Luxembourg-based tubular products manufacturer for the oil and gas industry, Tenaris S.A., reported Thursday that net sales of US$2.3 billion in Q1 2011 resulted in a 46 percent rise in net income year-on-year. Net income was US$324.2 million in Q1 2011, compared to US$222.2 million in Q1 2010.
In their quarterly financial report, Tenaris said that Q1 2011 results reflect improving levels of demand for its products and services in all operating segments. Net sales in the tube operating segment and shipments of seamless pipe products each rose 12 percent from the previous quarter.
As for a prediction for Q2 2011, Tenaris remained confident of its tubular business, "Oil prices have risen and shown increased volatility since political unrest in North Africa cut off Libyan oil exports and a tragic earthquake and tsunami which damaged nuclear energy facilities in Japan. Global drilling activity continues to rise in almost every region and we expect that drilling activity will continue to rise, excluding the effect of seasonal variations, through the year. Activity in the Middle East is expected to receive an additional boost from Saudi Arabia's response to the current market conditions," said the company.
Tenaris saw its greatest tubular sales increases in South America and Far East and Oceania, where sales were up 57 percent year-on-year, followed by North America, where sales rose 45 percent annually, and 14 percent over Q4 2010.