Shale gas increases sales

Drill pipes contracts worth PLN50 million

Rurexpol, part of Alchemia Capital group, the only in Poland producer of seamless drilling pipes, has increased exports enough to offset domestic sales. This means that more and more Polish Rurexpol-made drilling pipes are being sold abroad from the beginning of the year.

Individual contracts for the supply of drilling pipes amounted to several million zlotys on average this year. In total, Rurexpol has sold pipes for over PLN 50 million, half of which were came from export sales.

Alchemia Group sends its drilling pipes to the markets of the European Union and Poland. It is also present on the markets of the United States, Canada and Middle East, serving mainly the gas and oil extraction sector. In addition pipes manufactured by Alchemia’s production plant – Rurexpol, are used in geothermal and water wells, and in salt extraction.

Rurexpol carries out on-going supplies for German, Dutch, Austrian, Romanian, Czech and Hungarian companies. This year, it has signed several key agreements for the sale of drilling pipes, i.e. with Dutch
Deep Drill and German Iteco.

Shale gas – a new chance

The key recipient of Rurexpol’s drilling pipes on the Polish market is a company being the leader in the natural gas market. Recently, Alchemia has won a contract for supplying drilling pipes to Polish Oil and Gas Company PGNiG and other entities operating in this relatively young and developing market of shale gas extraction. The number of issued state permits for the search of natural gas in Poland paired with the signals coming from the foreign market environment, that is foreign entities operating in this industry, Alchemia looks with optimism to the coming years in this sector. Especially that the carried out investments and Rurexpol’s existing production facilities secure the customers’ present needs, and, taking into account the technological development in this sector, will continue to do so in the future.

After the first three quarters of 2011, Alchemia Steel group recorded nearly PLN 847.5 million revenues from sales, which represents an almost 73% growth as compared with the respective period of the previous years. Its consolidated net profit after three quarters of this year has more than tripled (y-o-y) reaching PLN 62.9 million.