Completion of First Tranche of Tenaris Share Buyback Program. Weekly Report (January 8 – January 12, 2024)

Rhea-AI Summary

Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) has announced the completion of the first tranche of its Share Buyback Program, purchasing 17,779,302 ordinary shares for a total consideration of €276,201,768, or US$300 million. The company intends to cancel all shares purchased under the Program and the second tranche is expected to begin on February 26, 2024.

Insights

Financial Analyst

The completion of the first tranche of Tenaris S.A.'s Share Buyback Program represents a significant financial event that warrants analysis from a capital allocation perspective. By repurchasing 17,779,302 ordinary shares for €276.2 million, the company is signaling confidence in its intrinsic value, suggesting that management believes the stock is undervalued. This can often lead to a positive market reaction as it may indicate a bullish outlook from the company's leadership.

However, it's crucial to scrutinize the funding of the buyback. If financed through debt, it could potentially increase the company's leverage, impacting its financial flexibility. Alternatively, if funded by cash reserves, it could reflect a lack of profitable investment opportunities within the company or the industry at large. In the context of Tenaris's operations in the steel pipe manufacturing sector, this repurchase could also reflect a strategic move to consolidate ownership, potentially enhancing control over company decisions.

Market Research Analyst

From a market perspective, the share buyback has immediate implications for the supply and demand dynamics of Tenaris's stock. Reducing the number of shares outstanding can often lead to an increase in earnings per share (EPS), a key metric for investors. This could make the stock more attractive to potential investors, possibly driving up the share price.

It's also important to consider the timing of the buyback. The initiation of the second tranche after the blackout period could be strategically planned to avoid periods of potential insider information that could affect the stock price. Furthermore, the company's decision to cancel the repurchased shares will permanently reduce the share count, which may be viewed favorably by the market assuming the company's future earnings are stable or growing.

Corporate Governance Expert

Share buybacks can have governance implications. By reducing the number of shares available in the market, a company can increase the proportion of insider ownership, which can strengthen the control of existing stakeholders and potentially reduce the influence of external shareholders. This can be a double-edged sword, as increased control can lead to more streamlined decision-making but also raises concerns about minority shareholder rights and the balance of power within the company.

Moreover, the cancellation of shares is a definitive action that alters the company's capital structure. It is an indication that the company prioritizes shareholder return over other uses of capital, such as acquisitions or research and development. This decision should ideally align with the company's long-term strategic goals and the expectations of its shareholders.

LUXEMBOURG, Jan. 12, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) announced today the completion of the first tranche of its previously announced Share Buyback Program.

During the first tranche, which ran from November 6, 2023, to (and including) January 12, 2024, the Company purchased a total of 17,779,302 ordinary shares for a total consideration of €276,201,768, or US$300 million.

From January 8, 2024 to (and including) January 12, 2024, the Company purchased the following ordinary shares:

Date	Trading Venue	Shares Purchased		Weighted Average Price (EUR)	Purchases in EUR		Reference FX	Purchases in USD
08-ene-24	MTA	606,482		15.3468	9,307,558		1.0979	10,218,303
08-ene-24	CEUX	285,810		15.3463	4,386,126		1.0979	4,815,308
08-ene-24	TQEX	29,562		15.3437	453,590		1.0979	497,974
08-ene-24	AQXE	28,377		15.3480	435,530		1.0979	478,147
09-ene-24	MTA	606,482		15.1197	9,169,826		1.0972	10,060,674
09-ene-24	CEUX	285,810		15.1199	4,321,419		1.0972	4,741,244
09-ene-24	TQEX	29,562		15.1193	446,957		1.0972	490,379
09-ene-24	AQXE	28,377		15.1226	429,134		1.0972	470,824
10-ene-24	MTA	606,482		14.8555	9,009,593		1.0918	9,836,674
10-ene-24	CEUX	284,396		14.8557	4,224,902		1.0918	4,612,748
10-ene-24	TQEX	29,318		14.8544	435,501		1.0918	475,480
10-ene-24	AQXE	28,377		14.8547	421,532		1.0918	460,228
11-ene-24	MTA	603,614		14.8252	8,948,698		1.0968	9,814,485
11-ene-24	CEUX	58,517		14.8235	867,427		1.0968	951,350
		3,511,166		15.0542	52,857,793			57,923,819

As of January 12, 2024, the Company held in treasury 17,779,302 ordinary shares, representing 1.51% of its total issued share capital.

Tenaris intends to cancel all shares purchased under the Program in due course.

Details of the above transactions are available on Tenaris’s corporate website under the Share Buyback Program Section https://ir.tenaris.com/share-buyback-program.

The second tranche of Tenaris’s Share Buyback Program is expected to begin not earlier than February 26, 2024, once Tenaris’s blackout period has ended.

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.

Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Giovanni Sardagna        
Tenaris
1-888-300-5432
www.tenaris.com

 

FAQ

What is the ticker symbol for Tenaris S.A.?

The ticker symbol for Tenaris S.A. is TS.

How many ordinary shares did Tenaris purchase during the first tranche of its Share Buyback Program?

Tenaris purchased a total of 17,779,302 ordinary shares during the first tranche.

What is the total consideration for the ordinary shares purchased during the first tranche?

The total consideration for the ordinary shares purchased during the first tranche was €276,201,768, or US$300 million.

What percentage of its total issued share capital does Tenaris hold in treasury as of January 12, 2024?

As of January 12, 2024, Tenaris held in treasury 17,779,302 ordinary shares, representing 1.51% of its total issued share capital.

When is the second tranche of Tenaris's Share Buyback Program expected to begin?

The second tranche of Tenaris's Share Buyback Program is expected to begin not earlier than February 26, 2024.