Luxembourg-based Tenaris SA announced on Thursday its net sales increased in both Q4 and during the full-year: net income increased during Q4 by 33 percent to $426 million over Q4 in fiscal 2010 and by 17 percent from Q3 during fiscal 2011. The full-year results also saw an increase in net income by 25 percent over 2010 to $1.42 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased in both Q4 and full-year--38 percent and 22 percent respectively--and can be attributed to the recovery during the second half of the year after higher raw material and fixed costs during the first half. During Q4 net sales also increased by 33 percent over Q4 in fiscal 2010 to $2.75 billion, with the full-year net sales increasing by 29 percent to $9.97 billion. High net sales in 2011 can be partially attributed to an increase in oil and gas drilling activity throughout North America and a higher demand in Brazil.
More specifically, net sales of tubular products for the full-year in North America rose by 36 percent to $4.13 billion over 2010, with sales in South America increasing as well by 33 percent to $1.34 billion. These increases can be attributed to higher drilling activity in the US and Canada which led to significantly higher shipments partially offset by lower demand in Mexico, in North America, while in South America, sales increased mainly driven by higher demand in Argentina and Colombia.