By Feb 25 Reuters Tenaris shares rose as much as 13 on Thursday after the Milanlisted steel pipe maker beat fourthquarter earnings expectations and issued 2021 guidance that forecast a further rise in drilling activity and better prices.
Sales and core profits at the company, which produces seamless and welded steel pipes for oil and gas exploration activities, showed a gradual improvement in the fourth quarter of 2020 from earlier in the year, helping overcome some of the impact caused by the coronavirus crisis.
The company posted late on Wednesday fourthquarter earnings before interests, taxes, depreciation and amortization EBITDA of 192 million, down 34 compared with the same period a year earlier but up 79 on the previous quarter.
Profit margins recovered to 17 in the quarter, the highest level since the third quarter of 2019.
By 0838 GMT, the stock was up 10.8 at 8.52 euros 10.39, making it the top gainer on Milans stock exchange.
Tenaris reported a much stronger than expected set of results, Jefferies analysts said in a note.
Tenaris said it expected firstquarter EBITDA to be similar to the previous three months, saying it would face higher costs and production losses worth about 20 million in the United States and Mexico linked to the recent gas and power shortages in Texas.
Core earnings are expected to increase from the second quarter, with margins stabilising at about 20 as price increases compensate for higher raw material costs, it added.
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