Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”)
today announced its results for the quarter ended June 30, 2024 in
comparison with its results for the quarter ended June 30, 2023.
Summary of 2024 Second Quarter
Results
(Comparison with first quarter of 2024 and second quarter of
2023)
|
|
2Q 2024 |
1Q 2024 |
2Q 2023 |
|
Net sales ($ million) |
3,322 |
|
3,442 |
|
(3 |
%) |
4,075 |
|
(18 |
%) |
|
Operating income ($ million) |
512 |
|
812 |
|
(37 |
%) |
1,278 |
|
(60 |
%) |
|
Net income ($ million) |
348 |
|
750 |
|
(54 |
%) |
1,136 |
|
(69 |
%) |
|
Shareholders’ net income ($ million) |
335 |
|
737 |
|
(55 |
%) |
1,123 |
|
(70 |
%) |
|
Earnings per ADS ($) |
0.59 |
|
1.27 |
|
(54 |
%) |
1.90 |
|
(69 |
%) |
|
Earnings per share ($) |
0.29 |
|
0.64 |
|
(54 |
%) |
0.95 |
|
(69 |
%) |
|
EBITDA* ($ million) |
650 |
|
987 |
|
(34 |
%) |
1,409 |
|
(54 |
%) |
|
EBITDA margin (% of net sales) |
19.6 |
% |
28.7 |
% |
|
34.6 |
% |
|
*EBITDA in 2Q 2024 includes a $171 million loss
from the provision for ongoing litigation related to the
acquisition of a participation in Usiminas. If this charge was not
included EBITDA would have amounted to $821 million, or 24.7% of
sales. For more information, see note 18 “Contingencies,
commitments and restrictions to the distribution of profits - CSN
claims relating to the January 2012 acquisition of Usiminas”
included in the company’s Consolidated Condensed Interim Financial
Statements as of June 30, 2024.
Net sales in the second quarter were more
resilient than expected with shipments remaining at a high level in
the Middle East, the United States and in offshore regions, while
average selling prices benefited from a favorable mix of products.
Margins, however, were affected by the ongoing decline in OCTG
prices in the Americas, and net income was affected by an
extraordinary provision recorded in other operating income and
expenses.
During the quarter, our free cash flow amounted
to $774 million and, after spending $459 million on dividends and
$492 million on share buybacks, our positive net cash position
amounted to $3.8 billion at June 30, 2024.
Market Background and Outlook
The outlook for oil demand and supply remains
solid even if the announced rollback of OPEC+ voluntary production
cuts has introduced some uncertainty.
OCTG imports into the United States have
remained high through the year, while oil and gas drilling activity
is being affected by ongoing industry consolidation, low natural
gas prices and high financing costs for smaller operators. OCTG
inventories have risen and prices continue to fall.
Political and economic volatility is affecting
drilling activity in Mexico and Argentina, and there are delays in
defining the pipeline infrastructure investment required to further
develop the prolific Vaca Muerta shale.
In the rest of the world, demand from offshore
developments and for gas drilling associated with LNG projects
remains supportive going into 2025.
In the third quarter, our sales and EBITDA will
be affected by lower activity in the United States and Latin
America and the extended decline in OCTG prices in the Americas. As
anticipated, we will have maintenance stoppages at many of our
mills, including the installation of a new furnace at our Siderca
steel shop.
Considering this environment, we are acting to
reduce costs, increase competitiveness and align our industrial
system.
