Tenaris Announces 2024 Fourth Quarter and Annual Results
Tenaris (NYSE: TS) reported its Q4 and full-year 2024 results. Q4 net sales showed resilience despite lower demand in Mexico, Argentina, and Saudi Arabia. The company's EBITDA declined 4% with margins supported by a favorable product mix. Net income increased due to a partial reversal of a provision related to Usiminas.
For full-year 2024, sales decreased 16% to $12.5 billion compared to 2023, primarily due to declining market prices for tubular products in the Americas and lower drilling activity. EBITDA declined to $3.1 billion, affected by a $107 million provision. Net income was $2.1 billion, representing 17% of net sales.
The company maintained a strong financial position with a net cash position of $3.6 billion. Free cash flow amounted to $2.2 billion in 2024. The board proposed an annual dividend of $0.83 per share. Looking ahead, Tenaris expects Q1 2025 sales and EBITDA to remain in line with Q4 2024, with moderate growth anticipated in Q2 2025.
Tenaris (NYSE: TS) ha riportato i risultati del quarto trimestre e dell'intero anno 2024. Le vendite nette del quarto trimestre hanno mostrato resilienza nonostante la diminuzione della domanda in Messico, Argentina e Arabia Saudita. L'EBITDA dell'azienda è diminuito del 4%, con margini supportati da un mix di prodotti favorevole. L'utile netto è aumentato grazie a una parziale reversibilità di una provvista relativa a Usiminas.
Per l'intero anno 2024, le vendite sono diminuite del 16%, raggiungendo i 12,5 miliardi di dollari rispetto al 2023, principalmente a causa della diminuzione dei prezzi di mercato per i prodotti tubolari nelle Americhe e della riduzione dell'attività di perforazione. L'EBITDA è sceso a 3,1 miliardi di dollari, influenzato da una provvista di 107 milioni di dollari. L'utile netto è stato di 2,1 miliardi di dollari, pari al 17% delle vendite nette.
L'azienda ha mantenuto una solida posizione finanziaria con una posizione di liquidità netta di 3,6 miliardi di dollari. Il flusso di cassa libero ha raggiunto i 2,2 miliardi di dollari nel 2024. Il consiglio ha proposto un dividendo annuale di 0,83 dollari per azione. Guardando al futuro, Tenaris prevede che le vendite e l'EBITDA del primo trimestre 2025 rimarranno in linea con il quarto trimestre 2024, con una crescita moderata prevista nel secondo trimestre 2025.
Tenaris (NYSE: TS) informó sobre sus resultados del cuarto trimestre y del año completo 2024. Las ventas netas del cuarto trimestre mostraron resiliencia a pesar de la menor demanda en México, Argentina y Arabia Saudita. El EBITDA de la empresa disminuyó un 4%, con márgenes respaldados por una mezcla de productos favorable. La utilidad neta aumentó debido a una reversión parcial de una provisión relacionada con Usiminas.
Para el año completo 2024, las ventas disminuyeron un 16% a 12.5 mil millones de dólares en comparación con 2023, principalmente debido a la caída de los precios del mercado para productos tubulares en las Américas y la menor actividad de perforación. El EBITDA descendió a 3.1 mil millones de dólares, afectado por una provisión de 107 millones de dólares. La utilidad neta fue de 2.1 mil millones de dólares, representando el 17% de las ventas netas.
La empresa mantuvo una sólida posición financiera con una posición de efectivo neto de 3.6 mil millones de dólares. El flujo de efectivo libre ascendió a 2.2 mil millones de dólares en 2024. La junta propuso un dividendo anual de 0.83 dólares por acción. Mirando hacia adelante, Tenaris espera que las ventas y el EBITDA del primer trimestre de 2025 se mantengan en línea con el cuarto trimestre de 2024, con un crecimiento moderado anticipado en el segundo trimestre de 2025.
