Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”)
today announced its results for the fourth quarter and year ended
December 31, 2021 with comparison to its results for the fourth
quarter and year ended December 31, 2020.
Summary of 2021 Fourth Quarter Results
(Comparison with third quarter of 2021 and fourth quarter of
2020)
|
|
4Q 2021 |
3Q 2021 |
4Q 2020 |
|
Net sales ($ million) |
2,057 |
|
1,754 |
|
17 |
% |
1,131 |
|
82 |
% |
|
Operating income ($ million) |
273 |
|
231 |
|
18 |
% |
7 |
|
3,600 |
% |
|
Net income ($ million) |
336 |
|
326 |
|
3 |
% |
110 |
|
207 |
% |
|
Shareholders’ net income ($ million) |
370 |
|
330 |
|
12 |
% |
107 |
|
247 |
% |
|
Earnings per ADS ($) |
0.63 |
|
0.56 |
|
12 |
% |
0.18 |
|
247 |
% |
|
Earnings per share ($) |
0.31 |
|
0.28 |
|
12 |
% |
0.09 |
|
247 |
% |
|
EBITDA ($ million) |
483 |
|
379 |
|
27 |
% |
192 |
|
151 |
% |
|
EBITDA margin (% of net sales) |
23.5 |
% |
21.6 |
% |
|
17.0 |
% |
|
In the fourth quarter of 2021, our sales rose
sequentially a further 17%, driven by the ongoing recovery in
drilling activity and OCTG prices in North America, where OCTG
inventory levels at distributors have fallen below normal levels.
Our quarterly EBITDA continues to grow strongly and its margin rose
above 23%, despite higher raw material and energy costs. Our
operating income, which included a $57 million impairment charge on
NKKTubes fixed assets reflecting the forthcoming closure of its
facilities during 2022, rose to $273 million. Shareholders’ net
income reached $370 million and continues to receive a strong
contribution from our investment in Ternium.
With the recovery in activity and the ongoing
ramp up of our production facilities in the USA, our working
capital rose during the quarter and we recorded a negative free
cash flow for the quarter of $23 million. Following interim
dividend payments of $153 million in November, we ended the year
with a positive net cash balance of $700 million.
Summary of 2021 Annual Results
|
|
12M 2021 |
12M 2020 |
Increase/(Decrease) |
|
Net sales ($ million) |
6,521 |
|
5,147 |
|
27 |
% |
|
Operating income (loss) ($ million) |
708 |
|
(663 |
) |
207 |
% |
|
Net income (loss) ($ million) |
1,053 |
|
(642 |
) |
264 |
% |
|
Shareholders’ net income (loss) ($ million) |
1,100 |
|
(634 |
) |
273 |
% |
|
Earnings (losses) per ADS ($) |
1.86 |
|
(1.07 |
) |
273 |
% |
|
Earnings (losses) per share ($) |
0.93 |
|
(0.54 |
) |
273 |
% |
|
EBITDA* ($ million) |
1,359 |
|
638 |
|
113 |
% |
|
EBITDA margin (% of net sales) |
20.8 |
% |
12.4 |
% |
|
*EBITDA is defined as operating (loss) income
plus depreciation, amortization and impairment charges /
(reversals). EBITDA includes severance charges of $29 million in
2021 and $142 million in 2020. If these charges were not included
EBITDA would have amounted to $1,388 million (21.3%) in 2021 and
$780 million (15.2%) in 2020.
In 2021, our results recovered strongly from the
worst effects of the pandemic bolstered by the recovery in oil and
gas drilling activity in the Americas and the structural measures
we took to improve our profitability over the longer term. Our
sales rose 27% year on year, while our EBITDA more than doubled
with the margin surpassing its pre-pandemic level. At the net
income level, our result benefited from an extraordinary
contribution from our equity participations in Ternium and
Usiminas, reflecting record prices in the flat steel sector, which
contrasts with that of 2020, which was impacted by $622 million
impairment charges on the carrying value of goodwill and other
assets in the United States.
