Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended September 30, 2023 in comparison with its results for the quarter ended September 30, 2022.

Summary of 2023 Third Quarter Results

  3Q 2023 2Q 2023 3Q 2022
Net sales ($ million) 3,238   4,075   (21 %) 2,975   9 %
Operating income ($ million) 868   1,278   (32 %) 803   8 %
Net income* ($ million) 547   1,136   (52 %) 608   (10 %)
Shareholders’ net income* ($ million) 537   1,123   (52 %) 606   (11 %)
Earnings per ADS ($) 0.91   1.90   (52 %) 1.03   (11 %)
Earnings per share ($) 0.46   0.95   (52 %) 0.51   (11 %)
EBITDA** ($ million) 1,004   1,409   (29 %) 946   6 %
EBITDA margin (% of net sales) 31.0 % 34.6 %   31.8 %  
                 

* Net income in 3Q 2023 includes a non-cash charge of $144 million relating to the remeasurement and recycling of CTA to the income statement, of our direct and indirect investment in Usiminas. Excluding this one-off effect, for the quarter Net income would have been $691 million. Earnings per share and per ADS would have been $0.58 and $1.16, respectively.** EBITDA in 3Q 2023 includes a one-off gain of $32 million on the transfer of court awards relating to Venezuelan nationalized assets. Excluding this one-off gain EBITDA would have been $972 million (30.0%) in 3Q 2023.

Our third quarter sales declined 21% sequentially reflecting activity and price declines throughout the Americas, lower quarterly shipments to offshore projects, lower pipeline shipments in Argentina as well as lower sales in market segments such as European mechanical products. Our EBITDA, excluding a one-off gain of $32 million on the transfer of court awards relating to Venezuelan nationalized assets, amounted to $972 million, with the margin adjusting to changes in market prices in the Americas. Our net income was affected by non-cash charges of $144 million relating to the remeasurement and recycling of currency translation reserve to the income statement, of our direct and indirect (through Ternium) investment in Usiminas, following the purchase of additional Usiminas shares by both companies.

Our free cash flow for the quarter amounted to $1.1 billion, and has reached $3.1 billion on a cumulative basis for the current fiscal year. This included a further reduction in working capital of $415 million during the quarter. After investing $100 million on the acquisition of additional pipe processing assets in the Houston area of the United States and a pipe coating facility in Italy, our net cash position rose to $3.3 billion at September 30, 2023.

Interim Dividend Payment

Our board of directors approved the payment of an interim dividend of $0.20 per share ($0.40 per ADS), or approximately $236 million. The payment date will be November 22, 2023 , with an ex-dividend date on November 20, 2023 and record date on November 21, 2023.

Tenaris Approves Share Buyback Program

Tenaris’s Board of Directors approved a share buyback program of up to $1.2 billion (which, at the closing price of November 1, 2023 on the Milan Stock Exchange would represent 75.4 million shares, or 6.4% of Tenaris’s outstanding shares), to be executed within a year, with the intention to cancel the ordinary shares acquired through the program.

The decision and opportunity of initiating the buyback program is driven by the company’s significant cash flow generation and strong balance sheet.

The buyback program will be carried out under the authority granted by the annual general meeting of shareholders held on June 2, 2020, which may be renewed or extended, up to a maximum of 10% of the Company´s shares.

The buyback program is expected to be launched in the near future. The program will be divided in tranches and purchases will be executed through a primary financial institution.

The buybacks may be ceased, paused and continued at any time, subject to compliance with applicable laws and regulations.

Tenaris will provide updates on the buyback program via press releases and on the Investors section of its corporate website. The buybacks will be carried out subject to market conditions and in compliance with applicable laws and regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052.

Market Background and Outlook

In the past few months, oil prices have remained above $80 per barrel, despite concerns about the impact of high interest rates on the global economy. US natural gas prices are rising along with LNG and European natural gas prices, which are showing high volatility in the face of potential supply interruptions and a positive demand outlook.

In the United States, the decline in oil and gas drilling activity seen during the year so far is bottoming out and is expected to recover as we go into the next year. Oil inventories have declined to a low level as have the stock of drilled but uncompleted wells (DUCs). At the same time, OCTG inventories are coming down towards more normal levels. In Canada, drilling activity has fallen below the level of the previous year but is expected to recover in 2024 with additional takeaway and LNG capacity coming on stream. Around the world, offshore drilling has been increasing with a focus on highly productive reserves such as those in Brazil and Guyana. In the Middle East, activity has increased this year and is expected to increase further.

