CENTRAVIS increased production and strengthened positions in the world seamless pipe market: the Company’s results of 2021
The Company’s production volume amounted to 19.43 thous. tons in 2021 against 19.05 thous. tons in 2020. The investment volume also increased ─ from EUR 1.85 million to EUR 4 million and the average salary increased (by 18%).
As said by Yuriy Atanasov, CEO of CENTRAVIS, several trends prevailed in 2021.
Firstly, there was sharp recovery of the world markets and we saw increased demand from our customers of different regions.
Secondly, the production costs were greatly affected by an extremely high inflation rate and price explosion for raw materials as well as energy resources.
Thirdly, it was necessary to improve our team effectiveness in view of all current challenges.
“2021 was a unique year. We expected slightly better results in terms of our economy. On the other hand, we managed to make a lot of structural changes. And what’s the main ─ CENTRAVIS has strengthened its position in the world market as a reliable supplier having a wide range of products, and it is ready to run in various industries. Today we look to 2022 and feel optimistic about the future,” said Yuriy Atanasov.
Alexander Novak, the Member of the Board of Directors of CENTRAVIS noted that in 2021, the Company managed to increase its supplies of seamless pipes and tubes to the US market (by 30%), the Western Europe market (by 20%), and the Asia and the Middle East market (by 12%).
“In response to a rush demand for our products and simultaneous sharp increase in electrical power and logistics costs, our task was to earn as much margin as possible, and then keep it. For this purpose we tried to raise prices, “running away” from rising production costs, as well as passing a part of these costs on to our customers. All these issues took additional efforts of our sale team members, this situation united them significantly,” said Alexander Novak.
As said by Alexandre Joseph, CFO of the Company, in 2021, CENTRAVIS restructured its corporate debt and it was refinanced on favourable terms in the amount of EUR 35 million by Ukreximbank.
In 2021, the Company’s EBITDA amounted to EUR 12 million, the investment volume increased from EUR 1.85 million to EUR 4 million.
Yuriy Atanasov also shared the Company’s plans for 2022. This year, CENTRAVIS intends to increase its production volume to 21 thous. tons and increase its production investments to EUR 10 million. The Company has already had its product portfolio for the first half of the year and it keeps working on the margin maintain in a high inflation environment.