Analysis of 2024 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 2024 |
1Q 2024 |
2Q 2023 |
|
Seamless |
805 |
777 |
4 |
% |
844 |
(5 |
%) |
|
Welded |
228 |
269 |
(15 |
%) |
255 |
(11 |
%) |
|
Total |
1,033 |
1,046 |
(1 |
%) |
1,099 |
(6 |
%) |
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 2024 |
1Q 2024 |
2Q 2023 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
1,410 |
|
1,488 |
|
(5 |
%) |
2,142 |
|
(34 |
%) |
|
South America |
582 |
|
614 |
|
(5 |
%) |
893 |
|
(35 |
%) |
|
Europe |
267 |
|
226 |
|
18 |
% |
270 |
|
(1 |
%) |
|
Asia Pacific, Middle East and Africa |
810 |
|
804 |
|
1 |
% |
612 |
|
32 |
% |
|
Total net sales ($ million) |
3,069 |
|
3,132 |
|
(2 |
%) |
3,918 |
|
(22 |
%) |
|
Operating income ($ million) |
449 |
|
769 |
|
(42 |
%) |
1,251 |
|
(64 |
%) |
|
Operating margin (% of sales) |
14.6 |
% |
24.6 |
% |
|
31.9 |
% |
|
Net sales of tubular products and services
decreased 2% sequentially and 22% year on year. Although on a
sequential basis total volumes sold decreased 1%, seamless volumes
increased 4%. Average selling prices decreased 1% as a favorable
product mix offset price declines in the Americas. In North America
lower prices throughout the region were partially offset by higher
offshore sales in the Gulf of Mexico. In South America we had lower
OCTG prices in Argentina and Colombia and lower sales in the
Caribbean. In Asia Pacific, Middle East and Africa continued high
level of sales in Saudi Arabia and the UAE and a resumption of
sales in Kuwait were offset by lower sales in Algeria and Iraq and
offshore line pipe.
Operating results from tubular products and
services amounted to a gain of $449 million in the second quarter
of 2024 compared to a gain of $769 million in the previous quarter
and $1,251 million in the second quarter of 2023. Our Tubes
operating income in 2Q 2024 includes a $171 million loss from the
provision for ongoing litigation related to the acquisition of a
participation in Usiminas. On the other hand, operating income of
the quarter includes a gain amounting to $14 million from a
positive legal claim resolution in Mexico.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
2Q 2024 |
1Q 2024 |
2Q 2023 |
|
Net sales ($ million) |
253 |
|
310 |
|
(18 |
%) |
157 |
|
61 |
% |
|
Operating income ($ million) |
62 |
|
42 |
|
47 |
% |
27 |
|
129 |
% |
|
Operating margin (% of sales) |
24.7 |
% |
13.7 |
% |
|
17.3 |
% |
|
Net sales of other products and services
decreased 18% sequentially and increased 61% year on year.
Sequentially, sales declined mainly due to a decline in coating
sales following the conclusion of certain projects, partially
offset by higher sales of coiled tubing and oil services in
Argentina.
Selling, general and administrative
expenses, or SG&A, amounted to $497
million, or 15.0% of net sales, in the second quarter of 2024,
compared to $508 million, 14.8% in the previous quarter and $529
million, 13.0% in the second quarter of 2023. Sequentially, the
decline in SG&A is mainly due to a $30 million reduction in
depreciation and amortization following the final valuation of the
recently acquired coating assets, partially offset by an increase
in services and fees, taxes and other.
Other operating results
amounted to a loss of $170 million in the second quarter of 2024,
compared to a gain of $12 million in the previous quarter and a $1
million loss in the second quarter of 2023. In the second quarter
of 2024 we recorded a $171 million loss from provision for ongoing
litigation related to the acquisition of a participation in
Usiminas. For more information, see note 18 “Contingencies,
commitments and restrictions to the distribution of profits - CSN
claims relating to the January 2012 acquisition of Usiminas”
included in the company’s Consolidated Condensed Interim Financial
Statements as of June 30, 2024.
Financial results amounted to a
gain of $57 million in the second quarter of 2024, compared to a
loss of $25 million in the previous quarter and a gain of $40
million in the second quarter of 2023. Financial result of the
quarter is mainly attributable to a $53 million net finance income
from the net return of our portfolio investments.
Equity in (losses) earnings of
non-consolidated companies generated a loss of $83 million
in the second quarter of 2024, compared to a gain of $48 million in
the previous quarter and $96 million in the second quarter of 2023.
These results are mainly derived from our participation in Ternium
(NYSE:TX). The quarter includes an $83 million loss from the
provision for ongoing litigation related to the acquisition of a
participation in Usiminas on our investment in Ternium. For more
information, see note 18 “Contingencies, commitments and
restrictions to the distribution of profits - CSN claims relating
to the January 2012 acquisition of Usiminas” included in the
company’s Consolidated Condensed Interim Financial Statements as of
June 30, 2024.
Income tax charge amounted to
$138 million in the second quarter of 2024, compared to $85 million
in the previous quarter and $278 million in the second quarter of
2023. Despite lower income before tax, the tax charge of the
quarter was sequentially higher basically due to the impact of the
foreign exchange devaluation in Mexico mainly on the fiscal values
of fixed assets and inventory.
