Tenaris Announces 2023 Fourth Quarter and Annual Results
- Tenaris reported a 5% sequential increase in net sales for Q4 2023, driven by higher shipments to the Middle East and offshore pipeline projects.
- Operating income for Q4 2023 decreased by 6% compared to the previous quarter, mainly due to lower average selling prices in the Americas.
- Net income for Q4 2023 saw a significant increase of 110% compared to the same period in 2022, supported by higher results from non-consolidated companies and financial gains.
- Free cash flow for Q4 2023 amounted to $669 million after capex payments, with a net cash position of $3.4 billion at the end of the year.
- For the full year 2023, Tenaris achieved record levels of net sales, EBITDA, and net income, driven by strong performance in the Americas and the Middle East.
- The company plans to propose a dividend of $0.60 per share and continue its share buyback program in 2024, reflecting confidence in future growth prospects.
- Operating income for Q4 2023 decreased by 6%, signaling potential challenges in maintaining margins.
- Net sales of tubular products and services declined 8% year on year, indicating pricing pressures in certain regions.
- The increase in SG&A expenses may impact overall profitability, despite revenue growth.
- The decline in operating margin for tubular products in Q4 2023 raises concerns about cost management.
Insights
The financial results reported by Tenaris S.A. for the fourth quarter and full year of 2023 provide a comprehensive view of the company's performance. The increase in net sales by 26% and net income by 55% for the annual results are significant indicators of the company's growth. The expansion of the operating margin from 25.8% to 29.5% suggests enhanced operational efficiency, likely due to a favorable mix of higher prices and volume increases, particularly in the AMEA region and South America.
From a liquidity perspective, the company's record net cash position of $3.4 billion is a strong indicator of financial health. This, coupled with a substantial free cash flow of $3,776 million for the year, reflects a robust capacity for self-financing and potential future investments or shareholder returns. The dividend proposal and the continuation of the share buyback program are likely to be positively received by investors, as these actions typically signal confidence in the company's future prospects and a commitment to returning value to shareholders.
Examining the business environment, Tenaris's performance can be attributed to the stabilization of oil prices and balanced supply and demand dynamics. The long-term outlook for natural gas, especially LNG, is a critical factor supporting drilling activity and thus demand for Tenaris's tubular products. The company's strategic acquisition of Shawcor's pipe coating business is a calculated move to strengthen its service offerings and capitalize on the growing demand for offshore operations and pipeline projects.
The geopolitical and economic volatility in Latin America, however, poses a potential risk to the company's prospects in the region. Despite favorable conditions for drilling activity, such volatility could impact future sales and operations. Investors should monitor regional developments closely, as they could influence Tenaris's performance in this market.
The increase in tubular product sales, particularly in the Asia Pacific, Middle East and Africa regions, aligns with the global energy sector's pivot towards natural gas and LNG. Tenaris's ability to capture market share in these growth areas, reflected in the 98% sales increase in the AMEA region, underscores the company's strategic positioning. The shift in the Americas towards more sustainable price levels post-Covid recovery indicates a normalization of the market, which could lead to more predictable revenue streams for Tenaris.
The company's capital expenditures and acquisitions suggest a focus on expanding capabilities and maintaining technological leadership in pipe manufacturing and coating. This is essential for supporting the anticipated increase in offshore drilling activity. The financial results, therefore, not only reflect past performance but also set the stage for Tenaris's strategic direction in the evolving energy landscape.
The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS Accounting Standards. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
LUXEMBOURG, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2023 with comparison to its results for the fourth quarter and year ended December 31, 2022.
Summary of 2023 Fourth Quarter Results
| 4Q 2023 | 3Q 2023 | 4Q 2022 | |||||||||
| Net sales ($ million) | 3,415 | 3,238 | 5 | % | 3,620 | (6 | %) | ||||
| Operating income ($ million) | 819 | 868 | (6 | %) | 1,013 | (19 | %) | ||||
| Net income ($ million) | 1,146 | 547 | 110 | % | 803 | 43 | % | ||||
| Shareholders’ net income ($ million) | 1,129 | 537 | 110 | % | 807 | 40 | % | ||||
| Earnings per ADS ($)* | 1.92 | 0.91 | 110 | % | 1.37 | 40 | % | ||||
| Earnings per share ($)* | 0.96 | 0.46 | 110 | % | 0.68 | 40 | % | ||||
| EBITDA ($ million) | 975 | 1,004 | (3 | %) | 1,269 | (23 | %) | ||||
| EBITDA margin (% of net sales) | 28.6 | % | 31.0 | % | 35.1 | % | |||||
*For the calculation of per share and per ADS data we have used average number of shares outstanding excluding treasury shares.
