The financial and operational information contained in this press release is based on audited consolidated 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 Accounting Standards. 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, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) ("Tenaris") today announced its results for the fourth quarter and year ended December 31, 2023 with comparison to its results for the fourth quarter and year ended December 31, 2022.
Summary of 2023 Fourth Quarter Results

                                     --------------------------------------
                                      4Q 2023    3Q 2023        4Q 2022
                                     --------------------------------------
 Net sales ($ million)                3,415   3,238     5 %  3,620    (6 %)
 Operating income ($ million)           819     868    (6 %) 1,013   (19 %)
 Net income ($ million)               1,146     547   110 %    803    43 %
 Shareholders' net income ($ million) 1,129     537   110 %    807    40 %
 Earnings per ADS ($)*                 1.92    0.91   110 %   1.37    40 %
 Earnings per share ($)*               0.96    0.46   110 %   0.68    40 %
 EBITDA ($ million)                     975   1,004    (3 %) 1,269   (23 %)
 EBITDA margin (% of net sales)        28.6 %  31.0 %         35.1 %

*For the calculation of per share and per ADS data we have used average number of shares outstanding excluding treasury shares.
Our sales in the fourth quarter of 2023 rose 5% sequentially, boosted by a high level of shipments to the Middle East and for offshore pipeline projects, together with the inclusion of our newly acquired Shawcor pipe coating business,
which offset the ongoing pricing declines in the Americas. Our EBITDA at $975 million declined mainly due to lower average selling prices in the Americas. Our
net income of the quarter, of $1.1 billion was positively affected by: i)$167 million higher result from non-consolidated companies; ii) $26 million higher financial results and iii) net deferred tax gain of $360 million.
Our free cash flow for the quarter amounted to $669 million after capex payments
of $167 million. Additionally, during the quarter we paid $161 million (net of cash) for the acquisition of the Shawcor pipe coating business from Mattr. Following dividend payments of $235 million and $214 million spent on share buybacks during the quarter, our net cash position increased to $3.4 billion at December 31, 2023.
Summary of 2023 Annual Results

                                     --------------------------------------
                                      12M 2023 12M 2022 Increase/(Decrease)
                                     --------------------------------------
 Net sales ($ million)                14,869   11,763   26 %
 Operating income ($ million)          4,316    2,963   46 %
 Net income ($ million)                3,958    2,549   55 %
 Shareholders' net income ($ million)  3,918    2,553   53 %
 Earnings per ADS ($)*                  6.65     4.33   53 %
 Earnings per share ($)*                3.32     2.16   54 %
 EBITDA ($ million)                    4,865    3,648   33 %
 EBITDA margin (% of net sales)         32.7 %   31.0 %

*For the calculation of per share and per ADS data we have used average number of shares outstanding excluding treasury shares.
In 2023, our net sales, EBITDA and net income reached record levels. The year was characterized by a first half, in which prices in the Americas reached exceptional levels and we had a high level of pipeline shipments in Argentina, and a second half, in which prices in the Americas started to return to more normal levels while overall sales were supported by good activity and pricing levels in the Middle East and for offshore pipelines.
Operating margins expanded reflecting the higher prices realized on the sales of
most of our products, which more than compensated for higher costs of goods sold.
Net income benefited from a net positive deferred tax effect of $194 million as well as positive financial results of $221 million.
Operating cash flow for the year amounted to $4,395 million (including a $182 million reduction in working capital). After capital expenditures of $619 million, business acquisitions of $266 million, dividend payments of $637 million and $214 million spent on share buybacks, our net cash position increased to a record level of $3.4 billion at the end of the year.
Market Background and Outlook
In an environment where oil prices remain relatively stable, oil supply and demand is balanced, and the long term outlook for natural gas, especially LNG, is promising, drilling activity in North America is stabilizing, while continuing to increase in the Middle East and offshore. In this context, and considering our expanded perimeter, with our recent acquisition of the Shawcor pipe coating business, we expect that, in the first half of 2024, our sales will
be in line with those of the second half of 2023.
After the exceptional levels they reached in the post-Covid recovery, tubular price levels and margins in the Americas have returned to sustainable levels and
should stabilize in the coming months. Prices and margins in the rest of the world should remain at good levels supported by strong demand for offshore operations and pipeline projects.
In Latin America, fundamental conditions remain favorable for the continued expansion of drilling activity and tubular demand, but the high level of political and economic volatility may affect these prospects.
Annual Dividend Proposal; Second Tranche of Share Buyback Program
Upon approval of the Company´s annual accounts in March 2024, the board of directors intends to propose, for approval of the annual general shareholders' meeting to be held on April 30, 2024, the payment of a dividend per share of $0.60 (in an aggregate amount of approximately $700 million), which would include the interim dividend per share of $0.20 (approximately $235 million) paid in November 2023. If the annual dividend is approved by the shareholders, a
dividend of $0.40 per share ($0.80 per ADS), or approximately $465 million, will
be paid on May 22, 2024, with an ex-dividend date on May 20, 2024 and record date on May 21, 2024.
The second $300 million tranche of the Company's previously announced $1.2 billion share buyback program is expected to begin on Monday, February 26, 2024.
Analysis of 2023 Fourth Quarter Results

