Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”)
today announced its results for the quarter ended September 30,
2023 in comparison with its results for the quarter ended September
30, 2022.
Summary of 2023 Third Quarter Results
|
|
3Q 2023 |
2Q 2023 |
3Q 2022 |
|
Net sales ($ million) |
3,238 |
|
4,075 |
|
(21 |
%) |
2,975 |
|
9 |
% |
|
Operating income ($ million) |
868 |
|
1,278 |
|
(32 |
%) |
803 |
|
8 |
% |
|
Net income* ($ million) |
547 |
|
1,136 |
|
(52 |
%) |
608 |
|
(10 |
%) |
|
Shareholders’ net income* ($ million) |
537 |
|
1,123 |
|
(52 |
%) |
606 |
|
(11 |
%) |
|
Earnings per ADS ($) |
0.91 |
|
1.90 |
|
(52 |
%) |
1.03 |
|
(11 |
%) |
|
Earnings per share ($) |
0.46 |
|
0.95 |
|
(52 |
%) |
0.51 |
|
(11 |
%) |
|
EBITDA** ($ million) |
1,004 |
|
1,409 |
|
(29 |
%) |
946 |
|
6 |
% |
|
EBITDA margin (% of net sales) |
31.0 |
% |
34.6 |
% |
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
* Net income in 3Q 2023 includes a non-cash charge of $144
million relating to the remeasurement and recycling of CTA to the
income statement, of our direct and indirect investment in
Usiminas. Excluding this one-off effect, for the quarter Net income
would have been $691 million. Earnings per share and per ADS would
have been $0.58 and $1.16, respectively.** EBITDA in 3Q 2023
includes a one-off gain of $32 million on the transfer of court
awards relating to Venezuelan nationalized assets. Excluding this
one-off gain EBITDA would have been $972 million (30.0%) in 3Q
2023.
Our third quarter sales declined 21%
sequentially reflecting activity and price declines throughout the
Americas, lower quarterly shipments to offshore projects, lower
pipeline shipments in Argentina as well as lower sales in market
segments such as European mechanical products. Our EBITDA,
excluding a one-off gain of $32 million on the transfer of court
awards relating to Venezuelan nationalized assets, amounted to $972
million, with the margin adjusting to changes in market prices in
the Americas. Our net income was affected by non-cash charges of
$144 million relating to the remeasurement and recycling of
currency translation reserve to the income statement, of our direct
and indirect (through Ternium) investment in Usiminas, following
the purchase of additional Usiminas shares by both companies.
Our free cash flow for the quarter amounted to
$1.1 billion, and has reached $3.1 billion on a cumulative basis
for the current fiscal year. This included a further reduction in
working capital of $415 million during the quarter. After investing
$100 million on the acquisition of additional pipe processing
assets in the Houston area of the United States and a pipe coating
facility in Italy, our net cash position rose to $3.3 billion at
September 30, 2023.
Interim Dividend Payment
Our board of directors approved the payment of an interim
dividend of $0.20 per share ($0.40 per ADS), or approximately $236
million. The payment date will be November 22, 2023 , with an
ex-dividend date on November 20, 2023 and record date on November
21, 2023.
Tenaris Approves Share Buyback Program
Tenaris’s Board of Directors approved a share
buyback program of up to $1.2 billion (which, at the closing price
of November 1, 2023 on the Milan Stock Exchange would represent
75.4 million shares, or 6.4% of Tenaris’s outstanding shares), to
be executed within a year, with the intention to cancel the
ordinary shares acquired through the program.
The decision and opportunity of initiating the
buyback program is driven by the company’s significant cash flow
generation and strong balance sheet.
The buyback program will be carried out under
the authority granted by the annual general meeting of shareholders
held on June 2, 2020, which may be renewed or extended, up to a
maximum of 10% of the Company´s shares.
The buyback program is expected to be launched
in the near future. The program will be divided in tranches and
purchases will be executed through a primary financial
institution.
The buybacks may be ceased, paused and continued
at any time, subject to compliance with applicable laws and
regulations.
Tenaris will provide updates on the buyback program via press
releases and on the Investors section of its corporate website. The
buybacks will be carried out subject to market conditions and in
compliance with applicable laws and regulations, including the
Market Abuse Regulation 596/2014 and the Commission Delegated
Regulation (EU) 2016/1052.
