Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”)
today announced its results for the quarter ended June 30, 2022 in
comparison with its results for the quarter ended June 30, 2021.
Summary of 2022 Second Quarter Results
(Comparison with first quarter of 2022 and second quarter of
2021)
|
|
2Q 2022 |
1Q 2022 |
2Q 2021 |
|
Net sales ($ million) |
2,800 |
2,367 |
18% |
1,529 |
83% |
|
Operating income ($ million) |
663 |
484 |
37% |
152 |
337% |
|
Net income ($ million) |
634 |
503 |
26% |
290 |
118% |
|
Shareholders’ net income ($ million) |
637 |
503 |
27% |
294 |
117% |
|
Earnings per ADS ($) |
1.08 |
0.85 |
27% |
0.50 |
117% |
|
Earnings per share ($) |
0.54 |
0.43 |
27% |
0.25 |
117% |
|
EBITDA* ($ million) |
806 |
627 |
28% |
301 |
167% |
|
EBITDA margin (% of net sales) |
28.8% |
26.5% |
|
19.7% |
|
*EBITDA in 2Q 2022 includes a $78 million charge
from the settlement with the U.S. SEC, a $71 million non-cash gain
from the reclassification to the income statement of NKKTubes’s
cumulative foreign exchange adjustments belonging to the
shareholders due to the cease of its operations, an $18 million
gain from the sale of land in Canada after the relocation of the
Prudential facility and $8 million of severance charges. In 1Q 2022
EBITDA includes severance charges of $12 million (related to the
discontinuation of our industrial equipment business in Brazil and
the closure of NKKTubes). If these one-off charges and gains were
not included EBITDA would have been $803 million (28.7%) in 2Q 2022
and $639 million (27.0%) in 1Q 2022.
Our second quarter sales increased a further 18%
sequentially, led by further pricing gains in North America, a
recovery of volumes in the Middle East and higher sales in South
America. Our EBITDA, which included several one-off items which
compensated among them, continued to grow strongly and its margin
rose above 28% as higher average selling prices compensate
increases in energy and raw material costs. Our net income, which
also increased and reached 23% of sales, continues to receive a
good contribution from our investment in Ternium.
Our free cash flow for the quarter turned
positive at $353 million and our operating working capital days
declined by 13 to 128. After a dividend payment of $331 million in
May 2022, our net cash position increased to $635 million at June
30, 2022.
Market Background and Outlook
Even as global economic growth slows and central
banks raise interest rates to contain inflationary pressures,
prices for oil and gas remain high and prices for gas and electric
energy in Europe have reached unprecedented levels. The Ukraine war
drags on and the impact of further sanctions on Russian oil exports
as well as reductions in flows of Russian gas to Europe have
increased market uncertainty. Inventories remain at low levels and
the supply response remains limited reflecting low investment
levels over the past years and uncertainty about longer-term demand
in the energy transition.
Drilling activity continues to increase around
the world led by North America and the Middle East. Offshore
drilling activity is increasing with deepwater developments in
Brazil, Guyana and sub-Saharan Africa. Pipeline project activity is
advancing in the Middle East and South America.
In the second half, we anticipate further growth
in sales and stable margins, with higher prices compensating cost
increases. Growth in sales will be more limited in the third
quarter as they will be affected by seasonal factors and lower
shipments to pipeline projects. We also anticipate that free cash
flow will remain positive during the semester.
