Global pipe and tube producer Tenaris S.A. has announced its financial results for the third quarter this year, reporting a net profit of $323 million, up three percent year on year.
During the given quarter, net sales amounted to $2.42 billion, remaining unchanged compared to the third quarter of the previous year, but decreasing by nine percent compared to the previous quarter, in spite of a solid increase in North America, as they were affected by lower sales in Saudi Arabia and a slowdown in shipments to deepwater projects in sub-Saharan Africa as well as lower sales across Europe. Margins were affected by an unfavorable product mix with a low volume of premium OCTG sales, in addition to the seasonal impact of Northern Hemisphere plant stoppages.
According to Tenaris, the impact of the fall in oil prices over the past three months on drilling activity and OCTG demand for 2015 is still unclear. However, if oil prices maintain their current levels or drop further, the company expects that lower operator cash flows and less favorable project economics will lead to a reduction in drilling activity in more marginal North American onshore plays. In the rest of the world, lower oil and gas prices may further delay the implementation of offshore and other complex projects.