Tenaris remains profitable in 2025

Tenaris S.A., a Luxembourg-based company that produces steel in North and South America, has earned $37 million in this year’s third quarter, a 15.6 percent increase compared with the $32 million earned in the previous quarter but a decline of 22.9 percent compared with the $48 million Tenaris earned in the third quarter of 2024.

“The financial result of the quarter is mainly attributable to a $47 million net finance income from the net return of our portfolio investments partially offset by foreign exchange and derivatives results," the company says.

“Our sales of tubular products and services held up remarkably well as our Rig Direct customers in the United States and Canada maintained a more stable level of activity than the rest of the market, and we were able to complete some shipments ahead of schedule in the Middle East.

“Our sales in our Argentine fracking and coiled tubing services unit, however, were affected by a temporary lack of activity. Our margins also held up well although they still do not reflect the full impact of recent tariff increases.”

In its core energy sector market, Tenaris says that although there has been some reduction in oil drilling in recent months in the U.S., Canada and Saudi Arabia, overall drilling activity remains resilient as operators focus on the longer-term outlook and reducing operational costs.

In the U.S., the tariff rate increase on imports of steel products from 25 percent to 50 percent this June, means oil country tubular goods (OCTG) imports are coming down from the high levels of the first half, but inventories remain at high levels and OCTG prices have yet to reflect the increased costs of the tariffs.

“We expect our sales to remain close to the level of the third quarter, but our costs and margins will be affected by the full impact of the increase in tariff costs," Tenaris says of its outlook.