Tenaris Announces 2024 Third Quarter Results
Tenaris (NYSE: TS) reported Q3 2024 results with net sales of $2.915 billion, down 12% from Q2 2024 and 10% from Q3 2023. Net income reached $459 million, up 32% from Q2 2024 but down 16% from Q3 2023. EBITDA was $688 million with a 23.6% margin. The company announced a $0.27 per share interim dividend and approved a $700 million follow-on share buyback program. Sales decline was attributed to lower prices in the Americas and reduced demand in USA, Mexico, and Saudi Arabia. The company maintains a strong financial position with $4.0 billion net cash.
Tenaris (NYSE: TS) ha riportato i risultati del terzo trimestre 2024 con un fatturato netto di 2,915 miliardi di dollari, in calo del 12% rispetto al secondo trimestre 2024 e del 10% rispetto al terzo trimestre 2023. Il reddito netto ha raggiunto 459 milioni di dollari, in aumento del 32% rispetto al secondo trimestre 2024, ma diminuito del 16% rispetto al terzo trimestre 2023. EBITDA è stato di 688 milioni di dollari con un margine del 23,6%. L'azienda ha annunciato un dividendo intermedio di 0,27 dollari per azione e ha approvato un programma di riacquisto di azioni da 700 milioni di dollari. Il calo delle vendite è stato attribuito a prezzi più bassi nelle Americhe e a una domanda ridotta negli USA, in Messico e in Arabia Saudita. L'azienda mantiene una solida posizione finanziaria con 4,0 miliardi di dollari di liquidità netta.
Tenaris (NYSE: TS) reportó los resultados del tercer trimestre de 2024 con ventas netas de 2.915 millones de dólares, una disminución del 12% con respecto al segundo trimestre de 2024 y del 10% en comparación con el tercer trimestre de 2023. El ingreso neto alcanzó los 459 millones de dólares, un aumento del 32% frente al segundo trimestre de 2024, pero una caída del 16% en comparación con el tercer trimestre de 2023. EBITDA fue de 688 millones de dólares con un margen del 23,6%. La compañía anunció un dividendo interino de 0,27 dólares por acción y aprobó un programa de recompra de acciones por 700 millones de dólares. La disminución de las ventas se atribuyó a precios más bajos en América y una demanda reducida en EE. UU., México y Arabia Saudita. La empresa mantiene una sólida posición financiera con 4,0 mil millones de dólares en efectivo neto.
Tenaris (NYSE: TS)는 2024년 3분기 실적을 발표하였으며, 순매출은 29억 1500만 달러로 2024년 2분기 대비 12% 감소하고, 2023년 3분기 대비 10% 감소했습니다. 순이익은 4억 5900만 달러에 달하며, 2024년 2분기 대비 32% 증가했지만, 2023년 3분기 대비 16% 감소했습니다. EBITDA는 6억 8800만 달러로, 23.6%의 마진을 기록했습니다. 회사는 주당 0.27달러의 중간 배당금을 발표하고, 7억 달러 규모의 후속 자사주 매입 프로그램을 승인했습니다. 매출 감소는 아메리카의 낮은 가격과 미국, 멕시코, 사우디 아라비아에서의 수요 감소로 인한 것으로 분석되었습니다. 이 회사는 40억 달러의 순현금을 보유하며 강력한 재정적 입지를 유지하고 있습니다.
Tenaris (NYSE: TS) a annoncé les résultats du troisième trimestre 2024, avec un chiffre d'affaires net de 2,915 milliards de dollars, en baisse de 12 % par rapport au deuxième trimestre 2024 et de 10 % par rapport au troisième trimestre 2023. Le revenu net a atteint 459 millions de dollars, en hausse de 32 % par rapport au deuxième trimestre 2024, mais en baisse de 16 % par rapport au troisième trimestre 2023. EBITDA s'est élevé à 688 millions de dollars, avec une marge de 23,6 %. La société a annoncé un dividende intérimaire de 0,27 dollar par action et a approuvé un programme de rachat d'actions de 700 millions de dollars. La baisse des ventes a été attribuée à des prix plus bas en Amérique et à une demande réduite aux États-Unis, au Mexique et en Arabie Saoudite. L'entreprise maintient une solide position financière avec 4,0 milliards de dollars de liquidités nettes.