테나리스 (NYSE: TS)는 2024년 4분기 및 연간 실적을 발표했습니다. 4분기 순매출은 멕시코, 아르헨티나, 사우디아라비아에서 수요가 감소했음에도 불구하고 회복력을 보였습니다. 회사의 EBITDA는 4% 감소했지만, 유리한 제품 믹스 덕분에 마진은 유지되었습니다. 순이익은 우시미나스 관련 충당금의 부분적 환입으로 증가했습니다.
2024년 전체 연간 매출은 2023년 대비 16% 감소한 125억 달러에 달했으며, 이는 주로 아메리카에서의 관 제품 시장 가격 하락과 낮은 시추 활동 때문입니다. EBITDA는 31억 달러로 감소했으며, 1억 700만 달러의 충당금 영향을 받았습니다. 순이익은 21억 달러로, 순매출의 17%를 차지했습니다.
회사는 36억 달러의 순현금 위치로 강력한 재무 상태를 유지했습니다. 2024년 자유 현금 흐름은 22억 달러에 달했습니다. 이사회는 주당 0.83달러의 연간 배당금을 제안했습니다. 앞으로 테나리스는 2025년 1분기 매출과 EBITDA가 2024년 4분기와 비슷할 것으로 예상하고 있으며, 2025년 2분기에는 완만한 성장이 예상됩니다.
Tenaris (NYSE: TS) a publié ses résultats pour le quatrième trimestre et l'année entière 2024. Les ventes nettes du quatrième trimestre ont montré de la résilience malgré une demande plus faible au Mexique, en Argentine et en Arabie Saoudite. L'EBITDA de l'entreprise a diminué de 4%, les marges étant soutenues par un mix de produits favorable. Le bénéfice net a augmenté grâce à une reprise partielle d'une provision liée à Usiminas.
Pour l'année entière 2024, les ventes ont diminué de 16% pour atteindre 12,5 milliards de dollars par rapport à 2023, principalement en raison de la baisse des prix du marché pour les produits tubulaires en Amérique et d'une activité de forage réduite. L'EBITDA a chuté à 3,1 milliards de dollars, affecté par une provision de 107 millions de dollars. Le bénéfice net était de 2,1 milliards de dollars, représentant 17% des ventes nettes.
L'entreprise a maintenu une solide position financière avec une position de liquidités nettes de 3,6 milliards de dollars. Le flux de trésorerie libre s'est élevé à 2,2 milliards de dollars en 2024. Le conseil d'administration a proposé un dividende annuel de 0,83 dollar par action. En regardant vers l'avenir, Tenaris s'attend à ce que les ventes et l'EBITDA du premier trimestre 2025 restent conformes à ceux du quatrième trimestre 2024, avec une croissance modérée prévue au deuxième trimestre 2025.
Tenaris (NYSE: TS) hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht. Die Nettoumsätze im vierten Quartal zeigten Widerstandsfähigkeit trotz sinkender Nachfrage in Mexiko, Argentinien und Saudi-Arabien. Das EBITDA des Unternehmens sank um 4%, während die Margen durch eine günstige Produktmischung gestützt wurden. Der Nettogewinn stieg aufgrund einer teilweisen Rückführung einer Rückstellung im Zusammenhang mit Usiminas.
Für das Gesamtjahr 2024 sanken die Umsätze um 16% auf 12,5 Milliarden USD im Vergleich zu 2023, hauptsächlich aufgrund fallender Marktpreise für Rohrprodukte in den Amerikas und einer geringeren Bohraktivität. Das EBITDA fiel auf 3,1 Milliarden USD, beeinflusst durch eine Rückstellung von 107 Millionen USD. Der Nettogewinn betrug 2,1 Milliarden USD, was 17% der Nettoumsätze entspricht.
Das Unternehmen hielt eine starke Finanzposition mit einer Nettobarposition von 3,6 Milliarden USD. Der freie Cashflow betrug im Jahr 2024 2,2 Milliarden USD. Der Vorstand schlug eine jährliche Dividende von 0,83 USD pro Aktie vor. Ausblickend erwartet Tenaris, dass die Umsätze und das EBITDA im ersten Quartal 2025 im Einklang mit dem vierten Quartal 2024 bleiben, mit einem moderaten Wachstum, das im zweiten Quartal 2025 erwartet wird.
