The manufacturer and supplier of steel pipes Tenaris reported a US$ 162 million profit for the fourth quarter of 2017, a 6.75-fold increase over the same period of 2016. Tenaris’ net sales grew by 52% compared to a year earlier, to US$ 1.589 billion.
The company said that sales increased due to increased demand from customers in the United States and Canada, higher investments in Vaca Muerta shale reserves, in Argentina, higher deliveries for gas pipelines in the Eastern Mediterranean, and strengthening demand for mechanical products in Europe.
Tenaris also sais that during the quarter its working capital increased by US$ 274 million with a further inventory build of US$ 163 million in anticipation of higher shipments in the forthcoming quarter and higher trade receivables associated with a higher level of sales.
Net cash flow used in operations amounted to $13 million. After capital expenditures of $121 million and dividend payments of $153 million, the company’s net cash position declined to $680 million at the end of the quarter.
Tenaris stressed that for 2018 it expects sales to grow in most regions and product lines compared to 2017, with strong year-on-year growth in each quarter.
The material has been provided by InstaForex Company – www.instaforex.com