Cash Flow and Liquidity of 2024 Second
Quarter
Net cash generated by operating activities
during the second quarter of 2024 was $935 million, compared to
$887 million in the previous quarter and $1.3 billion in the second
quarter of 2023. During the second quarter of 2024 cash generated
by operating activities includes a net working capital reduction of
$285 million.
With capital expenditures of $161 million, our
free cash flow amounted to $774 million during the quarter. After a
dividend payment of $459 million in May 2024 and share buybacks of
$492 million in the quarter, our net cash position amounted to $3.8
billion at June 30, 2024.
Analysis of 2024 First Half Results
|
|
6M 2024 |
6M 2023 |
Increase/(Decrease) |
|
Net sales ($ million) |
6,763 |
|
8,216 |
|
(18 |
%) |
|
Operating income ($ million) |
1,323 |
|
2,630 |
|
(50 |
%) |
|
Net income ($ million) |
1,098 |
|
2,265 |
|
(52 |
%) |
|
Shareholders’ net income ($ million) |
1,072 |
|
2,252 |
|
(52 |
%) |
|
Earnings per ADS ($) |
1.87 |
|
3.81 |
|
(51 |
%) |
|
Earnings per share ($) |
0.93 |
|
1.91 |
|
(51 |
%) |
|
EBITDA* ($ million) |
1,637 |
|
2,886 |
|
(43 |
%) |
|
EBITDA margin (% of net sales) |
24.2 |
% |
35.1 |
% |
|
*EBITDA in 6M 2024 includes a $171 million loss
from the provision for ongoing litigation related to the
acquisition of a participation in Usiminas. If this charge was not
included EBITDA would have amounted to $1,808 million, or 26.7% of
sales. For more information, see note 18 “Contingencies,
commitments and restrictions to the distribution of profits - CSN
claims relating to the January 2012 acquisition of Usiminas”
included in the company’s Consolidated Condensed Interim Financial
Statements as of June 30, 2024.
Our sales in the first half of 2024 decreased
18% compared to the first half of 2023 as volumes of tubular
products shipped decreased 6% and tubes average selling prices
decreased 16% while sales in the Others segment increased 74%.
Following the decrease in sales, mainly due to the tubes average
price decline, EBITDA margin declined from 35.1% to 24.2% and
EBITDA declined 43%. EBITDA includes a $171 million loss from the
provision for ongoing litigation related to the acquisition of a
participation in Usiminas, included in other operating expenses.
Additionally, related to the same case, net income includes an $83
million loss from our participation in Ternium.
Cash flow provided by operating activities
amounted to $1.8 billion during the first half of 2024, including a
reduction in working capital of $276 million. After capital
expenditures of $333 million, our free cash flow amounted to $1.5
billion. Following a dividend payment of $459 million in May 2024
and share buybacks for $803 million in the semester, our positive
net cash position amounted to $3.8 billion at the end of June
2024.
The following table shows our net sales by business segment for
the periods indicated below:
|
Net sales ($ million) |
6M 2024 |
6M 2023 |
Increase/(Decrease) |
|
Tubes |
6,200 |
92 |
% |
7,892 |
96 |
% |
(21 |
%) |
|
Others |
563 |
8 |
% |
324 |
4 |
% |
74 |
% |
|
Total |
6,763 |
|
8,216 |
|
(18 |
%) |
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 2024 |
6M 2023 |
|
Increase/(Decrease) |
|
Seamless |
1,582 |
1,684 |
|
(6 |
%) |
|
Welded |
496 |
538 |
|
(8 |
%) |
|
Total |
2,078 |
2,222 |
|
(6 |
%) |
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 2024 |
6M 2023 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
2,896 |
|
4,371 |
|
(34 |
%) |
|
South America |
1,196 |
|
1,868 |
|
(36 |
%) |
|
Europe |
493 |
|
522 |
|
(6 |
%) |
|
Asia Pacific, Middle East and Africa |
1,614 |
|
1,131 |
|
43 |
% |
|
Total net sales ($ million) |
6,200 |
|
7,892 |
|
(21 |
%) |
|
Operating income ($ million) |
1,219 |
|
2,563 |
|
(52 |
%) |
|
Operating margin (% of sales) |
19.7 |
% |
32.5 |
% |
|
Net sales of tubular products and services
decreased 21% to $6,200 million in the first half of 2024, compared
to $7,892 million in the first half of 2023 due to a 6% decrease in
volumes and a 16% decrease in average selling prices. Price
declines were concentrated in the Americas, more so in North
America, and were partially offset by increases in Europe and Asia
Pacific, Middle East and Africa. Average drilling activity in the
first half of 2024 decreased 14% in the United States and Canada
and increased 3% internationally compared to the first half of
2023.
