Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”)
today announced its results for the quarter ended September 30,
2024 in comparison with its results for the quarter ended September
30, 2023.
Summary of 2024 Third Quarter
Results(Comparison with second quarter of 2024 and third
quarter of 2023)
|
|
3Q 2024 |
2Q 2024 |
3Q 2023 |
|
Net sales ($ million) |
2,915 |
3,322 |
(12%) |
3,238 |
(10%) |
|
Operating income ($ million) |
537 |
512 |
5% |
868 |
(38%) |
|
Net income ($ million) |
459 |
348 |
32% |
547 |
(16%) |
|
Shareholders’ net income ($ million) |
448 |
335 |
34% |
537 |
(17%) |
|
Earnings per ADS ($) |
0.81 |
0.59 |
37% |
0.91 |
(11%) |
|
Earnings per share ($) |
0.40 |
0.29 |
37% |
0.46 |
(11%) |
|
EBITDA* ($ million) |
688 |
650 |
6% |
1,004 |
(31%) |
|
EBITDA margin (% of net sales) |
23.6% |
19.6% |
|
31.0% |
|
|
|
|
|
|
|
|
*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.
Net sales in the third quarter were affected by
lower prices in the Americas and lower demand in the USA, Mexico
and Saudi Arabia as well as lower line pipe shipments in Argentina.
Margins were relatively resilient with our EBITDA margin falling
1.1% quarter on quarter on a comparable basis while net income
recovered after the extraordinary provisions recorded by Tenaris
and its associate company Ternium in the last quarter.
During the quarter, our free cash flow amounted
to $373 million and, after spending $182 million on share buybacks,
our positive net cash position amounted to $4.0 billion at
September 30, 2024.
Interim Dividend Payment
Our board of directors approved the payment of
an interim dividend of $0.27 per share ($0.54 per ADS), or
approximately $300 million, according to the following
timetable:
- Payment date: November 20,
2024
- Record date:
November 19, 2024
- Ex-dividend for
securities listed in Europe: November 18, 2024
-
Ex-dividend for securities listed in the United States and Mexico:
November 19, 2024
Follow-on Share Buyback
Program
Tenaris’s Board of Directors approved a $700
million follow-on share buyback program under the authority granted
by the annual general meeting of shareholders held on June 2,
2020.
Under the previous $1.2 billion share buyback,
which ran from November 5, 2023 to August 2, 2024, the Company
purchased a total number of ordinary shares representing 6.07% of
its total issued share capital measured as at the launch of the
program. This follow-on share buyback program will cover up to $700
million (excluding customary transaction fees), subject to a
maximum of 46,373,915 ordinary shares representing the remainder
3.93% of the Company’s issued share capital (measured also as at
the launch of the original program) that may be repurchased under
the above-referred authority (which authorizes repurchases up to a
maximum of 10% of the share capital).
The decision and opportunity of launching this
follow-on buyback program is driven by the Company’s significant
cash flow generation and strong balance sheet.
The follow-on buyback program is expected to be
launched in the near future and finish by March 26, 2025. It will
be executed by a primary financial institution on the Milan Stock
Exchange, with the intention to cancel the ordinary shares acquired
through the program.
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
Oil prices appear relatively stable and support
industry investment despite uncertainty about Asian demand growth
and geopolitical tensions.
The decline in OCTG prices in North America that
we have seen over the past two years has now come to an end as
drilling activity has stabilized and the level of US OCTG imports
has come down.
The new government in Mexico is implementing its
energy policy, drilling activity in the near term is subdued, while
next year we expect that it will recover. In Argentina, the
economic environment is improving, which should support investment
in pipeline infrastructure and drilling activity in the Vaca Muerta
shale.
In the Middle East, while gas drilling activity
remains at a stable level, we see some reduction in oil activity
and rationalization of inventories, including pipes, to protect
cash flow.
In the fourth quarter, our sales and EBITDA will
be lower than the third quarter, affected by lower sales in Mexico
and Saudi Arabia and the delayed impact of OCTG pricing in the
Americas. Overall, our 2024 second half results will be in line
with our investor day guidance in September. Going into 2025, we
expect our sales and EBITDA to recover with an increase in
shipments in North America and the Middle East and a rebound in
OCTG prices in North America.
