2024-04-26 05:40:28
(Alliance News) – Tenaris NV on Thursday reported results for the first quarter of the year, which ended with a profit of $750 million, up from $1.13 billion in the first quarter last year.
Revenue rose to $3.44 billion from $4.14 billion in the same period. Pipe products and services net sales fell 2% sequentially and 21% year over year, Tenaris said. Net sales of other products and services increased by 43% quarter on quarter and 86% year on year. Quarterly revenue includes $160 million from the paint business acquired in the previous quarter.
Ebitda fell to USD 987 million from USD 1.48 million in 1Q2023.
EBIT was USD812 million from USD1.35 billion in the first three months of the previous year.
During the quarter, free cash flow was $715 million, and following share repurchase expenses of $311 million, positive net cash increased to $3.9 billion as of March 31, 2024, the company said in a statement.
Compared to the fourth quarter of 2023, sales, operating income and Ebitda remained largely unchanged, “despite the decline in OCTG (Oil Country Tubular Goods) prices in North and South America,” the statement said.
“This reflects solid performance across all of our businesses,” Tenaris continued, “including increased Rig Direct shipments in North America and the completion of a major painting project in Mexico at our recently acquired TenarisShawcor business.
Net income for the first quarter of 2024, which excludes special items, instead fell to $750 million from $1.15 billion in the previous quarter.
As expected, the company expects sales and margins in the second quarter to be lower than in the first quarter due to the continued decline in OCTG prices in North and South America.
“In the third quarter, we will have shutdowns in many of our steel plants, including in Siderca, where we will install a new furnace that will improve our environmental performance, which will lead to a further decline in sales and margins in this quarter.” said the explanation.
The Tenaris share closed on Thursday with a loss of 0.6 percent at EUR 17.35 per share.
By Chiara Bruschi, Alliance News Reporter
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