Investor Presentation

Transcription

1 Investor Presentation

2 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 those statements. These statements include information regarding management strategy, investment plans, development and growth of the steel pipe and oil and gas industries, trends and other prospective data, including trends regarding the development of raw material costs and the levels of investment in oil and gas drilling worldwide and general economic conditions in the countries where Tenaris operates and sells its products and services. We do not undertake to update any forward-looking statement to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Except where otherwise stated, the data presented herein is based on Tenaris analysis and estimates. 2

3 Market environment Oil prices Gas prices 140 [$/bbl] 25 [$/MMbtu] Brent WTI WCS Spot LNG NE Asia NBP ICE UK HH 0 0 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Crude Oil approx Heat Content per Barrel: 5.8 MMbtu Source: Bloomberg / World Gas Intelligence 3

4 Market environment Rig count US drilling efficiencies Yearly average Quarterly average 2,963 3,436 3, , , , ,405 3, , , , ,546 1,879 1,919 1,761 1,758 1,761 1,770 1,757 1, [Wells/rig, Index Q1'12] ,069 1,139 1,165 1,212 1,267 1,306 1,285 1,320 1, Q-13 2Q-13 3Q-13 4Q-13 1Q-14 International USA Canada Latin America Iraq Note: Baker Hughes rig count evolution does not cover China Onshore, FSU, Iran, Syria and Caspian Sea. Iraq is only included in the quarterly average, once it has been published by BHI since 3Q Avg. Shale Avg. US Land Avg. Non-Shale 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 4

5 OCTG demand OCTG demand evolution Premium OCTG consumption by application (2013) [Mill Tn] PRM Semi-PRM API 13,4 2,4 15,2 2,7 0,1 16,6 17,1 17,0 3,1 3,3 3,4 0,3 0,7 0,9 Others Oil 26% Deep water 16% 11,0 12,4 13,2 13,1 12,7 Others Gas 18% Shales gas 6% Shales oil 12% Shallow water 22% F * HPHT applications represent 12% of total premium consumption. 5

6 OCTG demand [Mill Tn] Shales Others 13,4 1,6 15,2 2,8 16,6 17,1 17,0 4,1 4,3 4,7 11,8 12,4 12,5 12,8 12, F 6

7 Shipments by product type 180% 100% 104% 100% 83% PRM API & Semi-PRM SLP INDUSTRIAL 7

8 Key markets in transition 2013 Mid-term USA & Canada Infrastructure constraints Unfairly traded imports Shale gas Thermal Mexico Chicontepec Pemex financial and operating constraints Energy & fiscal reform Deepwater Shale gas Brazil Petrobras financial and operating constraints Deepwater Argentina Investment climate Energy imports Shales (oil & gas) 8

9 USA OCTG trade case On February 18, 2014, the DOC imposed preliminary anti-dumping duties on a majority of the subject countries but not Korea. The DOC has stated that, in its final determination (July 7, 2014), it will consider additional elements, that in our view, strongly support the case against Korean imports. [Mill Tn] 3,5 3,0 2,5 2,0 1,5 1,0 0,5 - USA OCTG imports 3,3 2,9 2,6 0,8 2,2 0,6 0,9 0,8 0,5 1,5 0,5 0,1 0,3 0,7 1,3 1,4 1,5 0,8 1,7 1,3 0,3 0,1 0, IQ 2014 Others Others trade case South Korea 9

10 Bay City Tenaris June

11 Bay City: strategic location Woodford Fayetteville Hickman Permian Barnett Haynesville Houston Conroe / McCarty Freeport Tuscaloosa Marine Westwego 500 mile radius Mexico Eagle Ford Bay City 350 mile radius Tamsa 11

12 Key markets showing strong growth Middle East OCTG consumption Deepwater OCTG consumption [Th Tn] [Th Tn] % PJ 50% 50% Gas % % Oil 20% % %

13 Premium connections portfolio New products for more complex drilling requirements Deepwater TSH Wedge 623 (GOM) TSH Blue Riser (GOM) TSH Wedge 623 TSH Blue Riser HP/HT Blue Max (North Sea) Blue Heavy Wall (Angola) Large Diameter Conductor and Surface Casing Blue Quick Seal (North Sea) BlueDock connector (Brazil) TSH Blue Max TSH Blue Quick Seal Dopeless Technology Standard on new products 13

14 Global industrial system and supply chain 14

15 Financial performance Free cash flow and EBITDA margin LTM FCF US$ million SLB HAL TS BHI 0% 5% 10% 15% 20% 25% 30% 35% WFT LTM EBITDA % LTM= last twelve months Free cash flow = Operating cash flow Capital expenditures EBITDA= Operating income + Depreciation & Amortization +/- Non recurring results The size of the circles is proportionate to invoicing 15

16 Financial performance LTM FCF US$ million Free cash flow and EBITDA margin TS TMK 0% 5% 10% 15% 20% 25% 30% 35% LTM VK EBITDA % LTM= last twelve months Free cash flow = Operating cash flow Capital expenditures EBITDA= Operating income + Depreciation & Amortization +/- Non recurring results The size of the circles is proportionate to invoicing 16

17 Operating and financial results Millions of US$ (except ratios and per ADS amounts) IQ 2014 Net Sales Operating income EBITDA EBITDA margin 27% 25% 24% 27% 26% 28% Net income of owners of the parent Earnings per ADS 1,97 1,91 2,26 2,88 2,63 0,72 Cash flow from operations Net debt / (cash) (676) (276) (324) 271 (911) (1.279) 17

18 Strategic agenda Expansion in North America: new industrial and logistics center in USA Strengthen our leading position in Latin America: Mexico, Colombia, Brazil, Argentina Leverage technical leadership and global capabilities in complex projects worldwide Differentiation through product development, industrial excellence and customer solutions 18

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