Tenaris (NYSE: TS) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, mit einem Nettoumsatz von 2,915 Milliarden US-Dollar, was einem Rückgang von 12 % im Vergleich zum zweiten Quartal 2024 und 10 % im Vergleich zum dritten Quartal 2023 entspricht. Der Nettogewinn belief sich auf 459 Millionen US-Dollar, was einem Anstieg von 32 % im Vergleich zum zweiten Quartal 2024, jedoch einem Rückgang von 16 % im Vergleich zum dritten Quartal 2023 entspricht. EBITDA betrug 688 Millionen US-Dollar mit einer Marge von 23,6 %. Das Unternehmen gab eine Zwischendividende von 0,27 US-Dollar pro Aktie bekannt und genehmigte ein Aktienrückkaufprogramm im Wert von 700 Millionen US-Dollar. Der Rückgang der Verkäufe wurde auf niedrigere Preise in den Amerikas und eine reduzierte Nachfrage in den USA, Mexiko und Saudi-Arabien zurückgeführt. Das Unternehmen weist eine starke Finanzlage mit 4,0 Milliarden US-Dollar Nettobarvermögen auf.
- Net income increased 32% quarter-over-quarter to $459 million
- Strong financial position with $4.0 billion net cash
- Free cash flow of $373 million in Q3 2024
- EBITDA margin remained resilient at 23.6%
- Net sales declined 12% quarter-over-quarter to $2.915 billion
- Operating income decreased 38% year-over-year to $537 million
- Sales volumes in Tubes segment decreased 9% quarter-over-quarter
- Lower prices and demand in key markets (USA, Mexico, Saudi Arabia)
Insights
Tenaris's Q3 2024 results show mixed signals.
Key positives include strong cash generation with
Looking ahead, while Q4 2024 is expected to see lower sales and EBITDA, management projects a recovery in 2025 driven by increased North American shipments and OCTG price rebounds. The stabilizing OCTG prices in North America and improving economic environment in Argentina provide potential catalysts for growth.
The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
LUXEMBOURG, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended September 30, 2024 in comparison with its results for the quarter ended September 30, 2023.
Summary of 2024 Third Quarter Results
(Comparison with second quarter of 2024 and third quarter of 2023)
3Q 2024 | 2Q 2024 | 3Q 2023 | |||
Net sales ($ million) | 2,915 | 3,322 | ( | 3,238 | ( |
Operating income ($ million) | 537 | 512 | 868 | ( | |
Net income ($ million) | 459 | 348 | 547 | ( | |
Shareholders’ net income ($ million) | 448 | 335 | 537 | ( | |
Earnings per ADS ($) | 0.81 | 0.59 | 0.91 | ( | |
Earnings per share ($) | 0.40 | 0.29 | 0.46 | ( | |
EBITDA* ($ million) | 688 | 650 | 1,004 | ( | |
EBITDA margin (% of net sales) | |||||
*EBITDA in 2Q 2024 includes a
Net sales in the third quarter were affected by lower prices in the Americas and lower demand in the USA, Mexico and Saudi Arabia as well as lower line pipe shipments in Argentina. Margins were relatively resilient with our EBITDA margin falling
During the quarter, our free cash flow amounted to
Interim Dividend Payment
Our board of directors approved the payment of an interim dividend of
- Payment date: November 20, 2024
- Record date: November 19, 2024
- Ex-dividend for securities listed in Europe: November 18, 2024
- Ex-dividend for securities listed in the United States and Mexico: November 19, 2024
Follow-on Share Buyback Program
Tenaris’s Board of Directors approved a
Under the previous
The decision and opportunity of launching this follow-on buyback program is driven by the Company’s significant cash flow generation and strong balance sheet.
