Tenaris’s YTD returns compared to the industry
Tenaris SA’s (TS) YTD (year-to-date) returns were 12.3% until March 13, 2018. Tenaris has outperformed crude oil prices YTD, which have remained nearly unchanged since the beginning of the year until March 13, 2018. During this period, Tenaris has outperformed the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XLE, which represents companies in the US oil and gas exploration and production space, has decreased 6% YTD. XES, an ETF that tracks an index oilfield equipment and service providers’ stocks, has declined 9.8% YTD.
Tenaris’s stock price is near its YTD high of $36.96, which it attained on March 9.
How did Tenaris perform in 2017?
From 2016 through 2017, Tenaris’s revenues increased 23%. The company’s reported net income rose significantly (813%) from 2016 to 2017. While Tenaris’s 2017 revenues increased due to higher sales in the US, Canada, Colombia, Thailand, and Saudi Arabia, its operating income benefited from higher volumes and better absorption of fixed costs. Tenaris’s 2017 income was also boosted by gains from selling discontinued operations and a tax benefit due to the reduction in tax rates in Argentina and the US.
Tenaris saw negative free cash flows in 2017 due to a negative cash flow from operations in 2017. Tenaris’s net debt increased in 2017 due to higher current borrowings and lower cash and equivalents.
Next, we’ll discuss the short interest in the top-performing OFS stocks.