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, Free Cash Flow,
Net cash / debt and Operating working capital days. See exhibit I for more
details on these alternative performance measures.
LUXEMBOURG, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS
and EXM Italy: TEN) ("Tenaris") today announced its results for the quarter
ended June 30, 2023 in comparison with its results for the quarter ended June
30, 2022.
Summary of 2023 Second Quarter Results
(Comparison with first quarter of 2023 and second quarter of 2022)
---------------------------------------
2Q 2023 1Q 2023 2Q 2022
---------------------------------------
Net sales ($ million) 4,075 4,141 (2%) 2,800 46%
Operating income ($ million) 1,278 1,351 (5%) 663 93%
Net income ($ million) 1,136 1,129 1% 634 79%
Shareholders' net income ($ million) 1,123 1,129 0% 637 76%
Earnings per ADS ($) 1.90 1.91 0% 1.08 76%
Earnings per share ($) 0.95 0.96 0% 0.54 76%
EBITDA ($ million) 1,409 1,477 (5%) 806 75%
EBITDA margin (% of net sales) 34.6% 35.7% 28.8%
Our second quarter sales were close to the record level we posted in the first
quarter reflecting a high level of offshore sales and of shipments to US onshore
customers, as well as an increase in sales in the Middle East. These effects
largely compensated for slightly lower pricing in the onshore Americas and lower
OCTG sales in Colombia and Canada, and lower pipeline sales in Argentina. Sales
also included $20 million from Global Pipe Company (GPC), a Saudi large diameter
pipe producer which became a majority owned subsidiary of Tenaris Saudi Steel
Pipe, from May 17, 2023. Our EBITDA and operating income declined 5% affected by
lower sales and an increase in SG&A expenses. On the other hand, our net income
reached 28% of sales as it benefitted from an improvement in finance results and
higher income from non-consolidated companies.
Our free cash flow for the quarter reached a record level of $1.2 billion, net
of capex of $165 million. Free cash flow included a reduction of working capital
of $294 million as our operating working capital days declined to a low level of
120 days during the quarter. After a dividend payment of $401 million in May
2023, our net cash position increased to $2.3 billion at June 30, 2023.
Market Background and Outlook
In the past month, oil prices have recovered above $80 per barrel as the
prospects for the US economy brighten and Saudi Arabia confirms its commitment
to production cuts. North American natural gas prices, however, remain at low
levels, while LNG and European natural gas prices have fallen back to more
normal levels.
In the United States, the decline in oil and gas drilling activity seen in the
first half should bottom out before the end of the year. This decline together
with the accumulation of excess OCTG inventories, following a surge in imports
in the first part of the year, is being reflected in pipe prices, which will
affect our results through the rest of the year. In Canada, while drilling
activity has held up so far this year, some of the operators we serve are
reducing activity as they face cash flow restrictions. In Latin America,
offshore drilling in Brazil and Guyana is expected to remain at a high level,
but onshore drilling is being affected by political uncertainty in Colombia,
Ecuador and Argentina. In the Eastern Hemisphere, activity continues to increase
particularly in the Middle East and offshore.
Following record results in the first half, we expect that our sales and margins
will be significantly lower in the second half. Although we expect our sales in
the Middle East, led by Saudi Arabia, and to offshore projects to increase
further, this will not compensate for a decline in sales in North and South
America, which will reflect onshore pricing and activity declines as well as
lower pipeline shipments. Our free cash flow will remain at a good level with a
further reduction in working capital.