Our sales in the fourth quarter of 2023 rose
Our free cash flow for the quarter amounted to
Summary of 2023 Annual Results
| 12M 2023 | 12M 2022 | Increase/(Decrease) | ||||
| Net sales ($ million) | 14,869 | 11,763 | 26 | % | ||
| Operating income ($ million) | 4,316 | 2,963 | 46 | % | ||
| Net income ($ million) | 3,958 | 2,549 | 55 | % | ||
| Shareholders’ net income ($ million) | 3,918 | 2,553 | 53 | % | ||
| Earnings per ADS ($)* | 6.65 | 4.33 | 53 | % | ||
| Earnings per share ($)* | 3.32 | 2.16 | 54 | % | ||
| EBITDA ($ million) | 4,865 | 3,648 | 33 | % | ||
| EBITDA margin (% of net sales) | 32.7 | % | 31.0 | % | ||
*For the calculation of per share and per ADS data we have used average number of shares outstanding excluding treasury shares.
In 2023, our net sales, EBITDA and net income reached record levels. The year was characterized by a first half, in which prices in the Americas reached exceptional levels and we had a high level of pipeline shipments in Argentina, and a second half, in which prices in the Americas started to return to more normal levels while overall sales were supported by good activity and pricing levels in the Middle East and for offshore pipelines.
Operating margins expanded reflecting the higher prices realized on the sales of most of our products, which more than compensated for higher costs of goods sold.
Net income benefited from a net positive deferred tax effect of
Operating cash flow for the year amounted to
Market Background and Outlook
In an environment where oil prices remain relatively stable, oil supply and demand is balanced, and the long term outlook for natural gas, especially LNG, is promising, drilling activity in North America is stabilizing, while continuing to increase in the Middle East and offshore. In this context, and considering our expanded perimeter, with our recent acquisition of the Shawcor pipe coating business, we expect that, in the first half of 2024, our sales will be in line with those of the second half of 2023.
After the exceptional levels they reached in the post-Covid recovery, tubular price levels and margins in the Americas have returned to sustainable levels and should stabilize in the coming months. Prices and margins in the rest of the world should remain at good levels supported by strong demand for offshore operations and pipeline projects.
In Latin America, fundamental conditions remain favorable for the continued expansion of drilling activity and tubular demand, but the high level of political and economic volatility may affect these prospects.
Annual Dividend Proposal; Second Tranche of Share Buyback Program
Upon approval of the Company´s annual accounts in March 2024, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on April 30, 2024, the payment of a dividend per share of
The second
Analysis of 2023 Fourth Quarter Results
| Tubes Sales volume (thousand metric tons) | 4Q 2023 | 3Q 2023 | 4Q 2022 | ||||
| Seamless | 760 | 744 | 2 | % | 809 | (6 | %) |
| Welded | 246 | 169 | 45 | % | 156 | 58 | % |
| Total | 1,006 | 913 | 10 | % | 965 | 4 | % |
| Tubes | 4Q 2023 | 3Q 2023 | 4Q 2022 | |||||||||
| (Net sales - $ million) | ||||||||||||
| North America | 1,501 | 1,700 | (12 | %) | 2,105 | (29 | %) | |||||
| South America | 590 | 608 | (3 | %) | 802 | (26 | %) | |||||
| Europe | 302 | 231 | 30 | % | 185 | 63 | % | |||||
| Asia Pacific, Middle East and Africa | 805 | 556 | 45 | % | 373 | 116 | % | |||||
| Total net sales ($ million) | 3,198 | 3,095 | 3 | % | 3,466 | (8 | %) | |||||
| Operating income ($ million) | 780 | 841 | (7 | %) | 980 | (20 | %) | |||||
| Operating margin (% of sales) | 24.4 | % | 27.2 | % | 28.3 | % | ||||||
Net sales of tubular products and services increased
Operating income from tubular products and services, amounted to
| Others | 4Q 2023 | 3Q 2023 | 4Q 2022 | |||||||
| Net sales ($ million) | 217 | 143 | 52 | % | 154 | 41 | % | |||
| Operating income ($ million) | 39 | 27 | 45 | % | 33 | 19 | % | |||
| Operating margin (% of sales) | 18.1 | % | 19.0 | % | 21.4 | % | ||||
