Tenaris S.A. (NYSE and Mexico: TS and MTA Italy: TEN) (“Tenaris”)
today announced its results for the fourth quarter and year ended
December 31, 2019 with comparison to its results for the fourth
quarter and year ended December 31, 2018.
Summary of 2019 Fourth Quarter
Results
(Comparison with third quarter of 2019 and
fourth quarter of 2018)
|
4Q 2019 |
3Q 2019 |
4Q 2018 |
Net sales ($
million) |
1,741 |
1,764 |
(1%) |
2,105 |
(17%) |
Operating income ($ million) |
152 |
187 |
(19%) |
179 |
(15%) |
Net income ($ million) |
148 |
101 |
48% |
225 |
(34%) |
Shareholders’ net income ($ million) |
152 |
107 |
42% |
226 |
(33%) |
Earnings per ADS ($) |
0.26 |
0.18 |
42% |
0.38 |
(33%) |
Earnings per share ($) |
0.13 |
0.09 |
42% |
0.19 |
(33%) |
EBITDA ($ million) |
290 |
322 |
(10%) |
426 |
(32%) |
EBITDA margin (% of net sales) |
16.7% |
18.2% |
|
20.2% |
|
In the fourth quarter of 2019, sales were
affected by a slowdown in activity in Argentina and lower prices in
the Americas. Although overall sales volumes held up well, margins
were affected by a 3% drop in average selling prices and higher
professional fees mainly related to the closing of IPSCO
acquisition ($10 million). Net income for shareholders, however,
increased 42% sequentially as we recorded a low income tax charge
for the quarter, while in the previous quarter the tax charge was
adversely affected by the impact of currency devaluations mainly in
Argentina and Mexico.
During the quarter, cash flow from operations
amounted to $264 million, which included a reduction in inventories
of $117 million. After capital expenditures of $80 million and
dividend payments of $153 million, our net cash position rose to
$980 million.
Summary of 2019 Annual
Results
|
12M 2019 |
12M 2018 |
Increase/(Decrease) |
Net sales ($ million) |
7,294 |
7,659 |
(5%) |
Operating income (loss) ($ million) |
832 |
872 |
(5%) |
Net income ($ million) |
731 |
874 |
(16%) |
Shareholders’ net income ($ million) |
743 |
876 |
(15%) |
Earnings per ADS ($) |
1.26 |
1.48 |
(15%) |
Earnings per share ($) |
0.63 |
0.74 |
(15%) |
EBITDA ($ million) |
1,372 |
1,536 |
(11%) |
EBITDA margin (% of net sales) |
18.8% |
20.1% |
|
In 2019, our sales declined 5% compared to 2018,
reflecting lower drilling activity in Canada and the USA and lower
sales in the Middle East and Africa. Despite the integration of
Saudi Steel Pipe and a strong level of premium sales for Indian
offshore gas projects, sales in the Middle East and Africa region
were affected by Aramco destocking in Saudi Arabia and did not
include the extraordinary level of sales to East Mediterranean gas
pipelines recorded in 2018.
Operating income declined 5%, in line with the
decline in sales. Although gross margins were affected by lower
volumes and high maintenance and start-up delays associated with
the major overhauls and investments we carried out at many of our
industrial facilities including Tamsa in Mexico, these were
compensated by lower amortization charges. Shareholders net income
declined 15% for the year, reflecting the decline in operating
income and lower returns on our investment in Ternium.
Cash flow provided by operating activities
amounted to $1,528 million during 2019, which included a reduction
in working capital of $523 million. This amounted to a free cash
flow margin of 16%, following capital expenditures of $350 million.
During the year we made $484 million in dividend payments, an
investment of $133 million in Saudi Steel Pipe, and our net cash
position increased by $495 million to $980 million at December 31,
2019.
Annual Dividend Proposal
Upon approval of the Company´s annual accounts
in March 2020, the board of directors intends to propose, for
approval of the annual general shareholders’ meeting to be held on
April 30, 2020, the payment of dividends in an aggregate amount of
approximately $484 million, which would include the interim
dividend of approximately $153 million paid in November 2019. If
the annual dividend is approved by the shareholders, a dividend of
$0.28 per share ($0.56 per ADS), or approximately $331 million,
will be paid on May 20, 2020, with an ex-dividend date on May 18,
2020 and record date on May 19, 2020.
