Tenaris S.A. (NYSE and Mexico: TS and MTA Italy: TEN) (“Tenaris”)
today announced its results for the quarter and nine months ended
September 30, 2020 with comparison to its results for the quarter
and nine months ended September 30, 2019.
Summary of 2020
Third Quarter Results
(Comparison with second quarter of 2020 and third quarter of
2019)
|
3Q 2020 |
2Q 2020 |
3Q 2019 |
Net sales ($ million) |
1,013 |
|
1,241 |
|
(18 |
%) |
1,764 |
|
(43 |
%) |
Operating (loss) income ($ million) |
(70 |
) |
(91 |
) |
22 |
% |
187 |
|
(138 |
%) |
Net (loss) income ($ million) |
(36 |
) |
(50 |
) |
29 |
% |
101 |
|
(136 |
%) |
Shareholders’ net (loss) income ($ million) |
(33 |
) |
(48 |
) |
31 |
% |
107 |
|
(131 |
%) |
(Losses) earnings per ADS ($) |
(0.06 |
) |
(0.08 |
) |
31 |
% |
0.18 |
|
(131 |
%) |
(Losses) earnings per share ($) |
(0.03 |
) |
(0.04 |
) |
31 |
% |
0.09 |
|
(131 |
%) |
EBITDA* ($ million) |
107 |
|
59 |
|
83 |
% |
322 |
|
(67 |
%) |
EBITDA margin (% of net sales) |
10.6 |
% |
4.7 |
% |
|
18.2 |
% |
|
*EBITDA is defined as operating (loss) income plus depreciation,
amortization and impairment charges / (reversals). EBITDA includes
severance charges of $28 million in Q3 2020 and $54 million in Q2
2020. If these charges were not included EBITDA would have been
$135 million (13.4%) in Q3 2020 and $113 million (9,1%) in Q2
2020.
Our third quarter sales fell 18% sequentially
and 43% year on year, as drilling activity in the USA and the rest
of the world declined further during the quarter. Our sales were
also affected by a 9% decline in our Tubes average selling prices
as we did not repeat the exceptional mix of products sold in the
second quarter. Despite this further reduction in sales, EBITDA,
excluding severance charges, rose 20% sequentially, reflecting an
excellent industrial performance and the progress we are making
with our structural cost reduction plans.
Free cash flow remained strong at $376 million,
including a further reduction of $334 million in our working
capital, which has now been reduced by $1.1 billion in the year to
date. Our financial position at September 30, 2020 amounted to a
net cash position of $1.1 billion ($1.8 billion of liquid assets
less $0.7 billion of debt).
Interim Dividend Payment
Our board of directors approved the payment of
an interim dividend of $0.07 per share ($0.14 per ADS), or
approximately $83 million. The payment date will be November 25,
2020 , with an ex-dividend date on November 23, 2020 and record
date on November 24, 2020.
Market Background and Outlook
The number of COVID-19 affected persons around
the world continues to rise as a second wave of cases has taken
hold in Europe and a third wave in the United States, while in
Latin America the number of cases remains high. This is slowing
down the recovery in the economy and pushing back the rebalancing
of oil inventories and a full return in consumption to pre-pandemic
levels. In this environment, investments in exploration and
production of oil and gas will recover only slowly.
Drilling activity in the third quarter fell to
levels not seen in many years, both in North America and the rest
of the world. It is, however, starting to pick up in North America
and is returning slowly following the COVID-19 induced shutdowns in
Latin America. In the rest of the world, recovery may take
longer.
In this still uncertain environment, we
anticipate a gradual recovery in sales and margins, excluding
severance charges, through the fourth quarter of 2020 and into
2021, and to maintain a positive free cash flow.
