Tenaris S.A. (NYSE and Mexico: TS and MTA Italy: TEN) (“Tenaris”)
today announced its results for the quarter and nine months ended
September 30, 2019 with comparison to its results for the quarter
and nine months ended September 30, 2018.
Summary of 2019 Third Quarter Results
(Comparison with second quarter of 2019 and third quarter of
2018)
|
|
3Q 2019 |
2Q 2019 |
3Q 2018 |
|
Net sales ($ million) |
1,764 |
1,918 |
(8%) |
1,899 |
(7%) |
|
Operating income ($ million) |
187 |
234 |
(20%) |
258 |
(28%) |
|
Net income ($ million) |
101 |
240 |
(58%) |
247 |
(59%) |
|
Shareholders’ net income ($ million) |
107 |
241 |
(56%) |
247 |
(57%) |
|
Earnings per ADS ($) |
0.18 |
0.41 |
(56%) |
0.42 |
(57%) |
|
Earnings per share ($) |
0.09 |
0.20 |
(56%) |
0.21 |
(57%) |
|
EBITDA ($ million) |
322 |
370 |
(13%) |
394 |
(18%) |
|
EBITDA margin (% of net sales) |
18.2% |
19.3% |
|
20.7% |
|
Our third quarter sales fell 8% sequentially and
7% year on year, despite gains in the Middle East and Mexico,
reflecting ongoing activity reductions in the US and Argentine
shales, which is affecting prices throughout the Americas, and a
downturn in our European industrial sales. Our EBITDA margin was
affected by a decline in average selling prices and the impact of
major maintenance stoppages in the northern hemisphere, principally
in Mexico. Net income for the quarter was further affected by the
impact of currency devaluations on our income tax charge in
Argentina and Mexico and by a lower contribution from our equity
investment in Ternium.
Despite the decline in net income, we generated
a free cash flow of $287 million, or 16% of revenues, which
included a further decline in working capital of $157 million, and
we ended the quarter with a net cash position of $964 million.
Interim Dividend Payment
Our board of directors approved the payment of
an interim dividend of $0.13 per share ($0.26 per ADS), or
approximately $153 million. The payment date will be November 20,
2019 , with an ex-dividend date on November 18, 2019 and record
date on November 19, 2019.
Market Background and Outlook
During the third quarter, drilling activity in
the US shales fell further, as operators chose to prioritize
investor returns over production growth and maintain spending
within budget limits announced at the beginning of the year. We do
not expect a recovery in US shale drilling activity going into
2020. In Canada, the situation is similar with drilling activity
well down on last year and no recovery expected over last year in
the upcoming winter drilling season.
In Latin America, drilling activity in Argentina
is declining as operators put on hold their investment plans for
Vaca Muerta pending more clarity on the policy measures that will
be adopted by the incoming government. In Mexico, offshore drilling
activity has been increasing.
In the Eastern Hemisphere, drilling activity
continues to improve, led by gas developments in the Middle East,
and a gradual recovery in offshore basins.
Price levels for steel pipe products in North
America have been affected by the decline in demand, the increased
competitiveness of domestic welded pipe products reflecting lower
costs of hot rolled coils, and continuing high import levels,
despite the application of US Section 232 tariffs and quotas.
In the fourth quarter, our sales will be
affected by lower average selling prices and the activity slowdowns
in the USA and Argentina. We expect to mitigate much of the impact
of lower average selling prices with lower costs and maintain our
EBITDA margin in line with that of this third quarter. Going into
2020, we expect a recovery in sales, particularly for offshore and
gas drilling activity, as well as in margins and cash flow as we
work on reducing costs and working capital.
