Global pipe and tube producer Tenaris S.A. has announced its financial results for the first quarter this year, reporting a net profit of $428 million, up one percent year on year.
During the given quarter, net sales decreased by four percent year on year to $2.6 billion. In the first quarter, although the company benefited from improving trends in the US market and the usual seasonal effect in Canada, Tenaris' net sales also declined by four percent quarter on quarter, due primarily to lower sales in the Middle East, following the exceptional level of sales in the fourth quarter of 2013, as well as in Mexico, Colombia and Venezuela.
In the current year, in the US drilling activity is picking up, but during the first quarter drilling efficiencies were affected by the cold weather. Looking forward to the second half of the year, the final determination in the antidumping trade case for OCTG imports will have an impact on the company's sales. In Canada, drilling activity in the first quarter was in line with the previous year and it is expected to continue through the current year in accordance with the usual seasonal variations.