Analysis of 2024 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 2024 |
2Q 2024 |
3Q 2023 |
|
Seamless |
746 |
805 |
(7%) |
744 |
0% |
|
Welded |
191 |
228 |
(16%) |
169 |
13% |
|
Total |
937 |
1,033 |
(9%) |
913 |
3% |
|
|
|
|
|
|
|
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. During this quarter, the coating service results
attributable to the coating business acquired from Mattr, which
were previously included in our Others segment, have been
reclassified to our Tubes segment and comparative amounts have been
reclassified accordingly.
|
Tubes |
3Q 2024 |
2Q 2024 |
3Q 2023 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
1,273 |
1,439 |
(12%) |
1,700 |
(25%) |
|
South America |
484 |
599 |
(19%) |
608 |
(20%) |
|
Europe |
280 |
269 |
4% |
231 |
21% |
|
Asia Pacific, Middle East and Africa |
754 |
823 |
(8%) |
556 |
36% |
|
Total net sales ($ million) |
2,790 |
3,130 |
(11%) |
3,095 |
(10%) |
|
Coating services to third parties included in Tubes ($
million) |
70 |
67 |
5% |
19 |
273% |
|
Operating income ($ million) |
527 |
459 |
15% |
841 |
(37%) |
|
Operating margin (% of sales) |
18.9% |
14.7% |
|
27.2% |
|
|
|
|
|
|
|
|
Net sales of tubular products and services
decreased 11% sequentially and 10% year on year. Sequentially,
volumes decreased 9% and average selling prices excluding the
coating services on third parties pipes decreased 2%. In North
America sales declined due to lower prices throughout the region
and lower activity in the United States and Mexico. In South
America we had lower pipeline sales in Argentina and lower
conductor sales in Brazil partially compensated by a start of
shipments to the Raia offshore line pipe project. In Europe sales
increased thanks to the continued shipments to the Sakarya offshore
line pipe project and higher sales of OCTG in Romania and Turkey
which more than compensated for lower sales in the North Sea. In
Asia Pacific, Middle East and Africa further sales in Saudi Arabia
under inventory replenishment program, stable sales to the United
Arab Emirates and a high level of shipments to Iraq, attenuated a
drop in sales in sub-Saharan Africa, China and the rest of the
Middle East.
Operating results from tubular products and
services amounted to a gain of $527 million in the third quarter of
2024 compared to a gain of $459 million in the previous quarter and
a gain of $841 million in the third quarter of 2023. In the second
quarter of 2024 our Tubes operating income included a $171 million
loss from the provision for ongoing litigation related to the
acquisition of a participation in Usiminas and a $14 million gain
from a positive legal claim resolution in Mexico. Excluding these
two effects Tubes operating income in the second quarter of 2024
would have amounted to $616 million and the current quarter would
have been 14% lower following the decline in prices and sales.
Others
The following table indicates, for our Others
business segment, net sales, operating income and operating income
as a percentage of net sales for the periods indicated below:
|
Others |
3Q 2024 |
2Q 2024 |
3Q 2023 |
|
Net sales ($ million) |
125 |
192 |
(35%) |
143 |
(13%) |
|
Operating income ($ million) |
10 |
52 |
(81%) |
27 |
(64%) |
|
Operating margin (% of sales) |
7.9% |
27.3% |
|
19.0% |
|
|
|
|
|
|
|
|
Net sales of other products and services
decreased 35% sequentially and decreased 13% year on year.
Sequentially, sales declined mainly due to lower sales of coiled
tubing, sucker rods and oil services in Argentina.
Selling, general and administrative
expenses, or SG&A, amounted to $454
million, or 15.6% of net sales, in the third quarter of 2024,
compared to $497 million, 15.0% in the previous quarter and $433
million, 13.4% in the third quarter of 2023. Sequentially, the
decline in SG&A is mainly due to lower shipment costs due to a
reduction in volumes shipped and a decrease in services and fees,
taxes and others.
Other operating results
amounted to a gain of $11 million in the third quarter of 2024,
compared to a loss of $170 million in the previous quarter and a
$36 million gain in the third 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.