                                          ---------------------------
 Tubes Sales volume (thousand metric tons) 4Q 2023 3Q 2023   4Q 2022
                                          ---------------------------
 Seamless                                      760 744  2 % 809 (6 %)
 Welded                                        246 169 45 % 156 58 %
 Total                                       1,006 913 10 % 965  4 %
                                     ----------------------------------------
 Tubes                                4Q 2023     3Q 2023         4Q 2022
                                     ----------------------------------------

(Net sales - $ million)

 North America                        1,501   1,700   (12 %) 2,105   (29 %)
 South America                          590     608    (3 %)   802   (26 %)
 Europe                                 302     231    30 %    185    63 %
 Asia Pacific, Middle East and Africa   805     556    45 %    373   116 %
 Total net sales ($ million)          3,198   3,095     3 %  3,466    (8 %)
 Operating income ($ million)           780     841    (7 %)   980   (20 %)
 Operating margin (% of sales)         24.4 %  27.2 %         28.3 %

Net sales of tubular products and services increased 3% sequentially but declined 8% year on year. Volumes increased 10% sequentially but average selling
prices decreased 6%. In North America, sales decreased 12% sequentially reflecting lower prices and a decline in activity in the U.S. onshore market. In
South America sales decreased 3% sequentially, mainly due to lower prices of OCTG in Argentina. In Europe sales increased 30% sequentially due to higher sales for offshore line pipe products in Norway. In the Asia Pacific, Middle East and Africa sales increased 45% reflecting higher sales in Saudi Arabia and for offshore line pipe projects in Qatar and sub-Saharan Africa.
Operating income from tubular products and services, amounted to $780 million in
the fourth quarter of 2023, compared to $841 million in the previous quarter and
$980 million in the fourth quarter of 2022. During the quarter the operating margin decreased following a 6% decrease in average selling prices only partially compensated by a decrease in average tubes cost of 4%.

                              --------------------------------
 Others                        4Q 2023   3Q 2023     4Q 2022
                              --------------------------------
 Net sales ($ million)          217     143   52 %  154   41 %
 Operating income ($ million)    39      27   45 %   33   19 %
 Operating margin (% of sales) 18.1 %  19.0 %      21.4 %