Market Background and
Outlook
Drilling activity in the US shales, after
declining throughout 2019 as oil and gas companies adjusted to
lower cash flows and a less accommodating financial environment, is
expected to stabilize at current levels provided that oil and gas
prices and global demand expectations are not further affected by
the coronavirus outbreak. Offshore drilling activity in the Gulf of
Mexico, however, is expected to show some recovery during 2020.
Drilling activity in Canada, which declined 30% in 2019, is
expected to remain close to last year’s level.
In Latin America, offshore drilling activity,
which rose in Mexico and Guyana in 2019, is expected to grow
further, particularly in Brazil, while, in Argentina, shale
drilling activity, which declined sharply towards the end of 2019,
is unlikely to recover quickly as continuing uncertainty about the
investment climate has led oil and gas companies to postpone new
investments in Vaca Muerta.
In the Eastern Hemisphere, drilling activity is
likely to remain broadly stable with higher activity in some
regions like the Middle East and the North Sea, while, in other
regions like the Caspian and in some LNG developments, activity may
be delayed with the current level of oil and gas prices.
Global OCTG demand, which we estimate remained
stable in 2019, is expected to decline slightly in 2020, affected
primarily by lower demand in the USA and further destocking in the
Middle East.
Despite lower market demand in USA and Argentina
and lower prices in the Americas, we expect to increase sales in
2020 with the expansion of our position in the US market through
the integration of IPSCO and higher sales of premium products for
offshore drilling projects. We expect margins in the first quarter
to be in line with those of the fourth quarter as they will be
affected by the current losses that IPSCO is incurring but should
recover during the year as we realize synergies from the
integration and work on reducing costs and working capital
throughout our operations.
Analysis of 2019 Fourth Quarter
Results
Tubes Sales volume
(thousand metric tons) |
4Q 2019 |
3Q 2019 |
4Q 2018 |
Seamless |
641 |
645 |
(1%) |
700 |
(8%) |
Welded |
164 |
150 |
9% |
247 |
(34%) |
Total |
805 |
796 |
1% |
947 |
(15%) |
Tubes |
4Q 2019 |
3Q 2019 |
4Q 2018 |
(Net sales - $
million) |
|
|
|
|
|
North America |
779 |
772 |
1% |
967 |
(19%) |
South America |
265 |
308 |
(14%) |
356 |
(26%) |
Europe |
153 |
136 |
13% |
148 |
4% |
Middle East & Africa |
352 |
369 |
(4%) |
436 |
(19%) |
Asia Pacific |
82 |
77 |
7% |
77 |
6% |
Total net sales ($ million) |
1,631 |
1,661 |
(2%) |
1,984 |
(18%) |
Operating income ($ million) |
138 |
163 |
(15%) |
154 |
(10%) |
Operating margin (% of sales) |
8.5% |
9.8% |
|
7.7% |
|
Net sales of tubular products and services
decreased 2% sequentially and 18% year on year, the sequential
decline is mainly attributable to South America and the Middle East
& Africa, partially offset by higher sales in the other
regions. In North America, sales increased sequentially 1% thanks
to seasonally higher sales in Canada that compensated a decline in
product prices throughout the region. In South America, sales
decreased 14% sequentially due to lower sales in Argentina where
oil and gas activity has been strongly impacted from last August.
In Europe sales increased 13% sequentially after seasonally higher
sales in the North Sea. In the Middle East and Africa sales were
relatively stable in the region with a slight decrease in India
following a high level of shipments in the previous quarter. In
Asia Pacific we had higher sales in Vietnam and Australia.
Operating income from tubular products and
services, amounted to $138 million in the fourth quarter of 2019,
compared to $163 million in the previous quarter and $154 million
in the fourth quarter of 2018. Operating income during the quarter
was negatively affected by a 3% decline in average selling prices
and higher consultancy and legal fees and selling expenses in
SG&A. Costs of goods sold per ton declined 2% thanks to a
better industrial performance, mainly at Tamsa after the conclusion
of the maintenance stoppage, and a reduction in the cost of
steelmaking raw materials and hot rolled coils.
