The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented
in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and
adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Net cash / debt, Free Cash Flow and Operating working capital days. See exhibit I for more details on these alternative performance measures.
LUXEMBOURG, April 25, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS
and EXM Italy: TEN) ("Tenaris") today announced its results for the quarter
ended March 31, 2024 in comparison with its results for the quarter ended March
31, 2023.
Summary of 2024 First Quarter Results
(Comparison with fourth and first quarter of 2023)

                                     --------------------------------------
                                      1Q 2024    4Q 2023        1Q 2023
                                     --------------------------------------
 Net sales ($ million)                3,442   3,415     1 %  4,141   (17 %)
 Operating income ($ million)           812     819    (1 %) 1,351   (40 %)
 Net income ($ million)                 750   1,146   (35 %) 1,129   (34 %)
 Shareholders' net income ($ million)   737   1,129   (35 %) 1,129   (35 %)
 Earnings per ADS ($)                  1.27    1.92   (34 %)  1.91   (34 %)
 Earnings per share ($)                0.64    0.96   (34 %)  0.96   (34 %)
 EBITDA ($ million)                     987     975     1 %  1,477   (33 %)
 EBITDA margin (% of net sales)        28.7 %  28.6 %         35.7 %

Net sales, operating income and EBITDA remained in line with our results for the
fourth quarter of last year despite lower OCTG prices in the Americas. This reflected a solid performance across our business lines and included an increase
in Rig Direct shipments in North America and the realization of a major coating project in Mexico at our newly acquired TenarisShawcor business. Net income, which did not include any extraordinary effects, declined to $750 million, or 22% of sales.
During the quarter, our free cash flow amounted to $715 million and, after spending $311 million on share buybacks, our positive net cash position increased to $3.9 billion at March 31, 2024.
Market Background and Outlook
Demand for oil and gas continues to grow to meet the needs of developing countries and secure affordable energy during the energy transition.
Although oil prices have risen, there has been no pick up in drilling activity in the USA so far this year and in North America it remains below last year's level. At the same time, OCTG imports increased which is delaying price stabilization.
In the rest of the world, offshore projects are proceeding in line with our expectations and demand in the Middle East remains at a good level. In Latin America, however, political and economic volatility is affecting activity.
For the second quarter, as anticipated, our sales and margins will be lower than
the first quarter reflecting the ongoing decline in OCTG prices in the Americas.
In the third quarter, we will have stoppages at many of our mills, including at our Siderca steel shop where we will install a new furnace that will improve our
environmental footprint, and this will lead to a further decline in sales and margins in the quarter.
Analysis of 2024 First Quarter Results

                                          ------------------------------
 Tubes Sales volume (thousand metric tons) 1Q 2024  4Q 2023    1Q 2023
                                          ------------------------------
 Seamless                                      777   760 2 %   840 (8 %)
 Welded                                        269   246 9 %   283 (5 %)
 Total                                       1,046 1,006 4 % 1,123 (7 %)
                                     --------------------------------------
 Tubes                                1Q 2024    4Q 2023        1Q 2023
                                     --------------------------------------

(Net sales - $ million)

 North America                        1,488   1,501    (1 %) 2,229   (33 %)
 South America                          614     590     4 %    975   (37 %)
 Europe                                 226     302   (25 %)   252   (10 %)
 Asia Pacific, Middle East and Africa   804     805     0 %    519    55 %
 Total net sales ($ million)          3,132   3,198    (2 %) 3,975   (21 %)
 Operating income ($ million)           769     780    (1 %) 1,312   (41 %)
 Operating margin (% of sales)         24.6 %  24.4 %         33.0 %
Net  sales of tubular  products and services  decreased 2% sequentially and 21%

year on year. Volumes increased 4% sequentially but decreased 7% year on year while average selling prices decreased 6% sequentially and 15% year on year. In North America, higher seasonal sales in Canada were largely offset by lower OCTG
prices throughout the region. In South America, higher sales for pipeline projects and for offshore drilling in Guyana compensated lower OCTG prices in Argentina and Colombia. In Europe sales declined due to lower sales for offshore
line pipe products. In Asia Pacific, Middle East and Africa we had a continuing high level of sales throughout the region.
Operating income from tubular products and services amounted to $769 million in the first quarter of 2024, compared to $780 million in the previous quarter and $1,312 million in the first quarter of 2023. Operating margin of the quarter remained stable as the reduction in prices was compensated by a reduction in costs. Operating income of the quarter includes gains amounting to $25 million from positive legal claim's resolutions in Mexico and Brazil.

