Core Viewpoint - Tenaris S.A. has announced a USD 700 million Share Buyback Program to be executed in the open market, starting on November 11, 2024, and ending no later than March 26, 2025 [1][3]. Group 1: Share Buyback Program Details - The buyback will be conducted under a nondiscretionary agreement with a primary financial institution, which will make trading decisions independently [2]. - The program allows for purchases during closed periods in compliance with applicable regulations [2]. - The previous buyback program, which was USD 1.2 billion, resulted in the repurchase of 6.07% of Tenaris's total issued share capital [4]. Group 2: Financial and Regulatory Framework - The current program will cover up to USD 700 million, with a maximum of 46,373,915 ordinary shares, representing 3.93% of the company's issued share capital [4]. - The authority for this buyback was granted by the general meeting of shareholders on June 2, 2020, which allows for repurchases up to a maximum of 10% of the share capital [4].

Financial Data and Key Metrics Changes - Sales in Q3 2024 reached $2.9 billion, down 10% year-over-year and down 12% sequentially, primarily due to lower prices in the Americas and reduced demand in the USA, Mexico, and Saudi Arabia [4] - Average selling prices in the tubes operating segment decreased by 14% year-over-year and 2% sequentially [5] - EBITDA for the quarter was $688 million, up 6% sequentially, but would have declined 16% sequentially without an extraordinary provision in the previous quarter [5] - Free cash flow for the quarter was $373 million, with a net cash position of $4 billion at the end of the quarter [6] Business Line Data and Key Metrics Changes - The company successfully executed a program of plant stoppages and investments in maintenance and modernization of its industrial system [7] - Significant contracts were awarded in offshore projects, including a long-term agreement with ExxonMobil in the Guyana-Suriname Basin and various projects in Brazil and West Africa [8][9][10] Market Data and Key Metrics Changes - In the United States, drilling activity has stabilized, and OCTG imports have decreased, with a reduction in Korean import quotas expected to apply for 2025 [10] - The pipe logic index of US OCTG prices has started to rebound, with expectations for continued increases in the coming months [11] - Economic conditions in Argentina are improving, with plans to increase oil exports from Vaca Muerta [11][12] Company Strategy and Development Direction - The company is focused on expanding relationships with international oil companies and consolidating its position in complex offshore projects [8] - Investments in modernization and automation are expected to improve productivity and environmental performance [7] - The company anticipates a positive impact from the new US administration on the energy sector, particularly regarding gas exports and industrial activity [17][19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the benefits of recent investments and the potential for increased activity in North America [8][25] - The company expects a slight decrease in volumes and sales in Q4 2024, with a rebound anticipated in Q1 2025 [35][65] - Management highlighted the importance of upcoming projects in Argentina and Brazil, with significant contributions expected in 2025 [40][58] Other Important Information - The Board of Directors approved an interim dividend of $0.27 per share, a 35% increase compared to the previous year, and a share buyback program of $700 million [6][14] - The company is advancing a $200 million cost-saving project, with materialization expected in the second half of 2024 and into 2025 [57] Q&A Session Summary Question: Impact of the new US administration on business - Management noted that it is early to assess the changes but expects a reduction in uncertainty and potential positive impacts on the energy sector [17][18][21] Question: Share buyback outlook - The board will evaluate the situation in February before making decisions on future share buyback programs [23] Question: North America activity outlook - Management expects an increase in activity driven by customer budget resets and the return of small operators [25] Question: Clarification on revenue and volume expectations for Q4 and Q1 - Management clarified that Q4 volumes and sales are expected to be lower by around 7-8%, with a rebound of approximately 10% in Q1 2025 [65]