In the fourth quarter, our sales in the Americas will be affected by the ongoing adjustment in price levels (which continue to be affected by imports), while our sales in the Middle East and for offshore projects should increase and support our total sales. Our EBITDA margin will decline reflecting lower prices in the Americas and our free cash flow will adjust to a lower EBITDA and a more stable working capital position.

Wind Farm Investment

In October, we put into full operation, with its 24 turbines, our Buena Ventura Wind Farm in Argentina. The wind farm is supplying 103.2 MW of power, through the interconnected grid, to our industrial facilities in Campana, close to 50% of its total electric power requirements and will reduce our CO2 emissions at the facility by 152,000 tons per year.

On November 1, 2023, following a successful bid for priority connection rights to the interconnected grid, the Company’s Board of Directors approved an investment plan to build a second wind farm in Argentina at a cost of approximately $214 million, which would supply a further 30% of the current energy requirements of our facilities in Campana, and reduce our CO2 emissions by a further 102,500 tons per year. This investment is expected to be completed during 2025.

Analysis of 2023 Third Quarter Results

Tubes

The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

Tubes Sales volume (thousand metric tons) 3Q 2023 2Q 2023 3Q 2022
Seamless 744 844 (12 %) 750 (1 %)
Welded 169 255 (34 %) 106 60 %
Total 913 1,099 (17 %) 856 7 %
               

The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

Tubes 3Q 2023 2Q 2023 3Q 2022
(Net sales - $ million)          
North America 1,700   2,142   (21 %) 1,761   (3 %)
South America 608   893   (32 %) 600   1 %
Europe 231   270   (14 %) 190   22 %
Asia Pacific, Middle East and Africa 556   612   (9 %) 280   98 %
Total net sales ($ million) 3,095   3,918   (21 %) 2,832   9 %
Operating income ($ million) 841   1,251   (33 %) 780   8 %
Operating margin (% of sales) 27.2 % 31.9 %   27.5 %  
                 

Net sales of tubular products and services decreased 21% sequentially and increased 9% year on year. On a sequential basis volumes shipped decreased 17% and average selling prices decreased 5%. In North America, activity and shipments declined in the US onshore market and in the Gulf of Mexico, with price declines across the region, while sales in Canada were held back by lower activity from key customers. In South America we had a further decline in sales for pipelines in Argentina, and lower sales of offshore OCTG and line pipe in Brazil following exceptionally high sales in the previous quarter. In Europe we had lower sales of mechanical pipe products to distributors amidst a declining market environment. In the AMEA region we had lower sales in Iraq, Egypt and Indonesia.

Operating results from tubular products and services amounted to a gain of $841 million in the third quarter of 2023 compared to a gain of $1,251 million in the previous quarter and $780 million in the third quarter of 2022. During the quarter, operating income includes a non-recurring gain of $32 million corresponding to the sale of the awards related to the Company’s Venezuelan nationalized assets. The decline in operating income during the quarter is related to the decrease in sales due to both volume and price declines together with an increase in unit costs due to higher raw material costs and a negative industrial performance and absorption of fixed and semi-fixed costs associated with lower volumes.

Others

The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

Others 3Q 2023 2Q 2023 3Q 2022
Net sales ($ million) 143   157   (9 %) 143   0 %
Operating income ($ million) 27   27   0 % 23   17 %
Operating margin (% of sales) 19.0 % 17.3 %   16.2 %  
                 

Net sales of other products and services decreased 9% sequentially and remained flat year on year. Sequentially, sales declined mainly due to lower sales of oilfield services in Argentina and lower sales of pipes for plumbing applications in Italy.

Selling, general and administrative expenses, or SG&A, amounted to $433 million, or 13.4% of net sales, in the third quarter of 2023, compared to $529 million, 13.0% in the previous quarter and $403 million, 13.6% in the third quarter of 2022. Sequentially, our SG&A expenses decreased mainly due to lower shipment costs due to a reduction in volumes shipped and lower provisions for contingencies.

Other operating results amounted to a net gain of $36 million in the third quarter of 2023, compared to a net loss of $1 million in the previous quarter and $2 million net loss in the third quarter of 2022. During the quarter other operating income includes a non-recurring gain of $32 million corresponding to the transfer of court awards related to the Company’s Venezuelan nationalized assets.