Operating cash flow for the year amounted to
$119 million in 2021, compared to $1,520 million in 2020 due to a
working capital build of $1.0 billion driven by the ramp up of
activity. Although in absolute amounts the build up in working
capital in 2021 was similar to the corresponding reduction in 2020,
it is lower in terms of days of sales and includes higher raw
material and energy costs embedded in inventories. After capital
expenditures of $240 million and dividend payments of $319 million
during the year, our net cash position declined to $700 million at
the end of the year.
Climate Change
After establishing our mid-term target for
reducing the intensity of carbon emissions from our tubular
operations worldwide by 30% compared to a 2018 baseline by the year
2030, we made good progress towards this strategic objective during
2021. By focusing on energy efficiency measures and the reduction
of the use of pig iron in our electric furnaces, the carbon
emissions intensity of our tubular operations have declined to 1.2
tons of CO2 per ton of steel processed, which compares with the 1.4
tons of CO2 per ton of steel processed in 2018 and 1.3 tons of CO2
per ton of steel processed in 2020. These figures use worldsteel
methodology with local emission factors for purchased
electricity.
These reductions have been principally in our
Scope 3 emissions. Now, we are looking to reduce the intensity of
our Scope 2 emissions by increasing the use of renewable energy in
a number of our facilities around the world. In this respect, our
Board of Directors has approved an investment plan to build a wind
farm in Argentina at a cost of $190 million which would reduce our
CO2 emissions in that country by around 150,000 tons per year, and
supply close to 50% of the electric energy requirements at our
Siderca integrated seamless pipe mill. This investment is expected
to be completed during 2023.
Market Background and Outlook
The global economy has rebounded strongly this
year and, with it demand for energy including oil and gas. Oil and
gas production increases have not kept pace with increases in
consumption resulting in lower inventory levels and higher prices.
Prices for oil exceed pre-pandemic levels and prices for LNG
reached unprecedented levels during the fourth quarter of 2021.
Although investments in oil and gas drilling are
expected to increase during 2022, from their low levels over the
past two years, the level of spending is unlikely to return to
pre-pandemic levels, as the oil and gas majors and publicly-listed
US shale producers prioritize capital discipline and returns to
shareholders, while OPEC+ countries continue to manage production
level increases.
Drilling activity is increasing around the
world. Over the past year, the increase has been led by the U.S.
and Canada where it will continue at a lower pace. Latin America is
leading the recovery in offshore drilling activity, with rises in
Brazil, Mexico and Guyana, while onshore drilling activity should
step up in the Vaca Muerta shale in Argentina if country investment
conditions allow. In the Eastern Hemisphere, the more recent
recovery in drilling activity should extend further through the
year, led by the Middle East.
In the first half of 2022, we anticipate further
increases in sales on higher prices in North America and shipments
to an offshore pipeline in Europe. In the second quarter, we should
see a significant recovery of sales in the Middle East and Africa.
Despite higher energy costs in Europe, our EBITDA margin should
also continue to increase in the first half.
Annual Dividend Proposal
Upon approval of the Company´s annual accounts
in March 2022, the board of directors intends to propose, for
approval of the annual general shareholders’ meeting to be held on
May 3, 2022, the payment of dividends in an aggregate amount of
approximately $484 million, which would include the interim
dividend of approximately $153 million paid in November 2021. If
the annual dividend is approved by the shareholders, a dividend of
$0.28 per share ($0.56 per ADS), or approximately $331 million,
will be paid on May 25, 2022, with an ex-dividend date on May 23,
2022 and record date on May 24, 2022.
