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Investor Presentaiton

Management's Discussion and Analysis Nine months ended September 30, 2011 oilfield services group. The capacity of the new thread line is 24,000 tonnes of the designated product mix per year. Production of casing with gastight connections will allow the company to expand its product line and ability to offer new products for oil and gas wells and related infrastructure development and services. In November 2011, an extraordinary general meeting of shareholders approved an interim dividend in respect of the first six months of 2011 in the amount of 871,955 thousand Russian roubles (U.S.$28 million at the exchange rate at the date of approval) or 0.93 Russian roubles per share (0.03 U.S. dollars per share). Business structure The results of operations are presented in three reporting segments: • Russian division: manufacturing facilities located in the Russian Federation and Kazakhstan, oilfield service companies and trading companies in Russia, Kazakhstan, Switzerland, the United Arab Emirates and South Africa. The Russian division is engaged in the production and supply of seamless and welded pipes, premium products and rendering of related services to oil and gas companies; • • American division: manufacturing facilities and trading companies located in North America. The American division is engaged in the production and supply of seamless and welded pipes and premium products, including ULTRA connections; European division: manufacturing facilities located in Romania, and trading companies located in Italy and Germany. The European division is engaged in the production and supply of seamless pipes and steel billets. 4
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