Analysis of 2022 Second Quarter Results
Tubes
The following table indicates, for our Tubes business segment,
sales volumes of seamless and welded pipes for the periods
indicated below:
|
Tubes Sales volume (thousand metric tons) |
2Q 2022 |
1Q 2022 |
2Q 2021 |
|
Seamless |
815 |
772 |
6% |
611 |
33% |
|
Welded |
75 |
50 |
48% |
79 |
(5%) |
|
Total |
890 |
822 |
8% |
690 |
29% |
The following table indicates, for our Tubes business segment,
net sales by geographic region, operating income and operating
income as a percentage of net sales for the periods indicated
below:
|
Tubes |
2Q 2022 |
1Q 2022 |
2Q 2021 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
1,583 |
1,347 |
18% |
706 |
124% |
|
South America |
462 |
348 |
33% |
230 |
101% |
|
Europe |
259 |
232 |
11% |
170 |
52% |
|
Middle East & Africa |
260 |
182 |
43% |
228 |
14% |
|
Asia Pacific |
67 |
94 |
(29%) |
62 |
7% |
|
Total net sales ($ million) |
2,632 |
2,203 |
19% |
1,397 |
88% |
|
Operating income ($ million) |
636 |
471 |
35% |
130 |
389% |
|
Operating margin (% of sales) |
24.2% |
21.4% |
|
9.3% |
|
Net sales of tubular products and services
increased 19% sequentially and 88% year on year. On a sequential
basis volumes sold increased 8% and average selling prices
increased 10%. In North America, sales increased thanks to higher
OCTG prices throughout the region reflecting higher U.S. drilling
activity and low distributor inventory levels together with higher
volume of OCTG delivered in U.S. onshore. In South America we had
higher prices and volumes in Colombia and Argentina. In Europe
sales increased due to higher product pricing reflecting high costs
of energy and raw materials. In the Middle East and Africa we had a
recovery of OCTG sales in UAE, Kuwait and sub-Saharan Africa. In
Asia Pacific sales declined due to lower OCTG sales in Australia
and lower sales of other products in the region.
Operating results from tubular products and
services amounted to a gain of $636 million in the second quarter
of 2022 compared to a gain of $471 million in the previous quarter
and $130 million in the second quarter of 2021. Operating results
for our Tubes segment include a $78 million charge from the
settlement with the U.S. SEC, a $71 million non-cash gain from the
reclassification to the income statement of NKKTubes’s cumulative
foreign exchange adjustments belonging to the shareholders due to
the cease of its operations, an $18 million gain from the sale of
land in Canada after the relocation of the Prudential facility and
$8 million of severance charges. Our operating margin improved as
tubes price increases more than offset higher energy and raw
material costs.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
2Q 2022 |
1Q 2022 |
2Q 2021 |
|
Net sales ($ million) |
168 |
164 |
3% |
132 |
28% |
|
Operating income ($ million) |
27 |
13 |
102% |
21 |
24% |
|
Operating margin (% of sales) |
15.8% |
8.0% |
|
16.3% |
|
Net sales of other products and services
increased 3% sequentially and 28% year on year. Sequentially,
higher sales from our oil services business in Argentina which
offers hydraulic fracturing and coiled tubing services were offset
by lower sales of excess raw materials. Operating income improved
as the previous quarter was affected by a $5 million severance
charge related to the discontinuation of the industrial equipment
business in Brazil, and the current quarter we had improved
margins, in particular in our oil services business in Argentina
and utility conduits for buildings.
Selling, general and administrative
expenses, or SG&A, amounted to $412
million, or 14.7% of net sales, in the second quarter of 2022,
compared to $365 million, 15.4% in the previous quarter and $297
million, 19.4% in the second quarter of 2021. Sequentially, our
SG&A expenses increased mainly due to higher selling expenses
associated with higher sales, however, they decreased as a
percentage of sales due to the better absorption of the fixed and
semi-fixed components of SG&A expenses on higher sales.
Other operating results
amounted to a gain of $9 million in the second quarter of 2022,
compared to $4 million in the previous quarter and $34 million in
the second quarter of 2021. Other operating results in the quarter
include a $78 million charge from the settlement with the U.S. SEC,
a $71 million non-cash gain from the reclassification to the income
statement of NKKTubes’s cumulative foreign exchange adjustments
belonging to the shareholders due to the cease of its operations
and an $18 million gain from the sale of land in Canada after the
relocation of the Prudential facility. The gain in the second
quarter of 2021 was mainly due to a $33 million recognition of
fiscal credits in Brazil.
Financial results amounted to a
loss of $11 million in the second quarter of 2022, compared to a
loss of $1 million in the previous quarter and a gain of $10
million in the second quarter of 2021. The net financial income
result of the quarter was negatively impacted by the decline in the
fair value of certain financial instruments obtained in an
operation of settlement of trade receivables. Main results of the
quarter include net foreign exchange transaction losses of $12
million, mainly due to the Euro and the Brazilian Real depreciation
on U.S. dollar denominated intercompany liabilities, in
subsidiaries with functional currency Euro and Brazilian Real
respectively, both largely offset in the currency translation
reserve in equity.