Analysis of
2020 Third
Quarter Results
Tubes Sales volume (thousand metric tons) |
3Q 2020 |
2Q 2020 |
3Q 2019 |
Seamless |
383 |
446 |
(14 |
%) |
645 |
(41 |
%) |
Welded |
99 |
108 |
(9 |
%) |
150 |
(34 |
%) |
Total |
482 |
554 |
(13 |
%) |
796 |
(39 |
%) |
Tubes |
3Q 2020 |
2Q 2020 |
3Q 2019 |
(Net sales - $ million) |
|
|
|
|
|
North America |
353 |
|
485 |
|
(27 |
%) |
772 |
|
(54 |
%) |
South America |
131 |
|
145 |
|
(10 |
%) |
308 |
|
(57 |
%) |
Europe |
126 |
|
169 |
|
(25 |
%) |
136 |
|
(7 |
%) |
Middle East & Africa |
262 |
|
308 |
|
(15 |
%) |
369 |
|
(29 |
%) |
Asia Pacific |
75 |
|
83 |
|
(9 |
%) |
77 |
|
(3 |
%) |
Total net sales ($ million) |
946 |
|
1,190 |
|
(20 |
%) |
1,661 |
|
(43 |
%) |
Operating (loss) income ($ million) |
(66 |
) |
(75 |
) |
12 |
% |
163 |
|
(140 |
%) |
Operating margin (% of sales) |
(6.9 |
%) |
(6.3 |
%) |
|
9.8 |
% |
|
Net sales of tubular products and services
decreased 20% sequentially and 43% year on year. The sequential
decrease reflects a 13% decrease in volumes and a 9% decrease in
average selling prices due to a poorer mix of products sold than in
the previous quarter. In North America our sales decreased
reflecting the decline in drilling activity, particularly in the
United States onshore market. In South America, sales declined
mainly due to lower sales in Brazil. In Europe sales declined
reflecting lower sales of OCTG, mechanical and line pipe products.
In the Middle East and Africa sales decreased as lower sales to the
Caspian and of line pipe to offshore projects in Africa were
partially compensated by higher sales in Saudi Arabia. In Asia
Pacific our sales declined mainly due to lower sales in
Indonesia.
Operating result from tubular products and
services, amounted to a loss of $66 million in the third quarter of
2020, compared to a loss of $75 million in the previous quarter and
a gain of $163 million in the third quarter of 2019. During the
quarter leaving indemnities in the Tubes segment amounted to $27
million and were $24 million lower than the previous quarter. On
the other hand, we recorded a $28 million higher depreciation and
amortization charge mainly related to the accelerated depreciation
of the Prudential facility after the decision to close it and
consolidate our Canadian pipe manufacturing operations at our
facility in Sault Ste. Marie, Ontario. Excluding these one-off
effects, the improvement in our operating result reflects a better
industrial performance and the progress we are making with our
structural cost reduction plans.
Others |
3Q 2020 |
2Q 2020 |
3Q 2019 |
Net sales ($ million) |
66 |
|
51 |
|
29 |
% |
102 |
|
(35 |
%) |
Operating (loss) income ($ million) |
(5 |
) |
(15 |
) |
70 |
% |
24 |
|
(119 |
%) |
Operating margin (% of sales) |
(6.9 |
%) |
(29.5 |
%) |
|
23.6 |
% |
|
Net sales of other products and services
increased 29% sequentially but declined 35% year on year. The
increase in sales was mainly related to sucker rods and excess
energy.
Selling, general and
administrative expenses, or SG&A,
amounted to $234 million, or 23.1% of net sales in the third
quarter of 2020, compared to $286 million, 23.0% in the previous
quarter and $333 million, 18.9% in the third quarter of 2019.
Sequentially the reduction in SG&A expenses was mainly due to
lower selling expenses in line with the evolution of shipments,
lower general expenses and severance charges.
Financial results amounted to a
loss of $15 million in the third quarter of 2020, compared to a
loss of $14 million in the previous quarter and a gain of $8
million in the third quarter of 2019. The loss of the quarter
corresponds mainly to a $13 million FX charge, mainly due to the
Euro appreciation on Euro denominated intercompany liabilities,
largely compensated by changes to our currency translation
adjustment reserve in equity.
Equity in earnings
of non-consolidated
companies generated a gain of $21 million in the
third quarter of 2020, compared to $4 million in the previous
quarter and $13 million in the third quarter of 2019. These results
are mainly derived from our equity investment in Ternium (NYSE:TX)
and Techgen.
