Q3 2023 Tenaris SA Earnings Call
Speaker 1: Good day and thank you for standing by. Welcome to the third quarter, 2023, 10-Aries SA Earnings Conference call.
Good day and thank you for standing by welcome to the third quarter 2023, 10, <unk> S. A earnings conference call.
Speaker 1: At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during that session, you will need to press star 1-1 on your telephone. You will hear a message advising your hand is raised. To withdraw the question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to turn the call over to the head of investor relations, Mr. Giovanni Sardegna.
At this time all participants are in a listen only mode. After the presentation. There will be a question and answer session to ask a question during that session you will need to press star one one on your telephone you will hear a message by senior hand. This race to withdraw your question Press Star One again, please be advised that.
Today's conference is being recorded I would now.
I like to turn the call over to the head of Investor Relations Mr. Yovani start Daniel.
Speaker 2: Thank you, Carmen, and welcome to TENARIS 2023 third quarter conference call. Before we start, I would like to remind you that we will be discussing forward-looking information in the call and that the actual results may vary from those expressed or implied during the.
Thank you Carmen and welcome to <unk> 2023 third quarter Conference call.
Four we start I would like to remind you that we will be discussing forward looking information in the call and that our actual results may vary from those expressed or implied during this call.
Speaker 2: We meet on the call today, our Paolo Rocca, our chairman and CEO , Alicia Mondolo, our chief financial officer, Gabriel Potkuska, our chief operating officer, and Luca Zanotti, president of our U.S. operator.
With me on the call today are Paolo Rocca, our chairman and CEO, Alicia Mondello, our Chief Financial Officer, Gabriel put call Scott Art.
If operating officer and go cut Zanotti President of our U S operations.
Speaker 2: Before passing over the cold to Paolo for his opening remarks, I would like to briefly comment at Quaterlio Result.
Before passing over the call to Paolo for his opening remarks, I would like to briefly comment earlier for dogs.
Speaker 2: Our sales in the third quarter of 2023 reached $3.2 billion, up 9% compared to those of the corresponding quarter of last year, but down 21% sequentially, mainly due to lower volumes and prices throughout the Americas, lower quarterly shipments to offshore projects, and lower pipeline shipments in our country.
Our sales in the third quarter of 2023 reached $3 2 billion up 9% compared to those of the corresponding.
Corresponding set up last year, but down 21% sequentially, mainly due to lower volumes and prices throughout the Americas, lower quarterly shipments to offshore projects and lower pipeline ships.
Cynthia.
Speaker 2: Average selling prices in R3's operating segment increased 2% compared to the corresponding quarter of last year, but declined 5% sequentially.
Average selling prices enough tubes operating segment increased 2% compared to the corresponding quarter of last year, but declined 5% sequentially.
Speaker 2: As anticipated, our ABDA, excluding a one-off gain of 32 million, fell just short of 1 billion, with the margin of 31%.
As anticipated our EBITDA, excluding one off gain of 32 million fell just short of 1 billion with a margin of 31%.
Speaker 2: The sequential ABDA decline was mainly driven by the ongoing price declines in the Americas.
The sequential EBITDA decline was mainly driven by the ongoing price declines in the Americas.
Speaker 2: Our net income for the quarter, at $547 million, was affected by non-cash charges of $144 million related to the remeasurement and recycling of CTA to the income statement of our direct and indirect investment in UCI.
Our net income for the quarter at $547 million was affected by noncash charges.
144 million related to the Remeasurement of recycling of Cta to the income statement.
All of our direct and indirect investment in juice munis.
Speaker 2: Cash generated by operating activities during the quarter was 1.3 billion, while a free cash flow for the quarter was 1.1 billion.
Cash generated by operating activities during the quarter was $1 3 billion Y our free cash flow for the quarter was $1 1 billion.
Speaker 2: with a further reduction in working capital or 415 minutes.
With a further reduction in working capital of 415 million.
Speaker 2: Our net cash position at the end of the quarter rose to $3.3 billion.
Our net cash position at the end of the quarter rose to $3 3 billion.
Speaker 2: Our Board of Directors approved the payment of an interim dividend of $0.20 per share or $0.40 per ADR to be paid on November 22.
Our board of directors approved the payment of an interim dividend of <unk> 20 cents per share or 40 cents per ADR to be paid on November 22nd.
Speaker 2: The interim dividend is up 18% compared to the interim dividend we paid last year.
The interim dividend is up 18% compared to the interim dividend, we paid last year.
Speaker 2: In addition to the dividend, the Board of Directors approved a share by back of 1.2 billion to be executed within the next 12 months.
In addition to the dividend the board of Directors also approved a share buyback of $1 2 billion to be executed within the next 12 months.
Speaker 2: Now, I will ask Paolo to say a few more words before we open the cold quest.
Now I will ask Paolo to say a few box works before we open the call to questions.
Speaker 3: Thank you very much, Giovanni and good morning to all of you.
Thank you very much Giovanni and good morning to all of you.
Speaker 3: As anticipated, our third quarter results were affected by, among other factors, lower onshore drilling activity and an ongoing adjustment in market price level in the Americas and the lower level of shipment in certain regions following a strong second quarter.
As anticipated our third quarter results were.
We're affected by among other factors lower onshore drilling activity.
And then the ongoing adjustment in market price level in the Americas, and the lower level of shipments in certain regions. Following a strong second quarter.
Speaker 3: On the other hand, we had another extraordinary quarter for cash flow with the generation of 1.1 billion of free cash flow making the 3.1 billion in the year today.
We had another extraordinary quarter for cash flow generation of $1 1 billion of free cash flow, making the 3.1 billion in the year to date with.
Speaker 3: With this cash flow adding to our already strong financial position, yesterday we announced the launch of our first share buyback program, together with an 18% increase in our interest
But with this cash flow, adding to our already strong financial position yesterday, we announced the launch of our first share buyback program together with an 18% increase in our interim dividend.
Speaker 3: The share buyback program, which is for an amount of up to $1.2 billion, is to be carried over, carried out over the next 12 months.
The share buyback program, which is for an amount of up to one 2 billion is to be carried over cut it out over the next 12 months.
Speaker 3: We consider that buying back our own shares would constitute a better use of our excess cash than our current liquidity.
We consider that buying back our own shares which constitute a better use of our excess cash than our current liquidity investment.
Speaker 3: During the quarter, we invested 90 million on the acquisition of additional heat treatment and trading facilities in Houston, which will help us to dig bottleneck our own U.S. in that.
During the quarter, we invested 90 million on the acquisition of additional acute treatment and <unk>.
Craig and facilities in Houston, which will help us to de bottleneck, our U S and Doctor system.
Speaker 3: We also acquired a small pipe coating facility located close to our dominant plant in Italy for 10 million US dollars. And now the acquisition of the larger shock core global pipe.