Financial results amounted to a
gain of $48 million in the third quarter of 2024, compared to a
gain of $57 million in the previous quarter and a gain of $67
million in the third quarter of 2023. Financial result of the
quarter is mainly attributable to a $50 million net finance income
from the net return of our portfolio investments offset by other
financial results.
Equity in earnings (losses) of
non-consolidated companies generated a gain of $8 million
in the third quarter of 2024, compared to a loss of $83 million in
the previous quarter and a loss of $110 million in the third
quarter of 2023. These results are mainly derived from our
participation in Ternium (NYSE:TX). The previous quarter included
an $83 million loss from the provision for ongoing litigation
related to the acquisition of a participation in Usiminas on our
investment in Ternium.
Income tax charge amounted to
$134 million in the third quarter of 2024, compared to $138 million
in the previous quarter and $278 million in the third quarter of
2023. With a similar income before equity earnings of
non-consolidated companies and income tax, the tax charge of the
quarter was sequentially lower mainly due to a lower impact of the
foreign exchange devaluation in Mexico on the fiscal values of
fixed assets and inventory.
Cash Flow and Liquidity of 2024 Third
Quarter
Net cash generated by operating activities
during the third quarter of 2024 was $552 million, compared to $935
million in the previous quarter and $1.3 billion in the third
quarter of 2023. During the third quarter of 2024 cash generated by
operating activities includes a net working capital reduction of
$48 million.
With capital expenditures of $179 million, our
free cash flow amounted to $373 million during the quarter. After
share buybacks of $182 million in the quarter, our net cash
position amounted to $4.0 billion at September 30, 2024.
Analysis of 2024 First Nine Months Results
|
|
9M 2024 |
9M 2023 |
Increase/(Decrease) |
|
Net sales ($ million) |
9,679 |
11,454 |
(15%) |
|
Operating income ($ million) |
1,860 |
3,497 |
(47%) |
|
Net income ($ million) |
1,558 |
2,812 |
(45%) |
|
Shareholders’ net income ($ million) |
1,520 |
2,789 |
(45%) |
|
Earnings per ADS ($) |
2.67 |
4.72 |
(43%) |
|
Earnings per share ($) |
1.34 |
2.36 |
(43%) |
|
EBITDA* ($ million) |
2,326 |
3,890 |
(40%) |
|
EBITDA margin (% of net sales) |
24.0% |
34.0% |
|
|
|
|
|
|
*EBITDA in 9M 2024 includes a $174 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 $2,499 million, or 25.8% of
sales.
Our sales in the first nine months of 2024
decreased 15% compared to the first nine months of 2023 as volumes
of tubular products shipped decreased 4%, tubes average selling
prices decreased 15% excluding the coating services on third
parties pipes, while sales in the Others segment remained flat.
Following the decrease in sales, mainly due to the tubes average
price decline, EBITDA margin declined from 34% to 24% and EBITDA
declined 40%. EBITDA in the first nine months of 2024 includes a
$174 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 $86 million loss from our participation in
Ternium.
Cash flow provided by operating activities
amounted to $2.4 billion during the first nine months of 2024,
including a a reduction in working capital of $324 million. After
capital expenditures of $512 million, our free cash flow amounted
to $1.9 billion. Following a dividend payment of $459 million in
May 2024 and share buybacks for $985 million in the nine months,
our positive net cash position amounted to $4.0 billion at the end
of September 2024.
The following table shows our net sales by business segment for
the periods indicated below:
|
Net sales ($ million) |
9M 2024 |
9M 2023 |
Increase/(Decrease) |
|
Tubes |
9,212 |
95% |
10,987 |
96% |
(16%) |
|
Others |
467 |
5% |
467 |
4% |
(0%) |
|
Total |
9,679 |
|
11,454 |
|
(15%) |
|
|
|
|
|
|
|
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 2024 |
9M 2023 |
Increase/(Decrease) |
|
Seamless |
2,328 |
2,428 |
(4%) |
|
Welded |
687 |
707 |
(3%) |
|
Total |
3,016 |
3,136 |
(4%) |
|
|
|
|
|
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 2024 |
9M 2023 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
4,301 |
6,071 |
(29%) |
|
South America |
1,699 |
2,476 |
(31%) |
|
Europe |
802 |
754 |
6% |
|
Asia Pacific, Middle East and Africa |
2,410 |
1,687 |
43% |
|
Total net sales ($ million) |
9,212 |
10,987 |
(16%) |
|
Coating services to third parties included in Tubes ($
million) |
300 |
55 |
441% |
|
Operating income ($ million) |
1,772 |
3,403 |
(48%) |
|
Operating margin (% of sales) |
19.2% |
31.0% |
|
|
|
|
|
|
Net sales of tubular products and services
decreased 16% to $9,212 million in the first nine months of 2024,
compared to $10,987 million in the first nine months of 2023 due to
a 4% decrease in volumes and a 15% decrease in average selling
prices excluding the coating services on third parties pipes. 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.