Income tax was a gain of $28
million in the third quarter of 2020, compared to $49 million gain
in the previous quarter and $108 million charge in the third
quarter of 2019. The lower gain in the quarter corresponds mainly
to lower operating losses.
Cash Flow and Liquidity of
2020 Third
Quarter
Net cash provided by operating activities during
the third quarter of 2020 was $417 million, compared to $448
million in the previous quarter and $374 million in the third
quarter of last year. During the third quarter of 2020 the
operating cash flow includes $334 million from the reduction in
working capital.
Free cash flow during the quarter amounted to
$376 million (37% of revenues) after capital expenditures of $42
million and our net cash position increased to $1.1 billion at
September 30, 2020, from $670 million at June 30, 2020.
Analysis of 2020
First Nine Months
Results
|
9M 2020 |
9M 2019 |
Increase/(Decrease) |
Net sales ($ million) |
4,016 |
|
5,554 |
|
(28 |
%) |
Operating (loss) income ($ million) |
(670 |
) |
681 |
|
(199 |
%) |
Net (loss) income ($ million) |
(752 |
) |
583 |
|
(229 |
%) |
Shareholders’ net (loss) income ($ million) |
(741 |
) |
591 |
|
(225 |
%) |
(Losses) earnings per ADS ($) |
(1.26 |
) |
1.00 |
|
(225 |
%) |
(Losses) earnings per share ($) |
(0.63 |
) |
0.50 |
|
(225 |
%) |
EBITDA* ($ million) |
446 |
|
1,082 |
|
(59 |
%) |
EBITDA margin (% of net sales) |
11.1 |
% |
19.5 |
% |
|
*EBITDA is defined as operating (loss) income plus depreciation,
amortization and impairment charges / (reversals). EBITDA includes
severance charges of $105 million in 9M 2020. If these charges were
not included EBITDA would have been $551 million (13.7%) in 9M
2020.
Tubes Sales volume (thousand metric tons) |
9M 2020 |
9M 2019 |
Increase/(Decrease) |
Seamless |
1,495 |
1,959 |
(24 |
%) |
Welded |
377 |
507 |
(26 |
%) |
Total |
1,871 |
2,467 |
(24 |
%) |
Tubes |
9M 2020 |
9M 2019 |
Increase/(Decrease) |
(Net sales - $ million) |
|
|
|
North America |
1,717 |
|
2,528 |
|
(32 |
%) |
South America |
501 |
|
975 |
|
(49 |
%) |
Europe |
429 |
|
488 |
|
(12 |
%) |
Middle East & Africa |
900 |
|
985 |
|
(9 |
%) |
Asia Pacific |
247 |
|
263 |
|
(6 |
%) |
Total net sales ($ million) |
3,794 |
|
5,239 |
|
(28 |
%) |
Operating (loss) income ($ million) |
(619 |
) |
618 |
|
(200 |
%) |
Operating margin (% of sales) |
(16.3 |
%) |
11.8 |
% |
|
Net sales of tubular products and services
decreased 28% to $3,794 million in the first nine months of 2020,
compared to $5,239 million in the first nine months of 2019 due to
a reduction in volumes of 24% and a 5% decrease in average selling
prices. Sales decrease in all regions and particularly steep in
North and South America where drilling activity in average declined
48% compared to the first nine months of 2019. In the rest of the
world the rig count declined 15% year on year.
Operating income from tubular products and
services amounted to a loss of $619 million in the first nine
months of 2020 compared to a gain of $618 million in the first nine
months of 2019. In addition to the decline in sales following the
drop in drilling activity, our results were negatively impacted by
lower absorption of fixed costs and the inefficiencies related to
the low level of capacity utilization between March and September
2020. Additionally, Tubes operating income in the first nine months
of 2020 was affected by $102 million of severance charges and by an
impairment charge of $582 million, reflecting the difficult
business conditions generated by COVID-19 pandemic, with the
collapse in oil demand and prices and the impact on drilling
activity and on the demand for steel pipe products.
