Tenaris, the world's largest producer of steel tubes, posted net income of $803 million in the fourth quarter (Q4) 2022, up 139 percent from $336 million in Q4 2021, the company reported to financial markets this week.
Due to a greater demand for tube products and higher sales prices, the company's revenue increased 76.0 percent in Q4 2002 to $3.62 billion compared to $2.06 billion in Q4 2021.
Sales volumes grew 20.8 percent in Q4, driven by a 130 percent increase in the sale of welded tubes and 10.7 percent in seamless tubes.
The company said seamless pipe market share decreased 7.7 percentage points from 91.5 percent in Q4 2021 to 83.8 percent in Q4 2022.
By region, South America was the most dynamic with an increase of 136 percent in the value of sales with $802 million. Thus, it gained 5.3 points by totaling 23.1 percent of its market share.
North America, the most important region with 60.7 percent of total sales, registered an 88.3 percent increase in sales, compared to Q4 2021, totaling $2.11 billion. North and South America combined generated 83.9 percent of total sales.
The Middle East and Africa increased its sales 45.0 percent and Europe 10.8 percent. In contrast, Asia Pacific sales decreased 6.7 percent.
EBITDA grew 163 percent, going from $483 million in Q4 2021 to $1.27 billion in Q4 2022. For all of 2022, it totaled $3.65 billion, 168.4 percent more than in 2021.
Net income for 2022 totaled $2.55 billion, 142.1 percent more than in 2021. Earnings per ADS was $4.33 for all of 2022 and $1.37 for Q4 2022, 132.8 percent and 117.5 percent more than the same periods of last year.
By 2023, Tenaris forecasts that global demand for Oil Country Tubular Goods (OCTG) products will reach its highest level since 2014, primarily driven by oil and gas developments in Argentina and the Middle East.
In addition, the company reported that the board of directors will propose to vote the payment of dividends for $602 million, an amount that includes $201 million of a dividend already paid in November 2022. If approved at the ordinary general meeting on May 3, 2023, on the 24th of the same month a dividend of $0.34 per share ($0.68 per ADS) will be paid, which will mean approximately $401 million.