Global pipe and tube producer Tenaris S.A. has announced its financial results for the third quarter and the first nine months of 2013, reporting a net profit of $314 million in the third quarter, down 28 percent year on year.
During the given quarter, net sales of tubular products and services decreased by 10 percent year on year and by 15 percent compared to the previous quarter. On quarter-on-quarter basis, sales were mainly affected by lower shipments of offshore line pipe in Brazil and lower sales to the Middle East and Africa. North American sales registered a quarter-on-quarter decline principally due to lower sales of line pipe reflecting a more competitive situation for less differentiated products.
In January-September, Tenaris posted a net profit of $1.16 billion, 13 percent lower compared to the corresponding period of 2012. Net sales of tubular products and services decreased by two percent to $7.33 billion in the first nine months, compared to $7.44 billion in the first nine months of the previous year, reflecting a five percent decrease in volumes and a four percent increase in average selling prices.
For the fourth quarter and 2014, Tenaris expects a strong level of sales in the Middle East and Africa and a rising level of sales in North America. In South America, although sales of OCTG products are expected to increase led by higher shale activity in Argentina, sales and shipments of line pipe products will continue to be affected by project delays in Brazil.