Others |
9M 2020 |
9M 2019 |
Increase/(Decrease) |
Net sales ($ million) |
222 |
|
315 |
|
(29 |
%) |
Operating (loss) income ($ million) |
(51 |
) |
63 |
|
(181 |
%) |
Operating margin (% of sales) |
(23.1 |
%) |
20.1 |
% |
|
Net sales of other products and services decreased 29% to $222
million in the first nine months of 2020, compared to $315 million
in the first nine months of 2019, mainly due to lower sales of
sucker rods.
SG&A amounted to $877
million in the first nine months of 2020, representing 21.8% of
sales, and $1,017 million in the first nine months of 2019,
representing 18.3% of sales. During the first nine months of 2020
SG&A includes $45 million of leaving indemnities.
Financial results amounted to a
loss of $51 million in the first nine months of 2020 compared to a
gain of $26 million in the same period of 2019. The loss in the
year to date 2020 corresponds to a net finance cost reflecting a
lower net cash position and lower yields on the position and $38
million FX loss net of derivative results, mainly due to the
results of the Brazilian Real depreciation and the Euro
appreciation, which to a large extent are offset by changes to our
currency translation reserve.
Equity in earnings of
non-consolidated companies
generated a gain of $27 million in the first nine months of 2020,
compared to a gain of $69 million in the first nine months of 2019.
These results are mainly derived from our equity investment in
Ternium (NYSE:TX) and Techgen.
Income tax amounted to a charge
of $58 million in the first nine months of 2020, compared to $193
million in the first nine months of 2019. The lower charge in the
year to date 2020 is explained by deferred tax gains arising from
operating losses in the last two quarters.
Cash Flow and Liquidity of
2020 First Nine
Months
Net cash provided by operations during the first
nine months of 2020 was $1,381 million (including $1,097 million
working capital reduction), compared to $1,264 million ( including
$503 million working capital reduction) in the same period of
2019.
Capital expenditures amounted to $155 million in
the first nine months of 2020, 42% lower than the $270 million
invested in the same period of 2019.
Free cash flow amounted to $1,226 million (31%
of revenues) in the first nine months of 2020, compared to $994
million (18%) in the same period of 2019.
Our financial position at September 30, 2020
amounted to a net cash position of $1.1 billion ($1.8 billion of
liquid assets less $0.7 billion of debt), after having paid $1.0
billion for the acquisition of IPSCO in January 2020.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on November 5, 2020, at 10:00 a.m.
(Eastern Time). Following a brief summary, the conference call will
be opened to questions. To access the conference call dial in +1
866 789 1656 within North America or +1 630 489 1502
Internationally. The access number is “2889855”. Please dial in 10
minutes before the scheduled start time. The conference call will
be also available by webcast at
ir.tenaris.com/events-and-presentations.
A replay of the conference call will be
available on our webpage http://ir.tenaris.com/ or by phone
from 1:00 pm ET on November 5 through 1:00 pm ET on November 13,
2020. To access the replay by phone, please dial +1 855 859 2056 or
+1 404 537 3406 and enter passcode “2889855” when prompted.
Some of the statements contained in this press
release are “forward-looking statements”. Forward-looking
statements are based on management’s current views and assumptions
and involve known and unknown risks that could cause actual
results, performance or events to differ materially from those
expressed or implied by those statements. These risks include but
are not limited to risks arising from uncertainties as to future
oil and gas prices and their impact on investment programs by oil
and gas companies.
Press releases and financial statements can be
downloaded from Tenaris’s website at http://ir.tenaris.com/.