We also acquired is more pipe coating facility located close to our plant in Italy for 10 million U S. Dollar.
The acquisition of the larger Shawcor global pipe coating business.
Speaker 3: This remains subject to the abstention of regulatory approvals and is expected to be concluded by the end of the year.
This remains subject to the attention of a regulatory approval.
It will be concluded by the end of it.
The expansion of our pipe coating operation.
Speaker 3: We help us to serve customer with an integrated offer for complex and offshore line.
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It help us to serve a customer with an integrated offer for complex offshore line pipe.
Speaker 3: In North America, we expect a recovery in drilling activity as we look toward 2024.
In North America, we expect a recovery in drilling activity as we look towards 2024.
Speaker 3: the United States, the relatively low level of drilling and completed wells and the dark and the crude oil inventories.
United States, the relatively low level.
Drilling uncompleted wells and the duck.
And the crude oil inventories.
Speaker 3: Favourable oil price and rising natural gas prices should support an increase investment as oil and gas companies reset their budgets for the
Favorable oil price and rising natural gas prices should support an increase in investment as oil and gas companies have reset their budgets for the next year.
Speaker 3: With OCDU inventory declining from excess level, the declining prices for several product items are starting to slow down.
With <unk> inventory.
Aligning from excess labor.
Client and prices for several product item is starting to slow down.
Speaker 3: The pipe logic index can be subdivided into different product sites and groups. what I tell you.
The pipe logic index can be subdivided into different product site in groups with performance is not universal.
Speaker 3: For example, item groups such as surface casing into
Sample.
Groups, such as surface casing and tubing.
Speaker 3: which are most exposed to low-quality imports, have fallen further than higher quality product item groups, such as production casing, which are largely...
Which are.
Export to low quality imports.
Have fallen further than higher quality product item groups, such as production casing.
Which are largely produce debate domestic politics.
Speaker 3: We expect that if inventory continue to come down, market pricing should start to stabilize by then.
We expect that if inventory continuing to come down market pricing should start to stabilize by the end of this.
Speaker 3: At the same time, we are increasing the level of differentiation through our rigged direction.
At the same time, we are.
Increasing the level of differentiation.
Through our rig direct service.
Speaker 3: By the end of 2023, around 85 of our OCTG sales in the US will be supplied under our Regulate Exo Service • ja PER RON
By the end of 2023 around 85 of our CTG sales in the U S will be supplied under our rig direct service model.
Speaker 3: 70% of those seals will be done with our new run-ready service include
And 75% of those sales will be done with our new run rate service included.
Speaker 3: This compare with 65% and 30% respectively at the end of last
This compared with 65% and 30% respectively at the end of last year.
Speaker 3: In Canada, we also expect the drilling activity to pick up as we head into the peak winter drilling.
In Canada, we also expect drilling activity to pick up as we head into the peak winter drilling season.
Speaker 3: We are repositioning ourselves following the revision of normal values on Chinese OCIG import made by the Canadian government earlier this year.
Positioning ourselves following the revision of normal values on Chinese or CTG input made by the Canadian government earlier this year.
Speaker 3: and an expected increase in activity in the mountainous.
And then expected increase in activity in the Montney shale.
Speaker 3: In the Middle East, the Saudi market is growing particularly strong. As the Rampko is rapidly increasing gas drilling activity. Both conventions.
In the middle East the Saudi market is growing particularly strongly.
Is it around because the rapidly increasing gas drilling activity, both conventional and unconventional.
Speaker 3: Invest in pipeline construction and there is Master Gas 3
Yeah.
And investing pipeline construction and there is a massive gas replace.
Speaker 3: We recently won a tender with a value of $600 million to supply seamless casing and tubing with short delivery times. For this increased activity, it is Leigh eventOfD
We recently won a tender with a value of 600 million dollar to supply seamless casing and tubing with short delivery times for this increased activity is reduced stock levels during the pandemic.
Speaker 3: Our recently consolidated GPC subsidiary, which invotes a $52 million during the quarter, is positioning itself to supply the large diameter conductor casing, used in most welds in Saudi.
Our recently consolidated GPC subsidiary wishing voice of $52 million during the quarter is positioning itself to supply the large diameter conductor casing used in most wells in Saudi Arabia.
Speaker 3: Our new premium trading facility in the Emirates in the United Arab Emirates will begin.
Our new premium trading facility in the <unk> United.
Arab Emirate will begin operation this month.
Speaker 3: This will be the first industrial facility of its kind in the Emirates.
This will be the first industrial facility of its kind in the emirate.
Speaker 3: And it has been built along with a special tenet University training facility to increase the local content provision under our multi-year RIG Direct Agreement.
And it's being built along with a special Tonight as University training facility to increase the local content provision under our multiyear rig direct agreement with AD hoc.
Speaker 3: offshore drilling and pipeline construction activity is in an expansionary state.
Offshore drilling and pipeline construction activity is in an expansionary cycle.
Speaker 3: We have been quick to capture the first wave of the cycle and our sale to a short project will be 50% higher in 2023 than they were last.
We have been quick to capture the first wave of this cycle and our sale to offshore project will be 50% higher in 2023.
That they were last year.
Speaker 3: Our position in Guayana and Brazil has been central to this achievement and in October , at the OTC event in Rio, Petrobras awarded us a 2022 Bet Supplier Recognition in the category of Goods for Drilling and Composting.
Our positioning right now.
And.
It's been central to this achievement and in October at the OTC event in Rio.
<unk> awarded US 2022, Bath supplier recognition.
A category of goods for drilling and completing wells.
Speaker 3: Our research and development area and technical teams continue to develop material and product solutions tested for the specific conditions involved in more complex low-carbon energy applications.
Our research and development area and technique and technical teams continue to develop material and product solutions tested for the specific conditions evolved and more complex low carbon energy applications such as.
Speaker 3: CCS, carbon caption storage injection wells, and hydrogen storage.
Ccs.
Carlos capturing storage storage injection wells and hydrogen storage rates.
Speaker 3: In October , we were awarded a contract to supply high chrome and low tubing for carbon injection wells.
In October we were awarded a contract to supply high chrome alloy tubing.
Carbon injection wells.
Speaker 3: for the EU-founded Portos project in Rok.
For the EU founded Portas project in Rotterdam.
Speaker 3: The materials were selected to withstand the high-growth on risk and expect that from a pre-oceanic term.
The materials were selected to the withstand the high corrosion risk.
And expect that that will clear genetic must shocks.
Speaker 3: In Argentina, our first 100-megawatt wind farm has entered full operation and is delivering power through the interconnected grid to our operation in Europe .
In Argentina, our first 100 megawatt.
Firm enter full operation and is delivering power to the interconnected grid to our operation in component.