- Strong net cash position of $3.6 billion at year-end 2024
- Generated $2.2 billion in free cash flow for 2024
- Proposed dividend of $0.83 per share
- Record sales level achieved in Middle East
- 16% decrease in annual sales to $12.5 billion in 2024
- EBITDA decline of 4% in Q4 2024
- Lower drilling activity in Mexico and Colombia
- Declining market prices for tubular products in Americas
Insights
The Q4 2024 results demonstrate Tenaris's resilient business model despite challenging market conditions. While annual revenue declined
Several key developments warrant attention:
- Regional Performance: Record sales in Middle East markets offset weakness in North America, showcasing successful geographic diversification. The Saudi Aramco inventory replenishment and increased gas drilling activity highlight Tenaris's strong positioning in high-growth markets.
- Cash Flow Management: Generated robust free cash flow of
$310M in Q4, maintaining$3.6B net cash position despite significant shareholder returns ($299M dividends,$454M buybacks). This demonstrates exceptional working capital management and operational efficiency. - Market Dynamics: The announced reset of US Section 232 tariffs introduces uncertainty but could potentially benefit Tenaris given its global manufacturing footprint and ability to optimize production across regions.
Looking forward, several factors support a cautiously optimistic outlook:
- Stable oil prices and continuing investment in drilling activity suggest steady OCTG demand, particularly in strategic markets like the UAE and Argentina's Vaca Muerta.
- The proposed
$0.83 annual dividend reflects management's confidence in sustainable cash generation, representing an attractive shareholder return policy backed by strong balance sheet metrics. - The
9% recovery in North American OCTG prices from August lows, combined with potential tariff-driven price support, indicates improving market conditions in a key region.
The management transition at CFO level appears well-planned, with internal promotion ensuring continuity in financial strategy and operational understanding.
The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
LUXEMBOURG, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2024 in comparison with its results for the fourth quarter and year ended December 31, 2023.
Summary of 2024 Fourth Quarter Results
(Comparison with third quarter of 2024 and fourth quarter of 2023)
| 4Q 2024 | 3Q 2024 | 4Q 2023 | |||
| Net sales ($ million) | 2,845 | 2,915 | ( | 3,415 | ( |
| Operating income ($ million) | 558 | 537 | 819 | ( | |
| Net income ($ million) | 519 | 459 | 1,146 | ( | |
| Shareholders’ net income ($ million) | 516 | 448 | 1,129 | ( | |
| Earnings per ADS ($) | 0.94 | 0.81 | 1.92 | ( | |
| Earnings per share ($) | 0.47 | 0.40 | 0.96 | ( | |
| EBITDA* ($ million) | 726 | 688 | 975 | ( | |
| EBITDA margin (% of net sales) | |||||
*EBITDA in fourth quarter of 2024 includes a
Net sales in the fourth quarter were more resilient than expected as we were able to reduce inventories and advance some shipments in the Middle East and Turkey, despite lower demand in Mexico, Argentina and Saudi Arabia. Our EBITDA declined
During the quarter, our free cash flow amounted to
Summary of 2024 Annual Results
| 12M 2024 | 12M 2023 | Increase/(Decrease) | |
| Net sales ($ million) | 12,524 | 14,869 | ( |
| Operating income ($ million) | 2,419 | 4,316 | ( |
| Net income ($ million) | 2,077 | 3,958 | ( |
| Shareholders’ net income ($ million) | 2,036 | 3,918 | ( |
| Earnings per ADS ($) | 3.61 | 6.65 | ( |
| Earnings per share ($) | 1.81 | 3.32 | ( |
| EBITDA* ($ million) | 3,052 | 4,865 | ( |
| EBITDA margin (% of net sales) | |||
*EBITDA in 12M 2024 includes a
Our sales in 2024 amounted to
Cash flow provided by operating activities amounted to
Change of Chief Financial Officer
Effective as of May 2, 2025, Mr. Carlos Gomez Alzaga will assume the position of Chief Financial Officer, replacing Ms. Alicia Mondolo, who will retire from this role.