Operating results from tubular products and
services amounted to a gain of $1,772 million in the first nine
months of 2024 compared to a gain of $3,403 million in the first
nine months 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 nine months of 2024
our Tubes operating income includes a charge of $174 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 nine months of 2024 includes gains amounting to $39 million
from positive legal claims resolutions in Mexico and Brazil.
Others
The following table indicates, for our Others
business segment, net sales, operating income and operating income
as a percentage of net sales for the periods indicated below:
|
Others |
9M 2024 |
9M 2023 |
Increase/(Decrease) |
|
Net sales ($ million) |
467 |
467 |
0% |
|
Operating income ($ million) |
88 |
94 |
(6%) |
|
Operating margin (% of sales) |
18.9% |
20.1% |
|
|
|
|
|
|
Net sales of other products and services which
amounted to $467 million in the first nine months of 2024 remained
flat in comparison to the the first nine months of 2023 as an
increase in sales of oilfield services in Argentina and coiled
tubing offset a decline in sales of sucker rods, excess raw
materials and energy.
Operating results from other products and
services amounted to a gain of $88 million in the first nine months
of 2024, compared to a gain of $94 million in the first nine months
of 2023. Results were mainly derived from our sucker rods business,
coiled tubing and our oilfield services business in Argentina.
Selling, general and administrative
expenses, or SG&A, amounted to $1,459 million in the
first nine months of 2024, representing 15.1% of sales, and $1,449
million in the first nine months of 2023, representing 12.6% of
sales. SG&A expenses increased as a percentage of sales due to
the 15% decline in revenues, mainly due to lower Tubes average
selling prices, and an increase of fixed costs partially offset by
a reduction in selling expenses.
Other operating results
amounted to a loss of $146 million in the first nine months of
2024, compared to a gain of $41 million in the same period of 2023.
In the first nine months of 2024 we recorded a $174 million loss
from provision for ongoing litigation related to the acquisition of
a participation in Usiminas. 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.
Financial results amounted to a
gain of $81 million in the first nine months of 2024, compared to a
gain of $128 million in the first nine months of 2023. While net
finance income increased due to a higher net financial position,
other financial results were negatively affected by a cumulative
result of the U.S. dollar denominated Argentine bond previously
recognized in other comprehensive income, while foreign exchange
results decreased in the first nine months of 2024 in respect to
the same period of 2023.
Equity in (losses) earnings of
non-consolidated companies generated a loss of $27 million
in the first nine months of 2024, compared to a gain of $39 million
in the first nine months of 2023. These results were mainly derived
from our equity investment in Ternium (NYSE:TX) and in the first
nine months of 2024 were negatively affected by an $86 million loss
from the provision for ongoing litigation related to the
acquisition of a participation in Usiminas on our Ternium
investment.
Income tax amounted to a charge
of $357 million in the first nine months of 2024, compared to $852
million in the first nine months of 2023. The lower income tax
charge reflects mainly the reduction in results at several
subsidiaries.
Cash Flow and Liquidity of 2024 First Nine
Months
Net cash provided by operating activities during
the first nine months of 2024 amounted to $2.4 billion (including a
reduction in working capital of $324 million), compared to cash
provided by operations of $3.6 billion (net of a reduction in
working capital of $248 million) in the first nine months of
2023.
Capital expenditures amounted to $512 million in
the first nine months of 2024, compared to $453 million in the
first nine months of 2023. Free cash flow amounted to $1.9 billion
in the first nine months of 2024, compared to $3.1 billion in the
first nine months of 2023.