Speaker 3: We have secured the opportunity for a second 90 megawatt wind farm, and we will go ahead with $214 million investment to be completed within 24 months.
We have secured the opportunity for a second the 90 megawatt.
The environment.
And we will go ahead with $214 million of investment to be completed within 24 months.
Speaker 3: Both wind farms, we provide cost-competitive, electric power with capacity factor of 55% and above, with no subs.
Both the wind farms, we provide cost competitive.
<unk> power with capacity factor of 55% and above with no subsidy.
Speaker 3: We've invested in the wind farms and our ongoing investment in energy efficiency. We expect to meet almost 100% of our energy requirement in Argentina through renewable energy. Digitalization.
With the investment and the wind Fabs and our ongoing investment in energy efficiency.
We expect to meet the almost 100% of our energy requirements in Argentina through renewable energy.
The utilization is central to our strategy.
Speaker 3: One investment that is currently coming on stream is a $20 million digital global programming and schedule.
One investment that is currently coming on stream is it $20 million digital global programming and scheduling system.
Speaker 3: that will help us to improve production lead times, cost, and complexity.
Will help us improve.
<unk> lead times cost and compliance.
Speaker 3: With favorable market conditions ahead, we are strengthening our competitiveness and focusing on service and margin differentiation.
With favorable market condition ahead, we are strengthening our competitiveness and focusing on service and margin differentiation.
We are now ready for any question you may have.
Speaker 1: Thank you. I will open the lines for questions. And as a reminder to ask a question, press star 11. Please stand by and wait for your name to be announced. One moment for us.
Thank you I will open the lines for questions and as a reminder to ask a question press Star one one please stand by and wait for your name to be announced.
My mom and for our first question.
Speaker 1: and come from the line of Alejandro Posi with Medio Banca, please proceed.
And it comes from the line of Alessandro Pozzi with Mediobanca. Please proceed.
Speaker 4: Hi there, thank you for taking my questions and congratulations on the good set of results. My first question is on the average of selling price. As you pointed out, there are different categories, they are seeing different movement in price.
Hi, Bob Thank you for taking my questions and congratulations on the good pets.
With Alta.
My first question is on the average selling price as you pointed out there are different categories.
Movement in pricing and if I look at your average selling price in Q3.
Speaker 4: If I look at your average selling price in Q3, it's not that different from Q4 in 2022, marginally down, but not as much as the pipe logic.
Different from Q4, 2022 miles of a down but not as much as the pipe logic.
Speaker 4: So the question here is, is there a growing disconnect between your ASP and the PipeLogic, or is it just a matter of the time lag between the two and we will see your ASP actually falling in line with the PipeLogic, maybe in the coming quarters. And on this point, maybe if you can give us some color on where you see sales going in Q4 and Q1, maybe it'd be down.
Question here.
Is there a disconnect between SP and the pipe logic or is it just a matter of the time lag between the two and we will see.
Youll OSP actually fall.
In line.
<unk>, maybe in the coming quarters.
And on this point, maybe if you can give us.
Some color on where you see sales.
In Q4, and Q1 will be EBITDA margin.
Speaker 4: That's the first question. Maybe the second question is only a share by back. Maybe if you can clarify when you're planning to start the share by back and whether maybe the tagging tag is going to participate or when we will know whether tagging is going to participate. Thank you.
The first question. The second question is on the share buyback, maybe if you can clarify when you're planning to stock.
The share buyback and maybe pattern is going to participate.
We will now take him he is going to.
Participate thank.
Thank you.
Speaker 5: Thank you Alessandro. As far as your first question is concerned, you know, the
Thank you Sandra.
As far as the your first question.
Sure.
They did.
The association and the <unk>.
Speaker 3: between the pipe logic indicator and our overall price is influenced by many different factors. On one side...
Between the pipe logic indicators and our overall price.
It seemed fluence by many different factors.
One side.
Okay.
Speaker 5: the majority of our prices are driven by different
The majority of our prices are driven by different.
Speaker 5: factor compared to the biologic, some of the formulas are taking into consideration cost or different variable independence.
Factor compared to the project some of their formulas.
Into consideration costa or different variable independent from the pipeline.
Speaker 5: even within the US and North America that is more influenced by ecologic.
Even within the U S and North America that is more influenced by logic.
Speaker 5: We have a formula, with our client, are reflecting specific products within the Pyplodic portfolio. That in some cases are not moving in the same direction as the average of Pyplodic. There are differences between...
Yeah.
The formula that we have.
But with our client.
Reflecting specific product.
Within the bipolar.
<unk> portfolio that in some cases are not moving.
The same mandate Exxon is the average of a project there are differences between for instance, three meal a complex product and.
Speaker 3: premium or complex product and more.
More exposure.
Speaker 5: So I don't think we can drive a strict correlation between the pipeline and the overall average price of the net.
So.
I don't think we can drive.
Strict correlation between the pipeline and the overall average price.
<unk>.
Speaker 5: Yes, we have a more strict relation with our operation in North America, but
Speaker 5: theamagment is very important in our Eurobero,
Speaker 5: to add some color on this relation between the pipe logic index and the dynamics of our.
Speaker 6: Yes, thank you Paolo, good morning, Alessandro.
Speaker 6: It's probably saying when we look at the North America and we look at how the demand structure, you see that...
Speaker 6: Always more and more, we have a predominance of seamless heat-treated. If you look at, for example, a key component of the demand, which is the production casing, which is more or less 40, 45 percent, over the top market, the grim majority of this is seamless.
Speaker 6: When we cope this with the structure of the pipe logics and the price, you see that these items are the ones that suffer less of the decrease within the pipe logics. So, for you to come up with a conclusion, you should put together the structure of the market and the way the different items are moving within the pipe logics.
There wasn't there.
Software less of their degrees within that the the pipe logics Shaw for you to come up with a conclusion, we should put together this sector of the market there.
And the the way the different items.
Moving within the biologics.
Speaker 6: And this is one point that is worth mentioning.
And this is one point that is worth mentioning.
Speaker 6: The second point that is worth mentioning is that
The second point that he's he's he's he's worth mentioning is that.
Speaker 6: When you look at the United States, our formula with our customers are not necessarily 100% related to the pipe logics. We have our indicators and obviously these indicators in this context are much less volatile than the pipe logics.
When when you look at the ice states that our formula with our customer Sir I'm not necessarily 100% the ladies of the pipe logics via that indicate the ulcer and obviously these indicators in this context as much less volatile Latin in the Bible logics itself.
Speaker 6: I believe that these are the two main reasons why you see a sort of not perfect match between our prices, even in the United States, when you look at the pipe logic.
I believe that these are the two main reason why you see a sort of not perfect match between our prices even in the United States. When you look at the the pipe logic.