Mr. Gomez Alzaga, who has more than 20 years of experience in Administration and Finance at Tenaris, previously served as Regional CFO for Mexico and Central America, and Economic and Financial Planning Director, among other positions, and currently holds the position of Regional CFO for Argentina and South America.
Ms. Mondolo will continue to serve as senior advisor to our Chairman and CEO.
Paolo Rocca and the Board of Tenaris would like to express their gratitude and appreciation for Alicia´s contribution as CFO of Tenaris and her 41 years of service within the Techint Group.
Market Background and Outlook
Oil prices remain relatively stable (as they have done over the past two years) with OPEC+ maintaining their voluntary production cuts in the face of limited global demand growth. European and US natural gas prices have, however, risen as relatively cold winter weather and the cutoff of Russian supply have led to a rapid drawdown in inventories.
These prices and the continuing balance between oil and gas demand and supply should continue to support overall investment in oil and gas drilling activity, as well as OCTG demand, at current levels, albeit with some regional nuances.
In North America, consolidation among major operators and drilling efficiencies led to a drop in US drilling activity last year, which has now stabilized, while OCTG consumption per rig has been increasing. In Latin America, drilling activity is increasing in Argentina, as investment in pipeline and LNG infrastructure investment for the Vaca Muerta shale moves forward, while, in Mexico, it has been affected by financial constraints on Pemex. In the Middle East, some reduction in oil drilling has taken place in Saudi Arabia while gas drilling has risen, and, in Abu Dhabi, oil drilling is increasing.
OCTG reference prices in North America, which fell steadily for two years until the second half of 2024, have so far recovered by
In this environment, we expect our sales and EBITDA (excluding extraordinary effects) in the first quarter to be in line with the previous one before rising moderately in the second quarter. Beyond that, likely changes in US tariffs and their possible ramifications on trade flows will introduce a new dynamic with a high level of uncertainty for costs and prices to our results.
Annual Dividend Proposal
Upon approval of the Company´s annual accounts in April 2025, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 6, 2025, the payment of a dividend per share of
- Payment date: May 21, 2025
- Record date: May 20, 2025
- Ex-dividend for securities listed in Europe and Mexico: May 19, 2025
- Ex-dividend for securities listed in the United States: May 20, 2025
Analysis of 2024 Fourth 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) | 4Q 2024 | 3Q 2024 | 4Q 2023 | |||
| Seamless | 748 | 746 | 760 | ( | ||
| Welded | 164 | 191 | ( | 246 | ( | |
| Total | 913 | 937 | ( | 1,006 | ( | |
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 | 4Q 2024 | 3Q 2024 | 4Q 2023 | ||
| (Net sales - $ million) | |||||
| North America | 1,131 | 1,273 | ( | 1,501 | ( |
| South America | 595 | 484 | 590 | ||
| Europe | 341 | 280 | 302 | ||
| Asia Pacific, Middle East and Africa | 629 | 754 | ( | 805 | ( |
| Total net sales ($ million) | 2,695 | 2,790 | ( | 3,198 | ( |
| Services performed on third party tubes ($ million) | 93 | 97 | ( | 34 | |
| Operating income ($ million) | 533 | 527 | 780 | ( | |
| Operating margin (% of sales) | |||||
Net sales of tubular products and services decreased
Operating results from tubular products and services amounted to a gain of
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 | 4Q 2024 | 3Q 2024 | 4Q 2023 | ||
| Net sales ($ million) | 150 | 125 | 217 | ( | |