Market Background and Outlook
In the past few months, oil prices have remained
above $80 per barrel, despite concerns about the impact of high
interest rates on the global economy. US natural gas prices are
rising along with LNG and European natural gas prices, which are
showing high volatility in the face of potential supply
interruptions and a positive demand outlook.
In the United States, the decline in oil and gas
drilling activity seen during the year so far is bottoming out and
is expected to recover as we go into the next year. Oil inventories
have declined to a low level as have the stock of drilled but
uncompleted wells (DUCs). At the same time, OCTG inventories are
coming down towards more normal levels. In Canada, drilling
activity has fallen below the level of the previous year but is
expected to recover in 2024 with additional takeaway and LNG
capacity coming on stream. Around the world, offshore drilling has
been increasing with a focus on highly productive reserves such as
those in Brazil and Guyana. In the Middle East, activity has
increased this year and is expected to increase further.
In the fourth quarter, our sales in the Americas
will be affected by the ongoing adjustment in price levels (which
continue to be affected by imports), while our sales in the Middle
East and for offshore projects should increase and support our
total sales. Our EBITDA margin will decline reflecting lower prices
in the Americas and our free cash flow will adjust to a lower
EBITDA and a more stable working capital position.
Wind Farm Investment
In October, we put into full operation, with its
24 turbines, our Buena Ventura Wind Farm in Argentina. The wind
farm is supplying 103.2 MW of power, through the interconnected
grid, to our industrial facilities in Campana, close to 50% of its
total electric power requirements and will reduce our CO2 emissions
at the facility by 152,000 tons per year.
On November 1, 2023, following a successful bid
for priority connection rights to the interconnected grid, the
Company’s Board of Directors approved an investment plan to build a
second wind farm in Argentina at a cost of approximately $214
million, which would supply a further 30% of the current energy
requirements of our facilities in Campana, and reduce our CO2
emissions by a further 102,500 tons per year. This investment is
expected to be completed during 2025.
Analysis of 2023 Third 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) |
3Q 2023 |
2Q 2023 |
3Q 2022 |
|
Seamless |
744 |
844 |
(12 |
%) |
750 |
(1 |
%) |
|
Welded |
169 |
255 |
(34 |
%) |
106 |
60 |
% |
|
Total |
913 |
1,099 |
(17 |
%) |
856 |
7 |
% |
|
|
|
|
|
|
|
|
|
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 |
3Q 2023 |
2Q 2023 |
3Q 2022 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
1,700 |
|
2,142 |
|
(21 |
%) |
1,761 |
|
(3 |
%) |
|
South America |
608 |
|
893 |
|
(32 |
%) |
600 |
|
1 |
% |
|
Europe |
231 |
|
270 |
|
(14 |
%) |
190 |
|
22 |
% |
|
Asia Pacific, Middle East and Africa |
556 |
|
612 |
|
(9 |
%) |
280 |
|
98 |
% |
|
Total net sales ($ million) |
3,095 |
|
3,918 |
|
(21 |
%) |
2,832 |
|
9 |
% |
|
Operating income ($ million) |
841 |
|
1,251 |
|
(33 |
%) |
780 |
|
8 |
% |
|
Operating margin (% of sales) |
27.2 |
% |
31.9 |
% |
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net sales of tubular products and services
decreased 21% sequentially and increased 9% year on year. On a
sequential basis volumes shipped decreased 17% and average selling
prices decreased 5%. In North America, activity and shipments
declined in the US onshore market and in the Gulf of Mexico, with
price declines across the region, while sales in Canada were held
back by lower activity from key customers. In South America we had
a further decline in sales for pipelines in Argentina, and lower
sales of offshore OCTG and line pipe in Brazil following
exceptionally high sales in the previous quarter. In Europe we had
lower sales of mechanical pipe products to distributors amidst a
declining market environment. In the AMEA region we had lower sales
in Iraq, Egypt and Indonesia.