Speaker 3: Then Gabriel you can comment on the why that angel Christ
Then.
Gabrielle and you can comment on it the way that angel prices.
Speaker 5: And the dynamic that's very different that we have in
And did they named me that is very different than we have in the <unk>.
Many other market system. Your photo thank you very much on good morning, Alessandro Indeed, the dynamics of the prices in the international market.
Speaker 7: Yes, Paolo. Thank you very much and good morning, Alessandro. Indeed, the dynamics of the prices in the international market
Speaker 7: Differ from the dynamics of the pieblogics. Internationally, we are benefiting from an increased demand on the list and offshore markets. And we have at the same time a tight supply of premium products, sophisticated grades, sour service, or high chromium grades as well. So these segments are not...
Differ from the dynamics biologics.
Internationally, we are benefiting from an increased demand immediately and offshore markets and we got about the same time it tight supply of premium products sophisticated grades so our service or hi, chromium, great as well. So these segments are not linked or influence.
Speaker 7: by no means by the pipe logics. The products required, the competitive environment completely differs from that influenced by pipe logics. So in international markets, we continue to see in the high end of the market opportunities to enrich our mix and drive prices up.
By no means by the by projects the products required the competitive environment completely differs.
From that influenced by Mike Biologics So in international markets. We continue to see in the high end of the market opportunities to enter each hour mix and driver prices up.
Speaker 7: There is typically a lag of six months to nine months in this part of the world from booking prices and into deliveries. But we see a positive trajectory on the international pricing into the end of this year and into
Typically a log of six months to nine months in this part of the world from booking prices into deliveries, but we see a positive trajectory on the international pricing.
Into the end of this year and into 2024.
Speaker 5: Thank you, Gabriel. And on the second question, which is the share by the back, the share by the back will be executed.
Thank you <unk>.
And on the second question or which is shared by Rebecca.
Sure My bank will be executed in Waterleaf branch from an island.
Speaker 5: totally trance from now until within one year. And we didn't receive any specific information on this from our majority shop.
Within one year.
And we didn't receive.
Any form of specific information on this from our majority to shuttled.
Speaker 4: And just to follow up on the on the evolution of margins for the next couple of quarters, is there any additional color that you can provide?
Okay. Thank you and just to follow up on me I'm unable notion of margarine set for the next couple of poor does is that any additional color that you can provide.
Mmm.
Speaker 5: Well, you know, to the extent to which the pipe logic is influencing, at least as Luca was explaining, part of our sale in North America.
A when you know <unk> to the extent to each of the five logie.
For Wednesday at least this luka was explaining that.
Four sale in North America and.
Speaker 5: some cases also other markets we will see this reflected in our margin with some
In some cases or for other market.
We will see these reflect the eh in.
Now what amount of <unk> with some delay so the decline that he was seeing these quarter will also be reflected in the next and possibly according to the loofah by Roger gay in the coming months.
Speaker 5: The decline that you have seen in this quarter will also be reflected in the next and possible.
Speaker 5: according to the evolution of biology in the coming months.
Speaker 5: December , we will see if this trend will continue.
November and December we will see this trend will continue.
Speaker 5: To this extent, this will be reflected in our margin.
Do these <unk> these will be reflecting in I would imagine.
As you have seen it.
Speaker 5: Last quarter, we anticipated the margin in the range of 30%, and this is where we are today. Considering all the factors, I think that we can have a slightly lower margin in next quarter. But we will remain, let's say, between 25% and 30% over time. This is also our long-term view.
The last quarter, we anticipated the margin in the age of 30%.
Where we are today.
Considering all the factor.
I think that we can pay is slightly lower margin.
Next quarter, but we will remain.
Between 25 and 30%.
Over time. This is our also our long term view.
Speaker 4: And potentially taking up from Q2, the pie project stabilizes, is that her?
Okay, and potentially picking dotcom come through to <unk> is that.
Speaker 5: Difficult to predict, there are many factors that will be influencing demand and supply in, let's say, during the first half of 2024.
And difficult to predict there are many factors that it will be influencing demand and supply and let's say during the.
The first half of 2024.
Speaker 3: activity that is important, the level of drilling, and the demand of power.
TVP that is important that the level of drilling.
Kind of pipe.
Speaker 3: the level of import is also relevant, import when down, but we have to see if this.
The level of input. It is also relevant inputs went down but we have to see this is a trend Daniel.
Speaker 3: In general, we perceive reduction in the level of inventory, the market, which is positive for giving support to the overall price level.
In general we perceive a reduction in the level of inventory the market wishes positive for giving support to deal with it.
Price level and do it.
Alright, Thank you very much for the economy turning back thank you.
Speaker 1: Thank you. One moment for our next question, please.
Thank you one moment for our next question. Please.
Speaker 1: And it comes from the line of Arun Jayaram with JPMorgan Securities.
And it comes from the line of Ireland, Gaiam with J P Morgan Securities.
Speaker 8: Yeah, good morning. My first question is on the US.
Yeah. Good morning. My first question is on the U S.
Speaker 8: Perhaps for Luca, I was wondering if you could comment on what you're seeing in terms of the import of products into the U.S. How is lower pricing impacting imports into the U.S.?
Perhaps for Luke I was wondering if you could comment on what you're seeing in terms of the import of products into the U S. How was lower pricing.
Pricing impacting imports.
Into the U S.
Speaker 5: Thank you, Erwin.
Thank you I don't Wanna.
Speaker 6: comment on this, no? Because it's... Yes, and I can tie back to what Paolo you were saying on the inventory. So when you look at the imports, we have seen imports to go down...
Okay.
Comment on these now because it yes, and I can't tell you back to water polo, you were saying on the inventory. So when you look at the imports.
We have seen that impulse to go down.
Speaker 6: and this is basically with the exception of Koreans that are complying with their quota quarterly, I mean all the importance have come down both ERW and seamless. Now one thing that was not mentioned before but it is important is that also the domestic production especially on the ERW side came down which helped reducing the inventory on the ground during this month. But getting back to your point,
And this is basically with the exception of course, he asked the teller comply with that quote a quarterly I mean, all the important to have come down on both <unk> and and and and simpler.
She must know what I'm, saying there was not mentioned before but it is important that also the domestic badakhshan, especially on the <unk> came down which <unk> the inventory on the ground. During this these maps, but getting back to your point.
Speaker 6: Obviously, as price goes down, some importers will start to face the 25% imposed on the section 232, especially as they complete their quota. And in the case in which we're going to see a recovery in demand starting in 2024, obviously, this has is going to have an impact on the possibility of some very low imports to come in.
Obviously, <unk> ghost Diana some impulse test it will start to face that.
25% I impose on this section to it at all especially if they completed their quota and in indicating which are we going to see a recovery in demand. Starting 2024, obviously at <unk> is gonna have any impact on the policy be eighth of summer very low you both stuka.