Operating results from tubular products and
services amounted to a gain of $1,219 million in the first half of
2024 compared to $2,563 million in the first half of 2023. The
decline in operating results is mainly due to the decline in
average selling prices and the corresponding impact on margins.
Additionally, in the first six months of 2024 our Tubes operating
income includes a charge of $171 million loss from the provision
for ongoing litigation related to the acquisition of a
participation in Usiminas, included in other operating expenses. On
the other hand, operating income in the first six months of 2024
includes gains amounting to $39 million from the positive
resolutions of legal claims in Mexico and Brazil.
Others
The following table indicates, for our Others business segment,
net sales, operating income and operating income as a percentage of
net sales for the periods indicated below:
|
Others |
6M 2024 |
6M 2023 |
Increase/(Decrease) |
|
Net sales ($ million) |
563 |
|
324 |
|
74 |
% |
|
Operating income ($ million) |
105 |
|
67 |
|
57 |
% |
|
Operating margin (% of sales) |
18.6 |
% |
20.6 |
% |
|
Net sales of other products and services
increased 74% to $563 million in the first half of 2024, compared
to $324 million in the first half of 2023. The increase in sales is
almost entirely due to the consolidation of the coating business
acquired at the end of 2023.
Operating results from other products and
services amounted to a gain of $105 million in the first half of
2024, compared to $67 million in the first half of 2023. Results
were mainly derived from our sucker rods business, our newly
acquired coating business and our oilfield services business in
Argentina.
Selling, general and administrative
expenses, or SG&A, amounted to $1,005 million in the
first half of 2024, representing 14.9% of sales, and $1,016 million
in the first half of 2023, representing 12.4% of sales. SG&A
expenses decreased 1% but increased as a percentage of sales due to
the 18% decline in revenues, mainly due to lower Tubes average
selling prices.
Other operating results
amounted to a loss of $157 million in the first six months of 2024,
compared to a gain of $4 million in the same period of 2023. In the
first six months of 2024 we recorded a $171 million loss from
provision for ongoing litigation related to the acquisition of a
participation in Usiminas. For more information, see note 18
“Contingencies, commitments and restrictions to the distribution of
profits - CSN claims relating to the January 2012 acquisition of
Usiminas” included in the company’s Consolidated Condensed Interim
Financial Statements as of June 30, 2024.
Financial results amounted to a
gain of $32 million in the first half of 2024, compared to a gain
of $60 million in the first half of 2023. While net finance income
increased due to a higher net financial position, other financial
results were negatively affected by a loss from the change in fair
value of U.S. dollar denominated Argentine bonds, while foreign
exchange results decreased in the first half of 2024 in respect to
the first half of 2023.
Equity in (losses) earnings of
non-consolidated companies generated a loss of $34 million
in the first half of 2024, compared to a gain of $149 million in
the first half of 2023. These results were mainly derived from our
equity investment in Ternium (NYSE:TX) and in the first six months
of 2024 were negatively affected by an $83 million loss from the
provision for ongoing litigation related to the acquisition of a
participation in Usiminas on our Ternium investment. For more
information, see note 18 “Contingencies, commitments and
restrictions to the distribution of profits - CSN claims relating
to the January 2012 acquisition of Usiminas” included in the
company’s Consolidated Condensed Interim Financial Statements as of
June 30, 2024.
Income tax amounted to a charge
of $223 million in the first half of 2024, compared to $574 million
in the first half of 2023. The lower income tax charge reflects the
reduction in results at several subsidiaries.
Cash Flow and Liquidity of 2024 First Half
Net cash provided by operating activities during
the first half of 2024 amounted to $1.8 billion (including a
reduction in working capital of $276 million), compared to cash
provided by operations of $2.3 billion (net of an increase in
working capital of $167 million) in the first half of 2023.