Net sales of other products and services increased 52% sequentially and 41% year
on year. The sequential increase is mainly explained by the consolidation of sales in December 2023 of the newly acquired coating business which contributed $77 million, largely related to a major project in Altamira, Mexico.
Selling, general and administrative expenses, or SG&A, amounted to $471 million (13.8% of net sales), compared to $433 million (13.4%) in the previous quarter and $454 million (12.6%) in the fourth quarter of 2022. The increase in SG&A is mainly related to higher labor costs and the integration of the newly acquired coating business headcount and amortizations.
Other operating result amounted to a $5 million loss in the fourth quarter of 2023, compared with a $36 million gain in the previous quarter and a $12 million
loss in the fourth quarter of 2022. The previous quarter gain was mainly related
to a non-recurring gain of $32 million corresponding to the transfer of court awards related to the Company's Venezuelan nationalized assets.
Financial results were a gain of $93 million in the fourth quarter of 2023,
compared with a gain of $67 million in the previous quarter and a gain of $36 million in the fourth quarter of 2022. Results of the quarter are mainly derived
from net foreign exchange gains of $144 million, mainly related to the positive effect of the devaluation of the Argentine peso over a net short exposure in that currency. This positive FX results were partially offset by $95 million loss from the change in the fair value of U.S. dollar-denominated Argentine bonds when distributed and disposed abroad. Additionally, our net cash position yield a net interest gain of $44 million in the quarter.
Equity in earnings of non-consolidated companies generated a gain of $57 million
in the fourth quarter of 2023, compared to a loss of $110 million in the previous quarter and a gain of $13 million in the same period of 2022. The result of the previous quarter included a non-cash loss of $144 million from our
investment in Usiminas.
Income tax result amounted to a gain of $177 million in the fourth quarter of 2023, compared to a charge of $278 million in the previous quarter and $258 million in the fourth quarter of 2022. The gain of the quarter is mainly explained by: i) the recognition of a deferred tax asset of $550 million as a result of new business activities to be carried out at subsidiaries with tax loss carry forwards, ii) a $190 million deferred tax liability recognized mainly
related to foreign exchange devaluation in Argentina, due to the decline of the fiscal values related to fixed assets and inventory.
Cash Flow and Liquidity of 2023 Fourth Quarter
Net cash provided by operations during the fourth quarter of 2023 was $836 million, compared with $1,297 million in the previous quarter and $524 million in the fourth quarter of 2022. Working capital during the quarter increased by $66 million, mainly due to the increase in trade receivables, however operating working capital days declined to 134 at year end compared to 138 at the end of the previous quarter.
With capital expenditures of $167 million for the fourth quarter of 2023 ($170 million in the previous quarter and $108 million in the fourth quarter of 2022), during the quarter we had a positive free cash flow of $669 million. Additionally, during the quarter we paid $161 million (net of cash) for the acquisition of Mattr's pipe coating business unit.
Following dividend payments of $235 million and share buybacks of $214 million during the quarter, our positive net cash position increased to $3.4 billion at December 31, 2023.
Analysis of 2023 Annual Results

                      --------------------------------------------
 Net sales ($ million)  12M 2023    12M 2022   Increase/(Decrease)
                      --------------------------------------------
 Tubes                 14,185 95 % 11,133 95 % 27 %
 Others                   684  5 %    630  5 %  9 %
 Total                 14,869      11,763      26 %
                                         --------------------------------------

Tubes Sales volume (thousand metric

 tons)                                    12M 2023 12M 2022 Increase/(Decrease)
                                         --------------------------------------
 Seamless                                    3,189    3,146   1 %
 Welded                                        953      387 146 %
 Total                                       4,141    3,533  17 %
                                     --------------------------------------
 Tubes                                12M 2023 12M 2022 Increase/(Decrease)
                                     --------------------------------------

(Net sales - $ million)

 North America                         7,572    6,796   11 %
 South America                         3,067    2,213   39 %
 Europe                                1,055      867   22 %
 Asia Pacific, Middle East and Africa  2,491    1,257   98 %
 Total net sales ($ million)          14,185   11,133   27 %
 Operating income ($ million)          4,183    2,867   46 %
 Operating margin (% of sales)          29.5 %   25.8 %

Net sales of tubular products and services increased 27% to $14,185 million in 2023, compared to $11,133 million in 2022, reflecting a 17% increase in volumes and a 9% increase in average selling prices. Volumes increased mainly in the AMEA region following the increase in activity and in South America mainly due to the delivery of welded line pipe for a gas pipeline in Argentina. Prices were
higher in all regions.
Operating results from tubular products and services, amounted to a gain of $4,183 million in 2023, compared to a gain of $2,867 million in 2022 (which was net of a $63 million impairment charge). The improvement in operating results was driven by the recovery in shipment volumes and in prices which help to compensate the increase in costs.

                                --------------------------------------------
  Others                          12M 2023   12M 2022   Increase/(Decrease)
                                --------------------------------------------
  Net sales ($ million)            684        630        9   %
  Operating income ($ million)     133         96       39   %
  Operating margin (% of sales)   19.5   %   15.2   %