Analysis of 2021 Fourth Quarter Results
|
Tubes Sales volume (thousand metric tons) |
4Q 2021 |
3Q 2021 |
4Q 2020 |
|
Seamless |
731 |
675 |
8 |
% |
423 |
73 |
% |
|
Welded |
68 |
71 |
(4 |
%) |
103 |
(34 |
%) |
|
Total |
799 |
746 |
7 |
% |
526 |
52 |
% |
|
Tubes |
4Q 2021 |
3Q 2021 |
4Q 2020 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
1,118 |
|
901 |
|
24 |
% |
391 |
|
186 |
% |
|
South America |
341 |
|
314 |
|
8 |
% |
160 |
|
113 |
% |
|
Europe |
167 |
|
141 |
|
19 |
% |
137 |
|
22 |
% |
|
Middle East & Africa |
209 |
|
199 |
|
5 |
% |
294 |
|
(29 |
%) |
|
Asia Pacific |
75 |
|
52 |
|
44 |
% |
68 |
|
10 |
% |
|
Total net sales ($ million) |
1,910 |
|
1,607 |
|
19 |
% |
1,050 |
|
82 |
% |
|
Operating income ($ million) |
245 |
|
200 |
|
22 |
% |
3 |
|
8,059 |
% |
|
Operating margin (% of sales) |
12.8 |
% |
12.4 |
% |
|
0.3 |
% |
|
Net sales of tubular products and services
increased 19% sequentially and 82% year on year. Volumes increased
7% sequentially and 52% year on year while average selling prices
increased 11% sequentially and 20% year on year. In North America,
sales increased 24% sequentially reflecting higher prices and
volumes for OCTG throughout the region following higher drilling
activity and declining market inventory levels. In South America,
we had higher sales in Argentina with increased activity in Vaca
Muerta but lower sales of connectors and offshore line pipes in
Brazil. In Europe sales increased 19% sequentially due to higher
sales of offshore line pipes, with the first deliveries to the
Sakarya project in Turkey, and higher prices on mechanical pipe
sales to distributors. In the Middle East and Africa sales remained
at low levels, particularly in Kuwait pending the transition to the
new contract, however Rig Direct® sales in U.A.E. are ramping up.
In Asia Pacific sales increased 44% sequentially, mainly due to
higher sales of high alloy products in China.
Operating income from tubular products and
services, amounted to $245 million in the fourth quarter of 2021,
compared to $200 million in the previous quarter and $3 million in
the fourth quarter of 2020. Operating results of the quarter
include a $57 million impairment charge on NKKTubes fixed assets.
During the quarter the operating margin increased following an 11%
increase in average selling prices while cost of sales per ton
increased 9% as higher raw materials and energy costs were offset
by higher prices mainly in North America thanks to an increase in
drilling activity and lower market inventory levels. SG&A as a
percentage of sales also declined sequentially.
|
Others |
4Q 2021 |
3Q 2021 |
4Q 2020 |
|
Net sales ($ million) |
147 |
|
147 |
|
0 |
% |
81 |
|
82 |
% |
|
Operating income ($ million) |
29 |
|
31 |
|
(9 |
%) |
4 |
|
609 |
% |
|
Operating margin (% of sales) |
19.4 |
% |
21.4 |
% |
|
5.0 |
% |
|
Net sales of other products and services
remained flat sequentially while they increased 82% year on year.
Sequentially, a steep decline in sales and operating income at our
industrial equipment business in Brazil was offset mainly by an
improvement in sales and results from the sale of energy and excess
raw materials and of pipes for construction activities from our
Piombino facility in Italy.
Selling, general and administrative
expenses, or SG&A, amounted to $338 million (16.4% of
net sales), compared to $317 million (18.1%) in the previous
quarter and $242 million (21.4%) in the fourth quarter of 2020.
While SG&A expenses increased sequentially, mainly due to
higher selling expenses, labor costs and services and fees,
partially offset by a decrease in the provision for contingencies,
they declined as a percentage of sales.
Impairment charge. In December,
2021, as a result of the expected termination of our NKKTubes joint
venture, we recorded a $57 million impairment on its fixed
assets.