Others |
4Q 2019 |
3Q 2019 |
4Q 2018 |
Net sales ($
million) |
109 |
102 |
7% |
121 |
(9%) |
Operating income ($ million) |
14 |
24 |
(43%) |
25 |
(45%) |
Operating income (% of sales) |
12.6% |
23.6% |
|
20.7% |
|
Net sales of other products and services
increased 7% sequentially and declined 9% year on year. The
sequential increase in sales is mainly due to higher sales of
coiled tubing, while the year on year reduction is mainly due to
lower sales of excess energy, following the closure of our San
Nicolás power plant in Argentina, which occurred in January
2019.
Selling, general and administrative expenses, or
SG&A, amounted to $349 million (20.0% of net sales), compared
to $333 million (18.9%) in the previous quarter and $487 million
(23.1%) in the fourth quarter of 2018, affected by a one off
amortization charge of $109 million. Sequentially, SG&A
increased 5% due to $10 million higher consultancy and legal fees
mainly related to the closing of IPSCO’s acquisition and higher
logistic costs due to a different mix of shipping destinations.
Financial results amounted to a
loss of $7 million in the fourth quarter of 2019, compared to a
gain of $8 million in the previous quarter and a loss of $6 million
in the fourth quarter of 2018. The loss during the quarter
corresponds mainly to a $6 million loss on FX derivatives covering
primarily net payables in Argentine and Mexican peso.
Equity in earnings of non-consolidated
companies generated a gain of $13 million in the fourth
quarter of 2019, compared to $13 million in the previous quarter
and $51 million in the same period of 2018. These results are
mainly derived from our equity investment in Ternium (NYSE:TX).
Income tax
charge amounted to $10 million in the fourth
quarter of 2019, compared to $108 million in the previous quarter
and a gain of $2 million in the same period of 2018. The charge of
the quarter includes a gain of $18 million derived from the effect
of the Mexican peso revaluation on the tax base to calculate
deferred taxes and a $15 million gain on inflation adjustments,
mostly in Argentina.
Cash Flow and Liquidity of 2019 Fourth
Quarter
Net cash provided by operations during the
fourth quarter of 2019 was $264 million, compared with $374 million
in the previous quarter and $239 million in the fourth quarter of
2018. Working capital decreased by $20 million during the fourth
quarter of 2019, as a reduction of $117 million in inventories was
partially offset by an increase in trade receivables of $38 million
and a reduction in other liabilities of $61 million.
Capital expenditures amounted to $80 million for
the fourth quarter of 2019, compared to $87 million in the previous
quarter and $76 million in the fourth quarter of 2018.
During the quarter, our net cash position
increased by $16 million to $980 million at the end of the year,
following the payment of an interim dividend of $153 million in
November 2019.
Analysis of 2019 Annual
Results
Tubes Sales volume (thousand metric tons) |
12M 2019 |
12M 2018 |
Increase/(Decrease) |
Seamless |
2,600 |
2,694 |
(3%) |
Welded |
671 |
877 |
(24%) |
Total |
3,271 |
3,571 |
(8%) |
Tubes |
12M 2019 |
12M 2018 |
Increase/(Decrease) |
(Net sales - $ million) |
|
|
|
North America |
3,307 |
3,488 |
(5%) |
South America |
1,240 |
1,284 |
(3%) |
Europe |
641 |
628 |
2% |
Middle East & Africa |
1,337 |
1,541 |
(13%) |
Asia Pacific |
345 |
292 |
18% |
Total net sales ($ million) |
6,870 |
7,233 |
(5%) |
Operating income ($ million) |
755 |
777 |
(3%) |
Operating income (% of sales) |
11.0% |
10.7% |
|
Net sales of tubular products and services
decreased 5% to $6,870 million in 2019, compared to $7,233 million
in 2018, reflecting an 8% decline in volumes and a 4% increase in
average selling prices. In North America, while sales were higher
in Mexico, they declined in Canada and the United States reflecting
lower drilling activity. In South America sales declined slightly
reflecting a reduction in drilling activity in Argentina towards
the end of the year. In Europe sales increased due to higher
demand for offshore line pipe and OCTG with lower sales of
mechanical pipes and line pipe for Hydrocarbon Process projects. In
the Middle East & Africa, the acquisition of Saudi Steel Pipe
and an increase in sales in the Middle East outside of Saudi Arabia
(where destocking took place) did not compensate for the drop in
sales of offshore line pipe following the completion of deliveries
for East Mediterranean gas development projects. In Asia Pacific,
while sales increased in China, Indonesia and Australia, they
declined in Thailand.
