Steel tube producer Tenaris saw global sales jump 17% sequentially to $2.057 billion in the fourth quarter ended Dec 31, 2021, with sales 82% above the same quarter a year ago.
Net earnings in Q4 were the best on record for the Luxembourg-based steel tube producer, totaling $336 million, up 3% quarter on quarter and 12% above the same quarter in 2020. For the year, Tenaris posted net income of $1.053 billion, a turnaround from the $642 million net loss the year prior.
Tenaris’ sales surged by 24% in North America to $1.118 billion, nearly a three-fold boost above the same year-ago quarter. The gains were supported by a steady recovery in energy drilling activity and rising prices during the fourth quarter. Drilling activity in both the U.S. and Canada grew in the fourth quarter while inventory levels moderated.
Seamless tube sales rose 10% sequentially, from 675,000 metric tons to 731,000 metric tons, and were 73% above sales in Q4 2020. All told, seamless tube sales totaled 2.514 million metric tons for 2021, a 31% improvement over the prior year. At 68,000 metric tons, welded tube sales were down 8% sequentially in the fourth quarter, and down 40% for year with sales of 289,000 metric tons in 2021, the company reported.
“In 2021, our results recovered strongly from the worst effects of the pandemic, bolstered by the recovery in oil and gas drilling activity in the Americas and the structural measures we took to improve our profitability over the longer term,” the company said. “At the net income level, our result benefited from an extraordinary contribution from our equity participations in Ternium and Usiminas, reflecting record prices in the flat steel sector.”
The company anticipates its sales will increase further during the first half of 2022, again led by higher prices in North America and increased shipments for an offshore pipeline in Europe. The tuber remarked that Latin America is leading the recovery in offshore drilling activity, particularly in Brazil, Mexico, Argentina and Guyana.
Tenaris continues to ramp up its industrial facilities in the U.S., specifically its Ambridge, Pa., seamless pipe mill and its Baytown, Texas, heat treatment and finishing facilities.
Tenaris is a global manufacturer of pipe and related services serving energy and other industrial applications with operations in 16 countries.
By David Schollaert, David@SteelMarketUpdate.com
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