Other operating income amounted
to $12 million in the fourth quarter of 2021, compared with $8
million in the previous quarter and $14 million in the fourth
quarter of 2020. The result of the quarter is mainly explained by a
$7 million gain from the sale of the Geneva structural pipe
business in the United States on November 1, 2021.
Financial results were a gain
of $2 million in the fourth quarter of 2021, close to zero in the
previous quarter and a loss of $14 million in the fourth quarter of
2020. Result of the quarter is mainly explained by a $1 million net
interest expense offset by a $3 million net foreign exchange
gain.
Equity in earnings of non-consolidated
companies generated a gain of $133 million in the fourth
quarter of 2021, compared to $154 million in the previous quarter
and $81 million in the same period of 2020. These positive results
are mainly derived from our equity investment in Ternium (NYSE:TX)
and Usiminas.
Income tax charge amounted to
$72 million in the fourth quarter of 2021, compared to $59 million
in the previous quarter and $35 million in the fourth quarter of
2020. Taxes increased during the quarter due to the better results
at several subsidiaries following the improvement in activity.
Cash Flow and Liquidity of 2021 Fourth
Quarter
Net cash provided by operations during the
fourth quarter of 2021 was $46 million, compared with $53 million
in the previous quarter and $139 million in the fourth quarter of
2020. As activity continues to recover working capital continues to
rise showing a $373 million increase during the quarter, mainly
driven by higher inventories and trade receivables.
With capital expenditures of $69 million for the
fourth quarter of 2021 ($74 million in the previous quarter and $38
million in the fourth quarter of 2020), during the quarter we had a
negative free cash flow of $23 million.
Following dividend payments of $153 million during the quarter,
we maintained a positive net cash position of $700 million at
December 31, 2021.
Analysis of 2021 Annual Results
|
Tubes Sales volume (thousand metric tons) |
12M 2021 |
12M 2020 |
Increase/(Decrease) |
|
Seamless |
2,514 |
1,918 |
31 |
% |
|
Welded |
289 |
480 |
(40 |
%) |
|
Total |
2,803 |
2,398 |
17 |
% |
|
Tubes |
12M 2021 |
12M 2020 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
3,240 |
|
2,108 |
|
54 |
% |
|
South America |
1,051 |
|
660 |
|
59 |
% |
|
Europe |
622 |
|
566 |
|
10 |
% |
|
Middle East & Africa |
832 |
|
1,194 |
|
(30 |
%) |
|
Asia Pacific |
249 |
|
315 |
|
(21 |
%) |
|
Total net sales ($ million) |
5,994 |
|
4,844 |
|
24 |
% |
|
Operating income (loss) ($ million) |
613 |
|
(616 |
) |
200 |
% |
|
Operating margin (% of sales) |
10.2 |
% |
(12.7 |
%) |
|
Net sales of tubular products and services
increased 24% to $5,994 million in 2021, compared to $4,844 million
in 2020, reflecting a 17% increase in volumes and a 6% increase in
average selling prices. In North America sales increased 54% as
there was a recovery in volumes and prices throughout the region,
led by the U.S. onshore market. In South America sales increased
59% driven by a recovery in sales in Argentina and the Andean
region partially offset by lower sales of connectors in Brazil. In
Europe sales increased 10% thanks to a strong growth in sales to
the mechanical and automotive sectors partially compensated by
lower sales of OCTG products throughout the region. In the Middle
East & Africa sales declined 30% as sales in U.A.E. remained
stable during the year while sales of OCTG and offshore line pipe
declined in the rest of the region. In Asia Pacific sales declined
21% due to lower sales of OCTG throughout the region.
