Earnings contracted to $304.7 million in Q2 for Luxembourg-based energy pipe and tube manufacturer Tenaris. Q2 income represents a 6 percent decline from Q1 earnings of $324.2 million. Compared to Q2 2010, net income was up 3 percent. In a press release Thursday, Tenaris said that global drilling activity is rising in most regions, though in Q2, it was negatively affected by the Canadian season. Moving forward, Tenaris expects the trend to continue with oil country tubular goods (OCTG) demand boosted by higher activity in the Middle East a sustained level of activity in North America. Additionally, sales in Tenaris' tubes segment, particularly OCTG, are expected to be higher in the second half of 2011, and average selling prices are poised to improve as well.
North American sales in Q2 were down 3 percent from Q1, but soared 28 percent from Q2 2010 to $946 million in Q2, while sales in South America rose 3 percent over the quarter and 4 percent from the previous year.
Compared to the previous quarter, seamless tube sales volumes were up 2 percent, welded tube sales fell 15 percent and sales of welded products for projects slumped 9 percent.