OREANDA-NEWS. On 05 March 2009 Centravis holding, manufacturer of seamless stainless tubes, announced the results of its performance in 2008.

According to the data of administrative accounting, the holding’s net profit is -USD 4,7 M (USD 13,5 M for 2007), EBITDA  USD 40,1 M  (USD 39,4 M for 2007), turnover  USD 257,3 M (USD 252,7 M for 2007).

The main factor, which had an impact on the holding’s financial results in 2008, was the exchange rate losses on foreign currency credits. At the same time the fall of UAH exchange rate had a positive effect on the operational profit. The effect of national currency devaluation will keep positively influencing company’s results in the mid-term perspective — the company exports 90% of its output, meanwhile the greatest part of its expenses is fixed in UAH.

In 2008 volume of the sold output made up 16 939 tons. Herewith the holding sold most of all general tubes and pipes — 6 623 tons, boiler tubes — 1 918 tons, heat exchanging tubing — 4 439 tons, hollow bars — 2 266 tons, instrumentation tubing — 1 076 tons., mother — 241 tons, furnace tubes — 329 tons, and Ni-alloy tubes — 20 tons.

According to the holding’s estimation, the company managed to increase its share on the world market in the segment of hollow bars — 8,8% in comparison with 5% in 2007, and in the segment of heat exchanging tubing — 8,5% in comparison with 7% in 2007. At the same time the share of the company in the segment of furnace tubes decreased from 5% in 2007 to 3% in 2008. Most of the output was realized on the markets of Western Europe — more than 7 000 tons and in Russia — more than 5 000 tons.

The total volume of output CENTRAVIS PRODUCTION UKRAINE LLC (Centravis holding’s manufacturing platform, Nikopol city, Dnepropetrovsky region) made up 16 581 tons.

Yuriy Atanasov, CEO of Centravis holding: “In 2008 we actively worked in three directions. First, in cooperation with the Austrian company Czipin Consulting, we started the project to minimize expenses and to raise efficiency. Second, we optimized the management structure. Particularly, in 2008 we moved the holding’s headquarters from Dnepropetrovsk to Nikopol, which allowed us to make decisions more quickly. Third, we implemented the investment program, started in 2007. We set new equipment in operation, which is the basis for organization of the new, more effective technological chain and for decrease of manufacturing cost. Such the comprehensive approach allows us to successfully work in new crisis conditions already today”.

In 2008 the volume of investments into production modernization made up USD 26 M. Centravis 2007-2008 total investment program will operate with the sum more than USD 120 M. It’s one of the biggest investment projects in Ukraine. The program includes installation of a new streamline, new cold-rolling mills in the tube-drawing shop, and a new press line with SMS Meer extrusive press, force of 4 400 tons, in the tube-pressing shop of CENTRAVIS PRODUCTION UKRAINE LLC. Production modernization will allow the holding to widen its assortment and to expand into new markets.

On the 1st of January, 2009, the staff of the international holding included 2 600 people. For the year reported more than 2 M UAH were spent on labor and health protection of CENTRAVIS PRODUCTION UKRAINE LLC. plant employees. The holding abides by all norms of labor legislation and secures social protection of employees and regular wage payments. Last year Centravis invested 1,5 M UAH into the social sphere of Nikopol city in the following directions: help for socially unprotected people, support of medicine and education.

In 2009 Centravis plans to keep output volume on the level of 2008 — 16 500 tons. The holding’s predicated turnover is USD 186 M (in the money terms decrease is caused by the fall of raw materials prices), the predicated profit before taxes — USD 2,5 M.

Audited results of the holding for 2008 are expected to be available in June 2009. The auditor of the consolidated accounts of Centravis Group of Companies  according to IFRS is PricewaterhouseCoopers.