Environment and Energy
August 11, 2015
Northwest Pipe Tubular Segment Sales Drop 61% in Q2
Written by Sandy Williams
Pipe and tube manufacturers have been struggling to stay afloat as oil prices continue to depress demand from the energy industry. Northwest Pipe Company, headquartered in Vancouver, is among those companies posting a loss for second quarter.
The Tubular Products segment of Northwest Pipe saw sales from operations decrease 61.3 percent year over year to $15.4 million in the second quarter, driven by lower volume at 17,700 tons (down 57 percent), a 10 percent drop in selling prices per ton, and high import levels. Operations were curtailed in April due to market conditions resulting in a net loss of $3.8 million for Q2. The tubular segment services a wide range of markets including oil and gas, structural industrial, fire protection, low pressure and agriculture. Northwest Pipe announced at the end of July its intention to sell its remaining Energy Tubular Products division. The facility, located in Atchison, Kansas, produces line, structural and standard pipe. Last year the company sold its OCTG assets to Centric Pipe LLC.
