TENARIS

Tenaris beats revenue and earnings per share consensus estimates by U$S 40 M and U$S 0.05 respectively. Higher sales in Mexico and Asia compensate Canada’s seasonal decline. Shipments advance 3% QoQ while revenue grows 2% in the same period (U$S 1,918 M) reflecting a strong price mix. Operating income falls 9% on one-offs tariff recovery recorded in the first quarter and quarterly EBITDA decrease 5% QoQ to U$S 370 M (EBITDA margin 19.3% vs. 20.9% in 1Q19) below our estimate of U$S 400 M. Finally, net income ends flat at U$S 241 M (-1% QoQ) and amounted to 12.5% of sales.