Analysis of 2023 Second Quarter Results
Tubes
The following table indicates, for our Tubes business segment, sales volumes of
seamless and welded pipes for the periods indicated below:
-----------------------------
Tubes Sales volume (thousand metric tons) 2Q 2023 1Q 2023 2Q 2022
-----------------------------
Seamless 844 840 0% 815 4%
Welded 255 283 (10%) 75 241%
Total 1,099 1,123 (2%) 890 23%
The following table indicates, for our Tubes business segment, net sales by
geographic region, operating income and operating income as a percentage of net
sales for the periods indicated below:
---------------------------------------
Tubes 2Q 2023 1Q 2023 2Q 2022
---------------------------------------
(Net sales - $ million)
North America 2,142 2,229 (4%) 1,583 35%
South America 893 975 (8%) 462 93%
Europe 270 252 7% 259 4%
Asia Pacific, Middle East and Africa 612 519 18% 327 87%
Total net sales ($ million) 3,918 3,975 (1%) 2,632 49%
Operating income ($ million) 1,251 1,312 (5%) 636 97%
Operating margin (% of sales) 31.9% 33.0% 24.2%
Net sales of tubular products and services decreased 1% sequentially but
increased 49% year on year. On a sequential basis volumes sold decreased 2% due
to a reduction in welded shipments while average selling prices increased 1%. In
North America, sales decreased as prices have started to adjust and due to
seasonally lower sales in Canada. In South America we had lower sales for
pipelines in Argentina following the completion of gas pipeline deliveries,
lower sales in Colombia reflecting political uncertainty, partially offset by
higher offshore sales in Brazil and Guyana. In Europe sales increased due to
higher sales of line pipe and OCTG for offshore projects in Norway. In Asia
Pacific, Middle East and Africa, we had higher sales in Saudi Arabia, including
sales from Global Pipe Company, a large diameter welded pipe producer,
subsidiary of Saudi Steel Pipe, which after an additional investment started to
be consolidated since May 17, 2023.
Operating results from tubular products and services amounted to a gain of
$1,251 million in the second quarter of 2023 compared to a gain of $1,312
million in the previous quarter and $636 million in the second quarter of 2022.
Our operating margin decreased slightly mainly due to the effect of higher SG&A
expenses on lower sales.
Others
The following table indicates, for our Others business segment, net sales,
operating income and operating income as a percentage of net sales for the
periods indicated below:
-----------------------------------------
Others 2Q 2023 1Q 2023 2Q 2022
-----------------------------------------
Net sales ($ million) 157 167 (6%) 168 (7%)
Operating income ($ million) 27 40 (31%) 27 2%
Operating margin (% of sales) 17.3% 23.8% 15.8%
Net sales of other products and services decreased 6% sequentially and 7% year
on year. Sequentially, sales declined due to lower sales of oil services in
Argentina and sucker rods, with their corresponding impact on operating income.
Selling, general and administrative expenses, or SG&A, amounted to $529 million,
or 13.0% of net sales, in the second quarter of 2023, compared to $487 million,
11.8% in the previous quarter and $412 million, 14.7% in the second quarter of
2022. Sequentially, our SG&A expenses increased mainly due to higher provisions
and labour costs and as a percentage of sales they increased also due to the
reduction in sales.
Financial results amounted to a gain of $40 million in the second quarter of
2023, compared to $21 million in the previous quarter and a loss of $11 million
in the second quarter of 2022. The net financial income result of the quarter
amounted to a gain of $9 million and additionally we had net foreign exchange
transaction gains of $33 million.
Equity in earnings of non-consolidated companies generated a gain of $96 million
in the second quarter of 2023, compared to $53 million in the previous quarter
and $103 million in the second quarter of 2022. These results are mainly derived
from our participation in Ternium (NYSE:TX).
Income tax charge amounted to $278 million in the second quarter of 2023,
compared to $296 million in the previous quarter and $120 million in the second
quarter of 2022.
Cash Flow and Liquidity of 2023 Second Quarter
Net cash generated by operating activities during the second quarter of 2023 was
$1.3 billion, compared to $921 million in the first quarter of 2023 and $428
million in the second quarter of 2022. During the second quarter of 2023 cash
generated by operating activities includes a net working capital reduction of
$294 million.
With capital expenditures of $165 million, our free cash flow amounted to $1.2
billion during the quarter. After a dividend payment of $401 million in May
2023, our net cash position amounted to $2.3 billion at June 30, 2023, from $1.7
billion at March 31, 2023.
