Tenaris ( (TS) ) has released its Q4 earnings. Here is a breakdown of the information Tenaris presented to its investors.
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Tenaris, a leading supplier of steel tubes and related services primarily for the energy industry, has released its financial results for 2024, showcasing a challenging year marked by decreased sales and profits. The company operates globally and is known for its comprehensive product range and service offerings in the oil and gas sector.
In its latest earnings report, Tenaris reported a 16% decline in net sales, totaling $12.5 billion for the year 2024, compared to 2023. The annual net income also saw a significant drop of 48%, attributed to lower market prices and reduced drilling activities in key regions such as Mexico and Colombia. Despite these challenges, the company maintained a strong net cash position of $3.6 billion as of December 31, 2024.
Key financial metrics for the fourth quarter indicate a 2% sequential decrease in net sales to $2.8 billion, with a 13% rise in net income compared to the third quarter, aided by a favorable product mix and a partial reversal of provisions related to ongoing litigation. The EBITDA for the quarter was $726 million, although it reflected a decrease of 4% on a comparable basis due to residual price declines in North America.
Looking ahead, Tenaris remains cautiously optimistic, anticipating stable sales and EBITDA in the first quarter of 2025, followed by moderate growth in the second quarter. This outlook is supported by steady oil prices and increased demand for oil country tubular goods (OCTG) in various regions, though potential changes in U.S. tariffs could introduce market uncertainties.
Tenaris also announced a change in its financial leadership, with Mr. Carlos Gomez Alzaga set to become the new Chief Financial Officer in May 2025. The company plans to propose a dividend payout, subject to shareholder approval, reflecting its ongoing commitment to returning value to shareholders.
