Tenaris S.A.

Good day and thank you for standing by. Welcome to the fourth quarter Tenatis Essay Earnings Conference Call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star one one again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Giovanni Sardagna, Investor Relations Officer. Please go ahead.

Thank you, Gigi, and welcome to Tenaris 2025 Fourth Quarter and Annual Results Conference Call. Before we start, I would like to remind you that We will be discussing forward-looking information during the call, and that our actual results may vary from those expressed or implied during the call. With me on the call today are Paolo Rocca, our chairman and CEO, Carlos Gomez-Alzaga, our chief financial officer, Gabriele Pozzusca, our chief operating officer, and Guillermo Moreno, president of our U.S. operations. Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results. During the fourth quarter of 2025, sales reached $3 billion, up 5% compared with those of the corresponding quarter of the previous year, and 1% sequentially, as our sales to rig direct customers in the United States and Canada continue to show resilience, and in Argentina, we resume our fracking and coil tubing services. Our ABDA for the quarter was down 5% sequentially to $717 million, or 24% of sales. These results include the full impact of the 50% Section 232 tariffs in the U.S. Average selling prices in our tube operating segment decreased by 1% compared to the corresponding quarter of last year and were flat sequentially. During the quarter, cash flow from operation was $787 million. Our net cash position at the end of the quarter decreased to $3.3 billion following the payment of an interim dividend of $300 million in November last year, $537 million spent on share-by-packs, and capital expenditure of $123 million during the quarter. The Board of Directors has decided to propose for the approval of the Annual General Shoulders Meeting to be held at the beginning of May the payment of an annual dividend of $0.89 per share or $0.178 per ADR, which includes the interim dividend of $0.29 per share or $0.58 per ADR that we paid at the end of November of last year. If approved, a dividend of $0.60 per share or $0.120 per ADR will be paid on May 20, up 7% compared to the dividend per share of the corresponding period of the previous year, thanks to the benefit of our Buy Back program. Now, I will ask Paolo to say a few words before we open the call to questions.

Thank you, Giovanni, and good morning to all of you. 2025 was a year in which Tenaris demonstrated the resilience of its operation in the face of a disruptive geopolitical environment and lower activity in key markets. Thanks to our extensive geographical presence, the depth of the service we offer to our customer, and the commitment of our employees, we were able to respond rapidly to the various situations we faced. Our results remained remarkably stable through the year, which we completed with an EBITDA of $2.9 billion and a net income of $2 billion on net sales of $12 billion. Free cash flow amounted to $2 billion, all of which were distributed to shareholders through dividend and share buybacks. We are proposing a further increase of the annual dividend per share of 7% over that for the previous year. At the same time, we maintain a net cash position of $3.3 billion. In the US and Canada, The year was marked by further oil and gas industry consolidation and productivity improvement. A lower recount and the extension of Section 232 tariff to the import of all steel products, including the steel bars we require for our seamless pipe operations by city, and their subsequent increase to 50%. In this environment, Tenari raised the performance of its U.S. production and supply chain system, with its coupled steel shop, main pipe production plants at Bay City, at Hickman, and Enbridge, and various pipe processing facilities acting in concert to achieve a record level of production and supply, 90% of our USA. In both the U.S. and Canada, we strengthened our market position and extended the differentiation we offer under our redirect service model. As customers targeted operational efficiency, we continue to develop and roll out our run-ready and well-integrated services that support them by increasing safety and reliability at the well side. Major oil and gas companies are seeking new production reserves to meet a more resilient long-term demand outlook. And they're looking beyond the shale with their faster decline curves to deep water development and exploration in frontier region. Tenaris with its capacity to develop product for complex operation and to support fast track development with service and the supply of advanced coated lion pipe solution at scale is working with most of these companies as they develop such projects. As new offshore projects are sanctioned around the world, we see many opportunities to renew our order backlog while we execute on existing commitments. Currently, we are delivering casing for Shell's Sparta 20K project in the U.S. deepwater, extending our services for ExxonMobil's operation in Guyana, and preparing a service base for Total Energy's Grand Morgue development in Suriname. while planning the production of seamless and welded lime pipe and coating for the third phase of TPAO Sacarja gas development in the Black Sea. In Latin America, the Mexican government is taking steps to address the financial difficulties of Pemex, which took a toll on oil and gas drilling activity in the country last year. While in Argentina, domestic companies have been able to raise more than $4 billion in financing to develop infrastructure and expand production and operation in the Vaca Moerta shale. We supply the Vaca Moerta sewer pipeline and are currently supplying the Duplica Norte pipeline. We are also investing to expand our new fracking and coil tubing service business and expect to put a third set of equipment to work before the end of the year. In Venezuela, following the intervention of the U.S. government, we are resuming our service to Chevron operations and building up our service capability in the country to support an increase in drilling activity. In the Middle East, we continue to consolidate our presence with the award of a long-term agreement for the supply of OCTG to the Northwest Field Development in Qatar, while in the Emirates, we enhance our redirect service to Atenoc, delivering a record amount of OCTG. Saudi Arabia also conventional drilling activity was reduced during the year. We completed an expansion at our local large diameter facility from which we are supplying line pipe for the development of gas infrastructure. In addition to the OCTG, we supply for Aramco drilling operation. Our global integrated industrial and supply chain operation have been key to our ability to respond effectively to the different events we face during the year. We continue to invest in enhancing the efficiency and digital integration of these operations, as well as reducing their environmental impact. We made further progress toward our mid-term target of reducing the carbon emission intensity of our operations, as we brought our second wind farm in Argentina into operation. The two wind farms now supply essentially all of the energy requirements for our electric steel shop and operation in Canada. As an industrial company, our commitment to the safety of our employees and to the environment sustainability in our communities is absolute. Also, our indicators have improved this year. We continue to reinforce our preventive action and monitor our performance in disaster. Daenerys, with its presence across the world, competitive differentiation in product and service, the quality and compliance of its operation, and the financial strength to support its strategy remains well-placed to confront an unpredictable and volatile future. I would like to thank all our employees and the communities who sustain our operation for their constant commitment and engagement that have made possible our results and achievements this year. I would also like to thank our customer and our supplier for their ongoing trust and support. Thank you very much, and we are open to any questions you may have.