                              --------------------------------
 Others                        1Q 2024   4Q 2023     1Q 2023
                              --------------------------------
 Net sales ($ million)          310     217   43 %  167   86 %
 Operating income ($ million)    42      39    7 %   40    7 %
 Operating margin (% of sales) 13.7 %  18.1 %      23.8 %

Net sales of other products and services increased 43% sequentially and 86% year
on year. Quarterly sales included $160 million from the coating business acquired in the previous quarter.
Selling, general and administrative expenses, or SG&A, amounted to $508 million,
or 14.8% of net sales, in the first quarter of 2024, compared to $471 million, 13.8% in the previous quarter and $487 million, 11.8% in the first quarter of 2023. Sequentially, our SG&A expenses increased mainly due to higher selling expenses associated with higher shipment volumes, higher depreciation and amortization due to the integration of the coating business acquired in the previous quarter and higher provisions for contingencies.
Financial results amounted to a loss of $25 million in the first quarter of 2024, compared to a gain of $93 million in the previous quarter and a gain of $21 million in the first quarter of 2023. The loss of the quarter is mainly explained by a $68 million loss from the change in fair value of U.S. dollar denominated Argentine bonds, partially offset by net finance income of $35 million and other net foreign exchange gains of $8 million.
Equity in earnings of non-consolidated companies generated a gain of $48 million
in the first quarter of 2024, compared to a gain of $57 million in the previous quarter and a gain of $53 million in the first quarter of 2023. Results from non-consolidated companies are mainly derived from our participation in Ternium (NYSE:TX).
Income tax charge amounted to $85 million in the first quarter of 2024, compared
to a gain of $177 million in the previous quarter and a charge of $296 million in the first quarter of 2023. The charge of the quarter is net of $104 million tax gains, mostly related to the effect of inflation adjustment in Argentina.
Cash Flow and Liquidity
Net cash provided by operations during the first quarter of 2024 was $887 million, compared with $836 million in the previous quarter and $921 million in the first quarter of 2023. Working capital increased by $10 million during the quarter.
Capital expenditures amounted to $172 million for the first quarter of 2024,
compared to $167 million in the previous quarter and $117 million in the first quarter of 2023.
During the quarter free cash flow amounted to $715 million, compared to $669 million in the previous quarter and $804 million in the first quarter of 2023.
Following share buybacks of $311 million during the quarter, our positive net cash position increased to $3.9 billion at March 31, 2024, compared to $3.4 billion at December 31, 2023.
Conference call
Tenaris will hold a conference call to discuss the above reported results, on April 26, 2024, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.
To listen to the conference please join through one of the following options:
ir.tenaris.com/events-and-presentations (https://ir.tenaris.com/events-and- presentations) or
https://edge.media-server.com/mmc/p/nk5skspv
If you wish to participate in the Q&A session please register at the following
link:
https://register.vevent.com/register/BI6438ef4528ce4b68a87ee220e3cc959e
Please connect 10 minutes before the scheduled start time.
A replay of the conference call will also be available on our webpage at:
ir.tenaris.com/events-and-presentations (https://ir.tenaris.com/events-and-
presentations)
Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.
Consolidated Condensed Interim Income Statement

                                                     Three-month period ended
 (all amounts in thousands of U.S. dollars)                 March 31,
                                                  -----------------------------
                                                      2024         2023
                                                  -----------------------------
                                                            Unaudited
 Net sales                                          3,441,544    4,141,181
 Cost of sales                                     (2,134,052 ) (2,307,779 )
                                                  -----------------------------
 Gross profit                                       1,307,492    1,833,402
 Selling, general and administrative expenses        (508,132 )   (487,347 )
 Other operating income (expense), net                 12,304        5,299
                                                  -----------------------------
 Operating income                                     811,664    1,351,354
 Finance Income                                        56,289       47,887
 Finance Cost                                         (20,583 )    (31,545 )
 Other financial results, net                         (60,468 )      4,477
                                                  -----------------------------
 Income   before   equity   in  earnings  of  non-
 consolidated companies and income tax                786,902    1,372,173
 Equity in earnings of non-consolidated companies      48,179       53,006
                                                  -----------------------------
 Income before income tax                             835,081    1,425,179
 Income tax                                           (84,856 )   (295,972 )
                                                  -----------------------------
 Income for the period                                750,225    1,129,207
                                                  -----------------------------