Analysis of 2019 Third Quarter
Results
|
Tubes Sales volume (thousand metric tons) |
3Q 2019 |
2Q 2019 |
3Q 2018 |
|
Seamless |
645 |
674 |
(4%) |
654 |
(1%) |
|
Welded |
150 |
173 |
(13%) |
199 |
(25%) |
|
Total |
796 |
846 |
(6%) |
853 |
(7%) |
|
Tubes |
3Q 2019 |
2Q 2019 |
3Q 2018 |
|
(Net sales - $ million) |
|
|
|
|
|
|
North America |
772 |
863 |
(11%) |
887 |
(13%) |
|
South America |
308 |
337 |
(9%) |
334 |
(8%) |
|
Europe |
136 |
194 |
(30%) |
148 |
(8%) |
|
Middle East & Africa |
369 |
315 |
17% |
350 |
5% |
|
Asia Pacific |
77 |
105 |
(27%) |
77 |
(1%) |
|
Total net sales ($ million) |
1,661 |
1,814 |
(8%) |
1,797 |
(8%) |
|
Operating income ($ million) |
163 |
216 |
(25%) |
233 |
(30%) |
|
Operating margin (% of sales) |
9.8% |
11.9% |
|
13.0% |
|
Net sales of tubular products and services
decreased 8% sequentially and year on year. The sequential decrease
reflects a 6% decrease in volumes and a 3% decrease in average
selling prices. In North America our sales declined affected by a
general decline in prices for all products and lower volumes of
line pipe products. In South America, sales of OCTG products in
Argentina started to decline in September, and we had lower sales
of conductor casing in Brazil. In Europe sales declined reflecting
seasonally lower sales of mechanical and line pipe products and
lower sales of premium OCTG in the North Sea. In the Middle East
and Africa sales increased mainly due to large orders sold in
India. In Asia Pacific we had lower sales throughout the
region.
Operating income from tubular products and
services, amounted to $163 million in the third quarter of 2019,
compared to $216 million in the previous quarter and $233 million
in the third quarter of 2018. Sequentially, operating income was
affected by lower sales and a decrease of 210 basis points in the
operating margin. The 3% decline in prices was only partially
offset by lower costs as a decline in direct costs was offset by a
worse industrial performance related to the plant maintenance
stoppages in the northern hemisphere, mainly in Mexico.
|
Others |
3Q 2019 |
2Q 2019 |
3Q 2018 |
|
Net sales ($ million) |
102 |
104 |
(1%) |
102 |
0% |
|
Operating income ($ million) |
24 |
18 |
32% |
26 |
(6%) |
|
Operating income (% of sales) |
23.6% |
17.7% |
|
25.2% |
|
Net sales of other products and services
declined 1% sequentially and remained flat year on year. The
improvement in operating income is mainly related to our industrial
equipment business in Brazil.
Selling, general and
administrative expenses, or SG&A,
amounted to $333 million, or 18.9% of net sales in the third
quarter of 2019, compared to $339 million, 17.7% in the previous
quarter and $336 million, 17.7% in the third quarter of 2018.
Sequentially, a reduction in logistic and general expenses was
partially offset by higher allowances for doubtful accounts.
Financial results amounted to a
gain of $8 million in the third quarter of 2019, compared to a loss
of $6 million in the previous quarter and a gain of $13 million in
the third quarter of 2018. The gain of the quarter corresponds
mainly to an FX gain of $14 million related to the Argentine
peso devaluation (36%) on trade, social and financial payables at
Argentine subsidiaries which functional currency is the U.S.
dollar, partially offset by a $5 million loss due to the
devaluation of the Brazilian Real (9%) on U.S. dollar denominated
intercompany liabilities at our Brazilian subsidiaries which
functional currency is the Brazilian Real, largely compensated by
an increase in currency translation adjustment reserve from the
Brazilian subsidiaries.
Equity in earnings of
non-consolidated companies generated a gain of $13 million
in the third quarter of 2019, compared to $26 million in the
previous quarter and $56 million in the third quarter of 2018.
These results are mainly derived from our equity investment in
Ternium (NYSE:TX) and Usiminas.
Income tax charge amounted to
$108 million in the third quarter of 2019, compared to $15 million
in the previous quarter and $80 million in the third quarter of
2018. This quarter’s income tax includes a charge of approximately
$76 million mainly related to the devaluation of the Argentine and
Mexican Peso affecting the tax base of our subsidiaries in these
two countries. Such effect impacted current income tax charge for
$35 million and deferred income tax for $41 million.
Cash Flow and Liquidity of 2019 Third
Quarter
Net cash provided by operating activities during
the third quarter of 2019 was $374 million, compared to $342
million in the previous quarter and $50 million in the third
quarter of last year. During the third quarter of 2019 the
operating cash flow includes $157 million from the reduction in
working capital.