Operating results from tubular products and
services, amounted to a gain of $613 million in 2021, compared to a
loss of $616 million in 2020. Tubes operating income in 2021 is net
of a $57 million impairment charge on NKKTubes fixed assets and
severance charges of $27 million, while in 2020 the operating loss
includes an impairment charge of $582 million, accelerated
depreciations and amortizations of $56 million and severance
charges of $139 million. The improvement in operating results was
driven by the recovery in sales (volumes and prices), while an
increase in raw material and energy costs was partially offset by
an improvement in industrial performance due to the increased
levels of activity and utilization of production capacity.
| Others |
12M 2021 |
12M 2020 |
Increase/(Decrease) |
|
Net sales ($ million) |
528 |
|
303 |
|
74 |
% |
|
Operating income (loss) ($ million) |
95 |
|
(47 |
) |
300 |
% |
|
Operating margin (% of sales) |
17.9 |
% |
(15.6 |
%) |
|
Net sales of other products and services
increased 74% from $303 million in 2020 to $528 million in 2021,
mainly due to higher sales of energy and excess raw materials and
sucker rods, as well as our new oilfield services business in
Argentina which offers hydraulic fracturing and coiled tubing
services.
Operating results from other products and
services, amounted to a gain of $95 million in
2021, compared to a loss of $47 million in 2020. In 2020, Others
operating income included an impairment charge of $40 million. The
increase in profitability is mainly due to the sucker rods
business, our new oil services business and from the sale of excess
raw materials and energy.
Selling, general and administrative
expenses, or SG&A, amounted to $1,207 million (18.5%
of net sales), compared to $1,119 million (21.7%) in 2020. During
2021 SG&A includes $16 million of leaving indemnities, while in
2020 leaving indemnities were $61 million. The 2021 increase in
SG&A is mainly due to higher selling expenses, following the
increase in sales.
Impairment charge. In December,
2021, as a result of the expected termination of our NKKTubes joint
venture, we recorded a $57 million impairment on its fixed assets.
In 2020 we recorded an impairment charge of $622 million on the
carrying value of goodwill and other assets in the United
States.
Other operating results
amounted to a gain of $62 million in 2021, compared to a gain of
$19 million in 2020. The gain in 2021 is mainly due to a $36
million recognition of fiscal credits in Brazil and the profit from
the sale of assets.
Financial results amounted to a
gain of $23 million in 2021, compared to a loss of $65 million in
2020. The variation is mainly explained by a $23 million
improvement in net interest income, mainly due to interests from
fiscal credits in Brazil received in the second quarter, and a $64
million improvement in net foreign exchange results, mainly related
to the depreciation of the Euro, the Brazilian real and the Mexican
peso in 2020. These results are to a large extent offset by changes
to our currency translation reserve.
Equity in earnings of non-consolidated
companies generated a gain of $513 million in 2021,
compared to $109 million in 2020. These results were mainly derived
from our equity investment in Ternium (NYSE:TX) and Usiminas, and
reflect the good dynamics at the flat steel sector derived from
record high steel prices.
Income tax charge amounted to
$189 million in 2021, compared to $23 million in 2020, reflecting
better results in several subsidiaries following the increase in
activity in 2021.
Net income amounted to $1,053
million in 2021, compared with a net loss of $642 million in 2020.
The change in results reflects the recovery in sales (volumes and
prices) following the improvement in the operating environment,
while an increase in raw material and energy costs was partially
offset by an improvement in industrial performance due to the
increased levels of activity and utilization of production
capacity. Additionally, our results in 2021 were boosted by an
extraordinary contribution from our equity participations, mainly
Ternium, reflecting the good dynamics in the flat steel sector
derived from record high steel prices, while 2020 was impacted by a
$622 million impairment on the carrying value of goodwill and other
assets in the United States.
Cash Flow and Liquidity of 2021
Net cash provided by operations in 2021 was $119
million (net of $1.046 million used in working capital), compared
to $1,520 million (including $1,059 million working capital
reduction) in 2020.
With capital expenditures of $240 million, we
had a negative free cash flow of $120 million in 2021, compared to
a positive free cash flow of $1,327 million in 2020.