Equity in earnings of non-consolidated
companies generated a gain of $103 million in the second
quarter of 2022, compared to a gain of $88 million in the previous
quarter and a gain of $146 million in the second quarter of last
year. These results are mainly derived from our participation in
Ternium (NYSE:TX) and Usiminas. The result of the previous quarter
is net of an impairment charge on the value of our joint venture in
Russia, amounting to $15 million.
Income tax charge amounted to
$120 million in the second quarter of 2022, compared to $67 million
in the previous quarter and $17 million in the second quarter of
last year. The increase in income tax reflects better results at
several subsidiaries following the improvement in activity.
Cash Flow and Liquidity of 2022 Second
Quarter
Net cash generated by operating activities
during the second quarter of 2022 was $428 million, compared to $27
million used in the first quarter of 2022 and $50 million used in
the second quarter of last year. During the second quarter of 2022
cash generated by operating activities is net of an increase in
working capital of $198 million.
With capital expenditures of $74 million, our
free cash flow amounted to $353 million during the quarter. After a
dividend payment of $331 million in May 2022, our net cash position
amounted to $635 million at June 30, 2022, from $562 million at
March 31, 2022.
Analysis of 2022 First Half Results
|
|
6M 2022 |
6M 2021 |
Increase/(Decrease) |
|
Net sales ($ million) |
5,168 |
2,710 |
91% |
|
Operating income ($ million) |
1,147 |
203 |
464% |
|
Net income ($ million) |
1,137 |
391 |
191% |
|
Shareholders’ net income ($ million) |
1,139 |
400 |
185% |
|
Earnings per ADS ($) |
1.93 |
0.68 |
184% |
|
Earnings per share ($) |
0.97 |
0.34 |
185% |
|
EBITDA ($ million) |
1,433 |
497 |
188% |
|
EBITDA margin (% of net sales) |
27.7% |
18.4% |
|
Our sales in the first half of 2022 increased
91% compared to the first half of 2021 as volumes of tubular
products shipped increased 36% and average selling prices increased
43% while sales in the Others segment increased 42%. Following the
increase in sales, EBITDA more than doubled thanks to the increase
in margins. The improvement in operating results was driven by the
recovery in sales and margins, as higher tubes prices and an
improvement in industrial performance due to the increased levels
of activity and utilization of production capacity more than offset
the increase in raw material and energy costs. Operating income in
the first six months of 2022 includes a non-cash gain of $71
million from the reclassification to the income statement of
NKKTubes’s cumulative foreign exchange adjustments belonging to the
shareholders, an $18 million gain from the sale of land in Canada
after the relocation of the Prudential facility, offset by a $78
million charge from the settlement with the U.S. SEC and $20
million severance charges.
Cash flow provided by operating activities
amounted to $401 million during the first half of 2022, net of an
increase in working capital of $807 million, which reflects the
recovery in activity levels. After capital expenditures of $141
million, our free cash flow amounted to $260 million. Following a
dividend payment of $331 million in May 2022, our positive net cash
position amounted to $635 million at the end of June 2022.
The following table shows our net sales by business segment for
the periods indicated below:
|
Net sales ($ million) |
6M 2022 |
6M 2021 |
Increase/(Decrease) |
|
Tubes |
4,836 |
94% |
2,476 |
91% |
95% |
|
Others |
332 |
6% |
234 |
9% |
42% |
|
Total |
5,168 |
|
2,710 |
|
91% |
Tubes
The following table indicates, for our Tubes business segment,
sales volumes of seamless and welded pipes for the periods
indicated below:
|
Tubes Sales volume (thousand metric tons) |
6M 2022 |
6M 2021 |
Increase/(Decrease) |
|
Seamless |
1,587 |
1,108 |
43% |
|
Welded |
125 |
150 |
(16%) |
|
Total |
1,712 |
1,258 |
36% |
The following table indicates, for our Tubes business segment,
net sales by geographic region, operating income and operating
income as a percentage of net sales for the periods indicated
below:
|
Tubes |
6M 2022 |
6M 2021 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
2,930 |
1,220 |
140% |
|
South America |
810 |
396 |
105% |
|
Europe |
491 |
314 |
57% |
|
Middle East & Africa |
442 |
424 |
4% |
|
Asia Pacific |
161 |
122 |
32% |
|
Total net sales ($ million) |
4,836 |
2,476 |
95% |
|
Operating income ($ million) |
1,107 |
169 |
557% |
|
Operating margin (% of sales) |
22.9% |
6.8% |
|
Net sales of tubular products and services
increased 95% to $4,836 million in the first half of 2022, compared
to $2,476 million in the first half of 2021 due to an increase of
36% in volumes and a 43% increase in average selling prices. Sales
increased in all regions, mainly in North America where there was a
recovery in volumes and prices throughout the region, led by the
U.S. onshore market. Average drilling activity in the first half of
2022 increased 57% in the United States & Canada and 14%
internationally compared to the first half of 2021.
