Italy's Tenaris posts surprise 2% rise in sales on stable US, Canada drilling

Core Viewpoint - Tenaris reported a surprising 2% increase in third-quarter net sales, driven by stable drilling activity in North America, despite warnings of margin impacts from tariff costs [1][3]. Financial Performance - Third-quarter net sales rose to $2.98 billion from $2.91 billion year-over-year, marking the first revenue increase in eight quarters, while analysts had anticipated a decline to $2.85 billion [2]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 9% to $753 million, aided by a $34 million gain from the return of U.S. anti-dumping deposits on imports from Argentina [5]. Regional Performance - Sales in the U.S. and Canada remained stable, supporting the overall sales figures, while the Argentine fracking and coiled tubing services unit faced challenges due to reduced drilling activity [2][3]. - European sales were negatively impacted by lower demand in the North Sea, contributing to the overall regional weakness [3]. Market Conditions - The European steel industry is operating at only 67% capacity due to rising imports and U.S. tariffs, prompting the European Commission to propose significant cuts to tariff-free steel import quotas [4]. - The U.S. has implemented tariffs of 25% on most steel and aluminum imports, which were increased to 50% for many countries, affecting the competitive landscape for steel producers [4].