| Operating income ($ million) | 25 | 10 | 39 | ( | |
| Operating margin (% of sales) | |||||
Net sales of other products and services increased
Selling, general and administrative expenses, or SG&A, amounted to
Other operating results amounted to a net gain of
Financial results amounted to a gain of
Equity in earnings of non-consolidated companies generated a gain of
Income tax charge amounted to
Cash Flow and Liquidity of 2024 Fourth Quarter
Net cash generated by operating activities during the fourth quarter of 2024 was
With capital expenditures of
Analysis of 2024 Annual Results
The following table shows our net sales by business segment for the periods indicated below:
| Net sales ($ million) | 12M 2024 | 12M 2023 | Increase/(Decrease) | ||
| Tubes | 11,907 | 14,185 | ( | ||
| Others | 617 | 684 | ( | ||
| Total | 12,524 | 14,869 | ( | ||
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) | 12M 2024 | 12M 2023 | Increase/(Decrease) |
| Seamless | 3,077 | 3,189 | ( |
| Welded | 852 | 953 | ( |
| Total | 3,928 | 4,141 | ( |
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 | 12M 2024 | 12M 2023 | Increase/(Decrease) |
| (Net sales - $ million) | |||
| North America | 5,432 | 7,572 | ( |
| South America | 2,294 | 3,067 | ( |
| Europe | 1,143 | 1,055 | |
| Asia Pacific, Middle East and Africa | 3,038 | 2,491 | |
| Total net sales ($ million) | 11,907 | 14,185 | ( |
| Services performed on third party tubes ($ million) | 484 | 165 | |
| Operating income ($ million) | 2,305 | 4,183 | ( |
| Operating margin (% of sales) | |||
Net sales of tubular products and services decreased
Operating results from tubular products and services amounted to a gain of
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 | 12M 2024 | 12M 2023 | Increase/(Decrease) |
| Net sales ($ million) | 617 | 684 | ( |
| Operating income ($ million) | 113 | 133 | ( |
| Operating margin (% of sales) | |||
Net sales of other products and services decreased
Operating results from other products and services amounted to a gain of
Selling, general and administrative expenses, or SG&A, amounted to
Other operating results amounted to a loss of
Financial results amounted to a gain of
Equity in earnings of non-consolidated companies generated a gain of
Income tax amounted to a charge of
Cash Flow and Liquidity of 2024
Net cash provided by operating activities in 2024 amounted to
Capital expenditures amounted to
Following dividend payments of
Conference call
Tenaris will hold a conference call to discuss the above reported results, on February 20, 2025, 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/p836i5mj
If you wish to participate in the Q&A session please register at the following link:
https://register.vevent.com/register/BIb7ae4609ff564d95a338d90813a3c8cc
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, | ||
| 2024 | 2023 | 2024 | 2023 | |
| Net sales | 2,845,226 | 3,414,930 | 12,523,934 | 14,868,860 |
| Cost of sales | (1,922,263) | (2,120,591) | (8,135,489) | (8,668,915) |
| Gross profit | 922,963 | 1,294,339 | 4,388,445 | 6,199,945 |
| Selling, general and administrative expenses | (445,988) | (470,542) | (1,904,828) | (1,919,307) |
| Other operating income | 18,483 | 1,468 | 60,650 | 53,043 |
| Other operating expenses | 62,919 | (6,302) | (125,418) | (17,273) |
| Operating income | 558,377 | 818,963 | 2,418,849 | 4,316,408 |
| Finance income | 51,331 | 63,621 | 242,319 | 213,474 |
| Finance cost | (8,928) | (19,759) | (61,212) | (106,862) |
| Other financial results | 5,777 | 49,249 | (52,051) | 114,365 |
| Income before equity in earnings of non-consolidated companies and income tax | 606,557 | 912,074 | 2,547,905 | 4,537,385 |
| Equity in earnings of non-consolidated companies | 35,283 | 56,859 | 8,548 | 95,404 |
