Tenaris enjoys profitable third quarter

Steelmaker with Latin American operations sees rise in sales and profits compared with prior quarter.

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November 8, 2021

Luxembourg-based steel producer Tenaris S.A. says its sales in the third quarter of this year rose by 15 percent compared with the prior quarter, and its EBITDA (earnings before interest, taxes, depreciation and amortization) margin rose by more than 20 percent.

Year to date, the company’s $4.46 billion in sales represents an 11 percent rise compared with the first nine months of 2020. Tenaris’ gross profit of $1.25 billion in the first nine months of this year is a 52 percent jump from the gross profits it earned in the first three quarters of 2020.

The company says is tubular products for the oil sector have enjoyed increased demand in the United States and Latin America in 2021. “We anticipate that sales will show a further increase in the fourth quarter, again led by North America, where the market has absorbed excess OCTG [oil country tubular goods] inventories, and prices are increasing,” states the company.

Tenaris points to “the continuing ramp-up of operations at our industrial facilities in the United States, including the reopening of our Ambridge, Pennsylvania, seamless pipe mill and our Baytown, Texas, heat treatment and finishing facilities.”

In Latin America, says the company, oil drilling activity has shown a recovery in Argentina, Colombia, Brazil, Mexico and Guyana.

Tenaris concludes, “We anticipate that sales will show a further increase in the fourth quarter, again led by North America. Our EBITDA margin in the fourth quarter should remain close to the current level as price increases compensate for raw material, energy and logistic cost increases.”