Financial results amounted to a gain of $67 million in the third quarter of 2023, compared to a gain of $40 million in the previous quarter and a loss of $29 million in the third quarter of 2022. Net finance income increased $28 million sequentially due to the increase in the net cash position.

Equity in earnings of non-consolidated companies generated a loss of $110 million in the third quarter of 2023, compared to a gain of $96 million in the previous quarter and a gain of $5 million in the third quarter of 2022. The result of the quarter includes a non-cash loss of $144 million from our investment in Usiminas ($26 million from our direct investment in Usiminas and $118 million from our indirect investment in Usiminas through Ternium), related to the fair value measurement of the shares and the result of recycling Ternium´s negative accumulated currency translation reserve to the income statement.

Income tax charge amounted to $278 million in the third quarter of 2023, the same as in the previous quarter and compared to $171 million in the third quarter of 2022. Income tax of the quarter includes a net $62 million charge from foreign exchange effects net of inflation adjustments, mainly in Argentina and Mexico.

Cash Flow and Liquidity of 2023 Third Quarter

Net cash generated by operating activities during the third quarter of 2023 was $1.3 billion, compared to $1.3 billion in the previous quarter and $242 million in the third quarter of 2022. During the third quarter of 2023 cash generated by operating activities includes a reduction in working capital of $415 million mainly related to a reduction in trade receivables of $422 million.

With capital expenditures of $170 million, our free cash flow amounted to $1.1 billion during the quarter and our net cash position amounted to $3.3 billion at September 30, 2023.

Analysis of 2023 First Nine Months Results

  9M 2023 9M 2022 Increase/(Decrease)
Net sales ($ million) 11,454   8,142   41 %
Operating income ($ million) 3,497   1,950   79 %
Net income* ($ million) 2,812   1,746   61 %
Shareholders’ net income ($ million) 2,789   1,746   60 %
Earnings per ADS ($) 4.72   2.96   59 %
Earnings per share ($) 2.36   1.48   59 %
EBITDA** ($ million) 3,890   2,379   64 %
EBITDA margin (% of net sales) 34.0 % 29.2 %  
           

* Net income in 9M 2023 includes a non-cash charge of $144 million relating to the remeasurement and recycling of CTA to the income statement, of our direct and indirect investment in Usiminas. Excluding this one-off effect, for the period Net income would have been $2,956 million. Earnings per share and per ADS would have been $2.48 and $4.97, respectively.** EBITDA in 9M 2023 includes a one-off gain of $32 million on the transfer of court awards relating to Venezuelan nationalized assets. Excluding this one-off gain EBITDA would have been $3,922 million (34.2%) in the period.

The following table shows our net sales by business segment for the periods indicated below:

Net sales ($ million) 9M 2023 9M 2022 Increase/(Decrease)
Tubes 10,987 96 % 7,667 94 % 43 %
Others 467 4 % 475 6 % (2 %)
Total 11,454   8,142   41 %
             

Tubes

The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

Tubes Sales volume (thousand metric tons) 9M 2023 9M 2022 Increase/(Decrease)
Seamless 2,428 2,337 4 %
Welded 707 231 206 %
Total 3,136 2,568 22 %
         

The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

Tubes 9M 2023 9M 2022 Increase/(Decrease)
(Net sales - $ million)      
North America 6,071   4,691   29 %
South America 2,476   1,411   76 %
Europe 754   681   11 %
Asia Pacific, Middle East and Africa 1,687   884   91 %
Total net sales ($ million) 10,987   7,667   43 %
Operating income ($ million) 3,403   1,887   80 %
Operating margin (% of sales) 31.0 % 24.6 %  
           

Net sales of tubular products and services increased 43% to $10,987 million in the first nine months of 2023, compared to $7,667 million in the first nine months of 2022 due to an increase of 22% in volumes (amost entirely welded products) and a 17% increase in average selling prices. Sales increased in all regions, mainly in the Americas and AMEA, with the recovey being in both volumes and prices. Average drilling activity in the first nine months of 2023 increased only 1% in the United States & Canada and 13% internationally compared to the first nine months of 2022.