After capital expenditure of $87 million we
generated free cash flow of $287 million (16% of revenues) and
ended the quarter with a net cash position of $964 million.
Analysis of 2019 First Nine Months Results
|
|
9M 2019 |
9M 2018 |
Increase/(Decrease) |
|
Net sales ($ million) |
5,554 |
|
5,554 |
|
0 |
% |
|
Operating income (loss) ($ million) |
681 |
|
693 |
|
(2 |
%) |
|
Net income ($ million) |
583 |
|
649 |
|
(10 |
%) |
|
Shareholders’ net income ($ million) |
591 |
|
650 |
|
(9 |
%) |
|
Earnings per ADS ($) |
1.00 |
|
1.10 |
|
(9 |
%) |
|
Earnings per share ($) |
0.50 |
|
0.55 |
|
(9 |
%) |
|
EBITDA ($ million) |
1,082 |
|
1,110 |
|
(3 |
%) |
|
EBITDA margin (% of net sales) |
19.5 |
% |
20.0 |
% |
|
|
Tubes Sales volume (thousand metric tons) |
9M 2019 |
9M 2018 |
Increase/(Decrease) |
|
Seamless |
1,959 |
1,994 |
(2 |
%) |
|
Welded |
507 |
630 |
(20 |
%) |
|
Total |
2,467 |
2,624 |
(6 |
%) |
|
Tubes |
9M 2019 |
9M 2018 |
Increase/(Decrease) |
|
(Net sales - $ million) |
|
|
|
|
North America |
2,529 |
|
2,521 |
|
0 |
% |
|
South America |
975 |
|
929 |
|
5 |
% |
|
Europe |
488 |
|
480 |
|
2 |
% |
|
Middle East & Africa |
985 |
|
1,105 |
|
(11 |
%) |
|
Asia Pacific |
263 |
|
215 |
|
23 |
% |
|
Total net sales ($ million) |
5,239 |
|
5,249 |
|
0 |
% |
|
Operating income ($ million) |
618 |
|
623 |
|
(1 |
%) |
|
Operating income (% of sales) |
11.8 |
% |
11.9 |
% |
|
Net sales of tubular products and services
remained flat, amounting to $5,239 million in the first nine months
of 2019, compared to $5,249 million in the first nine months of
2018, reflecting a 6% decrease in volumes offset by a 6% increase
in average selling prices.
Operating income from tubular products and
services amounted to $618 million in the first nine months of 2019
compared to $623 million in the first nine months of 2018. Results
remained relatively flat reflecting stable revenues and
margins.
|
Others |
9M 2019 |
9M 2018 |
Increase/(Decrease) |
|
Net sales ($ million) |
315 |
|
305 |
|
3 |
% |
|
Operating income ($ million) |
63 |
|
70 |
|
(9 |
%) |
|
Operating margin (% of sales) |
20.1 |
% |
22.8 |
% |
|
Net sales of other products and services increased 3% to $315
million in the first nine months of 2019, compared to $305 million
in the first nine months of 2018, however operating income declined
due to a reduction in margins.
SG&A remained flat,
amounting to $1,017 million, or 18.3% of net sales during the first
nine months of 2019, compared to $1,023 million, or 18.4% in the
same period of 2018.
Financial results amounted to a
gain of $26 million in the first nine months of 2019 compared to a
gain of $44 million in the same period of 2018. While in both
periods the gains are mainly related to the Argentine peso
devaluation, the nine-month period of 2018 also benefited from the
Euro depreciation. In the first nine months of 2019 we had an FX
gain of $28 million; $34 million gain related to the Argentine peso
devaluation (53%) on Peso denominated liabilities at Argentine
subsidiaries which functional currency is the U.S. dollar,
partially offset by a $6 million loss due to the devaluation of the
Brazilian Real (7%) on U.S. dollar denominated intercompany
liabilities at our Brazilian subsidiaries which functional currency
is the Brazilian Real.