Net sales of other products and services increased
Selling, general and administrative expenses, or SG&A, amounted to
Other operating result amounted to a
Financial results were a gain of
Equity in earnings of non-consolidated companies generated a gain of
Income tax result amounted to a gain of
Cash Flow and Liquidity of 2023 Fourth Quarter
Net cash provided by operations during the fourth quarter of 2023 was
With capital expenditures of
Following dividend payments of
Analysis of 2023 Annual Results
| Net sales ($ million) | 12M 2023 | 12M 2022 | Increase/(Decrease) | |||||
| Tubes | 14,185 | 95 | % | 11,133 | 95 | % | 27 | % |
| Others | 684 | 5 | % | 630 | 5 | % | 9 | % |
| Total | 14,869 | 11,763 | 26 | % | ||||
| Tubes Sales volume (thousand metric tons) | 12M 2023 | 12M 2022 | Increase/(Decrease) | |
| Seamless | 3,189 | 3,146 | 1 | % |
| Welded | 953 | 387 | 146 | % |
| Total | 4,141 | 3,533 | 17 | % |
| Tubes | 12M 2023 | 12M 2022 | Increase/(Decrease) | |||
| (Net sales - $ million) | ||||||
| North America | 7,572 | 6,796 | 11 | % | ||
| South America | 3,067 | 2,213 | 39 | % | ||
| Europe | 1,055 | 867 | 22 | % | ||
| Asia Pacific, Middle East and Africa | 2,491 | 1,257 | 98 | % | ||
| Total net sales ($ million) | 14,185 | 11,133 | 27 | % | ||
| Operating income ($ million) | 4,183 | 2,867 | 46 | % | ||
| Operating margin (% of sales) | 29.5 | % | 25.8 | % | ||
Net sales of tubular products and services increased
Operating results from tubular products and services, amounted to a gain of
| Others | 12M 2023 | 12M 2022 | Increase/(Decrease) | |||
| Net sales ($ million) | 684 | 630 | 9 | % | ||
| Operating income ($ million) | 133 | 96 | 39 | % | ||
| Operating margin (% of sales) | 19.5 | % | 15.2 | % | ||
Net sales of other products and services increased
Operating results from other products and services, amounted to a gain of
Selling, general and administrative expenses, or SG&A, amounted to
Financial results amounted to a gain of
2023 results are mainly derived from net foreign exchange gains of
Equity in earnings of non-consolidated companies generated a gain of
Income tax charge amounted to
Cash Flow and Liquidity of 2023
Net cash provided by operations in 2023 was
With capital expenditures of
Following dividend payments of
Conference call
Tenaris will hold a conference call to discuss the above reported results, on February 22, 2024, at 09:30 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/384xrvok
If you wish to participate in the Q&A session please register at the following link:
https://register.vevent.com/register/BIdf892e810d2749faba59c1f70a41aba7
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 Income Statement | ||||||||
| (all amounts in thousands of U.S. dollars) | Three-month period ended December 31, | Twelve-month period ended December 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Net sales | 3,414,930 | 3,620,210 | 14,868,860 | 11,762,526 | ||||
| Cost of sales | (2,120,591 | ) | (2,063,969 | ) | (8,668,915 | ) | (7,087,739 | ) |
| Gross profit | 1,294,339 | 1,556,241 | 6,199,945 | 4,674,787 | ||||
| Selling, general and administrative expenses | (470,542 | ) | (454,478 | ) | (1,919,307 | ) | (1,634,575 | ) |
| Impairment charge | - | (76,725 | ) | - | (76,725 | ) | ||
| Other operating income (expense), net | (4,834 | ) | (11,987 | ) | 35,770 | (212 | ) | |
| Operating income | 818,963 | 1,013,051 | 4,316,408 | 2,963,275 | ||||
| Finance income | 63,621 | 37,756 | 213,474 | 80,020 | ||||
| Finance cost | (19,759 | ) | (20,237 | ) | (106,862 | ) | (45,940 | ) |
| Other financial results | 49,249 | 18,127 | 114,365 | (40,120 | ) | |||
| Income before equity in earnings of non-consolidated companies and income tax | 912,074 | 1,048,697 | 4,537,385 | 2,957,235 | ||||
| Equity in earnings of non-consolidated companies | 56,859 | 12,701 | 95,404 | 208,702 | ||||
| Income before income tax | 968,933 | 1,061,398 | 4,632,789 | 3,165,937 | ||||
| Income tax | 176,848 | (258,226 | ) | (674,956 | ) | (617,236 | ) | |