Operating results from tubular products and services amounted to a gain of $3,403 million in the first nine months of 2023 compared to $1,887 million in the first nine months of 2022. The improvement in operating results was driven by the recovery in sales and margins, as higher tubes prices and an improvement in industrial performance due to the increased levels of activity and utilization of production capacity more than offset the increase in raw material and energy costs.

Others

The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

Others 9M 2023 9M 2022 Increase/(Decrease)
Net sales ($ million) 467   475   (2 %)
Operating income ($ million) 94   63   49 %
Operating margin (% of sales) 20.1 % 13.2 %  
           

Net sales of other products and services decreased 2% to $467 million in the first nine months of 2023, compared to $475 million in the first nine months of 2022, mainly due to lower sales of excess raw materials and pipes for plumbing applications in Italy, partially offset by an increase in sales of sucker rods, oilfield services in Argentina and coiled tubing.

Selling, general and administrative expenses, or SG&A, amounted to $1,449 million in the first nine months of 2023, representing 12.6% of sales, and $1,180 million in the first nine months of 2022, representing 14.5% of sales. SG&A expenses increased mainly due to higher selling expenses (in particular commissions and freights) associated with higher sales and higher labor costs. However, they decreased as a percentage of sales due to the better absorption of fixed and semi-fixed components of SG&A expenses on higher sales.

Other operating results amounted to a net gain of $41 million in the first nine months of 2023, compared to a net gain of $12 million in the first nine months of 2022. In the first nine months of 2023 other operating income includes a non-recurring gain of $33 million corresponding to the transfer of the awards related to the Company’s Venezuelan nationalized assets. In the first nine months of 2022 other operating results include a non-cash gain of $71 million from the reclassification to the income statement of NKKTubes’s cumulative foreign exchange adjustments belonging to the shareholders, an $18 million gain from the sale of land in Canada after the relocation of the Prudential facility, partially offset by a $78 million loss from the settlement with the U.S. SEC.

Financial results amounted to a gain of $128 million in the first nine months of 2023, compared to a loss of $42 million in the first nine months of 2022. The better financial results are due to higher net finance income related to higher interest rates on a stronger financial position and positive foreign exchange results.

Equity in earnings of non-consolidated companies generated a gain of $39 million in the first nine months of 2023, compared to a gain of $196 million in the first nine months of 2022. The result of the first nine months of 2023 includes a non-cash loss of $144 million from our investment in Usiminas ($26 million from our direct investment in Usiminas and $118 million from our indirect investment in Usiminas through Ternium), related to the fair value measurement of the shares and the result of recycling Ternium´s negative accumulated currency translation reserve to the income statement. The result of the first nine months of 2022 includes a $32 million loss from an impairment in Usiminas ($19 million from our direct investment in Usiminas and $13 million from our indirect investment in Usiminas through Ternium) and an impairment on the value of our joint venture in Russia, amounting to $15 million. The remaining results are mainly derived from our participation in Ternium (NYSE:TX).

Income tax amounted to a charge of $852 million in the first nine months of 2023, compared to $359 million in the first nine months of 2022. The increase in income tax reflects better results at several subsidiaries.

Cash Flow and Liquidity of 2023 First Nine Months

Net cash provided by operating activities during the first nine months of 2023 amounted to $3.6 billion (including a decrease in working capital of $248 million), compared to $643 million (net of an increase in working capital of $1.4 billion) in the first nine months of 2022.

Capital expenditures amounted to $453 million in the first nine months of 2023, compared to $271 million in the first nine months of 2022. Free cash flow amounted to $3.1 billion in the first nine months of 2023, compared to $372 million in the first nine months of 2022.

Our net cash position amounted to $3.3 billion at September 30, 2023, compared to $0.9 billion at December 31, 2022.

Conference call

Tenaris will hold a conference call to discuss the above reported results, on November 2, 2023, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions. To listen to the conference please join through one of the following options: ir.tenaris.com/events-and-presentations or https://edge.media-server.com/mmc/p/mmvgfe8aIf you wish to participate in the Q&A session please register at the following link:https://register.vevent.com/register/BI438c41074e8343048d87bb81a38e9165Please connect 10 minutes before the scheduled start time.A replay of the conference call will also be available on our webpage at:ir.tenaris.com/events-and-presentations

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.

