Steel and pipe producer Tenaris saw revenues in South America decline 42 percent in Q1, year-on-year, to $203 million.
The company said revenues fell 4 percent in Q1, quarter-on-quarter, from $212 million in Q4 2016 due to “lower demand for OCTG and line pipe in Argentina, partially offset by higher shipments of connectors in Brazil and higher OCTG demand in Colombia.”
“In Latin America, drilling activity has been recovering from a very low base and, in Argentina various operators have announced investments in the Vaca Muerta shale play,” the company said.
Tenaris posted a net profit of $206 million in Q1, an impressive growth of 636 percent from the $28 million net profit it reported in the same quarter of last year.
Tenaris’ EBITDA rose 4 percent in Q1, year-on-year, and 15 percent, quarter-on-quarter, to $198 million, while EBITDA margin improved to 17.2 percent in Q1, from 16.5 percent in Q4 2016 and 15.8 percent in Q1 2016.