Following dividend payments of $319 million during 2021, we
maintained a positive net cash position of $700 million at December
31, 2021.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on February 17, 2022, 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 “1560918”. 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
ir.tenaris.com/events-and-presentations or by phone from 1:00 pm ET
on February 17 through 1:00 pm on February 25, 2022. To access the
replay by phone, please dial +1 855 859 2056 or +1 404 537 3406 and
enter passcode “1560918” 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.
Consolidated Income Statement
|
(all amounts in thousands of U.S. dollars) |
Three-month period ended December 31, |
Twelve-month period ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Continuing operations |
|
|
|
|
Net sales |
2,057,164 |
|
1,130,628 |
|
6,521,207 |
|
5,146,734 |
|
|
Cost of sales |
(1,400,370 |
) |
(895,457 |
) |
(4,611,602 |
) |
(4,087,317 |
) |
|
Gross profit |
656,794 |
|
235,171 |
|
1,909,605 |
|
1,059,417 |
|
|
Selling, general and administrative expenses |
(338,050 |
) |
(242,137 |
) |
(1,206,569 |
) |
(1,119,227 |
) |
|
Impairment Charge |
(57,075 |
) |
- |
|
(57,075 |
) |
(622,402 |
) |
| Other operating income
(expense), net |
11,646 |
|
14,351 |
|
61,548 |
|
19,141 |
|
|
Operating income (loss) |
273,315 |
|
7,385 |
|
707,509 |
|
(663,071 |
) |
|
Finance Income |
5,845 |
|
7,814 |
|
38,048 |
|
18,387 |
|
|
Finance Cost |
(6,851 |
) |
(4,587 |
) |
(23,677 |
) |
(27,014 |
) |
|
Other financial results |
2,591 |
|
(17,355 |
) |
8,295 |
|
(56,368 |
) |
|
Income (Loss) before equity in earnings of non-consolidated
companies and income tax |
274,900 |
|
(6,743 |
) |
730,175 |
|
(728,066 |
) |
|
Equity in earnings of non-consolidated companies |
133,482 |
|
81,360 |
|
512,591 |
|
108,799 |
|
|
Income (loss) before income tax |
408,382 |
|
74,617 |
|
1,242,766 |
|
(619,267 |
) |
|
Income tax |
(72,246 |
) |
34,889 |
|
(189,448 |
) |
(23,150 |
) |
|
Income (loss) for continuing operations |
336,136 |
|
109,506 |
|
1,053,318 |
|
(642,417 |
) |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Owners of the parent |
370,034 |
|
106,557 |
|
1,100,191 |
|
(634,418 |
) |
|
Non-controlling interests |
(33,898 |
) |
2,949 |
|
(46,873 |
) |
(7,999 |
) |
|
|
336,136 |
|
109,506 |
|
1,053,318 |
|
(642,417 |
) |
Consolidated Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At December 31, 2021 |
|
At December 31, 2020 |
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
5,824,801 |
|
|
6,193,181 |
|
|
Intangible assets, net |
1,372,176 |
|
|
1,429,056 |
|
|
Right-of-use assets, net |
108,738 |
|
|
241,953 |
|
|
Investments in non-consolidated companies |
1,383,774 |
|
|
957,352 |
|
|
Other investments |
320,254 |
|
|
247,082 |
|
|
Derivative financial instruments |
7,080 |
|
|
- |
|
|
Deferred tax assets |
245,547 |
|
|
205,590 |
|
|
Receivables, net |
205,888 |
9,468,258 |
|
154,303 |
9,428,517 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
2,672,593 |
|
|
1,636,673 |
|
|
Receivables and prepayments, net |
96,276 |
|
|
77,849 |
|
|