The follow-on buyback program is expected to be launched in the near future and finish by March 26, 2025. It will be executed by a primary financial institution on the Milan Stock Exchange, with the intention to cancel the ordinary shares acquired through the program.
The buybacks may be ceased, paused and continued at any time, subject to compliance with applicable laws and regulations.
Tenaris will provide updates on the buyback program via press releases and on the Investors section of its corporate website. The buybacks will be carried out subject to market conditions and in compliance with applicable laws and regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052.
Market Background and Outlook
Oil prices appear relatively stable and support industry investment despite uncertainty about Asian demand growth and geopolitical tensions.
The decline in OCTG prices in North America that we have seen over the past two years has now come to an end as drilling activity has stabilized and the level of US OCTG imports has come down.
The new government in Mexico is implementing its energy policy, drilling activity in the near term is subdued, while next year we expect that it will recover. In Argentina, the economic environment is improving, which should support investment in pipeline infrastructure and drilling activity in the Vaca Muerta shale.
In the Middle East, while gas drilling activity remains at a stable level, we see some reduction in oil activity and rationalization of inventories, including pipes, to protect cash flow.
In the fourth quarter, our sales and EBITDA will be lower than the third quarter, affected by lower sales in Mexico and Saudi Arabia and the delayed impact of OCTG pricing in the Americas. Overall, our 2024 second half results will be in line with our investor day guidance in September. Going into 2025, we expect our sales and EBITDA to recover with an increase in shipments in North America and the Middle East and a rebound in OCTG prices in North America.
Analysis of 2024 Third 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) | 3Q 2024 | 2Q 2024 | 3Q 2023 | |||
Seamless | 746 | 805 | ( | 744 | ||
Welded | 191 | 228 | ( | 169 | ||
Total | 937 | 1,033 | (9%) | 913 | 3% | |
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. During this quarter, the coating service results attributable to the coating business acquired from Mattr, which were previously included in our Others segment, have been reclassified to our Tubes segment and comparative amounts have been reclassified accordingly.
Tubes | 3Q 2024 | 2Q 2024 | 3Q 2023 | ||
(Net sales - $ million) | |||||
North America | 1,273 | 1,439 | ( | 1,700 | ( |
South America | 484 | 599 | ( | 608 | ( |
Europe | 280 | 269 | 231 | ||
Asia Pacific, Middle East and Africa | 754 | 823 | ( | 556 | |
Total net sales ($ million) | 2,790 | 3,130 | (11%) | 3,095 | (10%) |
Coating services to third parties included in Tubes ($ million) | 70 | 67 | 5% | 19 | 273% |
Operating income ($ million) | 527 | 459 | 15% | 841 | (37%) |
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 | 3Q 2024 | 2Q 2024 | 3Q 2023 | ||
Net sales ($ million) | 125 | 192 | ( | 143 | ( |
Operating income ($ million) | 10 | 52 | ( | 27 | ( |
Operating margin (% of sales) | |||||
Net sales of other products and services decreased
Selling, general and administrative expenses, or SG&A, amounted to
Other operating results amounted to a gain of
Financial results amounted to a gain of
Equity in earnings (losses) of non-consolidated companies generated a gain of
Income tax charge amounted to
Cash Flow and Liquidity of 2024 Third Quarter
Net cash generated by operating activities during the third quarter of 2024 was
With capital expenditures of
Analysis of 2024 First Nine Months Results