Net sales of other products and services increased 9% from $630 million in 2022
to $684 million in 2023, which includes $77 million from the pipe coating business unit acquired from Mattr on November 30, 2023. Additionally, in 2023 we
had higher sales from our oilfield services business in Argentina, sucker rods and coiled tubing services, which offset the decline in sales of excess raw materials and energy and pipes for plumbing applications in Italy.
Operating results from other products and services, amounted to a gain of $133 million in 2023, compared to $96 million in 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 $1,919 million (12.9% of net sales), compared to $1,635 million (13.9%) in 2022. The 2023 increase in SG&A is mainly due to higher labor costs and logistic costs (freights and taxes), while they decrease as a percentage of sales.
Financial results amounted to a gain of $221 million in 2023, compared to a loss
of $6 million in 2022.
2023 results are mainly derived from net foreign exchange gains of $209 million,
mainly related to the positive effect of the devaluation of the Argentine peso over a net short exposure in that currency. These positive FX results were partially offset by a $95 million loss from the change in the fair value of U.S.
dollar-denominated Argentine bonds when distributed and disposed abroad. Additionally, our net cash position yield a net interest gain of $107 million in
the year.
Equity in earnings of non-consolidated companies generated a gain of $95 million
in 2023, compared to $209 million in 2022. These results were mainly derived from our equity investment in Ternium (NYSE:TX). The result of 2023 includes a non-cash loss of $144 million from our investment in Usiminas ($26 million from our direct investment in Usiminas and $118 million from our indirect investment in Usiminas through Ternium), related to the fair value measurement of the shares and the result of recycling Ternium´s negative accumulated currency translation reserve to the income statement. In 2022 they included $34 million impairment charges on our participations in the joint venture with Severstal ($15 million) and in Usiminas ($19 million).
Income tax charge amounted to $675 million in 2023, compared to $617 million in 2022, reflecting the improvement in results in several subsidiaries and a net positive deferred tax effect of $194 million.
Cash Flow and Liquidity of 2023
Net cash provided by operations in 2023 was $4,395 million (including a $182 million reduction in working capital), compared to $1,167 million (net of $2,131
million used in working capital) in 2022.
With capital expenditures of $619 million, we had a positive free cash flow of $3,776 million in 2023, compared to $789 million in 2022. Additionally, in 2023
we invested $266 million in the acquisition of Mattr's pipe coating business unit plus other acquisitions.
Following dividend payments of $637 million and share buybacks of $214 million during 2023, our positive net cash position increased to $3.4 billion at December 31, 2023 compared to $921 million at December 31, 2022.
Conference call
Tenaris will hold a conference call to discuss the above reported results, on February 22, 2024, at 09:30 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/384xrvok
If you wish to participate in the Q&A session please register at the following link:
https://register.vevent.com/register/BIdf892e810d2749faba59c1f70a41aba7
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 Income Statement

 (all   amounts  in
 thousands  of U.S.   Three-month period ended      Twelve-month period ended
 dollars)                   December 31,                  December 31,
                   ------------------------------------------------------------
                        2023           2022           2023           2022
                   ------------------------------------------------------------
 Net sales           3,414,930    3,620,210       14,868,860   11,762,526
 Cost of sales      (2,120,591 ) (2,063,969 )     (8,668,915 ) (7,087,739 )
                   ------------------------------------------------------------
 Gross profit        1,294,339    1,556,241        6,199,945    4,674,787
 Selling,   general

and administrative

 expenses             (470,542 )   (454,478 )     (1,919,307 ) (1,634,575 )
 Impairment charge           -      (76,725 )              -      (76,725 )

Other operating
income (expense),

 net                    (4,834 )    (11,987 )         35,770         (212 )
                   ------------------------------------------------------------
 Operating income      818,963    1,013,051        4,316,408    2,963,275
 Finance income         63,621       37,756          213,474       80,020
 Finance cost          (19,759 )    (20,237 )       (106,862 )    (45,940 )
 Other    financial
 results                49,249       18,127          114,365      (40,120 )
                   ------------------------------------------------------------
 Income      before

equity in earnings
of non-
consolidated

 companies      and
 income tax            912,074    1,048,697        4,537,385    2,957,235

Equity in earnings
of non-
consolidated

 companies              56,859       12,701           95,404      208,702
                   ------------------------------------------------------------
 Income      before
 income tax            968,933    1,061,398        4,632,789    3,165,937
 Income tax            176,848     (258,226 )       (674,956 )   (617,236 )
                   ------------------------------------------------------------
 Income   for   the
 period              1,145,781      803,172        3,957,833    2,548,701
                   ------------------------------------------------------------

Attributable to:
Shareholders'
equity 1,129,098 807,318 3,918,065 2,553,280
Non-controlling

 interests              16,683       (4,146 )         39,768       (4,579 )
                   ------------------------------------------------------------
                     1,145,781      803,172        3,957,833    2,548,701
                   ------------------------------------------------------------

