Tenaris Expects Higher Sales on Rising OCTG Demand

The Luxembourg-based steel tube producer’s Q1 net income of $503 million was 50% higher than the fourth quarter of 2021 and 400% higher than Q1 2021.

Globally, Tenaris sold 772,000 metric tons of seamless pipe and 50,000 metric tons of welded pipe in Q1. While seamless sales were up 6% from Q4 2021 and 56% over Q1 2021, welded tube sales were down 26% quarter-on-quarter and 29% year-on-year.

Tenaris expects increasing sales for the remainder of the year, propelled by higher volumes in the Middle East and South America. OCTG demand within North America is expected to rise 57% over last year to 5.5 million metric tons in 2022. Globally, the company expects a 21% year-on-year increase in OCTG demand to 14.1 million metric tons.

In its Q1 earnings report, Tenaris noted that the invasion of Ukraine by Russian forces is changing the global energy outlook, with higher oil and gas prices and lower production levels not keeping pace with demand.

With operations in 16 countries, Tenaris is a global manufacturer of pipe and related services serving the energy and industrial sectors. Its annual steel pipe manufacturing capacity is 4.7 million tons of seamless pipe and 3.2 million tons of welded pipe.

By Laura Miller, Laura@SteelMarketUpdate.com