Tenaris Announces 2024 Fourth Quarter and Annual Results

Summary of 2024 Fourth Quarter Results - Net sales for Q4 2024 were $2,845 million, a decrease of 2% from Q3 2024 and a decrease of 17% from Q4 2023 [3] - Operating income increased by 4% sequentially to $558 million but decreased by 32% year-on-year [3] - Net income rose by 13% sequentially to $519 million but fell by 55% compared to Q4 2023 [3] - EBITDA for Q4 2024 was $726 million, a 6% increase from Q3 2024 but a 26% decrease from Q4 2023 [3] - The EBITDA margin improved to 25.5% from 23.6% in Q3 2024, but decreased from 28.6% in Q4 2023 [3] Summary of 2024 Annual Results - Total net sales for 2024 were $12,524 million, down 16% from 2023 [5] - Operating income for the year was $2,419 million, a decrease of 44% year-on-year [5] - Net income for 2024 was $2,077 million, down 48% from 2023 [5] - EBITDA for the year was $3,052 million, a decline of 37% compared to 2023 [5] - The EBITDA margin for 2024 was 24.4%, down from 32.7% in 2023 [5] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $310 million, with a net cash position of $3.6 billion at year-end [4][26] - Cash flow from operating activities for 2024 was $2.9 billion, down from $4.4 billion in 2023 [37] - Capital expenditures for 2024 totaled $694 million, compared to $619 million in 2023 [37] Market Background and Outlook - Oil prices have remained stable, with OPEC+ maintaining production cuts amid limited global demand growth [11] - Natural gas prices in Europe and the US have risen due to cold weather and supply disruptions [11] - The company expects sales and EBITDA to be stable in Q1 2025, with moderate growth anticipated in Q2 [15] Tubes Business Segment - Tubes net sales for 2024 were $11,907 million, a decrease of 16% from 2023 [27] - Seamless pipe sales volume decreased by 4% year-on-year, while welded pipe sales volume decreased by 11% [28] - Operating income from the Tubes segment was $2,305 million in 2024, down 45% from 2023 [29] Others Business Segment - Net sales from the Others segment were $617 million in 2024, a decrease of 10% from 2023 [30] - Operating income for the Others segment was $113 million, down 15% year-on-year [30] Chief Financial Officer Transition - Effective May 2, 2025, Mr. Carlos Gomez Alzaga will become the Chief Financial Officer, succeeding Ms. Alicia Mondolo [8][9]