Consolidated Statement of Financial Position
(all amounts in thousands of

 U.S. dollars)                    At December 31, 2023    At December 31, 2022
                                 ---------------------- -----------------------

ASSETS
Non-current assets

 Property,  plant  and equipment,
 net                              6,078,179              5,556,263
 Intangible assets, net           1,377,110              1,332,508
 Right-of-use assets, net           132,138                111,741
 Investments  in non-consolidated
 companies                        1,608,804              1,540,646
 Other investments                  405,631                119,902
 Deferred tax assets                789,615                208,870
 Receivables, net                   185,959 10,577,436     211,720  9,081,650
                                 -----------            -----------

Current assets

 Inventories, net                 3,921,097              3,986,929
 Receivables and prepayments, net   228,819                183,811
 Current tax assets                 256,401                243,136
 Trade receivables, net           2,480,889              2,493,940
 Derivative financial instruments     9,801                 30,805
 Other investments                1,969,631                438,448
 Cash and cash equivalents        1,637,821 10,504,459   1,091,527  8,468,596
                                 -----------            -----------
 Total assets                               21,081,895             17,550,246
                                           ------------           ------------

EQUITY

 Shareholders' equity                       16,842,972             13,905,709
 Non-controlling interests                     187,465                128,728
 Total equity                               17,030,437             14,034,437
                                           ------------           ------------

LIABILITIES
Non-current liabilities

 Borrowings                          48,304                 46,433
 Lease liabilities                   96,598                 83,616
 Derivative financial instruments       255                      -
 Deferred tax liabilities           631,605                269,069
 Other liabilities                  271,268                230,142
 Provisions                         101,453  1,149,483      98,126    727,386
                                 -----------            -----------

Current liabilities

 Borrowings                         535,133                682,329
 Lease liabilities                   37,835                 28,561
 Derivative financial instruments    10,895                  7,127
 Current tax liabilities            488,277                376,240
 Other liabilities                  422,645                260,614
 Provisions                          35,959                 11,185
 Customer advances                  263,664                242,910
 Trade payables                   1,107,567  2,901,975   1,179,457  2,788,423
                                 -----------            -----------
 Total liabilities                           4,051,458              3,515,809
                                           ------------           ------------
 Total equity and liabilities               21,081,895             17,550,246
                                           ------------           ------------

Consolidated Statement of Cash Flows

                       Three-month period ended     Twelve-month period ended
                             December 31,                 December 31,
                     ----------------------------------------------------------

(all amounts in
thousands of U.S.

 dollars)                2023          2022           2023           2022
                     ----------------------------------------------------------
 Cash    flows   from

operating activities
Income for the year 1,145,781 803,172 3,957,833 2,548,701
Adjustments for:

 Depreciation     and
 amortization           156,347     179,135          548,510      607,723
 Impairment charge            -      76,725                -       76,725
 Income  tax accruals
 less payments         (277,559 )   139,061         (143,391 )    257,651
 Equity  in  earnings
 of  non-consolidated
 companies              (56,859 )   (12,701 )        (95,404 )   (208,702 )
 Interest    accruals
 less payments, net      (8,554 )    (3,672 )        (53,480 )      1,480
 Changes           in
 provisions                (651 )     7,164           21,284       16,433
 Reclassification  of

currency translation

 adjustment reserve        (878 )         -             (878 )    (71,252 )
 Changes  in  working
 capital                (65,697 )  (682,115 )        182,428   (2,131,245 )
 Others,    including
 net         exchange
 differences            (56,195 )    17,173          (21,829 )     69,703
                     ----------------------------------------------------------

Net cash provided by

 operating activities   835,735     523,942        4,395,073    1,167,217
                     ----------------------------------------------------------
 Cash    flows   from

investing activities

 Capital expenditures  (166,820 )  (107,646 )       (619,445 )   (378,446 )
 Changes  in  advance
 to    suppliers   of
 property,  plant and
 equipment                  834     (13,108 )          1,736      (18,901 )
 Acquisition       of

subsidiaries, net of

 cash acquired         (161,238 )         -         (265,657 )     (4,082 )
 Investment        in

companies under cost

 method                  (1,126 )         -           (1,126 )          -
 Additions         to
 associated companies         -           -          (22,661 )          -
 Loan    to    joint-
 ventures                (1,092 )         -           (3,754 )          -