Operating results from tubular products and
services amounted to a gain of $1,107 million in the first half of
2022 compared to $169 million in the first half of 2021. Tubes
operating income in the first six months of 2022 includes a
non-cash gain of $71 million from the reclassification to the
income statement of NKKTubes’s cumulative foreign exchange
adjustments belonging to the shareholders, an $18 million gain from
the sale of land in Canada after the relocation of the Prudential
facility, offset by a $78 million charge from the settlement with
the U.S. SEC and $16 million severance charges. The improvement in
operating results was driven by the recovery in sales and margins,
as higher tubes prices and an improvement in industrial performance
due to the increased levels of activity and utilization of
production capacity more than offset the increase in raw material
and energy costs.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
6M 2022 |
6M 2021 |
Increase/(Decrease) |
|
Net sales ($ million) |
332 |
234 |
42% |
|
Operating income ($ million) |
40 |
35 |
14% |
|
Operating margin (% of sales) |
12.0% |
14.8% |
|
Net sales of other products and services
increased 42% to $332 million in the first half of 2022, compared
to $234 million in the first half of 2021, mainly due to higher
sales of our oilfield services business in Argentina which offers
hydraulic fracturing and coiled tubing services, higher sales of
sucker rods and excess raw materials, partially offset by lower
sales from the discontinued industrial equipment business in
Brazil.
Operating results from other products and
services amounted to a gain of $40 million in the first half of
2022, compared to $35 million in the first half of 2021. The
improvement in operating results is mainly driven by the increase
in sales following a recovery in activity and in the level of
capacity utilization of our production facilities.
Selling, general and administrative
expenses, or SG&A, amounted to $777 million in the
first half of 2022, representing 15.0% of sales, and $552 million
in the first half of 2021, representing 20.4% of sales. SG&A
expenses increased mainly due to higher selling expenses (in
particular commissions and freights) associated with higher sales
and higher labor costs. However, they decreased as a percentage of
sales due to the better absorption of fixed and semi-fixed
components of SG&A expenses on higher sales.
Other operating results
amounted to a net gain of $14 million in the first half of 2022,
compared to a net gain of $42 million in the first half of 2021. In
the first six months of 2022 main other operating results include a
non-cash gain of $71 million from the reclassification to the
income statement of NKKTubes’s cumulative foreign exchange
adjustments belonging to the shareholders, an $18 million gain from
the sale of land in Canada after the relocation of the Prudential
facility, partially offset by a $78 million loss from the
settlement with the U.S. SEC. The gain in 2021 was mainly due to a
$34 million recognition of fiscal credits in Brazil.
Financial results amounted to a
loss of $13 million in the first half of 2022, compared to a gain
of $21 million in the first half of 2021. The $7 million net
finance income in the first six months of 2022 was negatively
impacted by the decline in the fair value of certain financial
instruments obtained in an operation of settlement of trade
receivables. Additionally, the $20 million loss in other financial
results is mainly related to losses on derivatives covering net
receivables in Brazilian real, together with losses on derivatives
covering net liabilities in Euro and Japanese yen.
Equity in earnings of non-consolidated
companies generated a gain of $191 million in the first
half of 2022, compared to a gain of $225 million in the first half
of 2021. The result of the first half of 2022 is net of an
impairment charge on the value of our joint venture in Russia,
amounting to $15 million. The remaining results are mainly derived
from our participation in Ternium (NYSE:TX) and Usiminas.
Income tax amounted to a charge
of $188 million in the first half of 2022, compared to $59 million
in the first half of 2021. The increase in income tax reflects
better results at several subsidiaries following the improvement in
activity in 2022.
Cash Flow and Liquidity of 2022 First Half
Net cash provided by operating activities during
the first half of 2022 amounted to $401 million (net of an increase
in working capital of $807 million), compared to cash provided by
operations of $20 million (net of an increase in working capital of
$397 million) in the first half of 2021. Working capital, mainly
inventories and trade receivables, has been increasing since 2021
following the recovery in activity from very low levels in
2020.
