Steel tube producer Tenaris saw its net revenues in South America decline nearly 52 percent in Q4, year-on-year, the company announced this week while releasing its quarterly results.
Tenaris’ net revenues in the region totaled $212 million in Q4, down from $440 million in the same quarter of 2015. The company attributed the drop to lower drilling activity and sales of Oil Country Tubular Goods (OCTG) products in Argentina.
Tenaris’ financial report showed South American segment revenues declined the most, followed by the North American segment, which had a 31 percent year-on-year decline in revenues in Q4, and the Asia Pacific segment, which saw a 20 percent decline in revenues during the same period.
As for the full year of 2016, Tenaris’ net revenues in South America fell 44 percent, year-on-year, to $1.03 billion, down from $1.85 billion in 2015.
“In South America, sales declined due to the downturn in drilling activity in Argentina and Colombia, along with price declines and the lack of shipments to a line pipe project in Argentina and Brazil following the first quarter sales,” the company said in an explanation of full-year revenues.
Full-year net revenues in North America and the Asia Pacific region declined as well, reaching decreases of 50 percent each in 2016, year-on-year.