Proceeds from
disposal of
property, plant and
equipment and

 intangible assets        3,858       1,690           12,881       48,458
 Dividends   received
 from            non-

consolidated

 companies               25,268      20,674           68,781       66,162
 Changes           in
 investments       in
 securities             740,153      38,079       (1,857,272 )    123,254
                     ----------------------------------------------------------

Net cash provided by

 (used  in) investing
 activities             439,837     (60,311 )     (2,686,517 )   (163,555 )
                     ----------------------------------------------------------
 Cash    flows   from

financing activities
Dividends paid (235,128 ) (200,658 ) (636,511 ) (531,242 )
Dividends paid to
non-controlling
interest in
subsidiaries - - (18,967 ) (10,432 )
Changes in non-
controllinginterests - 2,099 3,772 (1,407 )
Acquisition of
treasury shares (213,739 ) - (213,739 ) -
Payments of lease
liabilities (15,524 ) (13,560 ) (51,492 ) (52,396 )
Proceeds from
borrowings 365,455 161,785 1,723,677 1,511,503
Repayments of

 borrowings            (406,774 )  (300,783 )     (1,931,747 ) (1,094,370 )
                     ----------------------------------------------------------
 Net   cash  used  in
 financing activities  (505,711 )  (351,117 )     (1,125,007 )   (178,344 )
                     ----------------------------------------------------------

-------------------------------------------------------------------------------
Increase in cash and
cash equivalents 769,861 112,514 583,549 825,318
-------------------------------------------------------------------------------
Movement in cash and
cash equivalents
At the beginning of
the year 864,012 990,803 1,091,433 318,067
Effect of exchange
rate changes (17,276 ) (11,883 ) (58,385 ) (51,952 )
Increase in cash and

 cash equivalents       769,861     112,514          583,549      825,318
                     ----------------------------------------------------------
 At December 31,      1,616,597   1,091,434        1,616,597    1,091,433
                     ----------------------------------------------------------

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      Twelve-month period ended
 dollars)                   December 31,                  December 31,
                   ------------------------------------------------------------
                       2023           2022           2023           2022
                   ------------------------------------------------------------

Income for the
period 1,145,781 803,172 3,957,833 2,548,701
Income tax charge
/ (credit) (176,848 ) 258,226 674,956 617,236
Equity in earnings
of non-
consolidated

 companies            (56,859 )   (12,701 )         (95,404 )  (208,702 )
 Financial results    (93,111 )   (35,646 )        (220,977 )     6,040

Depreciation and

 amortization         156,347     179,135           548,510     607,723
 Impairment charge          -      76,725                 -      76,725
                   ------------------------------------------------------------
 EBITDA               975,310   1,268,911         4,864,918   3,647,723

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     Twelve-month period ended
 dollars)                    December 31,                 December 31,
                    -----------------------------------------------------------
                        2023          2022           2023           2022
                    -----------------------------------------------------------

Net cash provided
by operating
activities 835,735 523,942 4,395,073 1,167,217
Capital

 expenditures        (166,820 ) (107,646 )         (619,445 )  (378,446 )
                    -----------------------------------------------------------
 Free cash flow       668,915    416,296          3,775,628     788,771

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)     Year ended December 31,
                                               ------------------------
                                                   2023        2022
                                               ------------------------
 Cash and cash equivalents                      1,637,821   1,091,527
 Other current investments                      1,969,631     438,448
 Non-current investments                          398,220     113,574
 Derivatives hedging borrowings and investments         -       6,480
 Current borrowings                              (535,133 )  (682,329 )
 Non-current borrowings                           (48,304 )   (46,433 )
                                               ------------------------
 Net cash / (debt)                              3,422,235     921,267

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.

                                               Three-month period ended
 (all amounts in thousands of U.S. dollars)          December 31,
                                           --------------------------------
                                                2023            2022
                                           --------------------------------
 Inventories                                 3,921,097    3,986,929
 Trade receivables                           2,480,889    2,493,940
 Customer advances                            (263,664 )   (242,910 )
 Trade payables                             (1,107,567 ) (1,179,457 )
                                           --------------------------------
 Operating working capital                   5,030,755    5,058,502
                                           --------------------------------
 Annualized quarterly sales                 13,659,720   14,480,840
                                           --------------------------------
 Operating working capital days                    134          128
                                           --------------------------------

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