(Alliance News) - Tenaris NV reported Thursday its results for the first quarter of the year, which closed with a profit of USD750 million down from USD1.13 billion in the first quarter a year earlier.

Revenues increased to USD3.44 billion from USD4.14 billion in the same period. Net sales of tubular products and services declined 2 percent sequentially and 21 percent year-on-year, Tenaris reports. Net sales of other products and services increased 43 percent sequentially and 86 percent year-on-year. Sales for the quarter included USD160 million from the coating business acquired in the previous quarter.

Ebitda decreased to USD987 million from USD1.48 million in Q1 2023.

Ebit amounted to USD812 million from USD1.35 billion in the first three months of the year before.

During the quarter, free cash flow was USD715 million, and after spending USD311 million in share buybacks, the positive net cash position increased to USD3.9 billion as of March 31, 2024, the company says in a note.

Compared with the fourth quarter of 2023, revenues, operating profit and Ebitda were essentially unchanged "despite the decline in OCTG - Oil Country Tubular Goods - prices in the Americas," the note says.

"This reflects solid performance across all of our business lines," Tenaris continues, "including increased Rig Direct shipments in North America and the completion of a major coating project in Mexico at our recently acquired TenarisShawcor business.

In contrast, net income for the first quarter of 2024, which does not include extraordinary effects, fell to USD750 million from USD1.15 billion in the previous quarter.

As for the second quarter, as expected, the company expects lower sales and margins than in the first quarter due to the continued decline in OCTG prices in the Americas.

"In the third quarter we will have shutdowns at many of our steel mills, including at Siderca where we will install a new furnace that will improve our environmental footprint, and this will lead to a further decline in sales and margins in the quarter," the statement said.

Tenaris' stock closed Thursday in the red by 0.6 percent at EUR17.35 per share.

By Chiara Bruschi, Alliance News reporter

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