Capital expenditures amounted to $141 million in
the first half of 2022, compared to $97 million in the first half
of 2021. Free cash flow amounted to $260 million in the first half
of 2022, compared to a negative free cash flow of $76 million in
the first half of 2021.
After a dividend payment of $331 million in May
2022, our net cash position amounted to $635 million at June 30,
2022, from $700 million at December 31, 2021.
Tenaris Files Half-Year Report
Tenaris S.A. announces that it has filed its
half-year report for the six-month period ended June 30, 2022 with
the Luxembourg Stock Exchange. The half-year report can be
downloaded from the Luxembourg Stock Exchange’s website at
www.bourse.lu and from Tenaris’s website at ir.tenaris.com.
Holders of Tenaris’s shares and ADSs, and any
other interested parties, may request a hard copy of the half-year
report, free of charge, at 1-888-300-5432 (toll free from the
United States) or 52-229-989-1159 (from outside the United
States).
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on August 4, 2022, at 09:00 a.m.
(Eastern Time). Following a brief summary, the conference call will
be opened to questions. To listen to the conference please join
through one of the following options:
ir.tenaris.com/events-and-presentations or
https://edge.media-server.com/mmc/p/5ds3uv62 If you wish to
participate in the Q&A session please register at the following
link:
https://register.vevent.com/register/BId203987dd43c496785e4092b58a1eaa1Please
connect 10 minutes before the scheduled start time.A replay of the
conference call will also be available on our webpage at:
ir.tenaris.com/events-and-presentations
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 Condensed Interim Income
Statement
|
(all amounts in thousands of U.S. dollars) |
Three-month period ended June 30, |
Six-month period ended June 30, |
|
|
2022 |
2021 |
2022 |
2021 |
|
|
Unaudited |
Unaudited |
|
Net sales |
2,800,474 |
1,528,511 |
5,167,515 |
2,710,300 |
|
Cost of sales |
(1,735,342) |
(1,113,782) |
(3,257,284) |
(1,996,781) |
|
Gross profit |
1,065,132 |
414,729 |
1,910,231 |
713,519 |
|
Selling, general and administrative expenses |
(411,740) |
(296,785) |
(776,662) |
(551,811) |
|
Other operating income (expense), net |
9,453 |
33,750 |
13,530 |
41,577 |
|
Operating income |
662,845 |
151,694 |
1,147,099 |
203,285 |
|
Finance Income |
6,441 |
21,517 |
15,266 |
27,215 |
|
Finance Cost |
(6,127) |
(5,831) |
(7,962) |
(10,506) |
|
Other financial results |
(11,771) |
(6,074) |
(19,879) |
4,680 |
|
Income before equity in earnings of non-consolidated
companies and income tax |
651,388 |
161,306 |
1,134,524 |
224,674 |
|
Equity in earnings of non-consolidated companies |
103,102 |
145,829 |
190,706 |
224,970 |
|
Income before income tax |
754,490 |
307,135 |
1,325,230 |
449,644 |
|
Income tax |
(120,464) |
(16,953) |
(187,771) |
(58,697) |
|
Income for the period |
634,026 |
290,182 |
1,137,459 |
390,947 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Shareholders' equity |
636,718 |
293,940 |
1,139,492 |
400,286 |
|
Non-controlling interests |
(2,692) |
(3,758) |
(2,033) |
(9,339) |
|
|
634,026 |
290,182 |
1,137,459 |
390,947 |
Consolidated Condensed Interim Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At June 30, 2022 |
|
At December 31, 2021 |
|
|
Unaudited |
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
5,662,744 |
|
|
5,824,801 |
|
|
Intangible assets, net |
1,358,935 |
|
|
1,372,176 |
|
|
Right-of-use assets, net |
109,340 |
|
|
108,738 |
|
|
Investments in non-consolidated companies |
1,539,006 |
|
|
1,383,774 |
|
|
Other investments |
184,222 |
|
|
320,254 |
|
|
Derivative financial instruments |
8,279 |
|
|
7,080 |
|
|
Deferred tax assets |
264,161 |
|
|
245,547 |
|
|
Receivables, net |
228,610 |
9,355,297 |
|
205,888 |
