OREANDA-NEWS. March 9, 2010. Manufacturer of seamless stainless steel tubes & pipes Centravis Holding summed up the results of 2009.

According to the company’s management reporting annual turnover made up 137 million dollars that is USD  113 million less than in 2008. Annual profit of holding without tax and interest payment (EBITDA) made up 7 786 thousand dollars.

Reduction of holding annual turnover was resulted by the following factors: decrease of world demand for seamless stainless pipes, as well as commissioning and setting up of new equipment at existing industrial site of the holding, which complicated the stable operation of production facilities during the year. Looking back, in 2007, holding Centravis started large-scale investment program with total investment of 130 million dollars. This is one of the largest investment projects in Ukraine. As part of this program in 2009 were installed two cold pilger mills KPW-25 cold shop and new extrusion press line 4400 ton force manufactured by SMS Meer in hot shop of CJSC “CENTRAVIS PRODUCTION UKRAINE”. Modernization of production enabled the holding to extend products assortment and enter the new markets.

“CJSC CENTRAVIS PRODUCTION UKRAINE “(Nikopol, Dnepropetrovsk region, industrial site of Centravis holding) finished 2009 with the following financial results: Gross profit 117 074 ths. That is 111 323 thousand UAH less than in 2008, operating profit of the company was 13 664 thousand grn. (for the same period in 2008 178 460 ths.).

Net loss of the company was 97 000 thousand grn., acc. to results of 2008 the comparable figure was 15 696 thousand grn. This significant increase in net loss of CJSC “CENTRAVIS PRODUCTION UKRAINE” is also connected with specifics of fixed assets revaluation method in financial records. Allowances in the profit and loss account amounted to 47 million UAH., at the same time directly in the balance to capital increase extra-evaluation of 250 million UAH is reflected.

In 2009, sales volume amounted to 11 410 tons. Geography of products distribution remained without significant changes: CIS — 49%, Europe — 44% of America — 6%, Asia — 0.4%, ROW — 0,6%. Acc. to segments sales were distributed as follows: general pipes — 45%, heat exchanger tubing — 24%, boiler tubes — 15%, hollow bars — 9%, instrumentation tubing — 5%, furnace tubes -1% and nickel alloys — 1 %. Compared with 2008 in the sales structure Centravis acc. to segments share of general pipes is increased (by 4,4%), boiler tubes (by 4,7%) and instrumentation tubes (by 1,7%).

Total number of employees of Centravis holding on 01.01.2010 — 2065 people, to 374 less than on 01.01.2009. Staff was optimized due to start up of the new equipment and optimization of organizational structure of the company as a result of the cost reduction project realization.

“The past 2009 was difficult for us. World financial crisis, decrease of chemical and petrochemical industries, economic crisis in the country, which nearly paralyzed VAT refund for export companies — all this affected our business. Despite this, through the right strategy of the company we were able to keep production volumes, to ensure stable work for more than 2000 employees of the holding, to fulfill all obligations to the business and financial partners. We were able to implement the number of strategic projects: to put new equipment into operation, to run the main modules of ERP system SAP/R3, to start project for production costs reduction. Moreover, we restructured credit portfolio for 48 million Euro and attracted the strategic investor “ — commented results of 2009 CEO of Centravis Holding Yuriy Atanasov.

According to the forecasts in 2010 the company intends to increase production to 14 500 tons. Turnover of Centravis holding will be brought up to 167 million dollars. Profit before tax and interest payment (EBITDA) is expected by 11.9 million dollars.