Tenaris S.A. Reports Q2 2024 Results

TL;DR

Tenaris dropped its Q2 earnings report on 8/1, check the numbers.

AI Summary

Tenaris S.A. filed a 6-K report on August 1, 2024, announcing its second quarter results as of June 30, 2024. The report includes a press release detailing the company's financial performance for the quarter. Giovanni Sardagna, Investor Relations Officer, signed the report on behalf of Tenaris S.A. on July 31, 2024.

Why It Matters

This filing provides investors with the latest financial performance data for Tenaris S.A., crucial for understanding the company's current operational health and future prospects.

Risk Assessment

Risk Level: low — This is a routine financial results filing with no immediately apparent unusual risks.

Key Players & Entities

• TENARIS SA (company) — Registrant
• Giovanni Sardagna (person) — Investor Relations Officer
• 2024 (date) — Reporting period
• June 30, 2024 (date) — End of reporting period
• July 31, 2024 (date) — Report signing date
• August 1, 2024 (date) — Filing date

FAQ

Key Financial Figures

• $171 million — 34.6 % *EBITDA in 2Q 2024 includes a $171 million loss from the provision for ongoing lit
• $821 m — included EBITDA would have amounted to $821 million, or 24.7% of sales. For more info
• $774 million — quarter, our free cash flow amounted to $774 million and, after spending $459 million on div
• $459 million — ted to $774 million and, after spending $459 million on dividends and $492 million on share
• $492 million — spending $459 million on dividends and $492 million on share buybacks, our positive net cas
• $3.8 billion — positive net cash position amounted to $3.8 billion at June 30, 2024. Market Background an
• $449 million — ucts and services amounted to a gain of $449 million in the second quarter of 2024 compared
• $769 million — d quarter of 2024 compared to a gain of $769 million in the previous quarter and $1,251 mill
• $1,251 million — 769 million in the previous quarter and $1,251 million in the second quarter of 2023. Our Tube
• $14 million — he quarter includes a gain amounting to $14 million from a positive legal claim resolution
• $497 m — rative expenses , or SG&A , amounted to $497 million, or 15.0% of net sales, in the se
• $508 m — the second quarter of 2024, compared to $508 million, 14.8% in the previous quarter an
• $529 m — lion, 14.8% in the previous quarter and $529 million, 13.0% in the second quarter of 2
• $30 million — the decline in SG&A is mainly due to a $30 million reduction in depreciation and amortizat
• $170 million — operating results amounted to a loss of $170 million in the second quarter of 2024, compared

Filing Documents

• f6k_073124.htm (6-K) — 310KB
• header.jpg (GRAPHIC) — 13KB
• small.jpg (GRAPHIC) — 2KB
• 0001171843-24-004365.txt ( ) — 332KB

From the Filing

FORM 6 - K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 As of July 31, 2024 TENARIS, S.A. (Translation of Registrant's name into English) 26, Boulevard Royal, 4th floor L-2449 Luxembourg (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F. Form 20-F ✓ Form 40-F The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains Tenaris’s Press Release announcing 2024 Second Quarter Results. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: July 31, 2024 Tenaris, S.A. By: /s/ Giovanni Sardagna Giovanni Sardagna Investor Relations Officer Giovanni Sardagna Tenaris 1-888-300-5432 www.tenaris.com Tenaris Announces 2024 Second Quarter Results 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, July 31, 2024. - Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended June 30, 2024 in comparison with its results for the quarter ended June 30, 2023. Summary of 2024 Second Quarter Results (Comparison with first quarter of 2024 and second quarter of 2023) 2Q 2024 1Q 2024 2Q 2023 Net sales ($ million) 3,322 3,442 (3 %) 4,075 (18 %) Operating income ($ million) 512 812 (37 %) 1,278 (60 %) Net income ($ million) 348 750 (54 %) 1,136 (69 %) Shareholders’ net income ($ million) 335 737 (55 %) 1,123 (70 %) Earnings per ADS ($) 0.59 1.27 (54 %) 1.90 (69 %) Earnings per share ($) 0.29 0.64 (54 %) 0.95 (69 %) EBITDA* ($ million) 650 987 (34 %) 1,409 (54 %) EBITDA margin (% of net sales) 19.6 % 28.7 % 34.6 % *EBITDA in 2Q 2024 includes a $171 million loss from the provision for ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $821 million, or 24.7% of sales. For more information, see note 18 “Contingencies, commitments and restrictions to the distribution of profits - CSN claims relating to the January 2012 acquisition of Usiminas” included in the company’s Consolidated Condensed Interim Financial Statements as of June 30, 2024. Net sales in the second quarter were more resilient than expected with shipments remaining at a high level in the Middle East, the United States and in offshore regions, while average selling prices benefited from a favorable mix of products. Margins, however, were affected by the ongoing decline in OCTG prices in the Americas, and net income was affected by an extraordinary provision recorded in other operating income and expenses. During the quarter, our free cash flow amounted to $774 million and, after spending $459 million on dividends and $492 million on share buybacks, our positive net cash position amounted to $3.8 billion at June 30, 2024. Market Background and Outlook The outlook for oil demand and supply remains solid even if the announced rollback of OPEC+ voluntary production cuts has introduced some uncertainty. OCTG imports into the United States have remained high through the year, while oil and gas drilling activity is being affected by ongoing industry consolidation, low natural gas prices and high financing costs for smaller operators. OCTG inventories have risen and prices continue to fall. Political and economic volatility is affecting drilling activity in Mexico and Argentina, and there are delays in defining the pipeline infrastructure investment required to further develop the prolific Vaca Muerta shale. In the rest of the world, demand from offshore developments and for gas drilling associated with LNG projects remains supportive going into 2025. In the third quarter, our sales and EBITDA will be affected by lower activity in the United States and Latin America and the extended decline in OCTG prices in the Americas. As anticipated, we will have maintenance stoppages at many of our mills, including the installation of a new furnace at our Side

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View this 6-K filing on SEC EDGAR