Current tax assets |
193,021 |
|
|
136,384 |
|
|
Trade receivables, net |
1,299,072 |
|
|
968,148 |
|
|
Derivative financial instruments |
4,235 |
|
|
11,449 |
|
|
Other investments |
397,849 |
|
|
872,488 |
|
|
Cash and cash equivalents |
318,127 |
4,981,173 |
|
584,681 |
4,287,672 |
|
Total assets |
|
14,449,431 |
|
|
13,716,189 |
|
EQUITY |
|
|
|
|
|
|
Capital and reserves attributable to owners of the parent |
|
11,960,578 |
|
|
11,262,888 |
|
Non-controlling interests |
|
145,124 |
|
|
183,585 |
|
Total equity |
|
12,105,702 |
|
|
11,446,473 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
111,432 |
|
|
315,739 |
|
|
Lease liabilities |
82,694 |
|
|
213,848 |
|
|
Deferred tax liabilities |
274,721 |
|
|
254,801 |
|
|
Other liabilities |
231,681 |
|
|
245,635 |
|
|
Provisions |
83,556 |
784,084 |
|
73,218 |
1,103,241 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
219,501 |
|
|
303,268 |
|
|
Lease liabilities |
34,591 |
|
|
43,495 |
|
|
Derivative financial instruments |
11,328 |
|
|
3,217 |
|
|
Current tax liabilities |
143,486 |
|
|
90,593 |
|
|
Other liabilities |
203,725 |
|
|
202,826 |
|
|
Provisions |
9,322 |
|
|
12,279 |
|
|
Customer advances |
92,436 |
|
|
48,692 |
|
|
Trade payables |
845,256 |
1,559,645 |
|
462,105 |
1,166,475 |
|
Total liabilities |
|
2,343,729 |
|
|
2,269,716 |
|
Total equity and liabilities |
|
14,449,431 |
|
|
13,716,189 |
Consolidated Statement of Cash Flows
| |
|
Three-month period ended December 31, |
Twelve-month period ended December 31, |
|
(all amounts in thousands of U.S. dollars) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Income (loss) for the period |
|
336,136 |
|
109,506 |
|
1,053,318 |
|
(642,417 |
) |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
152,160 |
|
185,024 |
|
594,721 |
|
678,806 |
|
|
Impairment charge |
|
57,075 |
|
- |
|
57,075 |
|
622,402 |
|
|
Income tax accruals less payments |
|
23,972 |
|
(59,631 |
) |
35,602 |
|
(117,214 |
) |
|
Equity in earnings of non-consolidated companies |
|
(133,482 |
) |
(81,360 |
) |
(512,591 |
) |
(108,799 |
) |
|
Interest accruals less payments, net |
|
1,174 |
|
(2,080 |
) |
(11,363 |
) |
(538 |
) |
|
Changes in provisions |
|
(6,835 |
) |
(3,192 |
) |
7,381 |
|
(13,175 |
) |
|
Result of sale of subsidiaries |
|
(6,768 |
) |
- |
|
(6,768 |
) |
- |
|
|
Changes in working capital |
|
(373,195 |
) |
(38,074 |
) |
(1,045,907 |
) |
1,059,135 |
|
|
Currency translation adjustment and others |
|
(4,207 |
) |
29,261 |
|
(52,393 |
) |
42,183 |
|
|
Net cash provided by operating activities |
|
46,030 |
|
139,454 |
|
119,075 |
|
1,520,383 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(68,647 |
) |
(38,166 |
) |
(239,518 |
) |
(193,322 |
) |
|
Changes in advance to suppliers of property, plant and
equipment |
|
(655 |
) |
(1,857 |
) |
(5,075 |
) |
(1,031 |
) |
|
Proceeds from sale of subsidiaries, net of cash |
|
24,332 |
|
- |
|
24,332 |
|
- |
|
|
Acquisition of subsidiaries, net of cash acquired |
|
- |
|
- |
|
- |
|
(1,025,367 |
) |
|
Investment in companies under cost method |
|
- |
|
- |
|
(692 |
) |
- |
|
| Proceeds from disposal of