Consolidated Condensed Interim Income Statement

(all amounts in thousands of U.S. dollars) Three-month period endedSeptember 30, Nine-month period endedSeptember 30,
  2023 2022 2023 2022
  Unaudited Unaudited
Net sales 3,237,836   2,974,801   11,453,930   8,142,316  
Cost of sales (1,973,381 ) (1,766,486 ) (6,548,324 ) (5,023,770 )
Gross profit 1,264,455   1,208,315   4,905,606   3,118,546  
Selling, general and administrative expenses (432,682 ) (403,435 ) (1,448,765 ) (1,180,097 )
Other operating income (expense), net 36,128   (1,755 ) 40,604   11,775  
Operating income 867,901   803,125   3,497,445   1,950,224  
Finance Income 56,100   26,998   149,853   42,264  
Finance Cost (19,179 ) (17,741 ) (87,103 ) (25,703 )
Other financial results, net 30,565   (38,368 ) 65,116   (58,247 )
Income before equity in earnings of non-consolidated companies and income tax 935,387   774,014   3,625,311   1,908,538  
Equity in (losses) earnings of non-consolidated companies (110,382 ) 5,295   38,545   196,001  
Income before income tax 825,005   779,309   3,663,856   2,104,539  
Income tax (278,200 ) (171,239 ) (851,804 ) (359,010 )
Income for the period 546,805   608,070   2,812,052   1,745,529  
         
Attributable to:        
Shareholders' equity 537,311   606,470   2,788,967   1,745,962  
Non-controlling interests 9,494   1,600   23,085   (433 )
  546,805   608,070   2,812,052   1,745,529  

Consolidated Condensed Interim Statement of Financial Position

(all amounts in thousands of U.S. dollars) At September 30, 2023   At December 31, 2022
  Unaudited    
ASSETS          
Non-current assets          
Property, plant and equipment, net 5,910,555     5,556,263  
Intangible assets, net 1,336,609     1,332,508  
Right-of-use assets, net 116,976     111,741  
Investments in non-consolidated companies 1,602,494     1,540,646  
Other investments 566,475     119,902  
Deferred tax assets 195,332     208,870  
Receivables, net 154,291 9,882,732   211,720 9,081,650
Current assets          
Inventories, net 3,884,882     3,986,929  
Receivables and prepayments, net 247,427     183,811  
Current tax assets 283,096     243,136  
Trade receivables, net 2,169,293     2,493,940  
Derivative financial instruments 11,113     30,805  
Other investments 2,496,747     438,448  
Cash and cash equivalents 864,043 9,956,601   1,091,527 8,468,596
Total assets   19,839,333     17,550,246
EQUITY          
Shareholders' equity   16,229,531     13,905,709
Non-controlling interests   170,592     128,728
Total equity   16,400,123     14,034,437
LIABILITIES          
Non-current liabilities          
Borrowings 25,248     46,433  
Lease liabilities 86,401     83,616  
Deferred tax liabilities 447,053     269,069  
Other liabilities 249,774     230,142  
Provisions 102,040 910,516   98,126 727,386
Current liabilities          
Borrowings 597,493     682,329  
Lease liabilities 32,778     28,561  
Derivative financial instruments 5,563     7,127  
Current tax liabilities 379,724     376,240  
Other liabilities 324,188     260,614  
Provisions 29,206     11,185  
Customer advances 160,533     242,910  
Trade payables 999,209 2,528,694   1,179,457 2,788,423
Total liabilities   3,439,210     3,515,809
Total equity and liabilities   19,839,333     17,550,246

Consolidated Condensed Interim Statement of Cash Flows

(all amounts in thousands of U.S. dollars)   Three-month period endedSeptember 30, Nine-month period endedSeptember 30,
    2023 2022 2023 2022
    Unaudited Unaudited
Cash flows from operating activities          
Income for the period   546,805   608,070   2,812,052   1,745,529  
Adjustments for:     -      
Depreciation and amortization   136,129   142,488   392,163   428,588  
Income tax accruals less payments   76,994   72,639   134,168   118,590  
Equity in earnings of non-consolidated companies   110,382   (5,295 ) (38,545 ) (196,001 )
Interest accruals less payments, net   (22,986 ) 6,763   (44,926 ) 5,152  
Changes in provisions   (17,998 ) (1,210 ) 21,935   9,269  
Reclassification of currency translation adjustment reserve   -   -   -   (71,252 )
Changes in working capital   414,887   (625,306 ) 248,125   (1,449,130 )
Others, including currency translation adjustment   52,721   43,978   34,366   52,530  
Net cash provided by operating activities   1,296,934   242,127   3,559,338   643,275  
           