Speaker 6: However, we believe that the imports are high and, and, and.
However, we believe that the impulse of high and and and.
Speaker 6: This is a problem that the domestic industry is going to take care of.
These are zipped problem that the domestic game. This theory is gonna take care of.
Speaker 8: OK, and just just a quick follow up is what about the potential if the imports, you know, are declining into the US, could that impact international pricing if the imports find a new home?
Okay, and and just just a quick follow up is what about the potential if the imports are declining into the U S could that impact international pricing, if the imports finding a new home.
Speaker 3: Well, I don't think there is a clear overlapping between the material that some companies are importing in the state and the international.
Well.
I I don't think that he has like a clear overlapping because the men between the material that some.
Some companies importing and the state and the the intonation in America.
Speaker 3: For instance, the space for welded product outside the United States is very limited. I mean, the demand, the international demand is different. There could be some, some redirection of, of, of important, but is a much lower scale to what is important in the States, because the overlapping also, this is a market in which,
For instance of this space for a welded product.
Sorry, the United States is very limited I mean, the demanding the nation are the main the different.
There could be some.
Some redirection of important but he has a much lower scale to what we should both in the states because the overlapping also this is a market.
Which.
Speaker 3: Qualification, establishing the product in every different place in the different company is a complex process.
Qualification, establishing the product and inevitably different place in.
In the different company is a complex.
Process in the USA.
Speaker 5: for a producer with
These easier for Brazil.
Produce Sarah away from.
Speaker 3: relatively limited experience and track record to penetrate or some segment of the low end.
Really limited experience and track record to penetrate or some segment of the land in Iraq.
Speaker 8: Great. And Paula, I just want to get a quick thought on the Argentinian election. Obviously, there's a candidate who is proposing dollarizing Argentina, but just some quick thoughts. I know we still don't know the outcome yet.
Great and Paula I, just wanted to get a quick thoughts.
On the Argentinian election, obviously, there's a candidate who is proposing dollarizing, Argentina, but just some quick thoughts I know, we we still don't know the outcome yet.
Speaker 3: There is a, we are in an election process, there will be a ballotage in 19 of November . Whoever wins the ballotage will assume the presidency on the 10th of December .
It is and we are in an election process there will be <unk> in 19 of November.
Whoever wins the battle Dodge will assume the presidency on this dance of December.
I think that.
Speaker 3: Whatever the outcome of the Balotage, there will be the need in Argentina for an adjustment program that will require...
Yeah.
Whatever the outcome of the Battle Tasha.
There will be the need in Argentina for an adjustment program that will require.
Speaker 3: reduction of public spending and evaluation.
The reduction of public spending a devaluation.
And the.
Speaker 5: It's possible that economic activity may be reduced to...
Possible that.
Makeup DVD, maybe reduce it to.
Speaker 3: if I align some of the variables that today are out.
Let's say a line some of the valuable man today.
Out of all Sir.
Normal.
Speaker 5: normal situation for a country like Argentina. So we will see. There is no clear indication.
Normal situation for a concert and Tina so.
We will see is there is no clear indication.
Speaker 3: on the results of the Barotage. And there is no indication of the program that will be implemented after the assumption.
On the results of the <unk> that he has no indication of the program that we have implemented after the assumption.
Okay. Thank you.
Thank you.
One moment for our next question please.
Speaker 1: comes from the line of Mark Bianchi with Titi Cowan.
Comes from the line of Mark the Yankee with T D Cowan.
Speaker 9: I thank you. Maybe following up to the last question, you had previously discussed some concern on South America in the back half of the year because of election uncertainty. Could you talk about how that evolves? Obviously, there may be still some uncertainty for Argentina, but the rest of the region and thoughts heading into 24 would be helpful.
Thank you may be following up to the last question you had previously discussed some concern on South America in the back half of the year because of election uncertainty could you talk about how that's evolved obviously there may be still some uncertainty for Argentina, but the rest of the <unk>.
<unk>.
And thoughts heading into 24 would be helpful.
Speaker 3: Well, I mentioned Argentina as I say, we expected that after the assumption Argentina will need implement as I was saying, an adjustment program.
Well, a mention Argentina as I say.
We expect that that after the assumption, Argentina will need to implement as I was saying.
An adjustment program.
Speaker 3: that we'll have something to put on, as I say, the exchange rate public spending.
That will have a semi that's on.
As I say the.
The exchange rate probably expanding it.
Okay.
No doubt.
Speaker 3: So some extent we may expect reduction of the level of economic activity, but...
To some extent, we may expect a reduction of.
The level of.
Chromic activity, but.
Speaker 3: any government will need to promote export and attraction of investment. Argentina has.
Any government.
So we need to promote.
The expert and the attraction of investment Argentina has.
Speaker 3: Reynolds Thanks for watching.
The very important potential for attract investment.
Speaker 5: in the oil and gas sector, in the agricultural sector, in lithium, in development of lithium, in development of renewable, and in other area of its economy. I think this will be...
In the oil and gas sector.
In the agricultural sector, lithium and development of lithium in development of renewable and in.
<unk> it's economy.
I think that he these will be.
Speaker 3: part of the program of any of the two candidates. And also...
Part of the program of any of the two.
Again it data.
And also the.
Speaker 3: The condition of the agricultural sector in 2023 has been extremely difficult due to the drought that affected the country. This will help the next government in facing the challenges of the adjust.
The condition.
Of the cultural sector in 2023 has been.
Extremely difficult due to the drought that effective countered these will help the next the government in facing the challenges of the adjustment.
Speaker 3: So this is where we stand, and I think that in the case that the program is successful, that the need to develop infrastructure in the energy sector for oil.
So D.
<unk>, where do we stand and I think that in the case that the program.
Successful led they needed to develop the infrastructure and energy sector for oil.
And the gas.
Speaker 3: is very relevant. We think there is a lot of potential in Paca Muerta. It is very important. As far as Brasilia...
Is very relevant.
Think that it auto potential.
That is very important.
As far as Brazil.
<unk> Ah, but heatedly.
Speaker 3: stable, developing its oil and gas industry. Peter Vass is a very ambitious target for increasing...
Stable developing is oil and gas industry, but the reverse is very ambitious target for increasing the speed limit.
Speaker 3: production level, contract like the one that we signed with Echinor are indicating that also the private sector and private company are investing in Brazil with large projects that has relevant infrastructural content, areas in which we participate from CONFAB.
Deduction level.
Contract leg of the one that we signed with <unk>, indicating that also the private sector and private company.
Investing in Brazil, with large project that has.
Relevant infrastructure content.
Areas in which.
Dissipate from.
My father.
Speaker 3: in all the segments of drilling and evacuation line pipes that are used for this.