Operating income from tubular products and
services, amounted to $755 million in 2019, compared to $777
million in 2018 (including $109 million one-off charge from higher
amortization of intangibles). Operating income during 2019 was
negatively affected by lower shipment volumes after the completion
of deliveries of offshore line pipe for East Mediterranean gas
development projects.
Others |
12M 2019 |
12M 2018 |
Increase/(Decrease) |
Net sales ($ million) |
424 |
426 |
0% |
Operating income ($ million) |
77 |
95 |
(19%) |
Operating margin (% of sales) |
18.2% |
22.2% |
|
Net sales of other products and services
remained stable as lower sales of energy and excess raw materials
and coiled tubing was compensated by higher sales of industrial
equipment in Brazil and sucker rods.
Operating income from other products and
services, decreased from $95 million in 2018 to
$77 million in 2019, mainly due to the lower contribution from our
sales of energy and excess raw materials and from our coiled tubing
business.
Selling, general and administrative
expenses, or SG&A, decreased by $144 million in 2019
to $1,366 million in 2019, from $1,510 million in 2018 (in 2018
included a one-off higher amortization charge of $109 million). As
a percentage of sales SG&A amounted to 18.7% in 2019 compared
to 19.7% in 2018. Apart from the lower amortization and
depreciation charge, SG&A declined mainly due to lower logistic
costs and allowance for doubtful accounts partially compensated by
higher services and fees, labor costs and taxes.
Financial results amounted to a
gain of $19 million in 2019, compared to $37 million in 2018. The
2019 gain corresponds mainly to an FX gain of $28 million mainly
related to the Argentine peso devaluation on Peso denominated
financial, trade, social and fiscal payables at Argentine
subsidiaries which functional currency is the U.S. dollar.
Equity in earnings of non-consolidated
companies generated a gain of $82 million in 2019,
compared to $194 million in 2018. These results were mainly derived
from our equity investment in Ternium (NYSE:TX).
Income tax charge amounted to
$202 million in 2019 (24% over income before equity in earnings of
non-consolidated companies and income tax), compared to $229
million in 2018 (25%).
Net income for continuing
operations amounted to $731 million in 2019, compared with
$874 million in 2018. The lower results reflect a worse operating
environment and a reduction of $112 million in the contribution
from our non-consolidated investments, mainly Ternium.
Cash Flow and Liquidity of
2019
Cash flow provided by operating activities
amounted to $1,528 million during 2019 (including a reduction in
working capital of $523 million), compared to cash provided by
operating activities in 2018 of $ 611 million (including working
capital increase of $738 million). Following dividend payments of
$484 million during the year, capital expenditures of $350 million
and an investment of $133 million in Saudi Steel Pipe, our positive
net cash position increased to $980 million at December 31,
2019.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on February 20, 2020, at 09:00 a.m.
(Eastern Time). Following a brief summary, the conference call will
be opened to questions. To access the conference call dial in +1
866 789 1656 within North America or +1 630 489 1502
Internationally. The access number is “9483757”. Please dial in 10
minutes before the scheduled start time. The conference call will
be also available by webcast at www.tenaris.com/investors.
A replay of the conference call will be
available on our webpage http://ir.tenaris.com/ or by phone from
12:00 pm ET on February 20 through 11:59 pm on February 27, 2020.
To access the replay by phone, please dial +1 855 859 2056 or +1
404 537 3406 and enter passcode “9483757” when prompted.
