TMK targets EBITDA margin to grow 10% annually
HONG KONG. Nov 16 (Interfax) - Russia's TMK , one of the world's top-three oil and gas industry pipe producers, expects the EBITDA margin to grow 10% a year given current economic trends.
"In 2011 and subsequent years, we plan to increase EBITDA 10% a year under the conservative scenario, given current trends continue. Growth might exceed 10% with our entry into the Canadian market and other offshore markets," Olivier Harvey, a chief specialist for strategic investment analysis and investor relations, said at a conference hosted by Renaissance Capital. TMK is comfortable with the consensus forecast for EBITDA in 2010, $960 million, he said.
The company's margin in the U.S. has already reached 20%. It was 15% in Russia through the first half of 2010. "We will move toward 20%, but I don't think we will get there this year. That will most likely happen next year," he said.
It was reported earlier that TMK expects $5.5 billion in revenue in 2010 with an EBITDA margin in the range 16%-18%.
TMK has production facilities in Russia, the U.S., Romania and Kazakhstan.