Following a dividend payment of $459 million in
May 2024 and share buybacks of $985 million in the nine months, our
positive net cash position amounted to $4.0 billion at the end of
September 2024.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on November 7, 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/z7cmogvw/
If you wish to participate in the Q&A session please
register at the following link:
https://register.vevent.com/register/BIf7b93fbc38f245839de51051af91f592
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
|
(all amounts in thousands of U.S. dollars) |
Three-month period ended September 30, |
Nine-month period ended September 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
|
Unaudited |
Unaudited |
|
Net sales |
2,915,487 |
3,237,836 |
9,678,708 |
11,453,930 |
|
Cost of sales |
(1,935,560) |
(1,973,381) |
(6,213,226) |
(6,548,324) |
|
Gross profit |
979,927 |
1,264,455 |
3,465,482 |
4,905,606 |
|
Selling, general and administrative expenses |
(454,020) |
(432,682) |
(1,458,840) |
(1,448,765) |
|
Other operating income |
16,682 |
39,219 |
42,167 |
51,575 |
|
Other operating expenses |
(5,490) |
(3,091) |
(188,337) |
(10,971) |
|
Operating income |
537,099 |
867,901 |
1,860,472 |
3,497,445 |
|
Finance Income |
65,815 |
56,100 |
190,988 |
149,853 |
|
Finance Cost |
(15,979) |
(19,179) |
(52,284) |
(87,103) |
|
Other financial results, net |
(1,381) |
30,565 |
(57,828) |
65,116 |
|
Income before equity in earnings of non-consolidated
companies and income tax |
585,554 |
935,387 |
1,941,348 |
3,625,311 |
|
Equity in earnings (losses) of non-consolidated companies |
7,605 |
(110,382) |
(26,735) |
38,545 |
|
Income before income tax |
593,159 |
825,005 |
1,914,613 |
3,663,856 |
|
Income tax |
(133,968) |
(278,200) |
(356,971) |
(851,804) |
|
Income for the period |
459,191 |
546,805 |
1,557,642 |
2,812,052 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Shareholders' equity |
448,066 |
537,311 |
1,520,232 |
2,788,967 |
|
Non-controlling interests |
11,125 |
9,494 |
37,410 |
23,085 |
|
|
459,191 |
546,805 |
1,557,642 |
2,812,052 |
Consolidated Condensed Interim Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At September 30, 2024 |
|
At December 31, 2023 |
|
|
Unaudited |
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
6,150,671 |
|
|
6,078,179 |
|
|
Intangible assets, net |
1,355,801 |
|
|
1,377,110 |
|
|
Right-of-use assets, net |
149,808 |
|
|
132,138 |
|
|
Investments in non-consolidated companies |
1,550,676 |
|
|
1,608,804 |
|
|
Other investments |
1,020,808 |
|
|
405,631 |
|
|
Deferred tax assets |
790,907 |
|
|
789,615 |
|
|
Receivables, net |
199,459 |
11,218,130 |
|
185,959 |
10,577,436 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
3,762,705 |
|
|
3,921,097 |
|
|
Receivables and prepayments, net |
249,754 |
|
|
228,819 |
|
|
Current tax assets |
307,459 |
|
|
256,401 |
|
|
Trade receivables, net |
2,079,600 |
|
|
2,480,889 |
|
|
Derivative financial instruments |
8,727 |
|
|
9,801 |
|
|
Other investments |
2,798,807 |
|
|
1,969,631 |
|
|
Cash and cash equivalents |
715,028 |
9,922,080 |
|
1,637,821 |
10,504,459 |
|
Total assets |
|
21,140,210 |
|
|
21,081,895 |
|
EQUITY |
|
|
|
|
|
|
Shareholders' equity |
|
17,200,408 |
|
|
16,842,972 |
|
Non-controlling interests |
|
219,167 |
|
|
187,465 |
|
Total equity |
|