Core Insights - Tenaris S.A. reported a revenue of $2.92 billion for the quarter ended September 2024, reflecting a 10% decrease year-over-year, but exceeding the Zacks Consensus Estimate by 5.82% [1] - The company's EPS was $0.81, down from $0.91 in the same quarter last year, but it surpassed the consensus EPS estimate of $0.63 by 28.57% [1] Revenue and Sales Performance - Tubes Sales volume - Seamless reached 746 Kmt, exceeding the average estimate of 713.79 Kmt [3] - Total Tubes Sales volume was 937 Kmt, compared to the average estimate of 897.08 Kmt [3] - Tubes Sales volume - Welded was 191 Kmt, above the estimated 183.3 Kmt [3] - Net sales for Tubes in North America were $1.27 billion, surpassing the average estimate of $1.06 billion [3] - Net sales for Tubes in Asia Pacific, Middle East, and Africa were $754 million, slightly above the average estimate of $744.57 million [3] - Net sales for Tubes in Europe were $280 million, exceeding the average estimate of $257.55 million [3] - Net sales for Tubes in South America were $484 million, slightly below the average estimate of $487.49 million [3] - Revenues from Others were $125 million, significantly lower than the average estimate of $231.54 million, representing a year-over-year decline of 12.6% [3] - Total Revenues from Tubes were $2.79 billion, above the average estimate of $2.55 billion, but down 9.9% year-over-year [3] Stock Performance - Tenaris shares have returned +6.7% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Summary of Key Points Core Viewpoint Tenaris S.A. reported its financial results for the third quarter of 2024, showing a decline in net sales and EBITDA compared to the previous year, while maintaining a strong cash position and announcing a follow-on share buyback program. Financial Performance - Net sales for Q3 2024 were $2,915 million, a decrease of 10% year-on-year and 12% sequentially [8][30] - EBITDA for Q3 2024 was $688 million, down 31% from $1,004 million in Q3 2023, with an EBITDA margin of 23.6% [8][30] - Net income for Q3 2024 was $459 million, a decrease of 16% compared to $547 million in Q3 2023 [8][30] - Free cash flow for Q3 2024 was $373 million, with a net cash position of $4.0 billion as of September 30, 2024 [5][26] Shareholder Returns - The board approved an interim dividend of $0.27 per share, totaling approximately $300 million [6] - A follow-on share buyback program of $700 million was announced, following a previous buyback of $1.2 billion [7][9] Market Conditions - Sales were impacted by lower prices in the Americas and reduced demand in the USA, Mexico, and Saudi Arabia [4][12] - The company anticipates lower sales and EBITDA in Q4 2024 due to ongoing pricing pressures and demand fluctuations [14] Segment Performance - Tubes segment net sales decreased 16% to $9,212 million in the first nine months of 2024 compared to $10,987 million in the same period of 2023 [31][34] - Operating income from tubular products was $1,772 million in the first nine months of 2024, down 48% from $3,403 million in the same period of 2023 [34] Cash Flow and Liquidity - Net cash generated from operating activities in Q3 2024 was $552 million, down from $935 million in Q2 2024 [25] - Capital expenditures for Q3 2024 were $179 million, leading to a free cash flow of $373 million [26][29] Outlook - The company expects a recovery in sales and EBITDA in 2025, driven by increased shipments in North America and the Middle East [14][12]

Analysts on Wall Street project that Tenaris S.A. (TS) will announce quarterly earnings of $0.63 per share in its forthcoming report, representing a decline of 30.8% year over year. Revenues are projected to reach $2.74 billion, declining 15.4% from the same quarter last year.The consensus EPS estimate for the quarter has undergone an upward revision of 6.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates d ...

LUXEMBOURG, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) ("Tenaris") announced today the completion of the fourth and last tranche of its USD1.2 billion Share Buyback Program announced on November 1, 2023 (the "Program"). During the fourth tranche, which ran from June 17, 2024, to (and including) August 2, 2024, the Company purchased a total of 19,452,939 ordinary shares for a total consideration of €278,698,899, or USD300 million. During the Program, which ran fro ...

LUXEMBOURG, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) ("Tenaris") announced today the completion of the fourth and last tranche of its USD1.2 billion Share Buyback Program announced on November 1, 2023 (the "Program"). During the fourth tranche, which ran from June 17, 2024, to (and including) August 2, 2024, the Company purchased a total of 19,452,939 ordinary shares for a total consideration of €278,698,899, or USD300 million. During the Program, which ran fro ...

Tenaris S.A. (NYSE:TS) Q2 2024 Earnings Conference Call August 1, 2024 8:00 AM ET Company Participants Giovanni Sardagna - Director of Investor Relations Paolo Rocca - Chairman & Chief Executive Officer Gabriel Podskubka - Chief Operating Officer Luca Zanotti - President, US Operations Conference Call Participants Marc Bianchi - TD Cowen Alessandro Pozzi - Mediobanca Arun Jayaram - JPMorgan Securities LLC Christopher Kuplent - Bank of America Luigi De Bellis - Equita Oscient Operator Good day, and thank you ...

For the quarter ended June 2024, Tenaris S.A. (TS) reported revenue of $3.32 billion, down 18.5% over the same period last year. EPS came in at $0.59, compared to $1.90 in the year-ago quarter. The reported revenue represents a surprise of +4.28% over the Zacks Consensus Estimate of $3.19 billion. With the consensus EPS estimate being $0.97, the EPS surprise was -39.18%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

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 d ...