Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (September 2024)
19 slides from Tenaris's investor presentation, Sep 24, 2024
Slide 1: Investor Presentation – London Stock Exchange
Investor Presentation London Stock Exchange September 24, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements.” Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by th
Slide 3: Steel pipes are at the core of the world's energy system
Steel pipes are at the core of the world’s energy system
Slide 4: Energy today and tomorrow
Energy today Primary energy demand and tomorrow 800 [EJ] Exxon IEA Steps • Demand for energy is only going 700 to increase if populations are to 15% Hydro, wind, solar 21% grow, countries to develop and and geothermal 5% 600 6% living standards to rise. 9% 10% Bioenergy 10% 5% 12% 5% 500 6% Nuclear
Slide 5: Oil & gas
E&P capex (mill USD) Oil & gas • Investment in new oil and gas production will be required for many years to prevent precipitous Source: Rystad production decline. Oil production decline without investments Source: ExxonMobil 5
Slide 6: Why Tenaris is different
Why Tenaris is different • industrial excellence • product portfolio • service integration • environmental performance Bay City Premium connections and weld-on connectors • global reach Rig Direct® Buena Ventura Wind Farm 6
Slide 7: Industrial excellence
Industrial excellence Tenaris operates a global industrial system, with 5 electric steel shops, 12 seamless pipe mills, 25 welded pipe mills, 59 heat treatment lines and multiple finishing facilities. • One Quality and HSE management system. • Integrated planning of production scheduling and supply
Slide 8: Product portfolio
Product portfolio Tenaris has an exceptional range of products and associated services, covering the most demanding applications: • R&D centers with full scale testing • High alloy grades, premium connections and connectors • Connections designed for maximum efficiency in the shales and offshore • O
Slide 9: Service integration
Service integration Tenaris is close to its customers: • Rig Direct® logistics (530 rigs served from 44 distribution warehouses); with monthly shipments of 4.8 million meters of pipe supported by 1,400 field service jobs • Rig Direct® : supply chain integration, pipes supplied RunReady™, digital and
Slide 10: Environmental performance
Environmental performance Carbon emissions intensity evolution and 2030 target • $700 million investment program focused on renewables, energy efficiency, scrap management and air emissions. • The reduction in our carbon intensity is more pronounced in seamless pipes, which we produce with our own s
Slide 11: Environmental performance
Environmental performance • $700 million investment program focused on renewables, energy efficiency, scrap management and air emissions. • The reduction in our carbon intensity is more pronounced in seamless pipes, which we produce with our own steel, than in welded pipes, for which we purchase ste
Slide 12: Global reach
Global OCTG demand (Mill. tons) Global reach • We are present in 37 countries worldwide, with manufacturing and service facilities in most of them. • We are suppliers to all leading oil and gas companies operating across North and South America, Europe, the Middle East, Africa and Asia Pacific. • In
Slide 13: Working with the largest shale producers
USA & CANADA Working with the largest US market metrics shale producers US rigs (#) Pipe Logix USD/ metric ton • The United States and Canada account for 25% of global oil/liquids production and for 21% of global LNG exports. • Consolidation, longer laterals and drilling efficiencies continue to dri
Slide 14: Deeper and in for the long haul
OFFSHORE Deeper and in for the long haul • Investment in offshore projects, both for drilling wells and pipelines, is increasing with good prospects for an extended cycle based on the quality of the reserves, and competitive production costs and emissions intensity. Source: Rystad • In the Gulf of M
Slide 15: Modernization and resources
MIDDLE EAST Modernization and resources • Saudi Arabia and the Gulf states are increasing investment in oil and gas production, as they modernize their societies and prepare to play a key role in meeting demand growth from the Global South. • To secure its market position, Tenaris has been investing
Slide 16: Politics and opportunity
LATIN AMERICA Politics and opportunity • Offshore investment is growing in Brazil, where we are supplying Petrobras and the export pipeline for Equinor’s Raia project, and in Guyana, where we serve ExxonMobil’s operations. • Activity in Argentina, Mexico and Colombia has been affected by political a
Slide 17: Financial performance
Financial performance Million of US Dollars (except otherwise stated) 2019 2020 2021 2022 2023 1H2024 Net sales 7,294 5,147 6,521 11,763 14,869 6,763 EBITDA adjusted* 1,372 638 1,359 3,648 4,865 1,808 EBITDA adjusted margin (%) 19% 12% 21% 31% 33% 27% Operating income 832 (663) 708 2,963 4,316 1,323
Slide 18: Cash flow
Cash flow Million of US Dollars (except otherwise stated) 2019 2020 2021 2022 2023 1H2024 Cash flow from operations* 1,528 1,520 119 1,167 4,395 1,822 Capital expenditures 350 193 240 378 619 333 Free cash flow 1,178 1,327 (120) 789 3,776 1,489 Dividends** 153 248 484 602 700 NA Buybacks*** - - - -
Slide 19: Tenaris
Tenaris