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Tenaris Announces 2019 Second Quarter Results

Steel News - Published on Fri, 02 Aug 2019

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Tenaris Announced 2019 Second Quarter Results. In the second quarter of 2019, sales rose 2% quarter-on-quarter, as higher sales in Mexico and various Eastern Hemisphere markets compensated for a seasonal decline in sales in Canada. Operating income declined 9% quarter on quarter resulting from the non-repetition of the $15 million tariff recovery recorded in the previous quarter and higher maintenance costs associated with a major overhaul of our facilities in Mexico. Net income amounted to 12.5% of sales.

Summary of 2019 Second Quarter Results
Net sales ($ million)1,9181,8722%1,7887%
Operating income ($ million)234259-10%2225%
Net income ($ million)240243-1%16645%
Shareholders net income ($ million)241243-1%16843%
Earnings per ADS ($)0.410.410%0.2941%
Earnings per share ($)0.20.21-5%0.1443%
EBITDA ($ million)370390-5%3632%
EBITDA margin (% of net sales)19.30%20.90%-8%20.30%-5%

It said “In the USA, drilling activity has slowed down and is likely to remain around the present level as oil and gas prices have been subdued and operators maintain a disciplined approach to capital expenditures. In Canada, drilling activity remains well down on last year with no recovery expected before the end of the year. In Latin America, drilling activity is expected to remain at current levels until the end of the year amid uncertainty about elections in Argentina and the financial position of Pemex. In the eastern Hemisphere, drilling activity continues to improve, led by gas developments in the Middle East, and a gradual recovery in some offshore basins. In the third quarter, our sales will be affected by lower average selling prices, seasonal factors and the impact of major maintenance stoppages amplified by the triennial intervention in Mexico, before recovering in the fourth quarter. We expect to mitigate most of the impact of lower average selling prices with lower costs and complete the year with an overall EBITDA margin similar to that of 2018.”

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Posted By : Ratan Singh on Fri, 02 Aug 2019
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