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, |
|
2019 |
2018 |
2019 |
2018 |
Continuing operations |
|
|
|
|
Net sales |
1,740,548 |
2,104,977 |
7,294,055 |
7,658,588 |
Cost of sales |
(1,244,186) |
(1,442,005) |
(5,107,495) |
(5,279,300) |
Gross profit |
496,362 |
662,972 |
2,186,560 |
2,379,288 |
Selling, general and administrative expenses |
(348,889) |
(487,054) |
(1,365,974) |
(1,509,976) |
Other operating income
(expense), net |
4,294 |
2,765 |
11,805 |
2,501 |
Operating income |
151,767 |
178,683 |
832,391 |
871,813 |
Finance Income |
11,785 |
10,070 |
47,997 |
39,856 |
Finance Cost |
(11,658) |
(7,760) |
(43,381) |
(36,942) |
Other financial results |
(7,003) |
(8,770) |
14,667 |
34,386 |
Income before equity in earnings of non-consolidated
companies and income tax |
144,891 |
172,223 |
851,674 |
909,113 |
Equity in earnings of non-consolidated companies |
13,377 |
51,118 |
82,036 |
193,994 |
Income before income tax |
158,268 |
223,341 |
933,710 |
1,103,107 |
Income tax |
(9,813) |
1,724 |
(202,452) |
(229,207) |
Income for continuing operations |
148,455 |
225,065 |
731,258 |
873,900 |
|
|
|
|
|
Attributable to: |
|
|
|
|
Owners of the parent |
151,773 |
225,825 |
742,686 |
876,063 |
Non-controlling interests |
(3,318) |
(760) |
(11,428) |
(2,163) |
|
148,455 |
225,065 |
731,258 |
873,900 |
|
|
|
|
|
Consolidated Statement of Financial
Position
(all amounts in thousands of
U.S. dollars) |
At December 31, 2019 |
|
At December 31, 2018 |
|
|
|
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment, net |
6,090,017 |
|
|
6,063,908 |
|
Intangible assets, net |
1,561,559 |
|
|
1,465,965 |
|
Right-of-use assets, net |
233,126 |
|
|
- |
|
Investments in non-consolidated companies |
879,965 |
|
|
805,568 |
|
Other investments |
24,934 |
|
|
118,155 |
|
Deferred tax assets |
225,680 |
|
|
181,606 |
|
Receivables, net |
157,103 |
9,172,384 |
|
151,905 |
8,787,107 |
Current assets |
|
|
|
|
|
Inventories, net |
2,265,880 |
|
|
2,524,341 |
|
Receivables and prepayments, net |
104,575 |
|
|
155,885 |
|
Current tax assets |
167,388 |
|
|
121,332 |
|
Trade receivables, net |
1,348,160 |
|
|
1,737,366 |
|
Derivative financial instruments |
19,929 |
|
|
9,173 |
|
Other investments |
210,376 |
|
|
487,734 |
|
Cash and cash equivalents |
1,554,299 |
5,670,607 |
|
428,361 |
5,464,192 |
Total assets |
|
14,842,991 |
|
|
14,251,299 |
EQUITY |
|
|
|
|
|
Capital and reserves attributable to owners of the parent |
|
11,988,958 |
|
|
11,782,882 |
Non-controlling interests |
|
197,414 |
|
|
92,610 |
Total equity |
|
12,186,372 |
|
|
11,875,492 |
LIABILITIES |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
40,880 |
|
|
29,187 |
|
Lease liabilities |
192,318 |
|
|
- |
|
Deferred tax liabilities |
336,982 |
|
|
379,039 |
|
Other liabilities |
251,383 |
|
|
213,129 |
|
Provisions |
54,599 |
876,162 |
|
36,089 |
657,444 |
Current liabilities |
|
|
|
|
|
Borrowings |
781,272 |
|
|
509,820 |
|
Lease liabilities |
37,849 |
|
|
- |
|
Derivative financial instruments |
1,814 |
|
|
11,978 |
|
Current tax liabilities |
127,625 |
|
|
250,233 |
|
Other liabilities |
176,264 |
|
|
165,693 |
|
Provisions |
17,017 |
|
|
24,283 |
|
Customer advances |
82,729 |
|
|
62,683 |
|
Trade payables |
555,887 |
1,780,457 |
|
693,673 |
1,718,363 |
Total liabilities |
|
2,656,619 |
|
|
2,375,807 |
Total equity and liabilities |
|
14,842,991 |
|
|
14,251,299 |
|
|
|
|
|
|
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) |
2019 |
2018 |
2019 |
2018 |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Income for the year |
148,455 |
225,065 |
731,258 |
873,900 |
Adjustments for: |
|
|
|
|
Depreciation and amortization |
138,342 |
247,110 |
539,521 |
664,357 |
Income tax accruals less payments |
(48,013) |
(46,344) |
(193,417) |
58,494 |
Equity in earnings of non-consolidated companies |
(13,377) |
(51,118) |
(82,036) |
(193,994) |
Interest accruals less payments, net |
