NEW YORK Tenaris SA hopes to increase its market share if a U.S. trade case filed against importers of oil country tubular goods (OCTG) goes in favor of the domestic industry.
"Naturally, we are looking at a case which is give or take accounting (for) about 25 percent of the size of the apparent demand. So it is a substantial quantity, and when and if the case was to go the industrys way, it is our expectation to ... perhaps capture an important piece of that," Tenaris North American-area manager Germán Curá said during a Nov. 7 conference call on the companys third-quarter earnings results.
Tenaris North America sales totaled $928 million for the three months ended Sept. 30, down 26.3 percent from $1.26 billion a year earlier amid lower pricing for commodity products.
"In North America our sale(s) have declined over the past few quarters due to changes in product mix and declining prices represented by the widely used Pipe Logix index," Tenaris chairman and chief executive officer Paolo Rocca said during the call. "The market continue to be affected by aggressive import of less differentiated products, but this should eventually slow down over time."
However, North American volumes continue to be strong for the Luxembourg-based pipe and tube maker due to increased drilling efficiencies.
"Now from a volume perspective, we continue to see the market ... in a very solid space of demand ... and we believe this is going to continue to be so, because the view is that we dont really believe that drilling efficiency has topped off," Curá said.
The company also continues to advance its $1.5-billion, 600,000-tonne-per-year seamless facility in Bay City, Texas (amm.com, Sept. 10).
"Meanwhile, we are making progress with our new mill in Bay City, for which we began site preparation and earth work in September, and recently concluded negotiations for the supply of the main equipment," Rocca said during the call.
Tenaris overall tube sales totaled 838,000 tonnes in the quarter, down 11.5 percent from 947,000 tonnes sold in the year-prior period, with seamless sales falling 4.4 percent to 614,000 tonnes from 642,000 tonnes and welded sales dropping 26.6 percent to 224,000 tonnes from 305,000 tonnes in the same comparison.
The company recorded net income of $314.3 million for the period, a 27.6-percent decrease from $434.1 million a year ago on sales that dipped 9.1 percent to $2.42 billion.