Analysis of 2023 First Half Results
------------------------------------
6M 2023 6M 2022 Increase/(Decrease)
------------------------------------
Net sales ($ million) 8,216 5,168 59%
Operating income ($ million) 2,630 1,147 129%
Net income ($ million) 2,265 1,137 99%
Shareholders' net income ($ million) 2,252 1,139 98%
Earnings per ADS ($) 3.81 1.93 97%
Earnings per share ($) 1.91 0.97 97%
EBITDA ($ million) 2,886 1,433 101%
EBITDA margin (% of net sales) 35.1% 27.7%
Our sales in the first half of 2023 increased 59% compared to the first half of
2022 as volumes of tubular products shipped increased 30% and average selling
prices increased 26% while sales in the Others segment decreased 2%. Following
the increase in sales, EBITDA doubled thanks to the increase in margins, as the
increase in prices of tubular products more than offset a 12% increase in unit
cost of sales, year on year.
Cash flow provided by operating activities amounted to $2.3 billion during the
first half of 2023, net of an increase in working capital of $167 million, which
reflects the recovery in activity levels. After capital expenditures of $282
million, our free cash flow amounted to $2.0 billion. Following a dividend
payment of $401 million in May 2023, our net cash position amounted to $2.3
billion at the end of June 2023.
The following table shows our net sales by business segment for the periods
indicated below:
--------------------------------------------------
Net sales ($ million) 6M 2023 6M 2022 Increase/(Decrease)
--------------------------------------------------
Tubes 7,892 96% 4,836 94% 63%
Others 324 4% 332 6% (2%)
Total 8,216 5,168 59%
Tubes
The following table indicates, for our Tubes business segment, sales volumes of
seamless and welded pipes for the periods indicated below:
------------------------------------
Tubes Sales volume (thousand metric tons) 6M 2023 6M 2022 Increase/(Decrease)
------------------------------------
Seamless 1,684 1,587 6%
Welded 538 125 329%
Total 2,222 1,712 30%
The following table indicates, for our Tubes business segment, net sales by
geographic region, operating income and operating income as a percentage of net
sales for the periods indicated below:
------------------------------------
Tubes 6M 2023 6M 2022 Increase/(Decrease)
------------------------------------
(Net sales - $ million)
North America 4,371 2,930 49%
South America 1,868 810 131%
Europe 522 491 6%
Asia Pacific, Middle East and Africa 1,131 603 87%
Total net sales ($ million) 7,892 4,836 63%
Operating income ($ million) 2,563 1,107 131%
Operating margin (% of sales) 32.5% 22.9%
Net sales of tubular products and services increased 63% to $7,892 million in
the first half of 2023, compared to $4,836 million in the first half of 2022 due
to an increase of 30% in volumes and a 26% increase in average selling prices.
Prices increased in all regions, while volumes increased in all regions except
in Europe. Average drilling activity in the first half of 2023 increased 10% in
the United States and Canada and 14% internationally compared to the first half
of 2022.
Operating results from tubular products and services amounted to a gain of
$2,563 million in the first half of 2023 compared to $1,107 million in the first
half of 2022. The improvement in operating results was driven by the recovery in
sales and margins. Following the increase in sales, operating income more than
doubled thanks to the increase in margins, as the increase in prices more than
offset a 12% increase in unit cost of sales, year on year.
Others
The following table indicates, for our Others business segment, net sales,
operating income and operating income as a percentage of net sales for the
periods indicated below:
------------------------------------------
Others 6M 2023 6M 2022 Increase/(Decrease)
------------------------------------------
Net sales ($ million) 324 332 (2%)
Operating income ($ million) 67 40 68%
Operating margin (% of sales) 20.6% 12.0%
Net sales of other products and services decreased 2% to $324 million in the
first half of 2023, compared to $332 million in the first half of 2022, mainly
due to lower sales of excess raw materials and pipes for civil and industrial
installations in Europe, partially offset by higher sales of products and
services for energy applications: oilfield services in Argentina, sucker rods
and coiled tubing.