Operating results from tubular products and
services amounted to a gain of $841 million in the third quarter of
2023 compared to a gain of $1,251 million in the previous quarter
and $780 million in the third quarter of 2022. During the quarter,
operating income includes a non-recurring gain of $32 million
corresponding to the sale of the awards related to the Company’s
Venezuelan nationalized assets. The decline in operating income
during the quarter is related to the decrease in sales due to both
volume and price declines together with an increase in unit costs
due to higher raw material costs and a negative industrial
performance and absorption of fixed and semi-fixed costs associated
with lower volumes.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
3Q 2023 |
2Q 2023 |
3Q 2022 |
|
Net sales ($ million) |
143 |
|
157 |
|
(9 |
%) |
143 |
|
0 |
% |
|
Operating income ($ million) |
27 |
|
27 |
|
0 |
% |
23 |
|
17 |
% |
|
Operating margin (% of sales) |
19.0 |
% |
17.3 |
% |
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net sales of other products and services
decreased 9% sequentially and remained flat year on year.
Sequentially, sales declined mainly due to lower sales of oilfield
services in Argentina and lower sales of pipes for plumbing
applications in Italy.
Selling, general and administrative
expenses, or SG&A, amounted to $433
million, or 13.4% of net sales, in the third quarter of 2023,
compared to $529 million, 13.0% in the previous quarter and $403
million, 13.6% in the third quarter of 2022. Sequentially, our
SG&A expenses decreased mainly due to lower shipment costs due
to a reduction in volumes shipped and lower provisions for
contingencies.
Other operating results
amounted to a net gain of $36 million in the third quarter of 2023,
compared to a net loss of $1 million in the previous quarter and $2
million net loss in the third quarter of 2022. During the quarter
other operating income includes a non-recurring gain of $32 million
corresponding to the transfer of court awards related to the
Company’s Venezuelan nationalized assets.
Financial results amounted to a
gain of $67 million in the third quarter of 2023, compared to a
gain of $40 million in the previous quarter and a loss of $29
million in the third quarter of 2022. Net finance income increased
$28 million sequentially due to the increase in the net cash
position.
Equity in earnings of non-consolidated
companies generated a loss of $110 million in the third
quarter of 2023, compared to a gain of $96 million in the previous
quarter and a gain of $5 million in the third quarter of 2022. The
result of the quarter includes a non-cash loss of $144 million from
our investment in Usiminas ($26 million from our direct investment
in Usiminas and $118 million from our indirect investment in
Usiminas through Ternium), related to the fair value measurement of
the shares and the result of recycling Ternium´s negative
accumulated currency translation reserve to the income
statement.
Income tax charge amounted to
$278 million in the third quarter of 2023, the same as in the
previous quarter and compared to $171 million in the third quarter
of 2022. Income tax of the quarter includes a net $62 million
charge from foreign exchange effects net of inflation adjustments,
mainly in Argentina and Mexico.
Cash Flow and Liquidity of 2023 Third
Quarter
Net cash generated by operating activities
during the third quarter of 2023 was $1.3 billion, compared to $1.3
billion in the previous quarter and $242 million in the third
quarter of 2022. During the third quarter of 2023 cash generated by
operating activities includes a reduction in working capital of
$415 million mainly related to a reduction in trade receivables of
$422 million.
With capital expenditures of $170 million, our
free cash flow amounted to $1.1 billion during the quarter and our
net cash position amounted to $3.3 billion at September 30,
2023.
Analysis of 2023 First Nine Months Results
|
|
9M 2023 |
9M 2022 |
Increase/(Decrease) |
|
Net sales ($ million) |
11,454 |
|
8,142 |
|
41 |
% |
|
Operating income ($ million) |
3,497 |
|
1,950 |
|
79 |
% |
|
Net income* ($ million) |
2,812 |
|
1,746 |
|
61 |
% |
|
Shareholders’ net income ($ million) |
2,789 |
|
1,746 |
|
60 |
% |
|
Earnings per ADS ($) |
4.72 |
|
2.96 |
|
59 |
% |
|
Earnings per share ($) |
2.36 |
|
1.48 |
|
59 |
% |
|
EBITDA** ($ million) |
3,890 |
|
2,379 |
|
64 |
% |
|
EBITDA margin (% of net sales) |
34.0 |
% |
29.2 |
% |
|
|
|
|
|
|
|
|
* Net income in 9M 2023 includes a non-cash charge of $144
million relating to the remeasurement and recycling of CTA to the
income statement, of our direct and indirect investment in
Usiminas. Excluding this one-off effect, for the period Net income
would have been $2,956 million. Earnings per share and per ADS
would have been $2.48 and $4.97, respectively.** EBITDA in 9M 2023
includes a one-off gain of $32 million on the transfer of court
awards relating to Venezuelan nationalized assets. Excluding this
one-off gain EBITDA would have been $3,922 million (34.2%) in the
period.
