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Production will increase in 1H 2023: Tenaris

  • Märkte: Crude oil, Metals, Natural gas, Pipe and tube
  • 17.02.23

Global pipemaker Tenaris expects its North American sales and production to continue to increase in the first half of 2023.

The company's North American production will continue to ramp up through the first half of the year and it will increase shipments to pipeline projects, according to a 15 February earnings call.

Tenaris also noted that drilling activity has plateaued in the region entering 2023, and global oil country tubular goods (OCTG) demand is expected to reach its highest level since 2014.

At that time oil prices stood at elevated levels after a long period of higher prices. Pipeline activity is moving forward in support of oil and gas developments in Argentina and the Middle East, the company noted.

Tenaris had little to say on the dissolution of its $460mn deal to acquire Benteler North America's 400,000t/yr Shreveport, Louisiana, seamless steel plant.

"I think we need to adjust and redefine our strategy in North America," chief executive Paola Rocca said in a 16 February earnings call. "We need to strengthen our industrial system, debottleneck some of the value-added process and also increase our capacity of welded product of differentiated welded products. So we will direct our investment in this direction."

Tenaris sold 809,000 metric tonnes (t) in the fourth quarter, up by 11pc from the prior year, while welded sales more than doubled to 156,000t. The higher figures were driven by higher volumes in Argentina, Iraq, North America, and the United Arab Emirates.

For the full year of 2022, seamless sales increased by 25pc from the prior year to 3.15mn t, while welded sales rose by 34pc to 387,000t.

Tenaris earned a profit of $807mn in the fourth quarter, more than double the $307mn earned in the prior year.

Tenaris made a profit on $2.55bn in 2022, up more than double from the $1.1bn made in 2021.


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