(Alliance News) - Tenaris SA on Wednesday evening announced results for the third quarter of the year and the first nine months and announced a new buyback of up to USD1.2 billion. In addition, the board of directors approved the payment of an interim dividend.

As for the third quarter, the group reported net income of USD547 million, down from USD608 million in the same period of 2022, with earnings per share of USD0.46 from USD0.51 in the third quarter of the previous year.

The figure, the company points out, includes a non-cash charge of USD144 million related to the direct and indirect investment in Usiminas. Excluding this one-time effect, profit

would have been USD691 million and earnings per share would have been USD0.58.

Net sales are up to USD3.24 billion, up 9 percent from USD2.98 billion in the same period 2022.

Ebitda is USD1.00 billion, up from USD946 million in Q3 2022. The figure for Q3 2023, the company explains, includes a one-time gain of USD32 million related to Venezuelan nationalized assets. Excluding this one-time gain, Ebitda would have been USD972 million.

Operating income, on the other hand, is USD868 million up from USD803 million in the same period of 2022.

Net cash generated from operating activities during the third quarter was USD1.3 billion, up from USD1.3 billion in the previous quarter and USD242 million in the third quarter of 2022.

During the third quarter, cash generated from operating activities includes a reduction in working capital of USD415 million mainly related to a reduction in trade receivables of USD422 million.

With capital expenditures of USD170 million, free cash flow was USD1.1 billion during the quarter and the net cash position amounted to USD3.3 billion as of September 30, 2023.

For the nine months, however, the group had revenues of USD11.45 billion, up 41 percent from USD8.14 billion in the first nine months of 2022.

Ebitda amounted to USD3.89 billion from USD2.38 billion, and operating income was USD3.50 billion from USD1.95 billion.

Net income is USD2.81 billion from USD1.74 billion in the same period 2022.

As well as for three-month results, the company pointed out that net income over the nine months without the USD144 million non-cash charge related to the direct and indirect investment in Usiminas would have been USD2.96 billion. Ebitda, on the other hand, net of the USD32 million one-time gain related to Venezuelan nationalized assets, would have been USD3.92 billion.

In addition, the board approved the payment of an interim dividend of USD0.20 per share, totaling about USD236 million. The payment date will be November 22, with ex-dividend date on November 20 and record date on November 21.

About the share buyback program of up to USD1.2 billion, the company specifies that the amount, at the closing price on Nov. 1 on the Milan Stock Exchange, would represent 75.4 million shares, or 6.4 percent of Tenaris' outstanding shares. The program is to be executed within one year, with the intention to cancel the ordinary shares acquired through the program.

"The decision and opportunity to initiate the buyback program are driven by the importance of the company's cash flow generation and strong balance sheet," the statement reads.

As for the future, the company details in the note, in the fourth quarter, "sales in the Americas will be impacted by continued adjustment in price levels, which continue to be affected by imports, while our sales in the Middle East and for offshore projects should increase and support our total sales."

"Our Ebitda margin will decline reflecting lower prices in the Americas and our free cash flow will adjust to lower Ebitda and a more stable working capital position."

Tenaris closed Wednesday up 1.8 percent to EUR15.11 per share.

By Chiara Bruschi, Alliance News reporter

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