Attributable to:

 Shareholders' equity                                 736,980    1,128,627
 Non-controlling interests                             13,245          580
                                                  -----------------------------
                                                      750,225    1,129,207
                                                  -----------------------------

Consolidated Condensed Interim Statement of Financial Position
(all amounts in thousands of U.S.

 dollars)                            At March 31, 2024     At December 31, 2023
                                   ---------------------- ---------------------
                                         Unaudited

ASSETS
Non-current assets

 Property, plant and equipment, net 6,094,145              6,078,179
 Intangible assets, net             1,356,065              1,377,110
 Right-of-use assets, net             137,026                132,138
 Investments   in  non-consolidated
 companies                          1,681,971              1,608,804
 Other investments                    983,519                405,631
 Deferred tax assets                  774,014                789,615
 Receivables, net                     177,221 11,203,961     185,959 10,577,436
                                   -----------            -----------

Current assets

 Inventories, net                   3,911,719              3,921,097
 Receivables and prepayments, net     291,694                228,819
 Current tax assets                   261,983                256,401
 Trade receivables, net             2,303,293              2,480,889
 Derivative financial instruments       2,883                  9,801
 Other investments                  2,248,863              1,969,631
 Cash and cash equivalents          1,323,350 10,343,785   1,637,821 10,504,459
                                   -----------            -----------
 Total assets                                 21,547,746             21,081,895
                                             ------------           -----------

EQUITY

 Shareholders' equity                         17,407,503             16,842,972
 Non-controlling interests                       201,564                187,465
 Total equity                                 17,609,067             17,030,437
                                             ------------           -----------

LIABILITIES
Non-current liabilities

 Borrowings                            28,122                 48,304
 Lease liabilities                     97,078                 96,598
 Derivative financial instruments           -                    255
 Deferred tax liabilities             488,082                631,605
 Other liabilities                    282,147                271,268
 Provisions                           103,465    998,894     101,453  1,149,483
                                   -----------            -----------

Current liabilities

 Borrowings                           608,278                535,133
 Lease liabilities                     42,097                 37,835
 Derivative financial instruments       3,569                 10,895
 Current tax liabilities              476,280                488,277
 Other liabilities                    493,293                422,645
 Provisions                            35,492                 35,959
 Customer advances                    239,342                263,664
 Trade payables                     1,041,434  2,939,785   1,107,567  2,901,975
                                   -----------            -----------
 Total liabilities                             3,938,679              4,051,458
                                             ------------           -----------
 Total equity and liabilities                 21,547,746             21,081,895
                                             ------------           -----------

Consolidated Condensed Interim Statement of Cash Flows

                                                     Three-month period ended
 (all amounts in thousands of U.S. dollars)                 March 31,
                                                  -----------------------------
                                                     2024         2023
                                                  -----------------------------
                                                            Unaudited

Cash flows from operating activities
Income for the period 750,225 1,129,207
Adjustments for:

 Depreciation and amortization                       175,442      125,453
 Income tax accruals less payments                   (29,222 )    188,856
 Equity    in   earnings   of   non-consolidated
 companies                                           (48,179 )    (53,006 )
 Interest accruals less payments, net                 11,938       (3,700 )
 Changes in provisions                                 1,545        7,957
 Changes in working capital                           (9,548 )   (460,557 )
 Others, including net foreign exchange               34,776      (13,440 )
                                                  -----------------------------
 Net cash provided by operating activities           886,977      920,770
                                                  -----------------------------

Cash flows from investing activities

 Capital expenditures                               (172,097 )   (117,088 )
 Changes  in advance  to suppliers  of property,
 plant and equipment                                   2,952           33
 Loan to joint ventures                               (1,354 )          -
 Proceeds  from disposal of  property, plant and
 equipment and intangible assets                       5,412        4,796
 Changes in investments in securities               (759,667 )   (890,636 )
                                                  -----------------------------
 Net cash used in investing activities              (924,754 ) (1,002,895 )
                                                  -----------------------------