Equity in earnings of non-consolidated
companies generated a gain of $69 million in the first
nine months of 2019, compared to a gain of $143 million in the
first nine months of 2018. These results are mainly derived from
our equity investment in Ternium (NYSE:TX) and Usiminas.
Income tax amounted to a charge
of $193 million in the first nine months of 2019, compared to $231
million in the first nine months of 2018. Both periods charges were
affected by the Argentine and Mexican peso devaluation on the tax
base at our Argentine and Mexican subsidiaries which have the U.S.
dollar as their functional currency.
Cash Flow and Liquidity of 2019 First Nine
Months
During the first nine months of 2019, net cash
provided by operations was $1,264 million, compared to $372 million
in the same period of 2018. While in the first nine months of 2019
our working capital decreased by $503 million in the same period of
2018 it increased by $659 million.
Capital expenditures amounted to $270 million in
the first nine months of 2019, similar to $274 million in the same
period of 2018.
Free cash flow amounted to $994 million (18% of
revenues) in the first nine months of 2019, compared to $98 million
(2%) in the same period of 2018.
We reached a net cash position of $964 million
at September 30, 2019.
Conference call
Tenaris will hold a conference call to discuss
the above reported results, on October 31, 2019, at 10:00 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 “5688609”. 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
1.00 pm ET on October 31 through 11:59 pm ET on November 8, 2019.
To access the replay by phone, please dial 855 859 2056 or 404 537
3406 and enter passcode “5688609” 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.
Press releases and financial statements can be
downloaded from Tenaris’s website at www.tenaris.com/investors.
Consolidated Condensed Interim Income
Statement
|
(all amounts in thousands of U.S. dollars) |
Three-month period endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
Continuing operations |
Unaudited |
Unaudited |
|
Net sales |
1,763,783 |
|
1,898,892 |
|
5,553,507 |
|
5,553,611 |
|
|
Cost of sales |
(1,248,691 |
) |
(1,305,232 |
) |
(3,863,309 |
) |
(3,837,295 |
) |
|
Gross profit |
515,092 |
|
593,660 |
|
1,690,198 |
|
1,716,316 |
|
|
Selling, general and administrative expenses |
(333,111 |
) |
(335,714 |
) |
(1,017,085 |
) |
(1,022,922 |
) |
| Other operating income
(expense), net |
5,139 |
|
551 |
|
7,511 |
|
(264 |
) |
|
Operating income |
187,120 |
|
258,497 |
|
680,624 |
|
693,130 |
|
|
Finance Income |
13,015 |
|
10,804 |
|
36,212 |
|
29,786 |
|
|
Finance Cost |
(13,454 |
) |
(8,586 |
) |
(31,723 |
) |
(29,182 |
) |
|
Other financial results |
8,340 |
|
10,839 |
|
21,670 |
|
43,156 |
|
|
Income before equity in earnings of non-consolidated
companies and income tax |
195,021 |
|
271,554 |
|
706,783 |
|
736,890 |
|
|
Equity in earnings of non-consolidated companies |
13,235 |
|
55,930 |
|
68,659 |
|
142,876 |
|
|
Income before income tax |
208,256 |
|
327,484 |
|
775,442 |
|
879,766 |
|
|
Income tax |
(107,741 |
) |
(80,355 |
) |
(192,639 |
) |
(230,931 |
) |
|
Income for the period |
100,515 |
|
247,129 |
|
582,803 |
|
648,835 |
|
| |
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Owners of the parent |
106,548 |
|
246,927 |
|
590,913 |
|
650,238 |
|
|
Non-controlling interests |
(6,033 |
) |
202 |
|
(8,110 |
) |
(1,403 |
) |
| |