9M 2024 | 9M 2023 | Increase/(Decrease) | |
Net sales ($ million) | 9,679 | 11,454 | ( |
Operating income ($ million) | 1,860 | 3,497 | ( |
Net income ($ million) | 1,558 | 2,812 | ( |
Shareholders’ net income ($ million) | 1,520 | 2,789 | ( |
Earnings per ADS ($) | 2.67 | 4.72 | ( |
Earnings per share ($) | 1.34 | 2.36 | ( |
EBITDA* ($ million) | 2,326 | 3,890 | ( |
EBITDA margin (% of net sales) | |||
*EBITDA in 9M 2024 includes a
Our sales in the first nine months of 2024 decreased
Cash flow provided by operating activities amounted to
The following table shows our net sales by business segment for the periods indicated below:
Net sales ($ million) | 9M 2024 | 9M 2023 | Increase/(Decrease) | ||
Tubes | 9,212 | 10,987 | ( | ||
Others | 467 | 467 | ( | ||
Total | 9,679 | 11,454 | (15%) | ||
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) | 9M 2024 | 9M 2023 | Increase/(Decrease) |
Seamless | 2,328 | 2,428 | ( |
Welded | 687 | 707 | ( |
Total | 3,016 | 3,136 | (4%) |
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 | 9M 2024 | 9M 2023 | Increase/(Decrease) |
(Net sales - $ million) | |||
North America | 4,301 | 6,071 | ( |
South America | 1,699 | 2,476 | ( |
Europe | 802 | 754 | |
Asia Pacific, Middle East and Africa | 2,410 | 1,687 | |
Total net sales ($ million) | 9,212 | 10,987 | (16%) |
Coating services to third parties included in Tubes ($ million) | 300 | 55 | 441% |
Operating income ($ million) | 1,772 | 3,403 | (48%) |
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 | 9M 2024 | 9M 2023 | Increase/(Decrease) |
Net sales ($ million) | 467 | 467 | |
Operating income ($ million) | 88 | 94 | ( |
Operating margin (% of sales) | |||
Net sales of other products and services which amounted to
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 (losses) earnings of non-consolidated companies generated a loss of
Income tax amounted to a charge of
Cash Flow and Liquidity of 2024 First Nine Months
Net cash provided by operating activities during the first nine months of 2024 amounted to
Capital expenditures amounted to
Following a dividend payment of
Conference call
Tenaris will hold a conference call to discuss the above reported results, on November 7, 2024, 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/z7cmogvw/
If you wish to participate in the Q&A session please register at the following link:
https://register.vevent.com/register/BIf7b93fbc38f245839de51051af91f592
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 Condensed Interim Income Statement
(all amounts in thousands of U.S. dollars) | Three-month period ended September 30, | Nine-month period ended September 30, | ||
2024 | 2023 | 2024 | 2023 | |
Unaudited | Unaudited | |||
Net sales | 2,915,487 | 3,237,836 | 9,678,708 | 11,453,930 |
Cost of sales | (1,935,560) | (1,973,381) | (6,213,226) | (6,548,324) |
Gross profit | 979,927 | 1,264,455 | 3,465,482 | 4,905,606 |
Selling, general and administrative expenses | (454,020) | (432,682) | (1,458,840) | (1,448,765) |
Other operating income | 16,682 | 39,219 | 42,167 | 51,575 |
Other operating expenses | (5,490) | (3,091) | (188,337) | (10,971) |
Operating income | 537,099 | 867,901 | 1,860,472 | 3,497,445 |
Finance Income | 65,815 | 56,100 | 190,988 | 149,853 |
Finance Cost | (15,979) | (19,179) | (52,284) | (87,103) |
Other financial results, net | (1,381) | 30,565 | (57,828) | 65,116 |
Income before equity in earnings of non-consolidated companies and income tax | 585,554 | 935,387 | 1,941,348 | 3,625,311 |
Equity in earnings (losses) of non-consolidated companies | 7,605 | (110,382) | (26,735) | 38,545 |
Income before income tax | 593,159 | 825,005 | 1,914,613 | 3,663,856 |
Income tax | (133,968) | (278,200) | (356,971) | (851,804) |
Income for the period | 459,191 | 546,805 | 1,557,642 | 2,812,052 |
