Tenaris’ Net Sales Skyrocketed by 52% in Fourth Quarter of 2017

SEATTLE (Scrap Monster): Tenaris- the global manufacturer and supplier of steel pipes, has announced its results for the fourth quarter and year ended December 31, 2017. The net sales during Q4 ’17 skyrocketed by 52% when compared with the corresponding quarter in 2016. The overall yearly sales rose steadily by 23% during the year, upon comparison with 2016.

The demand for Rig Direct high quality products continued to remain robust during the quarter and throughout the year. Q4 ’17 witnessed increased deliveries of steel pipes to East Mediterranean pipelines and oil country tubular goods (OCTG) to national oil companies in the Middle East. Further, the quarter also witnessed significant ramp up in demand for mechanical products in Europe. On the other hand, sale of line pipes in Brazil reported considerable decline in 2017.

The net sales of tubular products and services rose sharply by 50% during the year, backed by increased sales of line pipes to shale producers in the US and Canada. The sale of line pipes in Argentina and OCTG products in Colombia reported sharp jump. The Middle East and Africa sales too reported considerable ramp up. The operating income from tubular products and services jumped multifold from $5 million in Q4 ’16 to $150 million in the fourth quarter of the previous year.

Going forward, Tenaris expects modest recovery in shale drilling activity in the US and Canada in 2018. The company forecasts gradual recovery in the Middle East and the North Sea markets. It expects pick up in Colombia drilling activity. However, a positive recovery in activity remains unlikely in Mexico. OCTG demand will remain modest in 2018 and will be concentrated in major markets such as the US, China, Russia and the Middle East. Tenaris expects robust growth in sales during all the four quarters and for the entire year 2018.