Centravis achieved satisfactory results in Q1/2015. With the political situation in Ukraine remaining more or less stable, the economy was hit by another devaluation of the local currency. The Russian Ruble on the other hand recovered from the very low exchange rates experienced in late 2014.
While Russian markets have improved month by month, Western markets have remained rather sluggish – both in distribution and project businesses. Nickel also traded at fairly low levels.
During the first quarter of 2015, Centravis made strides to continue a program that aims to expand its instrumentation tube production capacity. The company also remains committed to its World–class Production Program (WPP) and has completed two large-scale projects, mainly introducing new standards of work wear & public catering.
The second quarter is expected to remain weak, as price levels continue to suffer from overcapacities in the market. In a long-term perspective though assumes steady market growth. Transportation (especially automotive) and oil & gas processing industries, will be the key growth drivers. We expect higher demand in Asia, the Middle East, and North America. With this in mind, Centravis has intensified customer certification in these regions.
Centravis will continue developing more sophisticated and advanced products in those areas where the company detects opportunities for growth. Centravis continues to invest in the segments of precision tubes and ultra-super critical boiler tubes, while furnace tubes remain one of our flagship products.
Finally, according to independent research data, Centravis increased its global market share to 4.2%. As a global producer, we have kept the No. 6 position, came in at a close second for hydraulic and instrumentation systems precision tubes, and are currently the No. 3 manufacturer of furnace tubes for refineries.
Nikopol, 23 June 2015
Peter Kratz, Chairman of the Board
Yuriy Atanasov, Chief Executive Officer