| Income for the period | 1,145,781 | 803,172 | 3,957,833 | 2,548,701 | ||||
| Attributable to: | ||||||||
| Shareholders' equity | 1,129,098 | 807,318 | 3,918,065 | 2,553,280 | ||||
| Non-controlling interests | 16,683 | (4,146 | ) | 39,768 | (4,579 | ) | ||
| 1,145,781 | 803,172 | 3,957,833 | 2,548,701 | |||||
| Consolidated Statement of Financial Position | ||||||
| (all amounts in thousands of U.S. dollars) | At December 31, 2023 | At December 31, 2022 | ||||
| ASSETS | ||||||
| Non-current assets | ||||||
| Property, plant and equipment, net | 6,078,179 | 5,556,263 | ||||
| Intangible assets, net | 1,377,110 | 1,332,508 | ||||
| Right-of-use assets, net | 132,138 | 111,741 | ||||
| Investments in non-consolidated companies | 1,608,804 | 1,540,646 | ||||
| Other investments | 405,631 | 119,902 | ||||
| Deferred tax assets | 789,615 | 208,870 | ||||
| Receivables, net | 185,959 | 10,577,436 | 211,720 | 9,081,650 | ||
| Current assets | ||||||
| Inventories, net | 3,921,097 | 3,986,929 | ||||
| Receivables and prepayments, net | 228,819 | 183,811 | ||||
| Current tax assets | 256,401 | 243,136 | ||||
| Trade receivables, net | 2,480,889 | 2,493,940 | ||||
| Derivative financial instruments | 9,801 | 30,805 | ||||
| Other investments | 1,969,631 | 438,448 | ||||
| Cash and cash equivalents | 1,637,821 | 10,504,459 | 1,091,527 | 8,468,596 | ||
| Total assets | 21,081,895 | 17,550,246 | ||||
| EQUITY | ||||||
| Shareholders' equity | 16,842,972 | 13,905,709 | ||||
| Non-controlling interests | 187,465 | 128,728 | ||||
| Total equity | 17,030,437 | 14,034,437 | ||||
| LIABILITIES | ||||||
| Non-current liabilities | ||||||
| Borrowings | 48,304 | 46,433 | ||||
| Lease liabilities | 96,598 | 83,616 | ||||
| Derivative financial instruments | 255 | - | ||||
| Deferred tax liabilities | 631,605 | 269,069 | ||||
| Other liabilities | 271,268 | 230,142 | ||||
| Provisions | 101,453 | 1,149,483 | 98,126 | 727,386 | ||
| Current liabilities | ||||||
| Borrowings | 535,133 | 682,329 | ||||
| Lease liabilities | 37,835 | 28,561 | ||||
| Derivative financial instruments | 10,895 | 7,127 | ||||
| Current tax liabilities | 488,277 | 376,240 | ||||
| Other liabilities | 422,645 | 260,614 | ||||
| Provisions | 35,959 | 11,185 | ||||
| Customer advances | 263,664 | 242,910 | ||||
| Trade payables | 1,107,567 | 2,901,975 | 1,179,457 | 2,788,423 | ||
| Total liabilities | 4,051,458 | 3,515,809 | ||||
| Total equity and liabilities | 21,081,895 | 17,550,246 | ||||
| Consolidated Statement of Cash Flows | ||||||||
| Three-month period ended December 31, | Twelve-month period ended December 31, | |||||||
| (all amounts in thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||
| Cash flows from operating activities | ||||||||
| Income for the year | 1,145,781 | 803,172 | 3,957,833 | 2,548,701 | ||||
| Adjustments for: | ||||||||
| Depreciation and amortization | 156,347 | 179,135 | 548,510 | 607,723 | ||||
| Impairment charge | - | 76,725 | - | 76,725 | ||||
| Income tax accruals less payments | (277,559 | ) | 139,061 | (143,391 | ) | 257,651 | ||
| Equity in earnings of non-consolidated companies | (56,859 | ) | (12,701 | ) | (95,404 | ) | (208,702 | ) |
| Interest accruals less payments, net | (8,554 | ) | (3,672 | ) | (53,480 | ) | 1,480 | |
| Changes in provisions | (651 | ) | 7,164 | 21,284 | 16,433 | |||
| Reclassification of currency translation adjustment reserve | (878 | ) | - | (878 | ) | (71,252 | ) | |
| Changes in working capital | (65,697 | ) | (682,115 | ) | 182,428 | (2,131,245 | ) | |
| Others, including net exchange differences | (56,195 | ) | 17,173 | (21,829 | ) | 69,703 | ||
| Net cash provided by operating activities | 835,735 | 523,942 | 4,395,073 | 1,167,217 | ||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (166,820 | ) | (107,646 | ) | (619,445 | ) | (378,446 | ) |
| Changes in advance to suppliers of property, plant and equipment | 834 | (13,108 | ) | 1,736 | (18,901 | ) | ||
| Acquisition of subsidiaries, net of cash acquired | (161,238 | ) | - | (265,657 | ) | (4,082 | ) | |
