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 |
(2%) |
3,415 |
(17%) |
|
Operating income ($ million) |
558 |
537 |
4% |
819 |
(32%) |
| Net
income ($ million) |
519 |
459 |
13% |
1,146 |
(55%) |
|
Shareholders’ net income ($ million) |
516 |
448 |
15% |
1,129 |
(54%) |
|
Earnings per ADS ($) |
0.94 |
0.81 |
16% |
1.92 |
(51%) |
|
Earnings per share ($) |
0.47 |
0.40 |
16% |
0.96 |
(51%) |
|
EBITDA* ($ million) |
726 |
688 |
6% |
975 |
(26%) |
|
EBITDA margin (% of net sales) |
25.5% |
23.6% |
|
28.6% |
|
|
|
|
|
|
|
|
*EBITDA in fourth quarter of 2024 includes a $67
million gain from the partial reversal of a provision for the
ongoing litigation related to the acquisition of a participation in
Usiminas. If this charge was not included EBITDA would have
amounted to $659 million, or 23.2% of sales
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
4% on a comparable basis with the margin supported by a favorable
product mix which offset the effect of residual price declines in
North America. Net income increased due to the partial reversal of
the provision made in the second quarter for the ongoing litigation
related to the acquisition of a participation in Usiminas jointly
with our associate company, Ternium.
During the quarter, our free cash flow amounted
to $310 million and, after spending $299 million on dividends and
$454 million on share buybacks, our net cash position declined to
$3.6 billion at December 31, 2024.
Summary of 2024 Annual Results
|
|
12M 2024 |
12M 2023 |
Increase/(Decrease) |
| Net sales ($ million) |
12,524 |
14,869 |
(16%) |
| Operating income ($
million) |
2,419 |
4,316 |
(44%) |
| Net income ($ million) |
2,077 |
3,958 |
(48%) |
| Shareholders’ net income ($
million) |
2,036 |
3,918 |
(48%) |
| Earnings per ADS ($) |
3.61 |
6.65 |
(46%) |
| Earnings per share ($) |
1.81 |
3.32 |
(45%) |
| EBITDA* ($ million) |
3,052 |
4,865 |
(37%) |
| EBITDA margin (% of net
sales) |
24.4% |
32.7% |
|
| |
|
|
|
*EBITDA in 12M 2024 includes a $107 million loss
from the provision for the ongoing litigation related to the
acquisition of a participation in Usiminas. If this charge was not
included EBITDA would have amounted to $3,159 million, or 25.2% of
sales.
Our sales in 2024 amounted to $12.5 billion with
a decrease of 16% compared to 2023, primarily reflecting a decline
in market prices for our tubular products used in onshore drilling
applications in the Americas, lower drilling activity in Mexico and
Colombia, lower shipments for pipeline projects in Argentina and
lower sales of mechanical pipes in Europe. On the other hand, sales
in the Middle East reached a record level as Saudi Aramco
replenished OCTG stocks and increased gas drilling activity. EBITDA
and margins also declined to $3.1 billion, being further affected
by a $107 million loss from a provision for the ongoing litigation
related to the acquisition of a participation in Usiminas. Net
income amounted to $2.1 billion, or 17% of net sales, and was
affected by a reduction of $43 million from our participation in
Ternium related to the same case.
Cash flow provided by operating activities
amounted to $2.9 billion during 2024. This was used to fund capital
expenditures of $694 million, with the remainder distributed to
shareholders through dividend payments of $758 million and share
buybacks for $1,440 million in the year. We maintained a net cash
position of $3.6 billion at the end of December 2024.
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 9% from their August low and could rise further
following the US government’s announced reset of Section 232
tariffs on all imports of steel products without exception.
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 $0.83 (in an
aggregate amount of approximately $0.9 billion), which would
include the interim dividend per share of $0.27 (approximately $0.3
billion) paid in November 2024. If the annual dividend is approved
by the shareholders, a dividend of $0.56 per share ($1.12 per ADS),
or approximately $0.6 billion, will be paid according to the
following timetable:
- 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 |
0% |
760 |
(2%) |
|
Welded |
164 |
191 |
(14%) |
246 |
(33%) |
|
Total |
913 |
937 |
(3%) |
1,006 |
(9%) |
|
|
|
|
|
|
|
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 |
(11%) |
1,501 |
(25%) |
| South America |
595 |
484 |
23% |
590 |
1% |
| Europe |
341 |
280 |
22% |
302 |
13% |
| Asia Pacific, Middle East and
Africa |
629 |
754 |
(17%) |
805 |
(22%) |
| Total net sales ($
million) |
2,695 |
2,790 |
(3%) |
3,198 |
(16%) |
|
Services performed on third party tubes ($ million) |
93 |
97 |
(4%) |
34 |
176% |
| Operating income ($
million) |
533 |
527 |
1% |
780 |
(32%) |
| Operating margin (% of
sales) |
19.8% |
18.9% |
|
24.4% |
|
| |
|
|
|
|
|
Net sales of tubular products and services
decreased 3% sequentially and 16% year on year. Sequentially
volumes sold decreased 3% while average selling prices decreased
less than 1% as a favorable product mix offset price declines in
North America. Sequentially, in North America sales declined due to
lower prices throughout the region and lower activity in Mexico. In
South America sales increased as higher sales in Brazil with
shipments to the Raia pipeline and a recovery of OCTG offset lower
sales for pipelines and the industrial market in Argentina. In
Europe sales increased due to shipments to the Sakarya offshore
line pipe project and higher sales of OCTG in Turkey. In Asia
Pacific, Middle East and Africa sales declined due to lower sales
in Saudi Arabia upon completion of inventory replenishment program
and lower activity, partially offset by an increase in sales to the
UAE.