Operating results from other products and services amounted to a gain of $67
million in the first half of 2023, compared to $40 million in the first half of
2022. Results were mainly derived from our sucker rods business and our oilfield
services business in Argentina.
Selling, general and administrative expenses, or SG&A, amounted to $1,016
million in the first half of 2023, representing 12.4% of sales, and $777 million
in the first half of 2022, representing 15.0% of sales. SG&A expenses increased
mainly due to higher selling expenses (in particular commissions and freights)
associated with higher sales and higher labor costs. However, they decreased as
a percentage of sales due to the better absorption of fixed and semi-fixed
components of SG&A expenses on higher sales.
Financial results amounted to a gain of $60 million in the first half of 2023,
compared to a loss of $13 million in the first half of 2022. Due to the increase
in our financial position and in interest rates, net finance income amounted to
$26 million in the first six months of 2023, compared to $7 million in the first
half of 2022, which was negatively impacted by the decline in the fair value of
certain financial instruments obtained in an operation of settlement of trade
receivables. Additionally, other financial results amounted to a gain of $35
million in the first six months of 2023 compared to a $20 million loss in the
first six months of 2022, these results being mainly related to foreign exchange
results.
Equity in earnings of non-consolidated companies generated a gain of $149
million in the first half of 2023, compared to a gain of $191 million in the
first half of 2022. These results were mainly derived from our equity investment
in Ternium (NYSE:TX).
Income tax amounted to a charge of $574 million in the first half of 2023,
compared to $188 million in the first half of 2022. The increase in income tax
reflects better results at several subsidiaries following the improvement in
activity.
Cash Flow and Liquidity of 2023 First Half
Net cash provided by operating activities during the first half of 2023 amounted
to $2.3 billion (net of an increase in working capital of $167 million),
compared to cash provided by operations of $401 million (net of an increase in
working capital of $824 million) in the first half of 2022.
Capital expenditures amounted to $282 million in the first half of 2023,
compared to $141 million in the first half of 2022. Free cash flow amounted to
$2.0 billion in the first half of 2023, compared to $260 million in the first
half of 2022.
After a dividend payment of $401 million in May 2023, our net cash position
increased to $2.3 billion at June 30, 2023, from $0.9 billion at December
31, 2022.
Tenaris Files Half-Year Report
Tenaris S.A. announces that it has filed its half-year report for the six-month
period ended June 30, 2023 with the Luxembourg Stock Exchange. The half-year
report can be downloaded from the Luxembourg Stock Exchange's website at
www.luxse.com (http://www.luxse.com) and from Tenaris's website at
ir.tenaris.com (https://ir.tenaris.com/).
Holders of Tenaris's shares and ADSs, and any other interested parties, may
request a hard copy of the half-year report, free of charge, at 1-888-300-5432
(toll free from the United States) or 52-229-989-1159 (from outside the United
States).
Conference call
Tenaris will hold a conference call to discuss the above reported results, on
August 3, 2023, 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/ifwpyt85
If you wish to participate in the Q&A session please register at the following
link: https://register.vevent.com/register/BI5d29d2a63b7144cb966f56ed73ef36ba
Please connect 10 minutes before the scheduled start time.