| Investment in companies under cost method | (1,126 | ) | - | (1,126 | ) | - | ||
| Additions to associated companies | - | - | (22,661 | ) | - | |||
| Loan to joint-ventures | (1,092 | ) | - | (3,754 | ) | - | ||
| Proceeds from disposal of property, plant and equipment and intangible assets | 3,858 | 1,690 | 12,881 | 48,458 | ||||
| Dividends received from non-consolidated companies | 25,268 | 20,674 | 68,781 | 66,162 | ||||
| Changes in investments in securities | 740,153 | 38,079 | (1,857,272 | ) | 123,254 | |||
| Net cash provided by (used in) investing activities | 439,837 | (60,311 | ) | (2,686,517 | ) | (163,555 | ) | |
| Cash flows from financing activities | ||||||||
| Dividends paid | (235,128 | ) | (200,658 | ) | (636,511 | ) | (531,242 | ) |
| Dividends paid to non-controlling interest in subsidiaries | - | - | (18,967 | ) | (10,432 | ) | ||
| Changes in non-controlling interests | - | 2,099 | 3,772 | (1,407 | ) | |||
| Acquisition of treasury shares | (213,739 | ) | - | (213,739 | ) | - | ||
| Payments of lease liabilities | (15,524 | ) | (13,560 | ) | (51,492 | ) | (52,396 | ) |
| Proceeds from borrowings | 365,455 | 161,785 | 1,723,677 | 1,511,503 | ||||
| Repayments of borrowings | (406,774 | ) | (300,783 | ) | (1,931,747 | ) | (1,094,370 | ) |
| Net cash used in financing activities | (505,711 | ) | (351,117 | ) | (1,125,007 | ) | (178,344 | ) |
| Increase in cash and cash equivalents | 769,861 | 112,514 | 583,549 | 825,318 | ||||
| Movement in cash and cash equivalents | ||||||||
| At the beginning of the year | 864,012 | 990,803 | 1,091,433 | 318,067 | ||||
| Effect of exchange rate changes | (17,276 | ) | (11,883 | ) | (58,385 | ) | (51,952 | ) |
| Increase in cash and cash equivalents | 769,861 | 112,514 | 583,549 | 825,318 | ||||
| At December 31, | 1,616,597 | 1,091,434 | 1,616,597 | 1,091,433 | ||||
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 December 31, | Twelve-month period ended December 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Income for the period | 1,145,781 | 803,172 | 3,957,833 | 2,548,701 | ||||
| Income tax charge / (credit) | (176,848 | ) | 258,226 | 674,956 | 617,236 | |||
| Equity in earnings of non-consolidated companies | (56,859 | ) | (12,701 | ) | (95,404 | ) | (208,702 | ) |
| Financial results | (93,111 | ) | (35,646 | ) | (220,977 | ) | 6,040 | |
| Depreciation and amortization | 156,347 | 179,135 | 548,510 | 607,723 | ||||
| Impairment charge | - | 76,725 | - | 76,725 | ||||
| EBITDA | 975,310 | 1,268,911 | 4,864,918 | 3,647,723 | ||||
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 December 31, | Twelve-month period ended December 31, | ||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Net cash provided by operating activities | 835,735 | 523,942 | 4,395,073 | 1,167,217 | ||||
| Capital expenditures | (166,820 | ) | (107,646 | ) | (619,445 | ) | (378,446 | ) |
| Free cash flow | 668,915 | 416,296 | 3,775,628 | 788,771 | ||||
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) | Year ended December 31, | |||
| 2023 | 2022 | |||
| Cash and cash equivalents | 1,637,821 | 1,091,527 | ||
| Other current investments | 1,969,631 | 438,448 | ||
| Non-current investments | 398,220 | 113,574 | ||
| Derivatives hedging borrowings and investments | - | 6,480 | ||
| Current borrowings | (535,133 | ) | (682,329 | ) |
| Non-current borrowings | (48,304 | ) | (46,433 | ) |
| Net cash / (debt) | 3,422,235 | 921,267 | ||
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) | Three-month period ended December 31, | |||
| 2023 | 2022 | |||
| Inventories | 3,921,097 | 3,986,929 | ||
| Trade receivables | 2,480,889 | 2,493,940 | ||
| Customer advances | (263,664 | ) | (242,910 | ) |
| Trade payables | (1,107,567 | ) | (1,179,457 | ) |
| Operating working capital | 5,030,755 | 5,058,502 | ||
| Annualized quarterly sales | 13,659,720 | 14,480,840 | ||
| Operating working capital days | 134 | 128 | ||
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
FAQ
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