Q4 2024 Tenaris SA Earnings Call Transcript
Key Points
- Tenaris SA (TS) reported a solid financial performance for 2024, with EBITDA reaching $3.1 billion and net income of $2.1 billion on net sales of $12.5 billion.
- The company maintained a strong net cash position of $3.6 billion, despite significant expenditures on dividends, share buybacks, and capital investments.
- Tenaris SA (TS) is proposing a 38% increase in the annual dividend per share, reflecting confidence in its financial health and commitment to returning value to shareholders.
- The company has made significant investments to improve industrial efficiency and reduce its environmental footprint, including new electric arc furnaces and renewable energy projects.
- Tenaris SA (TS) has strengthened its position in key markets, securing major contracts in North America, the Middle East, and deepwater projects, enhancing its competitive edge.
- Sales in Q4 2024 decreased by 17% compared to the same quarter in the previous year, primarily due to lower volumes and average selling prices.
- The net cash position decreased due to substantial outflows for dividends, share buybacks, and capital expenditures, which could impact future liquidity.
- The company faced a tragic accident at its main plant in Argentina, resulting in the loss of two employees, highlighting safety concerns.
- In Mexico, sales were negatively impacted by a steep decline in drilling activity and financial difficulties at Pemex, affecting revenue streams.
- The geopolitical and trade policy uncertainties, particularly in the US, pose potential risks to Tenaris SA (TS)'s operations and market dynamics.
Good day and thank you for standing by. Welcome to Q4 and full year 2024 the Tenaris earnings conference call.
(Operator Instructions)
I would not like to end the conference over to your speaker today, Giovanni Sardagna, Investor Relations Officer. Please go ahead.
Thank you, Gigi, and welcome to Tenaris 2024, Fourth quarter and annual results conference call. Before we start, I would like to remind you that we will be discussing forward-looking information in the call and that our actual results may vary from those expressed or implied during this call.
With me on the call today are Paolo Rocca, our Chairman and CEO Alicia Móndolo, our Chief Financial Officer, Gabriel Podskubka, our Chief Operating Officer, and Luca Zanotti, President of our US operations.
Before passing over the call to Paolo for his opening remarks, I would like to briefly commend our quarterly results.
During the fourth quarter of 2024, sales reached $2.8 billion, down 17% compared with those of
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