Operating results from tubular products and
services amounted to a gain of $533 million in the fourth quarter
of 2024 compared to a gain of $527 million in the previous quarter
and a gain of $780 million in the fourth quarter of 2023. This
quarter’s operating income includes a $67 million gain from the
partial reversal of a provision for the ongoing litigation related
to the acquisition of a participation in Usiminas. Excluding this
gain Tubes operating income would have amounted to $467 million
(17.3% of sales) in the fourth quarter, a 12% sequential reduction
following the decline in sales and margins. Margins declined due to
the decline in prices and a more costly product mix.
Others
The following table indicates, for our Others
business segment, net sales, operating income and operating income
as a percentage of net sales for the periods indicated below:
| Others |
4Q 2024 |
3Q 2024 |
4Q 2023 |
|
Net sales ($ million) |
150 |
125 |
20% |
217 |
(31%) |
|
Operating income ($ million) |
25 |
10 |
156% |
39 |
(36%) |
|
Operating margin (% of sales) |
16.8% |
7.9% |
|
18.1% |
|
|
|
|
|
|
|
|
Net sales of other products and services
increased 20% sequentially and decreased 31% year on year.
Sequentially, sales increased mainly due to higher sales of oil
services in Argentina and coiled tubing.
Selling, general and administrative
expenses, or SG&A, amounted to $446
million, or 15.7% of net sales, in the fourth quarter of 2024,
compared to $454 million, 15.6% in the previous quarter and $471
million, 13.8% in the fourth quarter of 2023. Sequentially, the
decline in SG&A is mainly due to lower shipment costs due to a
reduction in volumes shipped.
Other operating results
amounted to a net gain of $81 million in the fourth quarter of
2024, compared to a gain of $11 million in the previous quarter and
a $5 million loss in the fourth quarter of 2023. The fourth quarter
of 2024 includes a $67 million gain from the partial reversal of a
provision for the ongoing litigation related to the acquisition of
a participation in Usiminas.
Financial results amounted to a
gain of $48 million in the fourth quarter of 2024, compared to a
gain of $48 million in the previous quarter and a gain of $93
million in the fourth quarter of 2023. Financial result of the
quarter is mainly attributable to a $42 million net finance income
from the net return of our portfolio investments.
Equity in earnings of non-consolidated
companies generated a gain of $35 million in the fourth
quarter of 2024, compared to a gain of $8 million in the previous
quarter and a gain of $57 million in the fourth quarter of 2023.
These results are mainly derived from our participation in Ternium
(NYSE:TX). During the fourth quarter of 2024 the result from
Ternium´s investment includes a $43 million gain from the partial
reversal of a provision for the ongoing litigation related to the
acquisition of a participation in Usiminas.
Income tax charge amounted to
$123 million in the fourth quarter of 2024, compared to $134
million in the previous quarter and $177 million in the fourth
quarter of 2023.
Cash Flow and Liquidity of 2024 Fourth
Quarter
Net cash generated by operating activities
during the fourth quarter of 2024 was $492 million, compared to
$552 million in the previous quarter and $0.8 billion in the fourth
quarter of 2023. During the fourth quarter of 2024 cash generated
by operating activities includes a net working capital increase of
$37 million.
With capital expenditures of $182 million, our
free cash flow amounted to $310 million during the quarter.
Following a dividend payment of $299 million and share buybacks of
$454 million in the quarter, our net cash position amounted to $3.6
billion at December 31, 2024.
