Tenaris expects its US sales to increase in 2020 following the acquisition of Ipsco Tubulars, as well as higher premium product sales for offshore drilling projects.
Despite lower market demand in the US and Argentina, as well as lower prices in the Americas, the steelmaker expects growth in 2020, it said in its earnings report.
Tenaris anticipates its Q1 2020 margins will be in line with those from Q4 2019, as losses Ipsco incurred continue being felt, but recovery will follow cost reductions and working capital across company operations.
In 2019, Tenaris produced of 3.2mn mt of tubes, down by 8pc from the year prior. Of this amount, 2.6mn mt were seamless tubes and 671,000mt were welded tubes, the company’s report said.
Net sales reached $6.8bn in 2019, down by 5pc from the year before when the company recorded net sales of $7.2bn. Moreover, net sales declined due to lower drilling activity in Canada and the US, as well as lower sales in the Middle East and Africa.
Despite integrating Saudi Steel Pipe and strong premium sales for Indian offshore gas projects, sales in the Middle East and African regions were affected by Aramco destocking in Saudi Arabia. It also excluded the extraordinary level of sales to East Mediterranean gas pipelines in 2018.