Tenaris S.A. (NYSE:TS) Q3 2023 Earnings Call Transcript November 2, 2023 8:00 AM ET
Company Participants
Giovanni Sardagna - Head of IR
Paolo Rocca - Chairman and CEO
Luca Zanotti - President, US Operations
Gabriel Podskubka - COO
Conference Call Participants
Alessandro Pozzi - Mediobanca
Arun Jayaram - JPMorgan Securities
Marc Bianchi - TD Cowen
Luke Lemoine - Piper Sandler
David Anderson - Barclays
Jamie Franklin - Jefferies
Operator
Good day, and thank you for standing by. Welcome to the Third Quarter 2023 Tenaris S.A. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the 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 turn the call over to the Head of Investor Relations, Mr. Giovanni Sardagna.
Giovanni Sardagna
Thank you, Carmen, and welcome to Tenaris 2023 Third 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 US operations. Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results.
Our sales in the third quarter of 2023 reached $3.2 billion, up 9% compared to those of the corresponding quarter of last year, but down 21% sequentially, mainly due to lower volumes and prices throughout the Americas, lower quarterly shipments to offshore projects and lower pipeline shipments in Argentina.
Average selling prices in our Tubes operating segment increased 2% compared to the corresponding quarter of last year, but declined 5% sequentially. As anticipated, our EBITDA, excluding a one-off gain of $32 million, fell just short of $1 billion with a margin of 31%. The sequential EBITDA decline was mainly driven by the ongoing price declines in the Americas.
Our net income for the quarter at $547 million was affected by non-cash charges of $144 million related to the remeasurement and recycling of CTA to the income statement of our direct and indirect investment in Usiminas. Cash generated by operating activities during the quarter was $1.3 billion, while our free cash flow for the quarter was $1.1 billion, with a further reduction in working capital of $415 million. Our net cash position at the end of the quarter rose to $3.3 billion.