Results above expectations in 2021 for Tenaris, but the stock on the stock market – after a sharp rise – slipped into the red and in mid-morning it lost 1,6% of its value at 11,665 euros per share, weighed down by the weakness of the Ftse Mib (-0,5%) and by the drop in oil ( -1,39% for WTI in March and -1,41% for Brent in April).
Tenaris' 2021
The company closed 2021 with revenues of $6,5 billion, up 27% on the previous year, against a consensus between $6,46 and $6,477 billion. More than doubled (+113%) the EBITDA, which stood at 1,35 billion, with an EBITDA margin of 20,8% (from 12,4%). Operating profit amounted to 708 million (from a negative value of 663 million).
However, the news most awaited by analysts concerned profits. The group is in fact back in profit, equal to 1,05 billion, after a loss of 642 million in 2020, “with sales growth above estimates, thanks to the continued recovery in drilling activities, the trend in Octg (oil country tubular goods) prices in North America, where inventory levels have fallen below normal levels,” the company said.
In 2021 “our results are strong recovered from the worst effects of the pandemic, supported by the recovery of oil and gas drilling activity in the Americas and the structural measures we have taken to improve our long-term profitability,” Tenaris said in a statement.
Fourth quarter accounts
The fourth quarter contributed to the annual results, closed with profits tripled and revenues up sharply compared to the last three months of 2020.
In detail, the fourth quarter of 2022 closed with a net profit of 336 million $0,31 per share ($0,63 per Ads), up 207% from $110 million, $00,09 per share ($0,18 per Ads) in the same period of 2020 (+3 % compared to the previous three months).
Turnover rose 82%rCompared to the fourth quarter of 2020 and up 17% compared to the third quarter of 2021, reaching $2,057 billion. Analysts expected rising profits (the consensus was between a minimum of 263 million and a maximum of 365 million), with growing revenues (consensus between 1,99 and 2,013 billion).
Going forward with the numbers, in the quarter Ebitda amounted to 483 million (+151%), with an Ebitda margin of 23,5% (from 17% in the fourth quarter 2020 and 21,6% in the third quarter), despite the increase in energy and raw material prices, while the operating profit rose from 7 to 273 million.
The dividend
By virtue of the results achieved in 2021 and the boost that arrived in the fourth quarter, the Tenaris board of directors will propose to the shareholders the payment of an annual dividend for a total amount of about 484 million dollars, a figure that also includes the down payment of 153 million already paid in November 2021. If approved, payment will be made on May 25th a dividend of $0,28 per share (0,56 for ADS), which will be added to the $0,13 already paid in November.
The predictions for 2022
In the first half of 2022, the group expects "a further increase in sales thanks to higher prices in North America and deliveries to the offshore pipeline in Europe”, while in the second quarter we should “see a significant recovery in sales in the Middle East and Africa”.
The manufacturer and supplier of pipes and services for oil and gas exploration and production points out that “despite the highest energy costs in Europe, our Ebitda margin is expected to continue to increase even in the first semester”.
The group expects that "although investment in oil and gas drilling will rise in 2022, compared to the lows of the last two years, it is spending is unlikely to return to pre-pandemic levels".