Cash flows from financing activities

 Changes in non-controlling interests                  1,120            -
 Acquisition of treasury shares                     (311,064 )          -
 Payments of lease liabilities                       (16,768 )    (10,758 )
 Proceeds from borrowings                            829,947      559,274
 Repayments of borrowings                           (754,078 )   (679,892 )
                                                  -----------------------------
 Net cash used in financing activities              (250,843 )   (131,376 )
                                                  -----------------------------

------------------------------------------------- -----------------------------
Decrease in cash and cash equivalents (288,620 ) (213,501 )
------------------------------------------------- -----------------------------
Movement in cash and cash equivalents

 At the beginning of the period                    1,616,597    1,091,433
 Effect of exchange rate changes                      (4,921 )    (16,518 )
 Decrease in cash and cash equivalents              (288,620 )   (213,501 )
                                                  -----------------------------
                                                   1,323,056      861,414
                                                  -----------------------------

Exhibit I - Alternative performance measures
Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.
EBITDA, Earnings before interest, tax, depreciation and amortization
EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can
vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.
EBITDA is calculated in the following manner:
EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals)
EBITDA is a non-IFRS alternative performance measure.

                                                    Three-month period ended
 (all amounts in thousands of U.S. dollars)                March 31,
                                                 -----------------------------
                                                   2024       2023
                                                 -----------------------------
 Income for the period                            750,225   1,129,207
 Income tax charge                                 84,856     295,972
 Equity in earnings of non-consolidated companies (48,179 )   (53,006 )
 Financial Results                                 24,762     (20,819 )
 Depreciation and amortization                    175,442     125,453
                                                 -----------------------------
 EBITDA                                           987,106   1,476,807

Free Cash Flow
Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Free cash flow is calculated in the following manner:
Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.
Free cash flow is a non-IFRS alternative performance measure.

                                              Three-month period ended
 (all amounts in thousands of U.S. dollars)          March 31,
                                           -----------------------------
                                              2024       2023
                                           -----------------------------
 Net cash provided by operating activities   886,977    920,770
 Capital expenditures                       (172,097 ) (117,088 )
                                           -----------------------------
 Free cash flow                              714,880    803,682

Net Cash / (Debt)
This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides
a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company's leverage, financial strength, flexibility and risks.
Net cash/ debt is calculated in the following manner:
Net cash = Cash and cash equivalents + Other investments (Current and Non- Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current
and Non-Current).
Net cash/debt is a non-IFRS alternative performance measure.

 (all amounts in thousands of U.S. dollars)          At March 31,
                                               ------------------------
                                                  2024        2023
                                               ------------------------
 Cash and cash equivalents                      1,323,350     861,494
 Other current investments                      2,248,863   1,081,141
 Non-current investments                          976,206     375,677
 Derivatives hedging borrowings and investments         -      11,680
 Current borrowings                              (608,278 )  (536,907 )
 Non-current borrowings                           (28,122 )   (56,739 )
                                               ------------------------
 Net cash / (debt)                              3,912,019   1,736,346

Operating working capital days
Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company's operational efficiency, and short-term financial health.
Operating working capital days is calculated in the following manner:
Operating working capital days = ((Inventories + Trade receivables - Trade payables - Customer advances) / Annualized quarterly sales ) x 365
Operating working capital days is a non-IFRS alternative performance measure.

  (all amounts in thousands of U.S. dollars)            At March 31,
                                             ----------------------------------
                                                  2024             2023
                                             ----------------------------------
  Inventories                                   3,911,719        3,991,501
  Trade receivables                             2,303,293        2,834,369
  Customer advances                              (239,342   )     (136,172   )
  Trade payables                               (1,041,434   )   (1,067,602   )
                                             ----------------------------------
  Operating working capital                     4,934,236        5,622,096
                                             ----------------------------------
  Annualized quarterly sales                   13,766,176       16,564,724
                                             ----------------------------------
  Operating working capital days                      131              124
                                             ----------------------------------

Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
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