In all the segment.
Of drilling and the conductor equation nine pipes that is used for these.
In the case of Mexico.
Speaker 5: also in the case of Mexico it will be logical for Mexico to after that.
All Synechism, Mexico, it will be larger Gulf of Mexico two after.
Speaker 3: the new refineries coming upstream to invest in the MG sector and to support financially PMEX and also to what we see today is that there are private companies investing in development of Mexican resources.
The new refineries coming on stream too.
Invest in the empty set.
And to support financially Pemex sent and also to what.
What we see today is that that I've private company investing in development of Mexicali sources.
Speaker 3: but it's also true that this is financial situation of payments is very difficult.
But he is also true that.
This is financial division of payments is very difficult.
Speaker 3: And we as other companies in the oil service system in this moment are facing some delay in payment from payment. It will be very important over the coming months.
And we as other companies.
Our services is dammit.
And this moment that facing some delaying payment from payment it will be very important.
Over the coming months.
Speaker 3: and let's say for PMX at the same time
Let's say for <unk> at the same time.
Speaker 3: and also to reduce the payable to part of his supplier. One of these is tenaries. The case of...
To expand his operation if possible and also too.
<unk>.
Yeah about two battery supplier one of the assistant at ease.
Days of the rest of the.
Speaker 3: Latin America in Colombia after the election.
Latin America.
In Columbia after the election.
Eh.
Speaker 3: We expected some of the decision in the oil and gas sector maybe to consider and I feel that could be...
We expect that some of the decision and the oil and gas sector may be an equal see there and.
I've seen that could be also indicators of Columbia.
Speaker 3: during 2024 and 2025, let's say some recovery from the situation where we are today, after the reduction during 2023 that has been pretty strong.
During 2024 and 25.
Let's see some recovery from the situations, where we are today after the reduction during 2023 that has been pretty stronger.
Either stable or improve.
Speaker 9: Okay, thank you for that, Paolo. I want to ask a couple more quick ones on sort of the direction of business over the next couple quarters. Volumes were down 17% in third quarter. It sounds like you're anticipating volumes to improve in the fourth quarter. I'm curious if you think a million tons a quarter is sort of the right number to be thinking about for fourth quarter and entering 2024, and then if there's any regional comments.
Okay. Thank.
Thank you for that power.
I wanted to ask a couple more quick ones on just sort of the direction of a business over the next couple of quarters volumes were down 17% in third quarter. It sounds like you're anticipating volumes to improve in the fourth quarter I'm curious, if you're sick a million tons a quarter is sort of the right.
Number to be thinking about for fourth quarter and entering 2024.
And then if there's any regional comments around that.
Speaker 3: Yeah, you're right. I mean, this is what we expect. The situation in Argentina may influence some of the decision on the pipeline and moving this in time between the different quarters. But basically, we are in the range that you mentioned. This is what we expect in the coming.
Yeah, you're right I mean, this is where what we.
Expect that.
The destitution.
<unk> <unk>.
Some of the decision on the pipe Lionet and moving these in time between these in in quarters.
But basically.
Where where in the rain that you mention this is what we expect.
In the coming quarter.
Speaker 9: Okay, great. And then the other one was just related to profit per ton. You know, the guidance of 25 to 30% or so for the fourth quarter would suggest your
Okay, Great and then the other one was just related to profit per ton you know the guidance of 25% to 30% or so for the fourth quarter would suggest your maybe.
Speaker 9: maybe over $800 a ton of EBITDA. The long-term average has been around 500 and there's another company out there saying the normalized price or average margin is 500. Do you think you can maintain this 800 and why do you think it would be better than the long-term average?
Maybe over $800 a ton of EBITDA.
The longterm average has been around 500, and there's another company out there, saying the normalized price or average margin is 500 do you think you can maintain is 800 and why do you think it would be better than the long term average.
Well I I think that the.
Speaker 5: It was being structural change.
That has been a structural change.
Speaker 5: both on the side of the market and on the positioning of Tenaris in this market.
Both on the side of the <unk> <unk>.
And then on the positioning of denarii.
These market.
Today.
I think the the relevance.
Off of the.
Speaker 3: activity and investment in the U.S.
The activity and investment in <unk>.
Eh.
Speaker 5: much more accessible.
Is much more accessible Fulton attics, we have deployed what acid in the last five years, especially with you and we started with our investment in the states in 2007 on a substantial way.
Speaker 3: last five years especially, but even we started with our investment in the States in 2007.
Speaker 5: And this is positioning. Tenaris is very different in a very important area of oil and gas.
And they said is positioning.
<unk> very different entry in a very important area for oil and gas.
Speaker 5: So we are, in this sense, structurally different. We are also structurally different because of the expansion of the differentiated product and services. The RIG Direct is giving us additional margin, in my view, and in my view, we can defend the differentiation.
Market. So we added in dissent structurally different we're also structurally different because of the expansion of the differing shaded product and services the league data.
Giving an addition on the managing.
Maybe we can defend the differentiation coming from the league David eight and the level of service that we are adding it to our proposal delivered and this was not the situation five years ago, we progress it over time.
Speaker 5: coming from the Rigdivrate and the level of Service.
Speaker 5: that we are adding to our problems delivery. This was not the situation five years ago. We progress over time.
Speaker 5: Also, our positioning in the Gulf, the Middle East is substantially different today with the investment in Saudi Arabia, the New Plant.
Also our positioning in.
And the golf Middle East a substantially different in today with the investment in Saudi Arabia, the new plan.
Speaker 5: Yeah, I mean, it's the.
Yeah <unk>.
The.
Speaker 5: positioning of the null ist es Ooh! So the combination...
Let's say the positioning of tenacity has changed so the combination.
Speaker 5: of the change in the market because, you know, the concentration will also help, the concentration of oil producers and the international oil company, to some extent is favouring
Offer.
They change into Mad because he lives in at all the concentration will also help.
Concentration avoid produce and internationally company.
To some extent is favoring it.
Speaker 5: producer like Tenaris that has an established global footprint and that are, let's say, having standard.
Producer liked anatidae that has.
Demolition global footprint.
And the.
Let's say having stand out of this.
Speaker 5: quality to safety, to environment, that fit with the demand of international company. Also this is introduced in my view, a structural change that justifies the level of margin higher than the level of margin that is the average of the last ten years.
Quality to safety to environment that fit with the domain of internationally company also visa introduce you may view of structural change that justify.
<unk> have a margin higher than the level of managing that.
<unk> the last 10 years.
Thank you very much.
Speaker 1: Thank you. One moment for our next question, please.
Thank you one moment for our next question. Please.
Speaker 1: All right, and he comes from the line of Luke Le Moyne with Piper Sandler.
