Tenaris S.A. (TS) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 16, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Q4 Tenaris S.A. earnings conference call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Giovanni Sardagna. Please go ahead.

Giovanni Sardagna

Thank you, Gigi, and welcome to Tenaris 2022 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 Mondolo, our Chief Financial Officer; Guillermo Vogel, Vice Chairman and Member of our Board of Directors; Gabriel Podskubka, President of our Eastern Hemisphere Operations; and Luca Zanotti, President of our U.S. Operations.

Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results. During the fourth quarter of 2022, sales reached $3.6 billion, up 76% compared with those of the corresponding quarter of the previous year and 22% sequentially, mainly driven by further increases in shipments and realized prices.

Our EBITDA for the quarter was up 34% sequentially, close to $1.3 billion, reflecting higher volumes, better pricing and a good industrial performance with increased levels of activity and utilization of production capacity. Our EBITDA margin for the quarter rose above 35% despite higher raw material and energy costs.

Average selling prices in our Tubes operating segment increased 50% compared to the corresponding quarter of 2021 and 9% sequentially. During the quarter, cash flow from operation was $524 million, our net cash position at the end of the year increased to $921 million, following the payment of an interim dividend of $201 million in November last year, and capital expenditures of $108 million during the quarter.

Now I will ask Paolo to say a few words before we open the call to questions.

Paolo Rocca

Thank you, Giovanni, and good morning to all of you. We closed 2022 with a quarterly record of net sales, EBITDA and net income to kept a year in which we were able to take advantage of the favorable market conditions, particularly in North America to generate strong increases in sales and margin through the year.