100,515 |
|
247,129 |
|
582,803 |
|
648,835 |
|
Consolidated Condensed Interim Statement of Financial
Position
| (all amounts in thousands of
U.S. dollars) |
At September 30, 2019 |
|
At December 31, 2018 |
| |
Unaudited |
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment, net |
6,111,975 |
|
|
6,063,908 |
|
|
Intangible assets, net |
1,565,891 |
|
|
1,465,965 |
|
|
Right-of-use assets, net |
240,182 |
|
|
- |
|
|
Investments in non-consolidated companies |
856,524 |
|
|
805,568 |
|
|
Other investments |
42,605 |
|
|
118,155 |
|
|
Deferred tax assets |
217,608 |
|
|
181,606 |
|
|
Receivables, net |
154,718 |
9,189,503 |
|
151,905 |
8,787,107 |
|
Current assets |
|
|
|
|
|
|
Inventories, net |
2,387,367 |
|
|
2,524,341 |
|
|
Receivables and prepayments, net |
111,673 |
|
|
155,885 |
|
|
Current tax assets |
157,056 |
|
|
121,332 |
|
|
Trade receivables, net |
1,310,213 |
|
|
1,737,366 |
|
|
Derivative financial instruments |
4,697 |
|
|
9,173 |
|
|
Other investments |
322,763 |
|
|
487,734 |
|
|
Cash and cash equivalents |
1,537,005 |
5,830,774 |
|
428,361 |
5,464,192 |
|
Total assets |
|
15,020,277 |
|
|
14,251,299 |
|
EQUITY |
|
|
|
|
|
|
Capital and reserves attributable to owners of the parent |
|
11,955,266 |
|
|
11,782,882 |
|
Non-controlling interests |
|
200,939 |
|
|
92,610 |
|
Total equity |
|
12,156,205 |
|
|
11,875,492 |
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Borrowings |
49,050 |
|
|
29,187 |
|
|
Lease liabilities |
201,693 |
|
|
- |
|
|
Deferred tax liabilities |
380,809 |
|
|
379,039 |
|
|
Other liabilities |
239,921 |
|
|
213,129 |
|
|
Provisions |
38,748 |
910,221 |
|
36,089 |
657,444 |
|
Current liabilities |
|
|
|
|
|
|
Borrowings |
873,822 |
|
|
509,820 |
|
|
Lease liabilities |
37,781 |
|
|
- |
|
|
Derivative financial instruments |
18,088 |
|
|
11,978 |
|
|
Current tax liabilities |
130,961 |
|
|
250,233 |
|
|
Other liabilities |
233,838 |
|
|
165,693 |
|
|
Provisions |
27,921 |
|
|
24,283 |
|
|
Customer advances |
79,581 |
|
|
62,683 |
|
|
Trade payables |
551,859 |
1,953,851 |
|
693,673 |
1,718,363 |
|
Total liabilities |
|
2,864,072 |
|
|
2,375,807 |
|
Total equity and liabilities |
|
15,020,277 |
|
|
14,251,299 |
Consolidated Condensed Interim Statement of Cash
Flow
| |
|
Three-month period endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
(all amounts in thousands of U.S. dollars) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
Cash flows from operating activities |
|
Unaudited |
Unaudited |
| |
|
|
|
|
|
|
Income for the period |
|
100,515 |
|
247,129 |
|
582,803 |
|
648,835 |
|
|
Adjustments for: |
|
|
|
|
|
|
Depreciation and amortization |
|
134,624 |
|
135,044 |
|
401,179 |
|
417,247 |
|
|
Income tax accruals less payments |
|
9,015 |
|
36,987 |
|
(145,404 |
) |
104,838 |
|
|
Equity in earnings of non-consolidated companies |
|
(13,235 |
) |
(55,930 |
) |
(68,659 |
) |
(142,876 |
) |
|
Interest accruals less payments, net |
|
(3,411 |
) |
(811 |
) |
(3,706 |
) |
5,964 |
|
|
Changes in provisions |
|
(3,182 |
) |
(5,194 |
) |
(2,208 |
) |
(10,815 |
) |
|
Changes in working capital |
|
157,313 |
|
(301,306 |
) |
503,358 |
|
(658,961 |
) |
|
Currency translation adjustment and others |
|
(7,889 |
) |
(6,074 |
) |
(3,696 |
) |
7,288 |
|
|
Net cash provided by operating activities |
|
373,750 |
|
49,845 |
|
1,263,667 |
|
371,520 |
|
| |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(86,643 |
) |
(77,938 |
) |
(269,707 |