Alright any comes on the line up Luke Lemoyne with Piper time there.
Speaker 9: Just one question with your Rick Direct program in the US. You have pretty good insight into some of the larger operators programs.
Good morning, just one question with your redirect program in the U S. You know pretty good insight into some of the larger operators programs.
Speaker 9: want to see if you could comment on how you see future activity unfolding over the next three to six
Wanted to see if you could comment on how you see future activity unfolding over the next three to six months.
Speaker 5: Thank you, Luca. I think, Luca, you can...
Thank you Luka.
<unk> yeah.
Speaker 6: Yes, sure. And, bonnie, Leo. As I was saying before, we see activity increasing from the current levels. And when we look at, let's say, a large portion of either our recastumers or customers.
Yeah sure of this and.
Bonemeal.
What I'm, saying before we see activity.
<unk> from the current level, Sir and when we look at that's a large portion of either the rec hospital muscle customers.
Speaker 6: prospects or that we are in a relationship. We see this going up and our, let's say, estimation of this activity increase is very much in line with what the drillers that already hold
<unk>, we are in a relationship but we see these going up <unk>.
<unk>, let's say estimation of these activity increases very much in line with what the the alias that's already hold the.
Uhm sorry.
Speaker 6: So, their early school, I have said, we see activity moving up, five, six percent from current levels into first world of 2024. This is what we're saying.
Sorry, their earnings call I have to say that we see activity moving up five 6% of for my current level.
<unk> to first world over 2024 these days, what what we're saying.
Okay was perfect. Thanks, so much.
Speaker 1: Thank you. And as a reminder, to ask a question, simply press star 11 on your telephone. One moment for
Thank you and as a reminder to ask a question simply press Star one one on your telephone.
One moment for our last question. Please.
Speaker 1: It comes from the line of David Anderson with Barclays.
It comes from the line of David Anderson with balconies.
Speaker 10: Hi, good morning. So if we assume that the US recount bottoms here in the next month or so, can you talk about how you see volumes trending over the next 12 months? Middle East continues to ramp up, as you highlighted, Saudi and UAE. Offshore should be focused speed by mid-year. I would think volumes in the second half of 24 should be up quite a bit compared to the second half of this year, perhaps even up double digits. Am I thinking about that trajectory, right, in terms of how you're seeing the market development for volumes?
Hi, good morning, So if we assume that the recount and you want to become problems here in the next month or so can you talk about how you see volumes training in the next 12 months.
Middle East continues to ramp up as you highlighted Saudi and you AE offshore should be put up to speed by mid year, I would think volumes and the tech nap of 24 should we have quite a bit compared to the second half of this year, probably about a double digits am I thinking about kind of that trajectory right in terms of how you have you seen the market at all from a poor volumes.
Speaker 5: Thank you David. I think it's difficult to guide expectation for such a long, distant future, because the world is moving on.
Thank you David I think.
Mmm difficult to guide the expectation for such a long distant.
In the future because of the world is moving a it's a factor on different aspects that are conflict around the and there are issues that are really out of our control.
Speaker 5: fast on different aspects. There are conflicts around and there are issues that are really out of our control. We can perceive and we can see our horizon in the next couple of quarters, that is the one that we are trying to represent. It is difficult to understand for us where we could be in the second part of 2021.
We can perceive and we can see our eyes on in the next couple of quarter that he's the one that we are trying to represent.
Difficult to understand for us where we could be in the second part of 2024, probably.
Speaker 3: Probably
They <unk>.
Speaker 5: The area on which we can have a medium term is the area of offshore projects that are, let's say, possibly more stable.
The area in which we can have a medium term is.
<unk> <unk> <unk> <unk>.
That let's say throw a possibly more stable.
Speaker 5: over time, once they are decided they go. Gabriel, maybe in this sense you can add some comment on what you see for the second part or the medium-term.
Over time last out of decided they go.
Maybe in the sense, who can add some comment on what you see for the second part.
Medium term, it's eight four.
Speaker 7: Sure Paulo, good morning David. Indeed the offshore drilling continues to increase. The number of rigs that we have operating today globally in the offshore are even increasing the pre-pandemic levels, both in shallow water and deep water.
<unk> good morning Baby Indeed, the offshore drilling continues to increase the number of reasons that we have operating today globally.
In the off shore or even increasing the pre pandemic live with both in shallow water in deep water.
Speaker 7: So every discussion that we have with our customers, FID projections, capital projections, indicates that this is a multi-year cycle. The activity is robust and we continue to grow. The restriction virtually in all offshore basings along the world.
So every discussion that we have with our customers if I D projections carpet projections indicate.
That is M. Once a year cycle.
The activities robust and we continue to to grow the restructuring virtually an order offshore bases around the world.
Speaker 7: And as a matter of fact, Senadi has already benefited from this growing.
As a matter of fact.
How do you have already you benefit.
It's going to be as growing trend if you can either.
Speaker 7: as we are closing November and December shipments, but our sales revenues in 2023 will be at least 50% higher year-on-year at 2022. So this is already a trend that is embedded in.
How do we are closing in November and December shipments, but I would've saved revenues in 2023 will be at least 50% higher year on year 2022. So there is already a trend that is embedded in that.
Speaker 7: sales in 2023 and we see this continuously increasing. We have seen during the quarter also some signs of increased activity in the exploration. This is an important niche for us and we have some awards on exploration campaigns in Egypt, Mongola, offshore Colombia as well. So we have a strong backlog in offshore, mainly on the development.
Faced into it between the three we see visa continuously increasing we have seen during the quarter, but also some signs of increased.
Activity in exploration. These are important niche for us and we had some awards on exploration campaigns in Egypt and Angola.
<unk> Columbia as well so we have a strong bug look sure mainly on the development of.
Speaker 7: With the Liberals into 2024 and some of these projects will even arrive to the Liberals into 2025.
<unk> pipeline.
Deliveries into a 2024 and some of these projects will even.
Arrived two deliveries into 2025.
Speaker 7: We see this as the early part of a multi-year cycle. And I think our acquisition of the coating facility.
Let me see <unk> of the early by the early part of a multiyear cycle and I think I'll work with you shall recording facility.
Speaker 7: in Italy and the announcement of the Chocor voting division is a sign of our confidence on this segment where we already have a differentiated portfolio and have an established position. So we see that
<unk> <unk> Bolting Division.
Is a sign overconfidence.
On the segment, where we already have a differentiated portfolio.
How 'bout, an established procedure, so we see that.
Speaker 5: This will be an ongoing contribution within the portfolio. Thank you, Gabriel. Still, let me add, we have some caveats. The situation in the world is exposed to...
These will be <unk> ongoing contribution within the portfolio.
Yeah. Thank you, but I will still letting me either.
We have some caveat.
Division of.
The.
Exposed to.
