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TMK, the world’s largest pipemaker by output, swung back into profit in the last quarter of 2016, as the Russian company called the bottom of the US market.

The manufacturer of steel pipes for the oil and gas industry reported quarterly net profit of $84m, against a $371m loss a year previously.

TMK said it believes its American division has “passed the bottom of the crisis”.

“There are multiple signs that give the Company renewed confidence, including strengthening prices and longer booking horizons,” it said, adding that it expected increased drilling activity in the US would mean stronger financial results in 2017. Revenue in 2016 fell 19 per cent to $3.34bn.

“We are pleased to report more positive momentum in the final quarter at the end of a challenging year,” said chief executive Alexander Shiryaev. “The improved performance of our US business with the recovery in the US oil and gas market allows us to look with confidence towards the new financial year.”

TMK and its major global rivals Tenaris and Vallourec have suffered a slump in sales and earnings over the past few years as a slump in oil and gas prices saw energy companies dramatically cut back on new investments.

The Russian company, which operates 27 factories across six countries, including 10 factories in the US, said it did not believe planned oil production cuts by Russian oil and gas companies will affect demand for its products.

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