Capital expenditures amounted to $333 million in
the first half of 2024, compared to $282 million in the first half
of 2023. Free cash flow amounted to $1.5 billion in the first half
of 2024, compared to $2.0 billion in the first half of 2023.
Following a dividend payment of $459 million in
May 2024 and share buybacks of $803 million in the semester, our
positive net cash position amounted to $3.8 billion at the end of
June 2024.
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, 2024 with
the Luxembourg Stock Exchange. The half-year report can be
downloaded from the Luxembourg Stock Exchange’s website at
www.luxse.com 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 1, 2024, 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/4zc56376/
If you wish to participate in the Q&A session please
register at the following link:
https://register.vevent.com/register/BI0ca8b4a4a2824e44a3cd3d84a000d571
Please 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
| |
Three-month period ended June 30, |
Six-month period ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(Unaudited) |
(Unaudited) |
|
Net sales |
3,321,677 |
|
4,074,913 |
|
6,763,221 |
|
8,216,094 |
|
|
Cost of sales |
(2,143,614 |
) |
(2,267,164 |
) |
(4,277,666 |
) |
(4,574,943 |
) |
|
Gross profit |
1,178,063 |
|
1,807,749 |
|
2,485,555 |
|
3,641,151 |
|
|
Selling, general and administrative expenses |
(496,688 |
) |
(528,736 |
) |
(1,004,820 |
) |
(1,016,083 |
) |
| Other operating income |
9,461 |
|
5,443 |
|
25,485 |
|
12,356 |
|
| Other operating expenses |
(179,127 |
) |
(6,266 |
) |
(182,847 |
) |
(7,880 |
) |
|
Operating income |
511,709 |
|
1,278,190 |
|
1,323,373 |
|
2,629,544 |
|
|
Finance Income |
68,884 |
|
45,866 |
|
125,173 |
|
93,753 |
|
|
Finance Cost |
(15,722 |
) |
(36,379 |
) |
(36,305 |
) |
(67,924 |
) |
|
Other financial results, net |
4,021 |
|
30,074 |
|
(56,447 |
) |
34,551 |
|
| Income before equity
in earnings of non-consolidated companies and income
tax |
568,892 |
|
1,317,751 |
|
1,355,794 |
|
2,689,924 |
|
| Equity in (losses) earnings of
non-consolidated companies |
(82,519 |
) |
95,921 |
|
(34,340 |
) |
148,927 |
|
| Income before income
tax |
486,373 |
|
1,413,672 |
|
1,321,454 |
|
2,838,851 |
|
|
Income tax |
(138,147 |
) |
(277,632 |
) |
(223,003 |
) |
(573,604 |
) |
|
Income for the period |
348,226 |
|
1,136,040 |
|
1,098,451 |
|
2,265,247 |
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Shareholders' equity |
335,186 |
|
1,123,029 |
|
1,072,166 |
|
2,251,656 |
|
|
Non-controlling interests |
13,040 |
|
13,011 |
|
26,285 |
|
13,591 |
|
|
|
348,226 |
|
1,136,040 |
|
1,098,451 |
|
2,265,247 |
|
Consolidated Condensed Interim Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At June 30, 2024 |
|
At December 31, 2023 |
|
|
Unaudited |
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
6,092,354 |
|
|
6,078,179 |
|
|
Intangible assets, net |
1,351,706 |
|
|
1,377,110 |
|
|
Right-of-use assets, net |
155,084 |
|
|
132,138 |
|
|
Investments in non-consolidated companies |
1,537,730 |
|
|
1,608,804 |
|
|
Other investments |
1,127,967 |
|
|
405,631 |
|
|
Deferred tax assets |
820,274 |
|
|
789,615 |
|
|
Receivables, net |
194,103 |
11,279,218 |
|
185,959 |
10,577,436 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
3,834,623 |
|
|
3,921,097 |
|
|
Receivables and prepayments, net |
231,223 |
|
|
228,819 |
|
|
Current tax assets |
261,642 |