9,468,258 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
3,370,139 |
|
|
2,672,593 |
|
|
Receivables and prepayments, net |
134,661 |
|
|
96,276 |
|
|
Current tax assets |
201,786 |
|
|
193,021 |
|
|
Trade receivables, net |
1,890,697 |
|
|
1,299,072 |
|
|
Derivative financial instruments |
27,064 |
|
|
4,235 |
|
|
Other investments |
559,827 |
|
|
397,849 |
|
|
Cash and cash equivalents |
636,571 |
6,820,745 |
|
318,127 |
4,981,173 |
|
Total assets |
|
16,176,042 |
|
|
14,449,431 |
|
EQUITY |
|
|
|
|
|
|
Shareholders' equity |
|
12,649,677 |
|
|
11,960,578 |
|
Non-controlling interests |
|
144,371 |
|
|
145,124 |
|
Total equity |
|
12,794,048 |
|
|
12,105,702 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
16,931 |
|
|
111,432 |
|
|
Lease liabilities |
83,315 |
|
|
82,694 |
|
|
Deferred tax liabilities |
279,799 |
|
|
274,721 |
|
|
Other liabilities |
236,224 |
|
|
231,681 |
|
|
Provisions |
93,312 |
709,581 |
|
83,556 |
784,084 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
727,497 |
|
|
219,501 |
|
|
Lease liabilities |
29,357 |
|
|
34,591 |
|
|
Derivative financial instruments |
12,811 |
|
|
11,328 |
|
|
Current tax liabilities |
232,437 |
|
|
143,486 |
|
|
Other liabilities |
317,846 |
|
|
203,725 |
|
|
Provisions |
10,045 |
|
|
9,322 |
|
|
Customer advances |
343,613 |
|
|
92,436 |
|
|
Trade payables |
998,807 |
2,672,413 |
|
845,256 |
1,559,645 |
|
Total liabilities |
|
3,381,994 |
|
|
2,343,729 |
|
Total equity and liabilities |
|
16,176,042 |
|
|
14,449,431 |
Consolidated Condensed Interim Statement of Cash
Flows
| (all amounts in thousands of
U.S. dollars) |
|
Three-month period ended June 30, |
Six-month period ended June 30, |
|
|
|
2022 |
2021 |
2022 |
2021 |
|
|
|
Unaudited |
Unaudited |
|
Cash flows from operating activities |
|
|
|
|
|
|
Income for the period |
|
634,026 |
290,182 |
1,137,459 |
390,947 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
143,024 |
149,627 |
286,100 |
294,096 |
|
Income tax accruals less payments |
|
39,036 |
(12,658) |
45,951 |
(567) |
|
Equity in earnings of non-consolidated companies |
|
(103,102) |
(145,829) |
(190,706) |
(224,970) |
|
Interest accruals less payments, net |
|
(311) |
(12,001) |
(1,611) |
(12,047) |
|
Changes in provisions |
|
3,591 |
5,562 |
10,479 |
9,598 |
|
Reclassification of currency translation adjustment reserve |
|
(71,252) |
- |
(71,252) |
- |
|
Changes in working capital |
|
(198,471) |
(313,764) |
(807,099) |
(397,090) |
|
Currency translation adjustment and others |
|
(18,789) |
(11,472) |
(8,173) |
(39,826) |
|
Net cash provided by (used in) operating
activities |
|
427,752 |
(50,353) |
401,148 |
20,141 |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(74,409) |
(51,274) |
(141,343) |
(96,565) |
|
Changes in advance to suppliers of property, plant and
equipment |
|
(1,290) |
(2,624) |
(19,855) |
(5,728) |
|
Acquisition of subsidiaries, net of cash acquired |
|
(4,082) |
- |
(4,082) |
- |
|
Proceeds from disposal of property, plant and equipment and
intangible assets |
|
41,177 |
416 |
45,996 |
5,339 |
|
Dividends received from non-consolidated companies |
|
45,488 |
49,131 |
45,488 |
49,131 |
|
Changes in investments in securities |
|
(152,807) |
65,991 |
(43,571) |
242,923 |
|
Net cash (used in) provided by investing
activities |
|
(145,923) |
61,640 |
(117,367) |
195,100 |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Dividends paid |
|
(330,584) |
(165,275) |
(330,584) |
(165,275) |
| Dividends paid to
non-controlling interest in subsidiaries |
|
- |
(3,207) |
- |
(3,207) |
| Changes in non-controlling
interests |
|
1,622 |
- |
1,622 |
- |
| Payments of lease
liabilities |
|
(12,727) |
(10,404) |
(28,405) |
(26,304) |
| Proceeds from borrowings |
|
583,593 |
191,515 |
851,736 |
286,120 |
| Repayments of borrowings |
|
(185,032) |
(135,617) |