A replay of the conference call will also be available on our webpage at
(http://ir.tenaris.com/): 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
(all amounts in thousands of ended Six-month period ended
U.S. dollars) June 30, June 30,
------------------------------------------------
2023 2022 2023 2022
------------------------------------------------
Unaudited Unaudited
Net sales 4,074,913 2,800,474 8,216,094 5,167,515
Cost of sales (2,267,164) (1,735,342) (4,574,943) (3,257,284)
------------------------------------------------
Gross profit 1,807,749 1,065,132 3,641,151 1,910,231
Selling, general and
administrative expenses (528,736) (411,740) (1,016,083) (776,662)
Other operating income
(expense), net (823) 9,453 4,476 13,530
------------------------------------------------
Operating income 1,278,190 662,845 2,629,544 1,147,099
Finance Income 45,866 6,441 93,753 15,266
Finance Cost (36,379) (6,127) (67,924) (7,962)
Other financial results, net 30,074 (11,771) 34,551 (19,879)
------------------------------------------------
Income before equity in
earnings of non-consolidated
companies and income tax 1,317,751 651,388 2,689,924 1,134,524
Equity in earnings of non-
consolidated companies 95,921 103,102 148,927 190,706
------------------------------------------------
Income before income tax 1,413,672 754,490 2,838,851 1,325,230
Income tax (277,632) (120,464) (573,604) (187,771)
------------------------------------------------
Income for the period 1,136,040 634,026 2,265,247 1,137,459
------------------------------------------------
Attributable to:
Shareholders' equity 1,123,029 636,718 2,251,656 1,139,492
Non-controlling interests 13,011 (2,692) 13,591 (2,033)
------------------------------------------------
1,136,040 634,026 2,265,247 1,137,459
------------------------------------------------
Consolidated Condensed Interim Statement of Financial Position
(all amounts in thousands of U.S.
dollars) At June 30, 2023 At December 31, 2022
---------------------- ---------------------
Unaudited
ASSETS
Non-current assets
Property, plant and equipment, net 5,779,137 5,556,263
Intangible assets, net 1,334,036 1,332,508
Right-of-use assets, net 115,550 111,741
Investments in non-consolidated
companies 1,603,609 1,540,646
Other investments 373,309 119,902
Deferred tax assets 219,704 208,870
Receivables, net 208,480 9,633,825 211,720 9,081,650
----------- -----------
Current assets
Inventories, net 3,884,364 3,986,929
Receivables and prepayments, net 195,711 183,811
Current tax assets 321,152 243,136
Trade receivables, net 2,597,353 2,493,940
Derivative financial instruments 21,638 30,805
Other investments 1,849,978 438,448
Cash and cash equivalents 755,305 9,625,501 1,091,527 8,468,596
Total assets 19,259,326 17,550,246
------------ -----------
EQUITY
Shareholders' equity 15,625,585 13,905,709
Non-controlling interests 160,894 128,728
Total equity 15,786,479 14,034,437
------------ -----------
LIABILITIES
Non-current liabilities
Borrowings 50,997 46,433
Lease liabilities 88,313 83,616
Deferred tax liabilities 376,676 269,069
Other liabilities 253,021 230,142
Provisions 108,308 877,315 98,126 727,386
----------- -----------
Current liabilities
Borrowings 642,294 682,329
Lease liabilities 29,725 28,561
Derivative financial instruments 6,702 7,127
Current tax liabilities 382,147 376,240
Other liabilities 372,976 260,614
Provisions 40,936 11,185
Customer advances 100,596 242,910
Trade payables 1,020,156 2,595,532 1,179,457 2,788,423
----------- -----------
Total liabilities 3,472,847 3,515,809
------------ -----------
Total equity and liabilities 19,259,326 17,550,246
------------ -----------
Consolidated Condensed Interim Statement of Cash Flows
Three-month period Six-month period
(all amounts in thousands of ended ended
U.S. dollars) June 30, June 30,
---------------------------------------------
2023 2022 2023 2022
---------------------------------------------
Unaudited Unaudited
Cash flows from operating
activities
Income for the period 1,136,040 634,026 2,265,247 1,137,459
Adjustments for:
Depreciation and amortization 130,581 143,024 256,034 286,100
Income tax accruals less
payments (131,682) 39,036 57,174 45,951
Equity in earnings of non-
consolidated companies (95,921) (103,102) (148,927) (190,706)
Interest accruals less
payments, net (18,240) (311) (21,940) (1,611)
Changes in provisions 31,976 3,591 39,933 10,479
Reclassification of currency
translation adjustment reserve - (71,252) - (71,252)
Changes in working capital 293,795 (232,003) (166,762) (823,824)
Others, including currency
translation adjustment (4,915) 14,743 (18,355) 8,552