Attributable to: | ||||
Shareholders' equity | 448,066 | 537,311 | 1,520,232 | 2,788,967 |
Non-controlling interests | 11,125 | 9,494 | 37,410 | 23,085 |
459,191 | 546,805 | 1,557,642 | 2,812,052 |
Consolidated Condensed Interim Statement of Financial Position
(all amounts in thousands of U.S. dollars) | At September 30, 2024 | At December 31, 2023 | |||
Unaudited | |||||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment, net | 6,150,671 | 6,078,179 | |||
Intangible assets, net | 1,355,801 | 1,377,110 | |||
Right-of-use assets, net | 149,808 | 132,138 | |||
Investments in non-consolidated companies | 1,550,676 | 1,608,804 | |||
Other investments | 1,020,808 | 405,631 | |||
Deferred tax assets | 790,907 | 789,615 | |||
Receivables, net | 199,459 | 11,218,130 | 185,959 | 10,577,436 | |
Current assets | |||||
Inventories, net | 3,762,705 | 3,921,097 | |||
Receivables and prepayments, net | 249,754 | 228,819 | |||
Current tax assets | 307,459 | 256,401 | |||
Trade receivables, net | 2,079,600 | 2,480,889 | |||
Derivative financial instruments | 8,727 | 9,801 | |||
Other investments | 2,798,807 | 1,969,631 | |||
Cash and cash equivalents | 715,028 | 9,922,080 | 1,637,821 | 10,504,459 | |
Total assets | 21,140,210 | 21,081,895 | |||
EQUITY | |||||
Shareholders' equity | 17,200,408 | 16,842,972 | |||
Non-controlling interests | 219,167 | 187,465 | |||
Total equity | 17,419,575 | 17,030,437 | |||
LIABILITIES | |||||
Non-current liabilities | |||||
Borrowings | 14,405 | 48,304 | |||
Lease liabilities | 103,121 | 96,598 | |||
Derivative financial instruments | - | 255 | |||
Deferred tax liabilities | 479,187 | 631,605 | |||
Other liabilities | 318,498 | 271,268 | |||
Provisions | 87,363 | 1,002,574 | 101,453 | 1,149,483 | |
Current liabilities | |||||
Borrowings | 485,996 | 535,133 | |||
Lease liabilities | 48,616 | 37,835 | |||
Derivative financial instruments | 3,230 | 10,895 | |||
Current tax liabilities | 291,032 | 488,277 | |||
Other liabilities | 380,577 | 422,645 | |||
Provisions | 221,870 | 35,959 | |||
Customer advances | 324,382 | 263,664 | |||
Trade payables | 962,358 | 2,718,061 | 1,107,567 | 2,901,975 | |
Total liabilities | 3,720,635 | 4,051,458 | |||
Total equity and liabilities | 21,140,210 | 21,081,895 |
Consolidated Condensed Interim Statement of Cash Flows
(all amounts in thousands of U.S. dollars) | Three-month period ended September 30, | Nine-month period ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | ||||||
Unaudited | Unaudited | ||||||||
Cash flows from operating activities | |||||||||
Income for the period | 459,191 | 546,805 | 1,557,642 | 2,812,052 | |||||
Adjustments for: | |||||||||
Depreciation and amortization | 151,122 | 136,129 | 465,073 | 392,163 | |||||
Bargain purchase gain | - | (3,162) | (2,211) | (3,162) | |||||
Provision for the ongoing litigation related to the acquisition of participation in Usiminas | 6,736 | - | 177,346 | - | |||||
Income tax accruals less payments | (108,788) | 76,994 | (222,350) | 134,168 | |||||
Equity in (losses) earnings of non-consolidated companies | (7,605) | 110,382 | 26,735 | (38,545) | |||||
Interest accruals less payments, net | (5,678) | (22,986) | (8,313) | (44,926) | |||||
Changes in provisions | (615) | (17,998) | (5,347) | 21,935 | |||||
Changes in working capital | 48,003 | 414,887 | 323,521 | 248,125 | |||||
Others, including net foreign exchange | 9,446 | 55,883 | 61,894 | 37,528 | |||||
Net cash provided by operating activities | 551,812 | 1,296,934 | 2,373,990 | 3,559,338 | |||||
Cash flows from investing activities | |||||||||
Capital expenditures | (178,671) | (170,376) | (512,086) | (452,625) | |||||
Changes in advances to suppliers of property, plant and equipment | (4,968) | (1,342) | (15,483) | 902 | |||||