The following table shows our net sales by business segment for
the periods indicated below:
|
Net sales ($ million) |
9M 2023 |
9M 2022 |
Increase/(Decrease) |
|
Tubes |
10,987 |
96 |
% |
7,667 |
94 |
% |
43 |
% |
|
Others |
467 |
4 |
% |
475 |
6 |
% |
(2 |
%) |
|
Total |
11,454 |
|
8,142 |
|
41 |
% |
|
|
|
|
|
|
|
|
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) |
9M 2023 |
9M 2022 |
Increase/(Decrease) |
|
Seamless |
2,428 |
2,337 |
4 |
% |
|
Welded |
707 |
231 |
206 |
% |
|
Total |
3,136 |
2,568 |
22 |
% |
|
|
|
|
|
|
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 |
9M 2023 |
9M 2022 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
6,071 |
|
4,691 |
|
29 |
% |
|
South America |
2,476 |
|
1,411 |
|
76 |
% |
|
Europe |
754 |
|
681 |
|
11 |
% |
|
Asia Pacific, Middle East and Africa |
1,687 |
|
884 |
|
91 |
% |
|
Total net sales ($ million) |
10,987 |
|
7,667 |
|
43 |
% |
|
Operating income ($ million) |
3,403 |
|
1,887 |
|
80 |
% |
|
Operating margin (% of sales) |
31.0 |
% |
24.6 |
% |
|
|
|
|
|
|
|
|
Net sales of tubular products and services
increased 43% to $10,987 million in the first nine months of 2023,
compared to $7,667 million in the first nine months of 2022 due to
an increase of 22% in volumes (amost entirely welded products) and
a 17% increase in average selling prices. Sales increased in all
regions, mainly in the Americas and AMEA, with the recovey being in
both volumes and prices. Average drilling activity in the first
nine months of 2023 increased only 1% in the United States &
Canada and 13% internationally compared to the first nine months of
2022.
Operating results from tubular products and
services amounted to a gain of $3,403 million in the first nine
months of 2023 compared to $1,887 million in the first nine months
of 2022. The improvement in operating results was driven by the
recovery in sales and margins, as higher tubes prices and an
improvement in industrial performance due to the increased levels
of activity and utilization of production capacity more than offset
the increase in raw material and energy costs.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
9M 2023 |
9M 2022 |
Increase/(Decrease) |
|
Net sales ($ million) |
467 |
|
475 |
|
(2 |
%) |
|
Operating income ($ million) |
94 |
|
63 |
|
49 |
% |
|
Operating margin (% of sales) |
20.1 |
% |
13.2 |
% |
|
|
|
|
|
|
|
|
Net sales of other products and services
decreased 2% to $467 million in the first nine months of 2023,
compared to $475 million in the first nine months of 2022, mainly
due to lower sales of excess raw materials and pipes for plumbing
applications in Italy, partially offset by an increase in sales of
sucker rods, oilfield services in Argentina and coiled tubing.
Selling, general and administrative
expenses, or SG&A, amounted to $1,449 million in the
first nine months of 2023, representing 12.6% of sales, and $1,180
million in the first nine months of 2022, representing 14.5% 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 $41 million in the first nine months of
2023, compared to a net gain of $12 million in the first nine
months of 2022. In the first nine months of 2023 other operating
income includes a non-recurring gain of $33 million corresponding
to the transfer of the awards related to the Company’s Venezuelan
nationalized assets. In the first nine months of 2022 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.
Financial results amounted to a
gain of $128 million in the first nine months of 2023, compared to
a loss of $42 million in the first nine months of 2022. The better
financial results are due to higher net finance income related to
higher interest rates on a stronger financial position and positive
foreign exchange results.
Equity in earnings of non-consolidated
companies generated a gain of $39 million in the first
nine months of 2023, compared to a gain of $196 million in the
first nine months of 2022. The result of the first nine months of
2023 includes a non-cash loss of $144 million from our investment
in Usiminas ($26 million from our direct investment in Usiminas and
$118 million from our indirect investment in Usiminas through
Ternium), related to the fair value measurement of the shares and
the result of recycling Ternium´s negative accumulated currency
translation reserve to the income statement. The result of the
first nine months of 2022 includes a $32 million loss from an
impairment in Usiminas ($19 million from our direct investment in
Usiminas and $13 million from our indirect investment in Usiminas
through Ternium) and an impairment 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).