---------------------------------------------
Net cash provided by operating
activities 1,341,634 427,752 2,262,404 401,148
---------------------------------------------
Cash flows from investing
activities
Capital expenditures (165,161) (74,409) (282,249) (141,343)
Changes in advance to suppliers
of property, plant and
equipment 2,211 (1,290) 2,244 (19,855)
Acquisition of subsidiaries,
net of cash acquired (4,108) (4,082) (4,108) (4,082)
Loan to non-consolidated
companies (1,235) - (1,235) -
Proceeds from disposal of
property, plant and equipment
and intangible assets 3,579 41,177 8,375 45,996
Dividends received from non-
consolidated companies 43,513 45,488 43,513 45,488
Changes in investments in
securities (896,993) (152,807) (1,787,629) (43,571)
---------------------------------------------
Net cash used in investing
activities (1,018,194) (145,923) (2,021,089) (117,367)
---------------------------------------------
Cash flows from financing
activities
Dividends paid (401,383) (330,584) (401,383) (330,584)
Dividends paid to non-
controlling interest in
subsidiaries (17,437) - (17,437) -
Changes in non-controllinginterests 1,739 1,622 1,739 1,622
Payments of lease liabilities (13,011) (12,727) (23,769) (28,405)
Proceeds from borrowings 472,764 583,593 1,032,038 851,736
Repayments of borrowings (463,195) (185,032) (1,143,087) (441,176)
---------------------------------------------
Net cash (used in) provided by
financing activities (420,523) 56,872 (551,899) 53,193
---------------------------------------------
--------------------------------- ---------------------------------------------
(Decrease) increase in cash and
cash equivalents (97,083) 338,701 (310,584) 336,974
--------------------------------- ---------------------------------------------
Movement in cash and cash
equivalents
At the beginning of the period 861,414 314,319 1,091,433 318,067
Effect of exchange rate changes (9,060) (17,092) (25,578) (19,113)
(Decrease) increase in cash and
cash equivalents (97,083) 338,701 (310,584) 336,974
---------------------------------------------
755,271 635,928 755,271 635,928
---------------------------------------------
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.
(all amounts in
thousands of U.S. Three-month period ended Six-month period ended June
dollars) June 30, 30,
---------------------------------------------------------
2023 2022 2023 2022
---------------------------------------------------------
Income for the period 1,136,040 634,026 2,265,247 1,137,459
Income tax charge 277,632 120,464 573,604 187,771
Equity in earnings of
non-consolidated
companies (95,921) (103,102) (148,927) (190,706)
Financial Results (39,561) 11,457 (60,380) 12,575
Depreciation and
amortization 130,581 143,024 256,034 286,100
---------------------------------------------------------
EBITDA 1,408,771 805,869 2,885,578 1,433,199
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.
(all amounts in
thousands of U.S. Three-month period ended Six-month period ended June
dollars) June 30, 30,
---------------------------------------------------------
2023 2022 2023 2022
---------------------------------------------------------
Net cash provided by
operating activities 1,341,634 427,752 2,262,404 401,148
Capital expenditures (165,161) (74,409) (282,249) (141,343)
---------------------------------------------------------
Free cash flow 1,176,473 353,343 1,980,155 259,805
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 June 30,
------------------------
2023 2022
------------------------
Cash and cash equivalents 755,305 636,571
Other current investments 1,849,978 559,827
Non-current investments 367,105 177,594
Derivatives hedging borrowings and investments 7,901 5,738
Current borrowings (642,294) (727,497)
Non-current borrowings (50,997) (16,931)
------------------------
Net cash / (debt) 2,286,998 635,302
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 June 30,
---------------------------
2023 2022
---------------------------
Inventories 3,884,364 3,370,139
Trade receivables 2,597,353 1,890,697
Customer advances (100,596) (343,613)
Trade payables (1,020,156) (998,807)
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Operating working capital 5,360,965 3,918,416
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Annualized quarterly sales 16,299,652 11,201,896
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Operating working capital days 120 128
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Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
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