Tenaris S.A. (NYSE:TS) Q2 2024 Earnings Conference Call August 1, 2024 8:00 AM ET
Company Participants
Giovanni Sardagna - Director of Investor Relations
Paolo Rocca - Chairman & Chief Executive Officer
Gabriel Podskubka - Chief Operating Officer
Luca Zanotti - President, US Operations
Conference Call Participants
Marc Bianchi - TD Cowen
Alessandro Pozzi - Mediobanca
Arun Jayaram - JPMorgan Securities LLC
Christopher Kuplent - Bank of America
Luigi De Bellis - Equita Oscient
Operator
Good day, and thank you for standing by. Welcome to Quarter Two 2024 Tenaris S.A. Earnings Conference Call. At this time all participants are in a listen only mode. [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 the Tenaris 2024 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 Móndolo, our Chief Financial Officer, Gabriel Podskubka, our Chief Operating Officer and Luca Zanotti, President of our US Operations. I would like to start by mentioning that we will host an investor presentation in London on September 24. We hope to see many of you there.
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 $3.3 billion, down 18% year-on-year and 3% sequentially, mainly due to slightly lower volumes and average selling prices during the quarter. Average selling prices in our tubes operating segment decreased 17% compared to the corresponding quarter of last year and 1% sequentially as lower prices have been greatly offset by favorable sales mix. Our EBITDA for the quarter was down 34% sequentially to $650 million, due to lower selling prices and an extraordinary provision recorded for an ongoing litigation related to the acquisition of a participation in Usiminas in 2012. Our EBITDA margin for the quarter was close to 20%. Without this historical provision our EBITDA would have been $821 million and our EBITDA margin would have been 25%. With operating cash flow of $935 million and capital expenditure of $161 million, our free cash flow for the quarter was $774 million, after a dividend payment of $459 million in May and share buybacks of $492 million, our net cash position amounted to $3.8 million at the end of the quarter.