Italian steel pipe maker Tenaris late Wednesday reported a 10% decrease in third-quarter net profit due to slowing growth in the Americas and reduced supplies to Argentina from offshore projects.
The company's shares increased 7.9% by 0833 GMT, its biggest daily gain since February, while the company also announced a $1.2 billion share buyback programme, citing "significant cash flow generation and a strong balance sheet".
Net profit for the quarter to September decreased to $547 million, while underlying earnings (EBITDA) increased 6% to $1 billion, including a one-time gain of $32 million from a court ruling on nationalised Venezuelan assets. This corresponds to an EBITDA margin of 31%.
Tenaris said it expects its EBITDA margin to decrease in the fourth quarter due to lower prices in the Americas, while free cash flow "adjusts to lower EBITDA and a more flexible working capital position".
The group, which makes pipes for oil and gas exploration, said it will pay an interim dividend of $0.20 per share on 22 November.
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