(441,176) |
(303,888) |
|
Net cash provided by (used in) financing
activities |
|
56,872 |
(122,988) |
53,193 |
(212,554) |
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
338,701 |
(111,701) |
336,974 |
2,687 |
|
|
|
|
|
|
|
|
Movement in cash and cash equivalents |
|
|
|
|
|
| At the beginning of the
period |
|
314,319 |
695,127 |
318,067 |
584,583 |
| Effect of exchange rate
changes |
|
(17,092) |
1,813 |
(19,113) |
(2,031) |
| Increase (decrease) in cash
and cash equivalents |
|
338,701 |
(111,701) |
336,974 |
2,687 |
|
|
|
635,928 |
585,239 |
635,928 |
585,239 |
Exhibit I – Alternative performance
measures
Alternative performance measures should be
considered in addition to, not as substitute for or superior to,
other measures of financial performance prepared in accordance with
IFRS
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 recurring 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 = Net income for the period + Income tax
charges +/- Equity in Earnings (losses) of non-consolidated
companies +/- Financial results + Depreciation and amortization +/-
Impairment charges/(reversals)
EBITDA is a non-IFRS alternative performance measure.
| (all amounts in thousands of
U.S. dollars) |
Three-month period ended June 30, |
Six-month period ended June 30, |
|
|
2022 |
2021 |
2022 |
2021 |
| Income for the period |
634,026 |
290,182 |
1,137,459 |
390,947 |
| Income tax |
120,464 |
16,953 |
187,771 |
58,697 |
| Equity in earnings of
non-consolidated companies |
(103,102) |
(145,829) |
(190,706) |
(224,970) |
| Financial Results |
11,457 |
(9,612) |
12,575 |
(21,389) |
| Depreciation and
amortization |
143,024 |
149,627 |
286,100 |
294,096 |
| EBITDA |
805,869 |
301,321 |
1,433,199 |
497,381 |
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.
Free cash flow is a non-IFRS alternative performance
measure.
|
(all amounts in thousands of U.S. dollars) |
Three-month period ended June 30, |
Six-month period ended June 30, |
|
|
2022 |
2021 |
2022 |
2021 |
| Net cash provided by (used in)
operating activities |
427,752 |
(50,353) |
401,148 |
20,141 |
| Capital expenditures |
(74,409) |
(51,274) |
(141,343) |
(96,565) |
| Free cash
flow |
353,343 |
(101,627) |
259,805 |
(76,424) |
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).
Net cash/debt is a non-IFRS alternative performance measure.
|
(all amounts in thousands of U.S. dollars) |
At June 30, |
|
|
2022 |
2021 |
| Cash and cash equivalents |
636,571 |
587,337 |
| Other current investments |
559,827 |
573,679 |
| Non-current investments |
177,594 |
286,264 |
| Derivatives hedging borrowings
and investments |
5,738 |
6,833 |
| Current borrowings |
(727,497) |
(310,344) |
| Non-current borrowings |
(16,931) |
(290,071) |
| Net cash /
(debt) |
635,302 |
853,698 |
Operating working capital days
Operating working capital is the difference
between the main operating components of current assets and current
liabilities. Operating working capital is a measure of a company’s
operational efficiency, and short-term financial health.
Operating working capital days is calculated in
the following manner:
Operating working capital days = [(Inventories +
Trade receivables – Trade payables – Customer advances) /
Annualized quarterly sales ] x 365
Operating working capital days is a non-IFRS alternative
performance measure.
|
(all amounts in thousands of U.S. dollars) |
At June 30, |
|
|
2022 |
2021 |
| Inventories |
3,370,139 |
2,145,560 |
| Trade Receivables |
1,890,697 |
1,093,496 |
| Customer Advances |
(343,613) |
(37,580) |
| Trade Payables |
(998,807) |
(730,089) |
| Operating Working
Capital |
3,918,416 |
2,471,387 |
| Annualized quarterly
sales |
11,201,896 |
6,114,044 |
| Operating working
capital days |
128 |
148 |
Giovanni SardagnaTenaris 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