Income tax amounted to a charge
of $852 million in the first nine months of 2023, compared to $359
million in the first nine months of 2022. The increase in income
tax reflects better results at several subsidiaries.
Cash Flow and Liquidity of 2023 First Nine
Months
Net cash provided by operating activities during
the first nine months of 2023 amounted to $3.6 billion (including a
decrease in working capital of $248 million), compared to $643
million (net of an increase in working capital of $1.4 billion) in
the first nine months of 2022.
Capital expenditures amounted to $453 million in
the first nine months of 2023, compared to $271 million in the
first nine months of 2022. Free cash flow amounted to $3.1 billion
in the first nine months of 2023, compared to $372 million in the
first nine months of 2022.
Our net cash position amounted to $3.3 billion
at September 30, 2023, compared to $0.9 billion at December 31,
2022.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on November 2, 2023, at 08:00 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/mmvgfe8aIf you wish to
participate in the Q&A session please register at the following
link:https://register.vevent.com/register/BI438c41074e8343048d87bb81a38e9165Please
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 endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2023 |
2022 |
2023 |
2022 |
|
|
Unaudited |
Unaudited |
|
Net sales |
3,237,836 |
|
2,974,801 |
|
11,453,930 |
|
8,142,316 |
|
|
Cost of sales |
(1,973,381 |
) |
(1,766,486 |
) |
(6,548,324 |
) |
(5,023,770 |
) |
|
Gross profit |
1,264,455 |
|
1,208,315 |
|
4,905,606 |
|
3,118,546 |
|
|
Selling, general and administrative expenses |
(432,682 |
) |
(403,435 |
) |
(1,448,765 |
) |
(1,180,097 |
) |
|
Other operating income (expense), net |
36,128 |
|
(1,755 |
) |
40,604 |
|
11,775 |
|
|
Operating income |
867,901 |
|
803,125 |
|
3,497,445 |
|
1,950,224 |
|
|
Finance Income |
56,100 |
|
26,998 |
|
149,853 |
|
42,264 |
|
|
Finance Cost |
(19,179 |
) |
(17,741 |
) |
(87,103 |
) |
(25,703 |
) |
|
Other financial results, net |
30,565 |
|
(38,368 |
) |
65,116 |
|
(58,247 |
) |
|
Income before equity in earnings of non-consolidated
companies and income tax |
935,387 |
|
774,014 |
|
3,625,311 |
|
1,908,538 |
|
|
Equity in (losses) earnings of non-consolidated companies |
(110,382 |
) |
5,295 |
|
38,545 |
|
196,001 |
|
|
Income before income tax |
825,005 |
|
779,309 |
|
3,663,856 |
|
2,104,539 |
|
|
Income tax |
(278,200 |
) |
(171,239 |
) |
(851,804 |
) |
(359,010 |
) |
|
Income for the period |
546,805 |
|
608,070 |
|
2,812,052 |
|
1,745,529 |
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Shareholders' equity |
537,311 |
|
606,470 |
|
2,788,967 |
|
1,745,962 |
|
|
Non-controlling interests |
9,494 |
|
1,600 |
|
23,085 |
|
(433 |
) |
|
|
546,805 |
|
608,070 |
|
2,812,052 |
|
1,745,529 |
|
Consolidated Condensed Interim Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At September 30, 2023 |
|
At December 31, 2022 |
|
|
Unaudited |
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
5,910,555 |
|
|
5,556,263 |
|
|
Intangible assets, net |
1,336,609 |
|
|
1,332,508 |
|
|
Right-of-use assets, net |
116,976 |
|
|
111,741 |
|
|
Investments in non-consolidated companies |
1,602,494 |
|
|
1,540,646 |
|
|
Other investments |
566,475 |
|
|
119,902 |
|
|
Deferred tax assets |
195,332 |
|
|
208,870 |
|
|
Receivables, net |
154,291 |
9,882,732 |
|
211,720 |