Consolidated Condensed Interim Income
Statement
(all amounts in thousands of U.S. dollars) |
Three-month period ended September 30, |
Nine-month period ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Continuing operations |
Unaudited |
Unaudited |
Net sales |
1,012,750 |
|
1,763,783 |
|
4,016,106 |
|
5,553,507 |
|
Cost of sales |
(855,873 |
) |
(1,248,691 |
) |
(3,191,860 |
) |
(3,863,309 |
) |
Gross profit |
156,877 |
|
515,092 |
|
824,246 |
|
1,690,198 |
|
Selling, general and administrative expenses |
(234,081 |
) |
(333,111 |
) |
(877,090 |
) |
(1,017,085 |
) |
Impairment charge |
- |
|
- |
|
(622,402 |
) |
- |
|
Other operating income (expense), net |
6,888 |
|
5,139 |
|
4,790 |
|
7,511 |
|
Operating (loss) income |
(70,316 |
) |
187,120 |
|
(670,456 |
) |
680,624 |
|
Finance Income |
4,904 |
|
13,015 |
|
10,573 |
|
36,212 |
|
Finance Cost |
(6,567 |
) |
(13,454 |
) |
(22,427 |
) |
(31,723 |
) |
Other financial results |
(13,377 |
) |
8,340 |
|
(39,013 |
) |
21,670 |
|
(Loss) income before equity in earnings of non-consolidated
companies and income tax |
(85,356 |
) |
195,021 |
|
(721,323 |
) |
706,783 |
|
Equity in earnings of non-consolidated companies |
21,144 |
|
13,235 |
|
27,439 |
|
68,659 |
|
(Loss) income before income tax |
(64,212 |
) |
208,256 |
|
(693,884 |
) |
775,442 |
|
Income tax |
28,328 |
|
(107,741 |
) |
(58,039 |
) |
(192,639 |
) |
(Loss) income for the period |
(35,884 |
) |
100,515 |
|
(751,923 |
) |
582,803 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
Owners of the parent |
(32,946 |
) |
106,548 |
|
(740,975 |
) |
590,913 |
|
Non-controlling interests |
(2,938 |
) |
(6,033 |
) |
(10,948 |
) |
(8,110 |
) |
|
(35,884 |
) |
100,515 |
|
(751,923 |
) |
582,803 |
|
Consolidated Condensed Interim
Statement of Financial Position
(all amounts in thousands of
U.S. dollars) |
At September 30, 2020 |
|
At December 31, 2019 |
|
Unaudited |
|
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment, net |
6,273,586 |
|
|
6,090,017 |
|
Intangible assets, net |
1,444,648 |
|
|
1,561,559 |
|
Right-of-use assets, net |
261,284 |
|
|
233,126 |
|
Investments in non-consolidated companies |
872,234 |
|
|
879,965 |
|
Other investments |
178,115 |
|
|
24,934 |
|
Deferred tax assets |
310,949 |
|
|
225,680 |
|
Receivables, net |
150,597 |
9,491,413 |
|
157,103 |
9,172,384 |
Current assets |
|
|
|
|
|
Inventories, net |
1,621,644 |
|
|
2,265,880 |
|
Receivables and prepayments, net |
84,008 |
|
|
104,575 |
|
Current tax assets |
122,917 |
|
|
167,388 |
|
Trade receivables, net |
910,006 |
|
|
1,348,160 |
|
Derivative financial instruments |
6,617 |
|
|
19,929 |
|
Other investments |
620,510 |
|
|
210,376 |
|
Cash and cash equivalents |
1,005,152 |
4,370,854 |
|
1,554,299 |
5,670,607 |
Total assets |
|
13,862,267 |
|
|
14,842,991 |
EQUITY |
|
|
|
|
|
Capital and reserves attributable to owners of the parent |
|
11,182,057 |
|
|
11,988,958 |
Non-controlling interests |
|
185,228 |
|
|
197,414 |
Total equity |
|
11,367,285 |
|
|
12,186,372 |
LIABILITIES |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
304,260 |
|
|
40,880 |
|
Lease liabilities |
219,996 |
|
|
192,318 |
|
Deferred tax liabilities |
424,365 |
|
|
336,982 |
|
Other liabilities |
239,911 |
|
|
251,383 |
|
Provisions |
75,810 |
1,264,342 |
|
54,599 |
876,162 |
Current liabilities |
|
|
|
|
|
Borrowings |
401,374 |
|
|
781,272 |
|
Lease liabilities |
47,556 |
|
|
37,849 |
|
Derivative financial instruments |
14,542 |
|
|
1,814 |
|
Current tax liabilities |
91,481 |
|
|
127,625 |
|
Other liabilities |
229,980 |
|
|
176,264 |
|
Provisions |