Analysis of 2024 Annual Results
The following table shows our net sales by business segment for
the periods indicated below:
| Net sales ($
million) |
12M 2024 |
12M 2023 |
Increase/(Decrease) |
|
Tubes |
11,907 |
95% |
14,185 |
95% |
(16%) |
| Others |
617 |
5% |
684 |
5% |
(10%) |
| Total |
12,524 |
|
14,869 |
|
(16%) |
| |
|
|
|
|
|
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 |
(4%) |
| Welded |
852 |
953 |
(11%) |
| Total |
3,928 |
4,141 |
(5%) |
| |
|
|
|
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 |
(28%) |
| South America |
2,294 |
3,067 |
(25%) |
| Europe |
1,143 |
1,055 |
8% |
| Asia Pacific, Middle East and
Africa |
3,038 |
2,491 |
22% |
| Total net sales ($
million) |
11,907 |
14,185 |
(16%) |
|
Services performed on third party tubes ($ million) |
484 |
165 |
193% |
| Operating income ($
million) |
2,305 |
4,183 |
(45%) |
| Operating margin (% of
sales) |
19.4% |
29.5% |
|
| |
|
|
|
Net sales of tubular products and services
decreased 16% to $11,907 million in 2024, compared to $14,185
million in 2023 due to a 5% decrease in volumes and a 12% decrease
in average selling prices, primarily reflecting a decline in market
prices for our tubular products used in onshore drilling
applications in the Americas, lower drilling activity in Mexico and
Colombia, lower shipments for pipeline projects in Argentina and
lower sales of mechanical pipes in Europe. On the other hand, sales
in the Middle East reached a record level as Saudi Aramco
replenished OCTG stocks and increased gas drilling activity.
Operating results from tubular products and
services amounted to a gain of $2,305 million in 2024 compared to a
gain of $4,183 million in 2023. The decline in operating results is
mainly due to the decline in average selling prices and the
corresponding impact on sales and margins. Additionally, in 2024
our Tubes operating income includes a charge of $107 million from
the provision for the ongoing litigation related to the acquisition
of a participation in Usiminas, included in other operating
expenses.
Others
The following table indicates, for our Others
business segment, net sales, operating income and operating income
as a percentage of net sales for the periods indicated below:
|
Others |
12M 2024 |
12M 2023 |
Increase/(Decrease) |
| Net sales ($ million) |
617 |
684 |
(10%) |
| Operating income ($
million) |
113 |
133 |
(15%) |
| Operating margin (% of
sales) |
18.4% |
19.5% |
|
| |
|
|
|
Net sales of other products and services
decreased 10% to $617 million in 2024, compared to $684 million in
2023.
Operating results from other products and
services amounted to a gain of $113 million in 2024, compared to a
gain of $133 million in 2023.
Selling, general and administrative
expenses, or SG&A, amounted to $1,905 million in 2024,
representing 15.2% of sales, and $1,919 million in 2023,
representing 12.9% of sales. SG&A expenses increased as a
percentage of sales due to the 16% decline in revenues, mainly due
to lower Tubes average selling prices and an increase of fixed
costs.
Other operating results
amounted to a loss of $65 million in 2024, compared to a gain of
$36 million in 2023. In 2024 we recorded a $107 million loss from
provision for the ongoing litigation related to the acquisition of
a participation in Usiminas. In 2023 other operating income
includes a non-recurring gain of $33 million corresponding to the
transfer of the awards related to the Company’s Venezuelan
nationalized assets.
Financial results amounted to a
gain of $129 million in 2024, compared to a gain of $221 million in
2023. While net finance income increased due to a higher net
financial position, net foreign exchange results decreased
significantly in respect to the previous year.
Equity in earnings of non-consolidated
companies generated a gain of $9 million in 2024, compared
to a gain of $95 million in 2023. These results were mainly derived
from our equity investment in Ternium (NYSE:TX) and in 2024 were
negatively affected by a $43 million loss from the provision for
the ongoing litigation related to the acquisition of a
participation in Usiminas on our Ternium investment.
Income tax amounted to a charge
of $480 million in 2024, compared to $675 million in 2023. The
lower income tax charge mainly reflects the reduction in results at
several subsidiaries.
Cash Flow and Liquidity of 2024
Net cash provided by operating activities in
2024 amounted to $2.9 billion (including a reduction in working
capital of $287 million), compared to cash provided by operations
of $4.4 billion (including a reduction in working capital of $182
million) in 2023.
Capital expenditures amounted to $694 million in
2024, compared to $619 million in 2023. Free cash flow amounted to
$2.2 billion in 2024, compared to $3.8 billion in 2023.
Following dividend payments of $758 million and
share buybacks of $1.4 billion during 2024, our net cash position
amounted to $3.6 billion at December 31, 2024.
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
1-888-300-5432www.tenaris.com
Grafico Azioni Tenaris (BIT:TEN)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Tenaris (BIT:TEN)
Storico
Da Feb 2024 a Feb 2025
