Luxembourg-based energy pipe and tube manufacturer Tenaris has announced its financial results for the first quarter of 2013, registering a net profit of $423 million, down six percent compared to the corresponding quarter of 2012.
In the first quarter, the company's sales revenues amounted to $2.67 billion, increasing by two percent year on year, while decreasing by three percent compared to the previous quarter as higher sales of premium OCTG products in Saudi Arabia and Sub-Saharan Africa did not fully compensate for lower sales in South America and the impact of lower market prices for less differentiated products in North America. In the first three months, seamless tube sales volumes decreased slightly by one percent to 657,000 mt, while welded tube sales remained unchanged at 289,000 mt, both year on year.
According to Tenaris, over the past three quarters drilling activity in North America has slowed down and should start to pick up by the end of the year, while in the rest of the world it should continue to increase slowly, supported by current oil and gas prices.
In the second quarter, Tenaris expects sales in the Middle East to increase further from the level of the first quarter. In the second half, sales of line pipe in Brazil will be affected by delays in project execution. Industrial customers in Europe will continue to be affected by weak economic activity. In this environment, sales and margins for the rest of the year are expected to remain close to current levels with product mix improvements helping to offset the impact of lower prices in less differentiated segments.