Luxembourg-based pipe and tube producer Tenaris reported Wednesday that Q3 earnings rose due to improved sales in North and South America. Net income was $437.5 million, down 5 percent from Q2 and down from $365.5 million in Q3 2011.
However, in North America, sales were $1.26 billion, a 24 percent increase while South American sales grew 24 percent to $610.3 million. Total Q3 net sales were $2.7 billion, compared to $2.8 billion in Q2 and $2.5 billion in Q3 2011.
Tenaris said that in spite of the weak economic recovery, demand for energy has remained stable and oil prices are at levels which should continue to support investment in exploration and production activity worldwide during 2013. North American natural gas prices have risen above their early year lows as demand shows strong year on year growth. In 2013, the company said it expects drilling activity for gas to recover gradually. In Q4 2012, however, sales in North America will be affected by the current market uncertainty that is driving a reduction in OCTG inventories.