Cash flows from investing activities          
Capital expenditures   (170,376 ) (129,457 ) (452,625 ) (270,800 )
Changes in advance to suppliers of property, plant and equipment   (1,342 ) 14,062   902   (5,793 )
Acquisition of subsidiaries, net of cash acquired   (100,311 ) -   (104,419 ) (4,082 )
Additions to associated companies   (22,661 ) -   (22,661 ) -  
Loan to non-consolidated companies   (1,427 ) -   (2,662 ) -  
Proceeds from disposal of property, plant and equipment and intangible assets   648   772   9,023   46,768  
Dividends received from non-consolidated companies   -   -   43,513   45,488  
Changes in investments in securities   (809,796 ) 128,746   (2,597,425 ) 85,175  
Net cash (used in) provided by investing activities   (1,105,265 ) 14,123   (3,126,354 ) (103,244 )
           
Cash flows from financing activities          
Dividends paid   -   -   (401,383 ) (330,584 )
Dividends paid to non-controlling interest in subsidiaries   (1,530 ) (10,432 ) (18,967 ) (10,432 )
Changes in non-controlling interests   2,033   (5,128 ) 3,772   (3,506 )
Payments of lease liabilities   (12,199 ) (10,431 ) (35,968 ) (38,836 )
Proceeds from borrowings   326,185   497,982   1,358,223   1,349,718  
Repayments of borrowings   (381,886 ) (352,411 ) (1,524,973 ) (793,587 )
Net cash (used in) provided by financing activities   (67,397 ) 119,580   (619,296 ) 172,773  
           
Increase (decrease) in cash and cash equivalents   124,272   375,830   (186,312 ) 712,804  
           
Movement in cash and cash equivalents          
At the beginning of the period   755,271   635,928   1,091,433   318,067  
Effect of exchange rate changes   (15,531 ) (20,955 ) (41,109 ) (40,068 )
Increase (decrease) in cash and cash equivalents   124,272   375,830   (186,312 ) 712,804  
    864,012   990,803   864,012   990,803  
                   

Exhibit I – Alternative performance measures

Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

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 recurring 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 = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals)

EBITDA is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) Three-month period endedSeptember 30, Nine-month period endedSeptember 30,
  2023 2022 2023 2022
Income for the period 546,805   608,070   2,812,052   1,745,529  
Income tax charge 278,200   171,239   851,804   359,010  
Equity in (losses) earnings of non-consolidated companies 110,382   (5,295 ) (38,545 ) (196,001 )
Financial Results (67,486 ) 29,111   (127,866 ) 41,686  
Depreciation and amortization 136,129   142,488   392,163   428,588  
EBITDA 1,004,030   945,613   3,889,608   2,378,812  
                 

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.

Free cash flow is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) Three-month period endedSeptember 30, Nine-month period endedSeptember 30,
  2023 2022 2023 2022
Net cash provided by operating activities 1,296,934   242,127   3,559,338   643,275  
Capital expenditures (170,376 ) (129,457 ) (452,625 ) (270,800 )
Free cash flow 1,126,558   112,670   3,106,713   372,475  
                 

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).

Net cash/debt is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) At September 30,
  2023 2022
Cash and cash equivalents 864,043   994,854  
Other current investments 2,496,747   434,566  
Non-current investments 560,489   144,222  
Derivatives hedging borrowings and investments 766   1,284  
Current borrowings (597,493 ) (827,962 )
Non-current borrowings (25,248 ) (47,164 )
Net cash 3,299,304   699,800  
         

Operating working capital days

Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

Operating working capital days is calculated in the following manner:

Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365

Operating working capital days is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) At September 30,
  2023 2022
Inventories 3,884,882   3,679,135  
Trade receivables 2,169,293   2,013,660  
Customer advances (160,533 ) (324,623 )
Trade payables (999,209 ) (1,011,037 )
Operating working capital 4,894,433   4,357,135  
Annualized quarterly sales 12,951,344   11,899,204  
Operating working capital days 138   134  
         

Giovanni Sardagna        Tenaris 1-888-300-5432www.tenaris.com

Tenaris (BIT:TEN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024 Click aqui para mais gráficos Tenaris.
Tenaris (BIT:TEN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024 Click aqui para mais gráficos Tenaris.