12,879 |
|
|
17,017 |
|
Customer advances |
68,833 |
|
|
82,729 |
|
Trade payables |
363,995 |
1,230,640 |
|
555,887 |
1,780,457 |
Total liabilities |
|
2,494,982 |
|
|
2,656,619 |
Total equity and liabilities |
|
13,862,267 |
|
|
14,842,991 |
Consolidated Condensed Interim Statement
of Cash Flow
|
|
Three-month period ended September 30, |
Nine-month period ended September 30, |
(all amounts in thousands of U.S. dollars) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Cash flows from operating activities |
|
Unaudited |
Unaudited |
|
|
|
|
|
|
(Loss) income for the period |
|
(35,884 |
) |
100,515 |
|
(751,923 |
) |
582,803 |
|
Adjustments for: |
|
|
|
|
|
Depreciation and amortization |
|
177,602 |
|
134,624 |
|
493,782 |
|
401,179 |
|
Impairment charge |
|
- |
|
- |
|
622,402 |
|
- |
|
Income tax accruals less payments |
|
(55,288 |
) |
9,015 |
|
(57,583 |
) |
(145,404 |
) |
Equity in earnings of non-consolidated companies |
|
(21,144 |
) |
(13,235 |
) |
(27,439 |
) |
(68,659 |
) |
Interest accruals less payments, net |
|
171 |
|
(3,411 |
) |
1,542 |
|
(3,706 |
) |
Changes in provisions |
|
1,798 |
|
(3,182 |
) |
(9,983 |
) |
(2,208 |
) |
Changes in working capital |
|
334,169 |
|
157,313 |
|
1,097,209 |
|
503,358 |
|
Currency translation adjustment and others |
|
15,848 |
|
(7,889 |
) |
12,922 |
|
(3,696 |
) |
Net cash provided by operating activities |
|
417,272 |
|
373,750 |
|
1,380,929 |
|
1,263,667 |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Capital expenditures |
|
(41,571 |
) |
(86,643 |
) |
(155,156 |
) |
(269,707 |
) |
Changes in advance to suppliers of property, plant and
equipment |
|
709 |
|
1,149 |
|
826 |
|
3,185 |
|
Acquisition of subsidiaries, net of cash acquired |
|
38,481 |
|
- |
|
(1,025,367 |
) |
(132,845 |
) |
Additions to associated companies |
|
- |
|
(9,800 |
) |
- |
|
(9,800 |
) |
Repayment of loan by non-consolidated companies |
|
- |
|
- |
|
- |
|
40,470 |
|
Proceeds from disposal of property, plant and equipment and
intangible assets |
|
10,519 |
|
437 |
|
11,684 |
|
1,173 |
|
Dividends received from non-consolidated companies |
|
- |
|
- |
|
278 |
|
28,974 |
|
Changes in investments in securities |
|
(307,789 |
) |
24,463 |
|
(563,228 |
) |
254,369 |
|
Net cash (used in) investing activities |
|
(299,651 |
) |
(70,394 |
) |
(1,730,963 |
) |
(84,181 |
) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Dividends paid |
|
- |
|
- |
|
- |
|
(330,550 |
) |
Dividends paid to
non-controlling interest in subsidiaries |
|
- |
|
(1,200 |
) |
- |
|
(1,872 |
) |
Changes in non-controlling
interests |
|
- |
|
- |
|
2 |
|
1 |
|
Payments of lease
liabilities |
|
(10,870 |
) |
(9,388 |
) |
(35,813 |
) |
(28,835 |
) |
Proceeds from borrowings |
|
116,104 |
|
387,000 |
|
558,352 |
|
1,031,716 |
|
Repayments of borrowings |
|
(127,031 |
) |
(320,743 |
) |
(698,153 |
) |
(733,837 |
) |
Net cash (used in) provided by financing
activities |
|
(21,797 |
) |
55,669 |
|
(175,612 |
) |
(63,377 |
) |
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
95,824 |
|
359,025 |
|
(525,646 |
) |
1,116,109 |
|
Movement in cash and cash equivalents |
|
|
|
|
|
At the beginning of the
period |
|
910,898 |
|
1,183,017 |
|
1,554,275 |
|
426,717 |
|
Effect of exchange rate
changes |
|
(2,324 |
) |
(6,513 |
) |
(24,231 |
) |
(7,297 |
) |
Increase (decrease) in cash
and cash equivalents |
|
95,824 |
|
359,025 |
|
(525,646 |
) |
1,116,109 |
|
|
|
1,004,398 |
|
1,535,529 |
|
1,004,398 |
|
1,535,529 |
|
Exhibit I – Alternative performance
measures
EBITDA, Earnings before interest, tax, depreciation and
amortization.