) |
(273,669 |
) |
|
Changes in advance to suppliers of property, plant and
equipment |
|
1,149 |
|
719 |
|
3,185 |
|
4,937 |
|
|
Acquisition of subsidiaries, net of cash acquired |
|
- |
|
- |
|
(132,845 |
) |
- |
|
|
Additions to associated companies |
|
(9,800 |
) |
- |
|
(9,800 |
) |
- |
|
|
Loan to non-consolidated companies |
|
- |
|
(11,220 |
) |
- |
|
(14,740 |
) |
|
Repayment of loan by non-consolidated companies |
|
- |
|
3,900 |
|
40,470 |
|
9,370 |
|
|
Proceeds from disposal of property, plant and equipment and
intangible assets |
|
437 |
|
1,491 |
|
1,173 |
|
4,199 |
|
| Dividends received from
non-consolidated companies |
|
- |
|
- |
|
28,974 |
|
25,722 |
|
|
Changes in investments in securities |
|
24,463 |
|
(47,655 |
) |
254,369 |
|
348,423 |
|
|
Net cash (used in) provided by investing
activities |
|
(70,394 |
) |
(130,703 |
) |
(84,181 |
) |
104,242 |
|
| |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Dividends paid |
|
- |
|
- |
|
(330,550 |
) |
(330,550 |
) |
| Dividends paid to
non-controlling interest in subsidiaries |
|
(1,200 |
) |
(590 |
) |
(1,872 |
) |
(1,698 |
) |
| Changes in non-controlling
interests |
|
- |
|
5 |
|
1 |
|
4 |
|
| Payments of lease
liabilities |
|
(9,388 |
) |
- |
|
(28,835 |
) |
- |
|
| Proceeds from borrowings |
|
387,000 |
|
147,296 |
|
1,031,716 |
|
723,303 |
|
| Repayments of borrowings |
|
(320,743 |
) |
(251,584 |
) |
(733,837 |
) |
(948,436 |
) |
|
Net cash (used in) provided by financing
activities |
|
55,669 |
|
(104,873 |
) |
(63,377 |
) |
(557,377 |
) |
| |
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
359,025 |
|
(185,731 |
) |
1,116,109 |
|
(81,615 |
) |
|
Movement in cash and cash equivalents |
|
|
|
|
|
| At the beginning of the
period |
|
1,183,017 |
|
427,256 |
|
426,717 |
|
330,090 |
|
| Effect of exchange rate
changes |
|
(6,513 |
) |
(5,495 |
) |
(7,297 |
) |
(12,445 |
) |
| Increase (decrease) in cash
and cash equivalents |
|
359,025 |
|
(185,731 |
) |
1,116,109 |
|
(81,615 |
) |
|
At September 30, |
|
1,535,529 |
|
236,030 |
|
1,535,529 |
|
236,030 |
|
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 endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2019 |
2018 |
2019 |
2018 |
| Operating income |
187,120 |
258,497 |
680,624 |
693,130 |
| Depreciation and amortization |
134,624 |
135,044 |
401,179 |
417,247 |
| EBITDA |
321,744 |
393,541 |
1,081,803 |
1,110,377 |
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 endedSeptember 30, |
Nine-month period endedSeptember 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
| Net cash provided by operating
activities |
373,750 |
|
49,845 |
|
1,263,667 |
|
371,520 |
|
| Capital expenditures |
(86,643 |
) |
(77,938 |
) |
(269,707 |
) |
(273,669 |
) |
| Free cash flow |
287,107 |
|
(28,093 |
) |
993,960 |
|
97,851 |
|
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 September 30, |
|
|
2019 |
|
2018 |
|
| Cash and cash equivalents |
1,537,005 |
|
236,303 |
|
| Other current investments |
322,763 |
|
794,330 |
|
| Non-current Investments |
38,678 |
|
176,178 |
|
| Derivatives hedging borrowings and investments |
(11,492 |
) |
(64,525 |
) |
| Borrowings – current and non-current |
(922,872 |
) |
(734,130 |
) |
| Net cash / (debt) |
964,082 |
|
408,156 |
|
Giovanni
Sardagna
Tenaris1-888-300-5432www.tenaris.com
Tenaris (NYSE:TS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tenaris (NYSE:TS)
Historical Stock Chart
From Apr 2023 to Apr 2024
