Tenaris completes Fourth and Last Tranche of its USD1.2 Billion Share Buyback Program

Rhea-AI Summary

Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) has successfully completed its USD1.2 billion Share Buyback Program. The program, which ran from November 5, 2023, to August 2, 2024, resulted in the purchase of 71,679,768 ordinary shares, representing 6.07% of the total issued share capital at the program's start. The fourth and final tranche, executed from June 17 to August 2, 2024, saw the acquisition of 19,452,939 shares for €278,698,899 (USD300 million). As of August 2, 2024, Tenaris held 53,900,466 treasury shares, accounting for 4.64% of its total issued share capital. The company intends to cancel the treasury shares purchased under this program in due course.

Positive

• Completed USD1.2 billion share buyback program
• Purchased 6.07% of total issued share capital
• Plans to cancel treasury shares, potentially increasing shareholder value

Negative

• None.

Insights

Financial Analyst

Tenaris's completion of its $1.2 billion share buyback program is a significant financial move that signals confidence in the company's future prospects. The repurchase of 71,679,768 ordinary shares, representing 6.07% of total issued share capital, demonstrates a substantial commitment to returning value to shareholders.

The program's execution over multiple tranches suggests a strategic approach to capital allocation. With 4.64% of total issued share capital now held in treasury, the planned cancellation of these shares could lead to a boost in earnings per share for remaining shareholders. This move may also indicate that management believes the stock is undervalued, potentially signaling a positive outlook for investors.

However, investors should consider the opportunity cost of this capital deployment versus alternative uses such as investments in growth initiatives or debt reduction. The market's reaction to this completed buyback will be important to watch in the coming days.

Market Research Analyst

Tenaris's share buyback program completion offers intriguing insights into the company's market positioning and strategy. The consistent execution across four tranches suggests a well-planned approach to capital management and shareholder value creation.

The timing and scale of this buyback may indicate management's perception of undervaluation in the stock market. It's worth noting that such a substantial buyback could potentially reduce stock liquidity, which might impact trading dynamics for investors.

From a broader perspective, this move aligns with a trend seen among many large corporations using excess cash for share repurchases. Investors should consider how this strategy compares to Tenaris's peers in the steel pipe manufacturing sector and whether it positions the company favorably in terms of financial flexibility and market perception.

LUXEMBOURG, Aug. 04, 2024 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) announced today the completion of the fourth and last tranche of its USD1.2 billion Share Buyback Program announced on November 1, 2023 (the “Program”).

During the fourth tranche, which ran from June 17, 2024, to (and including) August 2, 2024, the Company purchased a total of 19,452,939 ordinary shares for a total consideration of €278,698,899, or USD300 million.

During the Program, which ran from November 5, 2023, to (and including) August 2, 2024, the Company purchased a total of 71,679,768 ordinary shares, representing 6.07% of the total issued share capital at the beginning of the Program, for a total consideration of €1,108,668,602, or USD1.2 billion.

As of August 2, 2024, the Company held in treasury 53,900,466 ordinary shares, representing 4.64% of its total issued share capital.

Tenaris intends to cancel treasury shares purchased under the Program in due course.

Details of the above transactions are available on Tenaris’s corporate website under the Share Buyback Program Section https://ir.tenaris.com/share-buyback-program.

Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com

FAQ

How many shares did Tenaris (TS) buy back in its USD1.2 billion program?

Tenaris (TS) purchased a total of 71,679,768 ordinary shares, representing 6.07% of the total issued share capital at the beginning of the program.

When did Tenaris (TS) complete its share buyback program?

Tenaris (TS) completed its USD1.2 billion share buyback program on August 2, 2024.

What was the total value of Tenaris's (TS) share buyback program?

Tenaris's (TS) share buyback program had a total value of USD1.2 billion or €1,108,668,602.

How many shares did Tenaris (TS) purchase in the final tranche of its buyback program?

In the fourth and final tranche of its buyback program, Tenaris (TS) purchased 19,452,939 ordinary shares for a total of €278,698,899 or USD300 million.