9,081,650 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
3,884,882 |
|
|
3,986,929 |
|
|
Receivables and prepayments, net |
247,427 |
|
|
183,811 |
|
|
Current tax assets |
283,096 |
|
|
243,136 |
|
|
Trade receivables, net |
2,169,293 |
|
|
2,493,940 |
|
|
Derivative financial instruments |
11,113 |
|
|
30,805 |
|
|
Other investments |
2,496,747 |
|
|
438,448 |
|
|
Cash and cash equivalents |
864,043 |
9,956,601 |
|
1,091,527 |
8,468,596 |
|
Total assets |
|
19,839,333 |
|
|
17,550,246 |
|
EQUITY |
|
|
|
|
|
|
Shareholders' equity |
|
16,229,531 |
|
|
13,905,709 |
|
Non-controlling interests |
|
170,592 |
|
|
128,728 |
|
Total equity |
|
16,400,123 |
|
|
14,034,437 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
25,248 |
|
|
46,433 |
|
|
Lease liabilities |
86,401 |
|
|
83,616 |
|
|
Deferred tax liabilities |
447,053 |
|
|
269,069 |
|
|
Other liabilities |
249,774 |
|
|
230,142 |
|
|
Provisions |
102,040 |
910,516 |
|
98,126 |
727,386 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
597,493 |
|
|
682,329 |
|
|
Lease liabilities |
32,778 |
|
|
28,561 |
|
|
Derivative financial instruments |
5,563 |
|
|
7,127 |
|
|
Current tax liabilities |
379,724 |
|
|
376,240 |
|
|
Other liabilities |
324,188 |
|
|
260,614 |
|
|
Provisions |
29,206 |
|
|
11,185 |
|
|
Customer advances |
160,533 |
|
|
242,910 |
|
|
Trade payables |
999,209 |
2,528,694 |
|
1,179,457 |
2,788,423 |
|
Total liabilities |
|
3,439,210 |
|
|
3,515,809 |
|
Total equity and liabilities |
|
19,839,333 |
|
|
17,550,246 |
Consolidated Condensed Interim Statement of Cash
Flows
| (all amounts in thousands of
U.S. dollars) |
|
Three-month period endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
|
2023 |
2022 |
2023 |
2022 |
|
|
|
Unaudited |
Unaudited |
|
Cash flows from operating activities |
|
|
|
|
|
|
Income for the period |
|
546,805 |
|
608,070 |
|
2,812,052 |
|
1,745,529 |
|
|
Adjustments for: |
|
|
- |
|
|
|
|
Depreciation and amortization |
|
136,129 |
|
142,488 |
|
392,163 |
|
428,588 |
|
|
Income tax accruals less payments |
|
76,994 |
|
72,639 |
|
134,168 |
|
118,590 |
|
|
Equity in earnings of non-consolidated companies |
|
110,382 |
|
(5,295 |
) |
(38,545 |
) |
(196,001 |
) |
|
Interest accruals less payments, net |
|
(22,986 |
) |
6,763 |
|
(44,926 |
) |
5,152 |
|
|
Changes in provisions |
|
(17,998 |
) |
(1,210 |
) |
21,935 |
|
9,269 |
|
|
Reclassification of currency translation adjustment reserve |
|
- |
|
- |
|
- |
|
(71,252 |
) |
|
Changes in working capital |
|
414,887 |
|
(625,306 |
) |
248,125 |
|
(1,449,130 |
) |
|
Others, including currency translation adjustment |
|
52,721 |
|
43,978 |
|
34,366 |
|
52,530 |
|
| Net cash provided by
operating activities |
|
1,296,934 |
|
242,127 |
|
3,559,338 |
|
643,275 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(170,376 |
) |
(129,457 |
) |
(452,625 |
) |
(270,800 |
) |
|
Changes in advance to suppliers of property, plant and
equipment |
|
(1,342 |
) |
14,062 |
|
902 |
|
(5,793 |
) |
|
Acquisition of subsidiaries, net of cash acquired |
|
(100,311 |
) |
- |
|
(104,419 |
) |
(4,082 |
) |
|
Additions to associated companies |
|
(22,661 |
) |
- |
|
(22,661 |
) |
- |
|
|
Loan to non-consolidated companies |
|
(1,427 |
) |
- |
|
(2,662 |
) |
- |
|
|
Proceeds from disposal of property, plant and equipment and
intangible assets |
|
648 |
|
772 |
|
9,023 |
|
46,768 |
|
|
Dividends received from non-consolidated companies |
|
- |
|
- |
|
43,513 |
|
45,488 |
|
|
Changes in investments in securities |
