise in prices for natural gas in Europe, since we are obliged to make an advance payment for it a month in advance at constantly growing prices on the market,” said F. Hreibe.

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