Tenaris SA (NYSE:TS) Q2 2023 Results Conference Call August 3, 2023 8:00 AM ET
Company Participants
Giovanni Sardagna - IR Director
Paolo Rocca - Chairman & CEO
Alicia Mondolo - CFO
Gabriel Podskubka - COO
Luca Zanotti – President, US operations
Conference Call Participants
Arun Jayaram - JPMorgan
Marc Bianchi - TD Cowen
Alessandro Pozzi - Mediobanca
Stephen Gengaro - Stifel
Operator
Good day, and thank you for standing by. Welcome to Q2 2023 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-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 2023 Second Quarter 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; Gabriel Podskubka, our Chief Operating Officer; 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. Our second quarter sales reached €4.1 billion, up 46% year-on-year but down 2% sequentially, mainly due to lower OCTG sales in Colombia and Canada and lower pipeline sales in Argentina, partially offset by higher offshore sales and higher sales in the Middle East. Average selling prices in our Tubes operating segment increased 21% compared to the corresponding quarter of last year and 1% sequentially.
Our EBITDA for the quarter was down 5% sequentially to $1.4 billion due to lower sales and higher SG&A expenses. Our EBITDA margin for the quarter was 34.6%. On the other hand, our net income for the quarter increased 1% sequentially to $1.1 billion as it benefited from an improvement in finance results and higher income from nonconsolidated companies. With operating cash flow of over €1.3 billion and capital expenditure of €165 million, our free cash flow for the quarter reached a record level of €1.2 billion. After a dividend payment of €401 million in May, our net cash position increased to €2.3 billion at the end of the quarter. Now I will ask Paolo to say a few words before we open the call to questions.