|
(809,796 |
) |
128,746 |
|
(2,597,425 |
) |
85,175 |
|
| Net cash (used in)
provided by investing activities |
|
(1,105,265 |
) |
14,123 |
|
(3,126,354 |
) |
(103,244 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Dividends paid |
|
- |
|
- |
|
(401,383 |
) |
(330,584 |
) |
| Dividends paid to
non-controlling interest in subsidiaries |
|
(1,530 |
) |
(10,432 |
) |
(18,967 |
) |
(10,432 |
) |
| Changes in non-controlling
interests |
|
2,033 |
|
(5,128 |
) |
3,772 |
|
(3,506 |
) |
| Payments of lease
liabilities |
|
(12,199 |
) |
(10,431 |
) |
(35,968 |
) |
(38,836 |
) |
| Proceeds from borrowings |
|
326,185 |
|
497,982 |
|
1,358,223 |
|
1,349,718 |
|
| Repayments of borrowings |
|
(381,886 |
) |
(352,411 |
) |
(1,524,973 |
) |
(793,587 |
) |
|
Net cash (used in) provided by financing
activities |
|
(67,397 |
) |
119,580 |
|
(619,296 |
) |
172,773 |
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
124,272 |
|
375,830 |
|
(186,312 |
) |
712,804 |
|
|
|
|
|
|
|
|
|
Movement in cash and cash equivalents |
|
|
|
|
|
| At the beginning of the
period |
|
755,271 |
|
635,928 |
|
1,091,433 |
|
318,067 |
|
| Effect of exchange rate
changes |
|
(15,531 |
) |
(20,955 |
) |
(41,109 |
) |
(40,068 |
) |
| Increase (decrease) in cash
and cash equivalents |
|
124,272 |
|
375,830 |
|
(186,312 |
) |
712,804 |
|
|
|
|
864,012 |
|
990,803 |
|
864,012 |
|
990,803 |
|
|
|
|
|
|
|
|
|
|
|
|
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 endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2023 |
2022 |
2023 |
2022 |
|
Income for the period |
546,805 |
|
608,070 |
|
2,812,052 |
|
1,745,529 |
|
| Income tax charge |
278,200 |
|
171,239 |
|
851,804 |
|
359,010 |
|
| Equity in (losses) earnings of
non-consolidated companies |
110,382 |
|
(5,295 |
) |
(38,545 |
) |
(196,001 |
) |
| Financial Results |
(67,486 |
) |
29,111 |
|
(127,866 |
) |
41,686 |
|
| Depreciation and
amortization |
136,129 |
|
142,488 |
|
392,163 |
|
428,588 |
|
| EBITDA |
1,004,030 |
|
945,613 |
|
3,889,608 |
|
2,378,812 |
|
| |
|
|
|
|
|
|
|
|
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 endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2023 |
2022 |
2023 |
2022 |
| Net cash provided by operating
activities |
1,296,934 |
|
242,127 |
|
3,559,338 |
|
643,275 |
|
| Capital expenditures |
(170,376 |
) |
(129,457 |
) |
(452,625 |
) |
(270,800 |
) |
| Free cash
flow |
1,126,558 |
|
112,670 |
|
3,106,713 |
|
372,475 |
|
| |
|
|
|
|
|
|
|
|
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 September 30, |
|
|
2023 |
2022 |
|
Cash and cash equivalents |
864,043 |
|
994,854 |
|
| Other current investments |
2,496,747 |
|
434,566 |
|
| Non-current investments |
560,489 |
|
144,222 |
|
| Derivatives hedging borrowings
and investments |
766 |
|
1,284 |
|
| Current borrowings |
(597,493 |
) |
(827,962 |
) |
| Non-current borrowings |
(25,248 |
) |
(47,164 |
) |
| Net cash |
3,299,304 |
|
699,800 |
|
| |
|
|
|
|
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 September 30, |
|
|
2023 |
2022 |
|
Inventories |
3,884,882 |
|
3,679,135 |
|
| Trade receivables |
2,169,293 |
|
2,013,660 |
|
| Customer advances |
(160,533 |
) |
(324,623 |
) |
| Trade payables |
(999,209 |
) |
(1,011,037 |
) |
| Operating working
capital |
4,894,433 |
|
4,357,135 |
|
| Annualized quarterly
sales |
12,951,344 |
|
11,899,204 |
|
| Operating working capital
days |
138 |
|
134 |
|
| |
|
|
|
|
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