Acquisition of subsidiaries, net of cash acquired | 5,500 | (100,311) | 31,446 | (104,419) | |||||
Additions to associated companies | - | (22,661) | - | (22,661) | |||||
Loan to joint ventures | (1,392) | (1,427) | (4,137) | (2,662) | |||||
Proceeds from disposal of property, plant and equipment and intangible assets | 13,182 | 648 | 19,317 | 9,023 | |||||
Dividends received from non-consolidated companies | - | - | 53,136 | 43,513 | |||||
Changes in investments in securities | (243,133) | (809,796) | (1,279,885) | (2,597,425) | |||||
Net cash used in investing activities | (409,482) | (1,105,265) | (1,707,692) | (3,126,354) | |||||
Cash flows from financing activities | |||||||||
Dividends paid | - | - | (458,556) | (401,383) | |||||
Dividends paid to non-controlling interest in subsidiaries | (5,862) | (1,530) | (5,862) | (18,967) | |||||
Changes in non-controlling interests | - | 2,033 | 1,115 | 3,772 | |||||
Acquisition of treasury shares | (181,741) | - | (985,127) | - | |||||
Payments of lease liabilities | (17,944) | (12,199) | (51,326) | (35,968) | |||||
Proceeds from borrowings | 331,348 | 326,185 | 1,526,444 | 1,358,223 | |||||
Repayments of borrowings | (444,172) | (381,886) | (1,616,771) | (1,524,973) | |||||
Net cash used in financing activities | (318,371) | (67,397) | (1,590,083) | (619,296) | |||||
(Decrease) increase in cash and cash equivalents | (176,041) | 124,272 | (923,785) | (186,312) | |||||
Movement in cash and cash equivalents | |||||||||
At the beginning of the period | 848,695 | 755,271 | 1,616,597 | 1,091,433 | |||||
Effect of exchange rate changes | 8,652 | (15,531) | (11,506) | (41,109) | |||||
(Decrease) increase in cash and cash equivalents | (176,041) | 124,272 | (923,785) | (186,312) | |||||
681,306 | 864,012 | 681,306 | 864,012 |
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 September 30, | Nine-month period ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Income for the period | 459,191 | 546,805 | 1,557,642 | 2,812,052 | ||||
Income tax charge | 133,968 | 278,200 | 356,971 | 851,804 | ||||
Equity in earnings (losses) of non-consolidated companies | (7,605) | 110,382 | 26,735 | (38,545) | ||||
Financial Results | (48,455) | (67,486) | (80,876) | (127,866) | ||||
Depreciation and amortization | 151,122 | 136,129 | 465,073 | 392,163 | ||||
EBITDA | 688,221 | 1,004,030 | 2,325,545 | 3,889,608 | ||||
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 September 30, | Nine-month period ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Net cash provided by operating activities | 551,812 | 1,296,934 | 2,373,990 | 3,559,338 | ||||
Capital expenditures | (178,671) | (170,376) | (512,086) | (452,625) | ||||
Free cash flow | 373,141 | 1,126,558 | 1,861,904 | 3,106,713 | ||||
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 September 30, | |||
2024 | 2023 | |||
Cash and cash equivalents | 715,028 | 864,043 | ||
Other current investments | 2,798,807 | 2,496,747 | ||
Non-current investments | 1,013,474 | 560,489 | ||
Derivatives hedging borrowings and investments | - | 766 | ||
Current borrowings | (485,996) | (597,493) | ||
Non-current borrowings | (14,405) | (25,248) | ||
Net cash / (debt) | 4,026,908 | 3,299,304 | ||
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) | At September 30, | |||
2024 | 2023 | |||
Inventories | 3,762,705 | 3,884,882 | ||
Trade receivables | 2,079,600 | 2,169,293 | ||
Customer advances | (324,382) | (160,533) | ||
Trade payables | (962,358) | (999,209) | ||
Operating working capital | 4,555,565 | 4,894,433 | ||
Annualized quarterly sales | 11,661,948 | 12,951,344 | ||
Operating working capital days | 143 | 138 |
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
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