17,419,575 |
|
|
17,030,437 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
14,405 |
|
|
48,304 |
|
|
Lease liabilities |
103,121 |
|
|
96,598 |
|
|
Derivative financial instruments |
- |
|
|
255 |
|
|
Deferred tax liabilities |
479,187 |
|
|
631,605 |
|
|
Other liabilities |
318,498 |
|
|
271,268 |
|
|
Provisions |
87,363 |
1,002,574 |
|
101,453 |
1,149,483 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
485,996 |
|
|
535,133 |
|
|
Lease liabilities |
48,616 |
|
|
37,835 |
|
|
Derivative financial instruments |
3,230 |
|
|
10,895 |
|
|
Current tax liabilities |
291,032 |
|
|
488,277 |
|
|
Other liabilities |
380,577 |
|
|
422,645 |
|
|
Provisions |
221,870 |
|
|
35,959 |
|
|
Customer advances |
324,382 |
|
|
263,664 |
|
|
Trade payables |
962,358 |
2,718,061 |
|
1,107,567 |
2,901,975 |
|
Total liabilities |
|
3,720,635 |
|
|
4,051,458 |
|
Total equity and liabilities |
|
21,140,210 |
|
|
21,081,895 |
Consolidated Condensed Interim Statement of Cash
Flows
| (all amounts in
thousands of U.S. dollars) |
Three-month period ended September 30, |
Nine-month period ended September 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| |
|
Unaudited |
Unaudited |
| Cash flows
from operating activities |
|
|
|
| Income for the
period |
|
459,191 |
|
546,805 |
|
1,557,642 |
|
2,812,052 |
|
| Adjustments for: |
|
|
|
|
|
| Depreciation and
amortization |
|
151,122 |
|
136,129 |
|
465,073 |
|
392,163 |
|
| Bargain purchase gain |
|
- |
|
(3,162) |
|
(2,211) |
|
(3,162) |
|
| Provision for the
ongoing litigation related to the acquisition of participation in
Usiminas |
6,736 |
|
- |
|
177,346 |
|
- |
|
| Income tax accruals less
payments |
|
(108,788) |
|
76,994 |
|
(222,350) |
|
134,168 |
|
| Equity in (losses)
earnings of non-consolidated companies |
(7,605) |
|
110,382 |
|
26,735 |
|
(38,545) |
|
| Interest accruals
less payments, net |
(5,678) |
|
(22,986) |
|
(8,313) |
|
(44,926) |
|
| Changes in provisions |
|
(615) |
|
(17,998) |
|
(5,347) |
|
21,935 |
|
| Changes in working
capital |
|
48,003 |
|
414,887 |
|
323,521 |
|
248,125 |
|
| Others, including
net foreign exchange |
9,446 |
|
55,883 |
|
61,894 |
|
37,528 |
|
| Net cash
provided by operating activities |
551,812 |
|
1,296,934 |
|
2,373,990 |
|
3,559,338 |
|
| |
|
|
|
|
|
| Cash flows from
investing activities |
|
|
|
|
|
| Capital expenditures |
|
(178,671) |
|
(170,376) |
|
(512,086) |
|
(452,625) |
|
| Changes in
advances to suppliers of property, plant and equipment |
(4,968) |
|
(1,342) |
|
(15,483) |
|
902 |
|
| Acquisition of
subsidiaries, net of cash acquired |
5,500 |
|
(100,311) |
|
31,446 |
|
(104,419) |
|
| Additions to
associated companies |
- |
|
(22,661) |
|
- |
|
(22,661) |
|
| Loan to joint ventures |
|
(1,392) |
|
(1,427) |
|
(4,137) |
|
(2,662) |
|
| Proceeds from
disposal of property, plant and equipment and intangible
assets |
13,182 |
|
648 |
|
19,317 |
|
9,023 |
|
| Dividends received
from non-consolidated companies |
- |
|
- |
|
53,136 |
|
43,513 |
|
| Changes in
investments in securities |
(243,133) |
|
(809,796) |
|
(1,279,885) |
|
(2,597,425) |
|
| Net cash
used in investing activities |
(409,482) |
|
(1,105,265) |
|
(1,707,692) |
|
(3,126,354) |
|
| |
|
|
|
|
|
| Cash flows from
financing activities |
|
|
|
|
|
| Dividends paid |
|
- |
|
- |
|
(458,556) |
|
(401,383) |
|
