Net income was $443.8 million, or 75 cents per American depositary receipt, from $319.4 million, or 54 cents per ADR, a year earlier, Luxembourg-based Tenaris said today in a Marketwire statement. The company was expected to post profit of $403 million, excluding some items, the average of five analysts’ estimates compiled by Bloomberg.
Increased oil drilling in North America, Tenaris’s biggest market, and in other regions boosted demand for the company’s products. The average number of active U.S. oil and gas rigs rose 22 percent to 1,972 on April 20 from a year earlier, according to Baker Hughes Inc. (BHI)
“The increase in rig count” supports a volume increase Paula Kovarsky, an analyst at Banco Itau SA in Sao Paolo, said in an April 24 note to clients. Global demand for rigs was “fully supported by a 3 percent increase in the U.S.”, she said.
Sales climbed 13 percent to $2.62 billion. Sales in North America gained 32 percent to $1.29 billion. In South America and Europe sales rose 2 percent to $323.2 million and 8 percent to $263.1 million, respectively.
(Tenaris is scheduled to hold a conference call to discuss the results at 10 a.m. New York time.)
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