Tenaris in red in Piazza Affari after the publication of the first quarter accounts. The stock opened 3% down before recovering partially and settling at -1,9% at 11,805 euros.
The oil group closed the first three months of 2019 with profits above expectations, but revenues and ebitda below the consensus. In detail, theNet income increased 3% to $243 million. Analysts instead expected a drop to 216,5 million from 234 in the same period of 2018.
I revenues, compared to the first quarter of 2018, remained stable at 1,872 billion dollars against the 1,98 billion of the consensus. L'ebitda, expected at 397,8 million, instead settled at 390 million (+10%) with an improvement margin to 20,9%.
THEoperating profit is equal to 259 million (+22%), theearning per share it is at $0,21 versus $0,20 in the first quarter of last year.
In the first quarter of 2019 i volumes they decreased by 13% compared to the previous quarter and by 12% on the first quarter of 2018, but this contraction, explains the company, was partially offset by an average increase of 2% in selling prices thanks to an improved product mix. From a geographical point of view, Tenaris recorded volumes down by 8% compared to the previous three months in North America, 7% in South America and 31% in the Middle East and Africa due to the conclusion of the Zohr project. On the other hand, volumes in Europe (+7%) and in the Asia-Pacific area (+5%).
In the quarter the working capital it dropped $199 million. The coperational ash flow was 548 million and capital investments amounted to 86 million, with a free cash flow which therefore settled at 462 million (25% of revenues). Finally, the net financial positiona was positive for $766 million versus $485 million a year earlier.
As regards the 2019Tenaris expects "to consolidate sales around this level in the coming quarter and to maintain margins at levels similar to last year." With a stable level of revenues, and limited capital investment needs, the company concludes, 'we should continue to generate robust free cash flow during the year'.