Very different.
Speaker 5: should come, that could come out, disruption I would say that would come out, you know, the price of LNG globally.
You should be coming to that could come out disruption I would say that will come out.
Price of LNG good old Buddy.
Speaker 5: continue to be influenced by the situation in Europe , price of oil may be influenced also by the situation in Middle East. Our operation also, for instance, in the Eastern Mediterranean Sun Oils project has been cancelled. In general, also in Latin America election year.
Continue to be influenced by the situation in Europa price of oil may be influenced also by the situation in the middle East at our operation and also for instance, indecent material incentives bloated.
Canceled.
<unk> also in Latin America Exxon ear.
Speaker 5: Mexico, now in Argentina. So.
Mexico now in Argentina so.
Speaker 5: The overall view is the one that we expressed. But we need to consider the potential for disruption that is for sure something that exists in 2024.
The overall review the one that we expressed it.
We need to escaping into consideration that the potential for these Russian that he's for sure something that existed in 2012.
24.
Speaker 10: Very much understood, Paolo. One final question as it relates to the buyback that you announced today. Is this targeting just the open float of shares, or will the closely held shares be participating in the buyback as well?
[noise] very much understood Paolo one final question as it relates to the the buyback that you announced today is this targeting just the open floated shares or will be closely held chairs be participating in the buyback as well.
Speaker 5: I don't know, I mean, we launched the program having in mind the return that we can get from our cash by investing in the company compared to the investment we can get by managing the liquidity. This is...
Oh, I don't know I mean, the the the we announced the program at.
Having in mind the return that we can give to from our cash by investing in the company.
Compared to the investment we can get to by managing the liquidity.
Key factor for the decision.
Speaker 5: As I mentioned, we will have an intermediate bank.
As I mentioned now we will.
Have an intermediate bank too.
Speaker 5: perform the acquisition in the coming coming for quarters starting next week, probably.
Therefore, Monday the acquisition into coming coming.
Quarter, starting next week go over there.
Speaker 5: And we will see. I don't think we can add the smoke on this.
And we will see I don't think we can add the swollen do sir.
Okay. Thank you very much <unk>.
Speaker 1: Thank you. And we have time for one more question. One moment please.
Thank you and we have time for one more question one moment please.
Speaker 11: And it comes from the line of Jamie Franklin with Jeffreys. Hi there, thank you for taking my question.
Any comes from the line of Jamie Franklin with Jeffrey.
Oh, Thank you for taking my question.
I was just wondering if you could give us any color on topics plans for 2000 to 24 25.
B N b.
Second investment in wind farm.
Speaker 11: which is great to see. Beyond that, should we be expecting further bolt-on M&A?
Tina which is great to see.
Should we be expecting.
And.
Speaker 11: looking and what about the possibility of adding theme
<unk> would you be looking and what about the possibility of adding seamless capacity internationally.
One option. Thank you.
Speaker 5: Thank you, Jamie.
Thank you Ah Jamie.
Speaker 5: We will be spending in CapEx in the range of 350 million in the first semester of 2024 and we plan to spend a similar amount in the second half, so we are running at a pace of around 700 million in CapEx.
Oh, what are we will be expanding in capex in the range of 350 million in the first semester of 2024 and.
And we plan to spend it.
See me that amount in the in the second half so we're running at a pace of around 700 million man.
In Capex.
Speaker 5: We have, among our investment, investment, as you mentioned, in the wind farm in Argentina. The wind farm in Argentina, we completed the first one in line with our budget, more or less, with very small budget.
We have a manga where investment.
Investment as you mentioned in the in the wind fire I mean, Argentina.
Wind farm in Argentina, we completed the first one in line with our budget more or less we very small difference.
Speaker 5: We consider that this is an area in which
We can see the that <unk>.
Speaker 5: It's the first priority for the carbon-eyes in the scenarios, because we can do it in very effective conditions and very competitive conditions. We will continue with the development of this second wind farm.
The first priority for the <unk> said, because we can do that in very effective condition and very competitive conditional week will continue with the development of the second.
Speaker 5: Then we have intervention in improving...
In fact.
Then we have an.
Intervention in it.
Improving our.
Speaker 5: in Argentina and improving our operation in this shop, reducing also.
<unk>, improving our operation and this deed shop.
Reducing also.
Speaker 5: our energy consumption goes in the same direction and add to improve operational condition.
Our energy consumption that goes in the same direction and add let's.
Let's say improve operational conditions, what are what are we also have an investment in an hour.
Speaker 5: We also have investment in our operation in Dalvin and in the U.S. in our e-shopping corp. So these are basically the issues that are, let's say, receiving investment of, let's say, relevant size.
<unk> and in the <unk>.
<unk>.
The shopping cart.
Basically.
Each with their ardor.
They'd say.
Early seeding investment.
Of let's say 11 size.
Then we will have to.
Let's say to consolidate the acquisition of <unk>.
Speaker 5: Once we receive the antitrust clearance, if this goes on, maybe that this will require, say,
<unk>.
Once we receive the antitrust <unk> goes on maybe that with these when did acquire.
Eh.
Speaker 5: Add this short investment or consideration for this, like we cannot.
Additionally, investment or consideration for these.
That we cannot predict.
No.
Speaker 5: I think these are the main areas. We do not see, after the opposition of the Republic...
I think <unk>.
They may need we do not see up after the additional republica.
Speaker 5: specific target or areas for our MNA, but we as always are analyzing and considering our strategic positioning in every region of the world. Tenarity is a global player, it's leader. Why that has to maintain, let's say, an exercise of...
Specific.
Target or <unk> for our M&A, but <unk>.
Rising and considering our strategic positioning inevitably region of the world and that he sees a global player is leta.
Why that and has to maintain at.
Let's say.
<unk> is open at 830.
Speaker 5: strategic focus in all of the region in which we operate to understand how we can strengthen structurally.
<unk> <unk> and <unk> to understand how we can.
Ranked and structurally position.
Speaker 5: but for the time being we have nothing so relevant to consider.
Position, but for the time being we have nothing.
Even to consider.
Alright, thank you.
Speaker 1: Thank you. And ladies and gentlemen, this concludes the question and answer period. I would like to turn the call back to Giovanni Sardegna for his closing comment.
Thank you ladies and gentlemen at this concludes the question and answer period I would like to turn to call back to you of any size diet for his closing comment.
Speaker 2: Thank you, Carmen, and, well, thank you all for joining us on our quasi-call, and we'll see you soon.
[noise], Thank you Carmen and well. Thank you all for joining us on a course of the call and we'll see you soon thanks.
Speaker 1: Thank you, ladies and gentlemen, for your participation. And you may now disconnect.
Thank you, ladies and gentlemen for your participation in you may now disconnect.
Mmm.
[music].