| Dividends paid to
non-controlling interest in subsidiaries |
(5,862) |
|
(1,530) |
|
(5,862) |
|
(18,967) |
|
| Changes in
non-controlling interests |
- |
|
2,033 |
|
1,115 |
|
3,772 |
|
| Acquisition of treasury
shares |
|
(181,741) |
|
- |
|
(985,127) |
|
- |
|
| Payments of lease
liabilities |
|
(17,944) |
|
(12,199) |
|
(51,326) |
|
(35,968) |
|
| Proceeds from borrowings |
|
331,348 |
|
326,185 |
|
1,526,444 |
|
1,358,223 |
|
| Repayments of borrowings |
|
(444,172) |
|
(381,886) |
|
(1,616,771) |
|
(1,524,973) |
|
| Net cash
used in financing activities |
(318,371) |
|
(67,397) |
|
(1,590,083) |
|
(619,296) |
|
| |
|
|
|
|
|
|
(Decrease) increase in cash and cash
equivalents |
(176,041) |
|
124,272 |
|
(923,785) |
|
(186,312) |
|
| |
|
|
|
|
|
| Movement
in cash and cash equivalents |
|
|
| At the beginning of the
period |
|
848,695 |
|
755,271 |
|
1,616,597 |
|
1,091,433 |
|
| Effect of exchange rate
changes |
|
8,652 |
|
(15,531) |
|
(11,506) |
|
(41,109) |
|
| (Decrease)
increase in cash and cash equivalents |
(176,041) |
|
124,272 |
|
(923,785) |
|
(186,312) |
|
| |
|
681,306 |
|
864,012 |
|
681,306 |
|
864,012 |
|
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 September 30, |
Nine-month period ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| Income for the period |
459,191 |
|
546,805 |
|
1,557,642 |
|
2,812,052 |
|
| Income tax charge |
133,968 |
|
278,200 |
|
356,971 |
|
851,804 |
|
| Equity in earnings (losses) of
non-consolidated companies |
(7,605) |
|
110,382 |
|
26,735 |
|
(38,545) |
|
| Financial Results |
(48,455) |
|
(67,486) |
|
(80,876) |
|
(127,866) |
|
| Depreciation and
amortization |
151,122 |
|
136,129 |
|
465,073 |
|
392,163 |
|
| EBITDA |
688,221 |
|
1,004,030 |
|
2,325,545 |
|
3,889,608 |
|
| |
|
|
|
|
|
|
|
|
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 September 30, |
Nine-month period ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
| Net cash provided by operating
activities |
551,812 |
|
1,296,934 |
|
2,373,990 |
|
3,559,338 |
|
| Capital expenditures |
(178,671) |
|
(170,376) |
|
(512,086) |
|
(452,625) |
|
| Free cash
flow |
373,141 |
|
1,126,558 |
|
1,861,904 |
|
3,106,713 |
|
| |
|
|
|
|
|
|
|
|
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, |
|
|
2024 |
|
2023 |
|
| Cash and cash equivalents |
715,028 |
|
864,043 |
|
| Other current investments |
2,798,807 |
|
2,496,747 |
|
| Non-current investments |
1,013,474 |
|
560,489 |
|
| Derivatives hedging borrowings
and investments |
- |
|
766 |
|
| Current borrowings |
(485,996) |
|
(597,493) |
|
| Non-current borrowings |
(14,405) |
|
(25,248) |
|
| Net cash /
(debt) |
4,026,908 |
|
3,299,304 |
|
| |
|
|
|
|
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, |
|
|
2024 |
|
2023 |
|
| Inventories |
3,762,705 |
|
3,884,882 |
|
| Trade receivables |
2,079,600 |
|
2,169,293 |
|
| Customer advances |
(324,382) |
|
(160,533) |
|
| Trade payables |
(962,358) |
|
(999,209) |
|
| Operating working
capital |
4,555,565 |
|
4,894,433 |
|
| Annualized quarterly
sales |
11,661,948 |
|
12,951,344 |
|
| Operating working capital
days |
143 |
|
138 |
|
Giovanni
Sardagna Tenaris
1-888-300-5432www.tenaris.com
Tenaris (BIT:TEN)
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De Nov 2024 à Déc 2024
Tenaris (BIT:TEN)
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