| Income before income tax | 641,840 | 968,933 | 2,556,453 | 4,632,789 |
| Income tax | (122,709) | 176,848 | (479,680) | (674,956) |
| Income for the period | 519,131 | 1,145,781 | 2,076,773 | 3,957,833 |
| Attributable to: | ||||
| Shareholders' equity | 516,213 | 1,129,098 | 2,036,445 | 3,918,065 |
| Non-controlling interests | 2,918 | 16,683 | 40,328 | 39,768 |
| 519,131 | 1,145,781 | 2,076,773 | 3,957,833 | |
Consolidated Statement of Financial Position
| (all amounts in thousands of U.S. dollars) | At December 31, 2024 | At December 31, 2023 | |||
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment, net | 6,121,471 | 6,078,179 | |||
| Intangible assets, net | 1,357,749 | 1,377,110 | |||
| Right-of-use assets, net | 148,868 | 132,138 | |||
| Investments in non-consolidated companies | 1,543,657 | 1,608,804 | |||
| Other investments | 1,005,300 | 405,631 | |||
| Deferred tax assets | 831,298 | 789,615 | |||
| Receivables, net | 205,602 | 11,213,945 | 185,959 | 10,577,436 | |
| Current assets | |||||
| Inventories, net | 3,709,942 | 3,921,097 | |||
| Receivables and prepayments, net | 179,614 | 181,368 | |||
| Current tax assets | 332,621 | 256,401 | |||
| Contract assets | 50,757 | 47,451 | |||
| Trade receivables, net | 1,907,507 | 2,480,889 | |||
| Derivative financial instruments | 7,484 | 9,801 | |||
| Other investments | 2,372,999 | 1,969,631 | |||
| Cash and cash equivalents | 675,256 | 9,236,180 | 1,637,821 | 10,504,459 | |
| Total assets | 20,450,125 | 21,081,895 | |||
| EQUITY | |||||
| Shareholders' equity | 16,593,257 | 16,842,972 | |||
| Non-controlling interests | 220,578 | 187,465 | |||
| Total equity | 16,813,835 | 17,030,437 | |||
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Borrowings | 11,399 | 48,304 | |||
| Lease liabilities | 100,436 | 96,598 | |||
| Derivative financial instruments | - | 255 | |||
| Deferred tax liabilities | 503,941 | 631,605 | |||
| Other liabilities | 301,751 | 271,268 | |||
| Provisions | 82,106 | 999,633 | 101,453 | 1,149,483 | |
| Current liabilities | |||||
| Borrowings | 425,999 | 535,133 | |||
| Lease liabilities | 44,490 | 37,835 | |||
| Derivative financial instruments | 8,300 | 10,895 | |||
| Current tax liabilities | 366,292 | 488,277 | |||
| Other liabilities | 585,775 | 422,645 | |||
| Provisions | 119,344 | 35,959 | |||
| Customer advances | 206,196 | 263,664 | |||
| Trade payables | 880,261 | 2,636,657 | 1,107,567 | 2,901,975 | |
| Total liabilities | 3,636,290 | 4,051,458 | |||
| Total equity and liabilities | 20,450,125 | 21,081,895 | |||
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) | 2024 | 2023 | 2024 | 2023 |
| Cash flows from operating activities | ||||
| Income for the period | 519,131 | 1,145,781 | 2,076,773 | 3,957,833 |
| Adjustments for: | ||||
| Depreciation and amortization | 167,781 | 156,347 | 632,854 | 548,510 |
| Bargain purchase gain | - | - | (2,211) | (3,162) |
| Income tax accruals less payments | (160) | (277,559) | (222,510) | (143,391) |
| Equity in earnings of non-consolidated companies | (35,283) | (56,859) | (8,548) | (95,404) |
| Interest accruals less payments, net | 7,246 | (8,554) | (1,067) | (53,480) |
| Provision for the ongoing litigation related to the acquisition of participation in Usiminas | (87,975) | - | 89,371 | - |
| Changes in provisions | (19,808) | (651) | (25,155) | 21,284 |
| Reclassification of currency translation adjustment reserve | - | (878) | - | (878) |
| Changes in working capital | (36,604) | (65,697) | 286,917 | 182,428 |
| Others, including net foreign exchange differences | (22,100) | (56,195) | 39,794 | (18,667) |
| Net cash provided by operating activities | 492,228 | 835,735 | 2,866,218 | 4,395,073 |
| Cash flows from investing activities | ||||