EBITDA provides an analysis of the operating
results excluding depreciation and amortization and impairments, as
they are non-cash variables which can vary substantially from
company to company depending on accounting policies and the
accounting value of the assets. EBITDA is an approximation to
pre-tax operating cash flow and reflects cash generation before
working capital variation. EBITDA is widely used by investors when
evaluating businesses (multiples valuation), as well as by rating
agencies and creditors to evaluate the level of debt, comparing
EBITDA with net debt.
EBITDA is calculated in the following manner:
EBITDA= Operating results + Depreciation and amortization +
Impairment charges/(reversals).
|
Three-month period ended September 30, |
Nine-month period ended September 30, |
|
2020 |
|
2019 |
2020 |
|
2019 |
Operating (loss) income |
(70,316 |
) |
187,120 |
(670,456 |
) |
680,624 |
Depreciation and
amortization |
177,602 |
|
134,624 |
493,782 |
|
401,179 |
Impairment |
- |
|
- |
622,402 |
|
- |
EBITDA |
107,286 |
|
321,744 |
445,728 |
|
1,081,803 |
Free Cash Flow
Free cash flow is a measure of financial
performance, calculated as operating cash flow less capital
expenditures. FCF represents the cash that a company is able to
generate after spending the money required to maintain or expand
its asset base.
Free cash flow is calculated in the following manner:
Free cash flow = Net cash (used in) provided by operating
activities - Capital expenditures.
(all amounts in thousands of U.S. dollars) |
Three-month period ended September 30, |
Nine-month period ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Net cash provided by operating
activities |
417,272 |
|
373,750 |
|
1,380,929 |
|
1,263,667 |
|
Capital expenditures |
(41,571 |
) |
(86,643 |
) |
(155,156 |
) |
(269,707 |
) |
Free cash
flow |
375,701 |
|
287,107 |
|
1,225,773 |
|
993,960 |
|
Net Cash / (Debt)
This is the net balance of cash and cash
equivalents, other current investments and fixed income investments
held to maturity less total borrowings. It provides a summary of
the financial solvency and liquidity of the company. Net cash /
(debt) is widely used by investors and rating agencies and
creditors to assess the company’s leverage, financial strength,
flexibility and risks.
Net cash/ debt is calculated in the following manner:
Net cash= Cash and cash equivalents + Other investments (Current
and Non-Current)+/- Derivatives hedging borrowings and investments–
Borrowings (Current and Non-Current).
(all amounts in thousands of U.S. dollars) |
At September 30, |
|
2020 |
|
2019 |
|
Cash and cash equivalents |
1,005,152 |
|
1,537,005 |
|
Other current investments |
620,510 |
|
322,763 |
|
Non-current investments |
167,409 |
|
38,678 |
|
Derivatives hedging borrowings
and investments |
(7,673 |
) |
(11,492 |
) |
Current borrowings |
(401,374 |
) |
(873,822 |
) |
Non-current borrowings |
(304,260 |
) |
(49,050 |
) |
Net cash /
(debt) |
1,079,764 |
|
964,082 |
|
Giovanni
Sardagna Tenaris
1-888-300-5432www.tenaris.com
Tenaris (BIT:TEN)
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De Fév 2024 à Mar 2024
Tenaris (BIT:TEN)
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