Tenaris warns that the Middle East conflict will affect second-quarter sales
Tenaris, an Italian steel pipe manufacturer, warned late on Wednesday it expected its second-quarter sales to be affected by lower shipments in the Middle East because of the conflict.
The U.S. and Israel war against Iran has resulted in a blockade of Strait of Hormuz. This area, which handled a fifth of the world’s oil and natural gas supply before the 'war,' sent energy prices soaring.
Tenaris, a manufacturer of pipes for the energy industry, has said that its margins will be affected in the second quarter due to higher logistic costs.
If the Middle East's key waterway is reopened, the Luxembourg-based firm expects "sales and margins" to recover in the second part of the year.
Separately the company announced that Gabriel Podskubka has been appointed as CEO. He replaces?Paolo Rocca who will now serve as Chairman of the Board.
Sales of the exploration pipeline manufacturer rose by 6% in the first quarter to $3.1 billion. A strong?growth in North America of 19% helped offset a weaker performance in Asia Pacific and the Middle East and Africa where revenue declined 6%.
EBITDA (earnings before taxes, depreciation and amortization) increased by 14%, to $735 millions.
Tenaris' margins remained constant, with the?EBITDA for a quarter at 23.7%. Net income increased by 9%, to $564 millions. (Reporting from Chandni in Bengaluru, and Enrico Sciacovelli. Editing by Tasim Zaid)
(source: Reuters)
