Sales volume

The following table presents pipe sales volumes by reporting segment for the periods presented:

  Year ended December 31    
  2011 2010 Change Change
  in thousand tonnes in thousand tonnes in %
Russia 3,115 2,989 126 4%
America 892 804 88 11%
Europe 178 169 9 5%
TOTAL PIPE 4,185 3,962 223 6%

Russia. In 2011, sales volumes of seamless pipe demonstrated an 11% increase year-on-year, on the back of increased demand for seamless pipe, whereas welded pipe sales decreased 5%. Sales of all types of seamless pipe increased with seamless line and seamless OCTG demonstrating the most significant growth, reflecting the increase in demand from oil and gas companies. Seamless OCTG sales growth was achieved despite slowing export sales caused by the political instability in North Africa and the Middle East. Lower sales of welded pipe were mostly attributed to a reduction in deliveries of large-diameter welded pipe for the construction of major pipelines as a result of the completion of some major projects in the first half of the year as well as the postponement of new pipeline projects. The growing production capacities by other pipe producers and higher imports also negatively impacted sales of large-diameter welded pipe which were consequently 13% lower than last year.

America. Sales in the American division increased 11% in 2011 as compared to 2010 reflecting growth in pipe consumption in the U.S. market. Greater volumes were mainly driven by increases in both seamless and welded line pipe sales jumping 85% year-on-year. Sales growth was driven by strong drilling activity reflecting growth in the shales and high oil prices.

Europe. The division produces seamless pipe and steel billets. Sales of seamless industrial pipe, a core product for the division, increased 13% reflecting high market demand, mainly from the engineering industry.

In 2011, our seamless pipe sales volumes increased, bringing total sales up 6%. Sales of welded pipe remained flat. The table below presents sales volumes by group of products for the periods presented:

  Year ended December 31    
  2011 2010 Change Change
  in thousand tonnes in thousand tonnes %
Seamless pipe 2,342 2,120 222 10%
Welded pipe 1,843 1,842 1 0%
TOTAL PIPE 4,185 3,962 223 6%

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