Russia's Pipe Metallurgical Company (TMK), which manufactures pipes for the oil and gas industry, showed signs of growth in its third-quarter report released on Monday, growth the company expects to continue growing in the fourth quarter.
Compared to the second quarter, both seamless and welded pipe construction increased company-wide, totaling 1.1 million tons as opposed to 1 million tons, while overall production decreased compared to the same time frame in 2013.
The Russian division of the company mirrors the growth between the second and third quarters, and the decline in production and shipment of pipe compared with 2013.
In the American division, production and shipment increased from 2013 figures and between quarters. This is attributed to increased drilling efforts in the U.S. to find oil and gas, and new sources of hydrocarbons.
Demand remains low in the European market despite slight growth in the industry after a long period of stagnation within the market. Production did increase by 2 percent from 2013, but decreased by nearly 20.5 percent due to decreased productivity in the summer.
TMK expects growth in the fourth quarter with increased horizontal drilling and oil field development in Russia along with new season purchases forecasted.