| Capital expenditures | (181,870) | (166,820) | (693,956) | (619,445) |
| Changes in advance to suppliers of property, plant and equipment | 5,092 | 834 | (10,391) | 1,736 |
| Acquisition of subsidiaries, net of cash acquired | - | (161,238) | 31,446 | (265,657) |
| Other investments at fair value | - | (1,126) | - | (1,126) |
| Additions to associated companies | - | - | - | (22,661) |
| Loan to joint ventures | (1,414) | (1,092) | (5,551) | (3,754) |
| Proceeds from disposal of property, plant and equipment and intangible assets | 9,646 | 3,858 | 28,963 | 12,881 |
| Dividends received from non-consolidated companies | 20,674 | 25,268 | 73,810 | 68,781 |
| Changes in investments in securities | 458,407 | 740,153 | (821,478) | (1,857,272) |
| Net cash provided by (used in) investing activities | 310,535 | 439,837 | (1,397,157) | (2,686,517) |
| Cash flows from financing activities | ||||
| Dividends paid | (299,230) | (235,128) | (757,786) | (636,511) |
| Dividends paid to non-controlling interest in subsidiaries | - | - | (5,862) | (18,967) |
| Changes in non-controlling interests | 28 | - | 1,143 | 3,772 |
| Acquisition of treasury shares | (454,462) | (213,739) | (1,439,589) | (213,739) |
| Payments of lease liabilities | (17,248) | (15,524) | (68,574) | (51,492) |
| Proceeds from borrowings | 344,222 | 365,455 | 1,870,666 | 1,723,677 |
| Repayments of borrowings | (382,656) | (406,774) | (1,999,427) | (1,931,747) |
| Net cash used in financing activities | (809,346) | (505,711) | (2,399,429) | (1,125,007) |
| (Decrease) increase in cash and cash equivalents | (6,583) | 769,861 | (930,368) | 583,549 |
| Movement in cash and cash equivalents | ||||
| At the beginning of the year | 681,306 | 864,012 | 1,616,597 | 1,091,433 |
| Effect of exchange rate changes | (13,925) | (17,276) | (25,431) | (58,385) |
| (Decrease) increase in cash and cash equivalents | (6,583) | 769,861 | (930,368) | 583,549 |
| At December 31, | 660,798 | 1,616,597 | 660,798 | 1,616,597 |
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, | ||
| 2024 | 2023 | 2024 | 2023 | |
| Income for the period | 519,131 | 1,145,781 | 2,076,773 | 3,957,833 |
| Income tax charge / (credit) | 122,709 | (176,848) | 479,680 | 674,956 |
| Equity in earnings of non-consolidated companies | (35,283) | (56,859) | (8,548) | (95,404) |
| Financial results | (48,180) | (93,111) | (129,056) | (220,977) |
| Depreciation and amortization | 167,781 | 156,347 | 632,854 | 548,510 |
| EBITDA | 726,158 | 975,310 | 3,051,703 | 4,864,918 |
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, | ||
| 2024 | 2023 | 2024 | 2023 | |
| Net cash provided by operating activities | 492,228 | 835,735 | 2,866,218 | 4,395,073 |
| Capital expenditures | (181,870) | (166,820) | (693,956) | (619,445) |
| Free cash flow | 310,358 | 668,915 | 2,172,262 | 3,775,628 |
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 December 31, | |
| 2024 | 2023 | |
| Cash and cash equivalents | 675,256 | 1,637,821 |
| Other current investments | 2,372,999 | 1,969,631 |
| Non-current investments | 998,251 | 398,220 |
| Current borrowings | (425,999) | (535,133) |
| Non-current borrowings | (11,399) | (48,304) |
| Net cash / (debt) | 3,609,108 | 3,422,235 |
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, | |
| 2024 | 2023 | |
| Inventories | 3,709,942 | 3,921,097 |
| Trade receivables | 1,907,507 | 2,480,889 |
| Customer advances | (206,196) | (263,664) |
| Trade payables | (880,261) | (1,107,567) |
| Operating working capital | 4,530,992 | 5,030,755 |
| Annualized quarterly sales | 11,380,904 | 13,659,720 |
| Operating working capital | 145 | 134 |
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
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