|
|
256,401 |
|
|
Trade receivables, net |
2,185,425 |
|
|
2,480,889 |
|
|
Derivative financial instruments |
4,989 |
|
|
9,801 |
|
|
Other investments |
2,452,375 |
|
|
1,969,631 |
|
|
Cash and cash equivalents |
850,236 |
9,820,513 |
|
1,637,821 |
10,504,459 |
|
Total assets |
|
21,099,731 |
|
|
21,081,895 |
|
EQUITY |
|
|
|
|
|
|
Shareholders' equity |
|
16,708,130 |
|
|
16,842,972 |
|
Non-controlling interests |
|
208,569 |
|
|
187,465 |
|
Total equity |
|
16,916,699 |
|
|
17,030,437 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
21,386 |
|
|
48,304 |
|
|
Lease liabilities |
108,811 |
|
|
96,598 |
|
|
Derivative financial instruments |
- |
|
|
255 |
|
|
Deferred tax liabilities |
495,368 |
|
|
631,605 |
|
|
Other liabilities |
301,166 |
|
|
271,268 |
|
|
Provisions |
96,614 |
1,023,345 |
|
101,453 |
1,149,483 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
559,517 |
|
|
535,133 |
|
|
Lease liabilities |
47,542 |
|
|
37,835 |
|
|
Derivative financial instruments |
5,776 |
|
|
10,895 |
|
|
Current tax liabilities |
381,159 |
|
|
488,277 |
|
|
Other liabilities |
640,584 |
|
|
422,645 |
|
|
Provisions |
206,498 |
|
|
35,959 |
|
|
Customer advances |
298,158 |
|
|
263,664 |
|
|
Trade payables |
1,020,453 |
3,159,687 |
|
1,107,567 |
2,901,975 |
|
Total liabilities |
|
4,183,032 |
|
|
4,051,458 |
|
Total equity and liabilities |
|
21,099,731 |
|
|
21,081,895 |
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, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
Unaudited |
Unaudited |
|
Cash flows from operating activities |
|
|
|
|
|
|
Income for the period |
|
348,226 |
|
1,136,040 |
|
1,098,451 |
|
2,265,247 |
|
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
138,509 |
|
130,581 |
|
313,951 |
|
256,034 |
|
|
Bargain purchase gain |
|
(2,211 |
) |
- |
|
(2,211 |
) |
- |
|
|
Provision for the ongoing litigation related to the acquisition of
participation in Usiminas |
|
170,610 |
|
- |
|
170,610 |
|
- |
|
|
Income tax accruals less payments |
|
(84,340 |
) |
(131,682 |
) |
(113,562 |
) |
57,174 |
|
|
Equity in (losses) earnings of non-consolidated companies |
|
82,519 |
|
(95,921 |
) |
34,340 |
|
(148,927 |
) |
|
Interest accruals less payments, net |
|
(14,573 |
) |
(18,240 |
) |
(2,635 |
) |
(21,940 |
) |
|
Changes in provisions |
|
(6,277 |
) |
31,976 |
|
(4,732 |
) |
39,933 |
|
|
Changes in working capital |
|
285,066 |
|
293,795 |
|
275,518 |
|
(166,762 |
) |
|
Others, including net foreign exchange |
|
17,672 |
|
(4,915 |
) |
52,448 |
|
(18,355 |
) |
| Net cash provided by
operating activities |
|
935,201 |
|
1,341,634 |
|
1,822,178 |
|
2,262,404 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(161,318 |
) |
(165,161 |
) |
(333,415 |
) |
(282,249 |
) |
|
Changes in advances to suppliers of property, plant and
equipment |
|
(13,467 |
) |
2,211 |
|
(10,515 |
) |
2,244 |
|
|
Acquisition of subsidiaries, net of cash acquired |
|
25,946 |
|
(4,108 |
) |
25,946 |
|
(4,108 |
) |
|
Loan to joint ventures |
|
(1,391 |
) |
(1,235 |
) |
(2,745 |
) |
(1,235 |
) |
|
Proceeds from disposal of property, plant and equipment and
intangible assets |
|
723 |
|
3,579 |
|
6,135 |
|
8,375 |
|
|
Dividends received from non-consolidated companies |
|
53,136 |
|
43,513 |
|
53,136 |
|
43,513 |
|
|
Changes in investments in securities |
|
(277,085 |
) |
(896,993 |
) |
(1,036,752 |
) |
(1,787,629 |
) |
| Net cash used in
investing activities |