property, plant and equipment and intangible assets |
|
8,380 |
|
2,710 |
|
22,735 |
|
14,394 |
|
|
Dividends received from non-consolidated companies |
|
26,798 |
|
- |
|
75,929 |
|
278 |
|
|
Changes in investments in securities |
|
111,763 |
|
(323,988 |
) |
390,186 |
|
(887,216 |
) |
|
Net cash provided (used in) by investing
activities |
|
101,971 |
|
(361,301 |
) |
267,897 |
|
(2,092,264 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
| Dividends paid |
|
(153,469 |
) |
(82,637 |
) |
(318,744 |
) |
(82,637 |
) |
| Dividends paid to
non-controlling interest in subsidiaries |
|
- |
|
(5,301 |
) |
(3,355 |
) |
(5,301 |
) |
| Changes in non-controlling
interests |
|
- |
|
- |
|
- |
|
2 |
|
| Payments of lease
liabilities |
|
(10,252 |
) |
(12,740 |
) |
(48,473 |
) |
(48,553 |
) |
| Proceeds from borrowings |
|
267,970 |
|
99,804 |
|
843,668 |
|
658,156 |
|
| Repayments of borrowings |
|
(446,728 |
) |
(198,834 |
) |
(1,121,053 |
) |
(896,986 |
) |
|
Net cash used in financing activities |
|
(342,479 |
) |
(199,707 |
) |
(647,957 |
) |
(375,319 |
) |
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
(194,478 |
) |
(421,554 |
) |
(260,985 |
) |
(947,200 |
) |
|
Movement in cash and cash equivalents |
|
|
|
|
|
| At the beginning of the
year |
|
513,665 |
|
1,004,398 |
|
584,583 |
|
1,554,275 |
|
| Effect of exchange rate
changes |
|
(1,120 |
) |
1,739 |
|
(5,531 |
) |
(22,492 |
) |
| Decrease in cash and cash
equivalents |
|
(194,478 |
) |
(421,554 |
) |
(260,985 |
) |
(947,200 |
) |
|
At December 31, |
|
318,067 |
|
584,583 |
|
318,067 |
|
584,583 |
|
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).
|
(all amounts in thousands of U.S. dollars) |
Three-month period ended December 31, |
Twelve-month period ended December 31, |
|
|
2021 |
2020 |
2021 |
2020 |
|
| Operating income (Loss) |
273,315 |
7,385 |
707,509 |
(663,071 |
) |
| Depreciation and
amortization |
152,160 |
185,024 |
594,721 |
678,806 |
|
| Impairment |
57,075 |
- |
57,075 |
622,402 |
|
| EBITDA |
482,550 |
192,409 |
1,359,305 |
638,137 |
|
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 December 31, |
|
|
2021 |
|
2020 |
|
| Cash and cash equivalents |
318,127 |
|
584,681 |
|
| Other current investments |
397,849 |
|
872,488 |
|
| Non-current investments |
312,619 |
|
239,422 |
|
| Derivatives hedging borrowings
and investments |
2,325 |
|
7,869 |
|
| Current Borrowings |
(219,501 |
) |
(303,268 |
) |
| Non-current borrowings |
(111,432 |
) |
(315,739 |
) |
| Net cash /
(debt) |
699,987 |
|
1,085,453 |
|
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 December 31, |
Twelve-month period ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
| Net cash provided by operating
activities |
46,030 |
|
139,454 |
|
119,075 |
|
1,520,383 |
|
| Capital expenditures |
(68,647 |
) |
(38,166 |
) |
(239,518 |
) |
(193,322 |
) |
| Free cash
flow |
(22,617 |
) |
101,288 |
|
(120,443 |
) |
1,327,061 |
|
Giovanni
Sardagna Tenaris
1-888-300-5432www.tenaris.com
Tenaris (BIT:TEN)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Tenaris (BIT:TEN)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
