Tenaris' three operating indicators all decreased month on month in the third quarter

On November 1st, Tenaris HDT760C +Z Steel Pipe Company announced its third quarter performance report. According to the report, the company's sales in the third quarter were $3.238 billion, a decrease of 21% month on month and a year-on-year increase of 9%; The net profit reached 547 million US dollars, a decrease of 52% month on month and 10% year-on-year; Free cash flow reached $1.1 billion.

In addition, after investing $100 million to acquire pipeline processing assets in the Houston area of the United States and pipeline coating facilities in Italy, the company's net cash position increased to $3.3 billion as of September 30, 2023. Tenaris explained in the report that the company's three indicators of sales, operating profit, HDT760C +Z Steel and net profit all decreased month on month, reflecting a decrease in quarterly shipments of offshore projects throughout the Americas, especially pipeline shipments in Argentina, as well as a decrease in sales in sub markets such as mechanical products in Europe. The report points out that in the fourth quarter, the company's sales in the Americas region will decrease due to the continuous adjustment of price levels, but sales in regions such as the Middle East will increase; The profit margin before interest, tax, depreciation and amortization is expected to decrease; Free cash flow will be adjusted based on a lower EBITDA margin and a more stable working capital position. The report also revealed the company's progress in using green HDT760C +Z Steel electricity to reduce carbon emissions: the Buena Ventura wind farm in Argentina was officially put into operation in October this year; Tenaris provides 103.2 megawatts of electricity to its industrial facility located in Campana through an interconnected power grid, which accounts for nearly 50% of the total electricity demand of the facility and can help reduce its carbon emissions by 152000 tons per year. In addition, the company plans to invest $214 million to build a second wind farm in Argentina, meeting 30% of the electricity demand of the Campana industrial facility and reducing its annual carbon dioxide emissions by another 102500 tons. The project is expected to be completed in 2025.