|
(373,456 |
) |
(1,018,194 |
) |
(1,298,210 |
) |
(2,021,089 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Dividends paid |
|
(458,556 |
) |
(401,383 |
) |
(458,556 |
) |
(401,383 |
) |
| Dividends paid to
non-controlling interest in subsidiaries |
|
- |
|
(17,437 |
) |
- |
|
(17,437 |
) |
| Changes in non-controlling
interests |
|
(5 |
) |
1,739 |
|
1,115 |
|
1,739 |
|
| Acquisition of treasury
shares |
|
(492,322 |
) |
- |
|
(803,386 |
) |
- |
|
| Payments of lease
liabilities |
|
(16,614 |
) |
(13,011 |
) |
(33,382 |
) |
(23,769 |
) |
| Proceeds from borrowings |
|
365,149 |
|
472,764 |
|
1,195,096 |
|
1,032,038 |
|
| Repayments of borrowings |
|
(418,521 |
) |
(463,195 |
) |
(1,172,599 |
) |
(1,143,087 |
) |
|
Net cash used in financing activities |
|
(1,020,869 |
) |
(420,523 |
) |
(1,271,712 |
) |
(551,899 |
) |
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
(459,124 |
) |
(97,083 |
) |
(747,744 |
) |
(310,584 |
) |
|
Movement in cash and cash equivalents |
|
|
|
|
|
| At the beginning of the
period |
|
1,323,056 |
|
861,414 |
|
1,616,597 |
|
1,091,433 |
|
| Effect of exchange rate
changes |
|
(15,237 |
) |
(9,060 |
) |
(20,158 |
) |
(25,578 |
) |
| Decrease in cash and cash
equivalents |
|
(459,124 |
) |
(97,083 |
) |
(747,744 |
) |
(310,584 |
) |
|
|
|
848,695 |
|
755,271 |
|
848,695 |
|
755,271 |
|
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, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Income for the period |
348,226 |
|
1,136,040 |
|
1,098,451 |
|
2,265,247 |
|
| Income tax charge |
138,147 |
|
277,632 |
|
223,003 |
|
573,604 |
|
| Equity in (losses) earnings of
non-consolidated companies |
82,519 |
|
(95,921 |
) |
34,340 |
|
(148,927 |
) |
| Financial Results |
(57,183 |
) |
(39,561 |
) |
(32,421 |
) |
(60,380 |
) |
| Depreciation and
amortization |
138,509 |
|
130,581 |
|
313,951 |
|
256,034 |
|
| EBITDA |
650,218 |
|
1,408,771 |
|
1,637,324 |
|
2,885,578 |
|
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, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Net cash provided by operating activities |
935,201 |
|
1,341,633 |
|
1,822,178 |
|
2,262,404 |
|
| Capital expenditures |
(161,318 |
) |
(165,161 |
) |
(333,415 |
) |
(282,249 |
) |
| Free cash
flow |
773,883 |
|
1,176,472 |
|
1,488,763 |
|
1,980,155 |
|
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, |
|
|
2024 |
|
2023 |
|
| Cash and cash equivalents |
850,236 |
|
755,305 |
|
| Other current investments |
2,452,375 |
|
1,849,978 |
|
| Non-current investments |
1,120,834 |
|
367,105 |
|
| Derivatives hedging borrowings
and investments |
- |
|
7,901 |
|
| Current borrowings |
(559,517 |
) |
(642,294 |
) |
| Non-current borrowings |
(21,386 |
) |
(50,997 |
) |
| Net cash /
(debt) |
3,842,542 |
|
2,286,998 |
|
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, |
|
|
2024 |
2023 |
|
Inventories |
3,834,623 |
|
3,884,364 |
|
| Trade receivables |
2,185,425 |
|
2,597,353 |
|
| Customer advances |
(298,158 |
) |
(100,596 |
) |
| Trade payables |
(1,020,453 |
) |
(1,020,156 |
) |
| Operating working
capital |
4,701,437 |
|
5,360,965 |
|
| Annualized quarterly
sales |
13,286,708 |
|
16,299,652 |
|
| Operating working capital
days |
129 |
|
120 |
|
Giovanni
Sardagna Tenaris
1-888-300-5432www.tenaris.com
Tenaris (BIT:TEN)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Tenaris (BIT:TEN)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
