Tenaris reduced pipe sales by 5% y/y in 2024

In 2024, international pipe company Tenaris reduced pipe sales by 5% compared to 2023 – from 4.14 million tons to 3.93 million tons. This is stated in the company’s financial report.

During the year, shipments of seamless pipes to customers amounted to 3.08 million tons, down 4% y/y, and welded pipes – 852 thousand tons (-11% y/y).

Net sales of tubular products decreased by 16% compared to 2023 to $11.91 billion. In particular, this corresponds to a decrease in tonnage and prices for drill pipes in the US, lower production activity in Mexico and Colombia, a slowdown in pipeline projects in Argentina, and demand for mechanical pipes in Europe.

At the same time, the company noted record demand in the Middle East, as Saudi Aramco replenished its OCTG stocks and increased gas production. Turkey has also increased purchases of relevant products for offshore and onshore projects.

Overall, the key markets for the Group’s products are North America, Asia Pacific, the Middle East, Africa, South America, and Europe.

Last year, the operating income of the pipes segment decreased by 45% y/y – to $2.3 billion. The sharp decline was mainly due to a decline in average selling prices, which affected the company’s margins.

Tenaris expects Q1 2025 results to be in line with the previous quarter due to the relative stability of the market, and to grow moderately in Q2. At the same time, changes in US tariffs and their possible impact on trade flows create a high level of uncertainty about future prospects.

As a reminder, in 2023, Tenaris increased its sales of pipe products by 17% compared to 2022, to 4.14 million tons. Shipments of seamless pipes increased by 1% y/y – to 3.19 million tons, and welded pipes by 146% y/y – to 953 thousand tons. Net sales of the respective products increased by 27% y/y – to $14.18 billion.