Strong OCTG pricing and demand is driving higher sales for global pipemaker Tenaris.
The Luxembourg-based company reported $2.8 billion in sales during the second quarter—an 18% rise from the previous quarter and an 83% jump from Q2 2021. Q2 net income also rose 18% sequentially and showed growth of 118% year-on-year to reach $634 million.
Globally, the company sold 815,000 metric tons of seamless pipe and 75,000 metric tons of welded pipe during the quarter. While showing a 48% rise from Q1, welded tube sales actually declined 5% year-on-year.
Q2 sales in North America rose 18% sequentially to $1.58 billion. This was a spike of 124% from the same quarter last year.
“In North America, sales increased thanks to higher OCTG prices throughout the region reflecting higher US drilling activity and low distributor inventory levels together with higher volume of OCTG delivered in US onshore,” the company said in its Q2 earnings report.
Oil and gas drilling activity continues to rise around the globe, led by North America and the Middle East, Tenaris said. It expects further sales growth and stable margins for the remainder of the year, despite a seasonal slowdown in Q3 and fewer shipments to pipeline projects.
Last month, Tenaris announced it intends to purchase Shreveport, La.-based Benteler Steel & Tube Manufacturing Corp. in a deal worth $460 million. The transaction is expected to close in Q4 and will add 400,000 metric tons of capacity to Tenaris’ profile.
Tenaris has operations in 16 countries. In the US, it currently operates eight manufacturing facilities and four pipe service centers. The company recently joined the Steel Manufacturers Association as a producer member.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura MillerRead more from Laura Miller
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