Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (September 2015)
14 slides from Tenaris's investor presentation, September 2015
Slide 1: Investor Presentation London, September 2015
Investor Presentation London, September 2015 Paolo Rocca Chairman and CEO
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: Market Context
Market Context Oil price futures [US$/bbl] WTI Forward curve 95 87 85 75 69 65 60 55 45 Current 3 months ago 1 year ago 35 2015 2016 2017 2018 2019 2020 Source: Bloomberg Investor presentation Tenaris September 30, 2015 3
Slide 4: Downturns Compared
Downturns Compared Oil price and US rig count A’: last peak before steep drop Investor presentation Tenaris September 30, 2015 4
Slide 5: US Drilling Efficiencies and Cost Deflation
US Drilling Efficiencies and Cost Deflation US OCTG consumption per rig Average US Shale WTI breakeven price for different spud year USD/bbl 90 80 70 60 50 40 78 72 71 30 61 50 20 10 0 2011 2012 2013 2014 2015E Source: Rystad Source: Baker Hughes, TS estimates Note: Based on horizontal wells in Bakk
Slide 6: Oil Production and Breakeven Costs
Oil Production and Breakeven Costs Source: Rystad Energy 2020 Forecast (June 2015) Investor presentation Tenaris September 30, 2015 6
Slide 7: Global OCTG Demand Outlook
Global OCTG Demand Outlook 2016 demand supported by Middle East and lower inventories and highly sensitive to NAM shale activity [Mill Tn] 17.5 17.7 16.5 6.9 8.0 +5% 7.0 12.0 3.9 10.6 9.6 9.7 8.1 2012 2013 2014 2015F 2016F OTHERS USA & CANADA Source: TS estimates Investor presentation Tenaris Septem
Slide 8: Strengthening Position in NAM Shales
Strengthening Position in NAM Shales Differentiating with product, service and industrial excellence Percentage of rigs served by TS in the US with rig services • Products (Wedge 563™, TXP® BTC, Wedge 625™, BlueCoil™, sucker rods) • Rig services (inventory management, inspection and rig preparation,
Slide 9: Reliable Partner for Complex Projects
Reliable Partner for Complex Projects Differentiating with product technology and service Dopeless® Technology on TS Sales in Major Offshore Regions 78% 75% 54% 50% US Gulf of Mexico North Sea 25% 0% 2012 2013 2014 2015F • New products (Wedge 623™, Blue® Max, Blue® Heavy Wall, Blue® Quick Seal, Blue
Slide 10: Culzean Project – North Sea
Culzean Project – North Sea Flagship HPHT project to supply 5% of UK gas in 2020 Project Summary • Operator: Maersk Oil UK • Investment: US$4.7 billion • 6+2 wells 2 wells/yr - Spud date: May’16 Environment Complexity •Gas, HPHT, Sour Service, Offshore •TVD: 13,610ft, BHT: 350 F, BHP:13,500psi Key S
Slide 11: Actions on Costs
Actions on Costs Raw material costs evolution 120 100 1,473 US$/Tn* 80 496 US$/Tn 60 195 US$/Tn 40 57 US$/Tn Iron Ore (IODEX CRF China) Scrap USA (CRU) 20 HRC USA (CRU) Pipe Logix 0 Sep‐15 2013 avg 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 * Pipe Logix figures refer to Aug’15. • Leveraging flexibility of global
Slide 12: Sustainable financial performance
Sustainable financial performance EBITDA* Margin US$ Million Free cashflow Free cash flow 30% 2,000 25% 20% 1,500 15% 1,000 10% 500 5% 0% 0 2012 2013 2014 1H15 2012 2013 2014 IH 2015 ‐5% ‐10% TS VK USS Tubulars SLB * Excluding asset impairments. US$ Million Net(debt) Net (debt) / cash / cash US$ Mil
Slide 13: Summary
Summary • Oil and gas fundamentals are still there: increasing global demand and production decline will eventually stimulate a recovery in drilling led by NAM shales • Tenaris is in the right position to support the industry with product and service solutions combining cost competitiveness, leading
Slide 14: Investor presentation Tenaris September 30, 2015
Investor presentation Tenaris September 30, 2015 14