(675) |
187 |
(4,381) |
6,151 |
Changes in provisions |
4,947 |
2,419 |
2,739 |
(8,396) |
Changes in working capital |
19,751 |
(78,991) |
523,109 |
(737,952) |
Currency translation adjustment and others |
14,841 |
(59,046) |
11,146 |
(51,758) |
Net cash provided by operating activities |
264,271 |
239,282 |
1,527,939 |
610,802 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Capital expenditures |
(80,467) |
(75,804) |
(350,174) |
(349,473) |
Changes in advance to suppliers of property, plant and
equipment |
635 |
(86) |
3,820 |
4,851 |
Acquisition of subsidiaries, net of cash acquired |
- |
- |
(132,845) |
- |
Investment in companies under cost method |
(2,933) |
- |
(2,933) |
- |
Investment in non-consolidated companies |
(9,810) |
- |
(19,610) |
- |
Loan to non-consolidated companies |
- |
- |
- |
(14,740) |
Repayment of loan by non-consolidated companies |
- |
- |
40,470 |
9,370 |
Proceeds from disposal of
property, plant and equipment and intangible assets |
918 |
1,811 |
2,091 |
6,010 |
Dividends received from non-consolidated companies |
- |
- |
28,974 |
25,722 |
Changes in investments in securities |
135,446 |
368,945 |
389,815 |
717,368 |
Net cash provided by (used in) investing
activities |
43,789 |
294,866 |
(40,392) |
399,108 |
Cash flows from financing activities |
|
|
|
|
Dividends paid |
(153,470) |
(153,470) |
(484,020) |
(484,020) |
Dividends paid to
non-controlling interest in subsidiaries |
- |
(1,800) |
(1,872) |
(3,498) |
Changes in non-controlling
interests |
- |
(28) |
1 |
(24) |
Payments of lease
liabilities |
(12,695) |
- |
(41,530) |
- |
Proceeds from borrowings |
301,000 |
295,999 |
1,332,716 |
1,019,302 |
Repayments of borrowings |
(425,216) |
(483,766) |
(1,159,053) |
(1,432,202) |
Net cash used in financing activities |
(290,381) |
(343,065) |
(353,758) |
(900,442) |
Increase in cash and cash equivalents |
17,679 |
191,083 |
1,133,789 |
109,468 |
Movement in cash and cash equivalents |
|
|
|
|
At the beginning of the
year |
1,535,530 |
236,030 |
426,717 |
330,090 |
Effect of exchange rate
changes |
1,066 |
(396) |
(6,231) |
(12,841) |
Increase (decrease) in cash
and cash equivalents |
17,679 |
191,083 |
1,133,789 |
109,468 |
At December 31, |
1,554,275 |
426,717 |
1,554,275 |
426,717 |
|
|
|
|
|
Exhibit I – Alternative performance
measures
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 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= Operating results + Depreciation and
amortization + Impairment charges/(reversals).
|
Three-month
period ended December 31, |
Twelve-month
period ended December 31, |
|
2019 |
2018 |
2019 |
2018 |
Operating income |
151,767 |
178,683 |
832,391 |
871,813 |
Depreciation and amortization |
138,342 |
247,110 |
539,521 |
664,357 |
EBITDA |
290,109 |
425,793 |
1,371,912 |
1,536,170 |
|
|
|
|
|
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)
(all
amounts in thousands of U.S. dollars) |
At December
31, |
|
2019 |
2018 |
Cash and cash equivalents |
1,554,299 |
428,361 |
Other current investments |
210,376 |
487,734 |
Non-current investments |
18,012 |
113,829 |
Derivatives hedging borrowings and investments |
19,000 |
(6,063) |
Borrowings – current and non-current |
(822,152) |
(539,007) |
Net cash / (debt) |
979,535 |
484,854 |
|
|
|
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.
(all
amounts in thousands of U.S. dollars) |
Three-month
period ended December 31, |
Twelve-month
period ended December 31, |
|
2019 |
2018 |
2019 |
2018 |
Net cash provided by operating
activities |
264,271 |
239,282 |
1,527,939 |
610,802 |
Capital expenditures |
(80,467) |
(75,804) |
(350,174) |
(349,473) |
Free cash flow |
183,804 |
163,478 |
1,177,765 |
261,329 |
Giovanni Sardagna
Tenaris1-888-300-5432www.tenaris.com
Grafico Azioni Tenaris (BIT:TEN)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Tenaris (BIT:TEN)
Storico
Da Apr 2023 a Apr 2024