Tenaris Q2 net sales fall on postponed shipments to Middle East customers
TX•Outlook
Tenaris expects second-half sales and EBITDA to be in line with the first half.
The company said the third quarter will be affected by seasonality and product mix. It also sees potential upside if shipping disruption at the Strait of Hormuz ends before year-end.
Drivers of the decline
The company said Q2 sales declined mainly because of postponed shipments to Middle East customers following the closure of the Strait of Hormuz.
Operating income and margins were pressured by higher unitary logistic costs, lower absorption of fixed costs, and rising raw material costs.
Q2 results and dividend
Tenaris said second-quarter net sales fell 4% year over year, though they beat analyst expectations. Net income and operating income also declined year over year amid higher logistic and raw material costs.
The board approved an interim dividend of $0.59 per share, or about $600 million, payable in November.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Sales | Beat | $2.97 bln | $2.93 bln (7 analysts) |
| Q2 Net Income | $492 mln | ||
| Q2 Operating Income | $494 mln |
The current average analyst rating on the shares is , with 6 or , 8 , and 2 or recommendations.
