FORM 6 - K

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

 

 

As of 15 February, 2023

 

TENARIS, S.A.

(Translation of Registrant's name into English)

 

26, Boulevard Royal, 4th floor

L-2449 Luxembourg

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

 

Form 20-F Ö  Form 40-F___

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.

 

Yes ___ No  Ö   

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__.

 

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains Tenaris’s Press Release announcing 2022 Fourth Quarter and Annual Results.

 

 

 

SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Date: 15 February, 2023

 

 

Tenaris, S.A.

 

 

 

By: /s/ Cecilia Bilesio

Cecilia Bilesio

Corporate Secretary

 

 

 

 

Giovanni Sardagna

Tenaris

1-888-300-5432

www.tenaris.com

 

 

Tenaris Announces 2022 Fourth Quarter and Annual Results

 

The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

 

Luxembourg, February 15, 2023. - Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2022 with comparison to its results for the fourth quarter and year ended December 31, 2021.

 

Summary of 2022 Fourth Quarter Results

 

	4Q 2022				3Q 2022								4Q 2021
Net sales ($ million)		3,620				2,975				22	%			2,057				76	%
Operating income ($ million)		1,013				803				26	%			273				271	%
Net income ($ million)		803				608				32	%			336				139	%
Shareholders’ net income ($ million)		807				606				33	%			370				118	%
Earnings per ADS ($)		1.37				1.03				33	%			0.63				118	%
Earnings per share ($)		0.68				0.51				33	%			0.31				118	%
EBITDA ($ million)		1,269				946				34	%			483				163	%
EBITDA margin (% of net sales)		35.1	%			31.8	%							23.5	%

 

In the fourth quarter of 2022, our sales rose sequentially 22%, driven by further increases in shipments and realized prices in most regions. Our quarterly EBITDA continues to grow with the margin rising to 35%, despite higher raw material and energy costs. Our operating income, which included $77 million in impairment charges on certain idle assets and some small cash generating assets, amounted to $1,013 million. Shareholders’ net income reached $807 million, or 22% of net sales.

 

Our free cash flow for the quarter increased to $416 million after capex payments of $108 million and our operating working capital days declined to 128. After a dividend payment of $201 million in November 2022, our net cash position increased to $921 million at December 31, 2022.

 

Summary of 2022 Annual Results

 

	12M 2022				12M 2021				Increase/(Decrease)
Net sales ($ million)		11,763				6,521				80	%
Operating income ($ million)		2,963				708				319	%
Net income ($ million)		2,549				1,053				142	%
Shareholders’ net income ($ million)		2,553				1,100				132	%
Earnings per ADS ($)		4.33				1.86				133	%
Earnings per share ($)		2.16				0.93				132	%
EBITDA ($ million)		3,648				1,359				168	%
EBITDA margin (% of net sales)		31.0	%			20.8	%

 

In 2022, our net income reached a record high while our net sales and EBITDA were close to the all-time highs recorded in 2008 just prior to the global financial crisis. Our results rose strongly throughout the year and reached record quarterly levels in the fourth quarter. The increase in sales reflect the strong recovery of oil and gas drilling activity in the Americas, a more delayed recovery in Eastern Hemisphere activity, which is now picking up steam, and the solid contribution of the great majority of our market and product segments.

 

Operating margins expanded reflecting the higher prices realized on the sales of most of our products that have more than compensated for higher raw material and energy costs and a good industrial performance with increased levels of activity and utilization of production capacity.

 

Net income more than doubled compared to 2021, despite a much lower contribution from our non-consolidated companies and higher income taxes.

 

Operating cash flow for the year amounted to $1,167 million after accounting for a $2,131 million build up in working capital to support the higher level of sales and the ramp up of our industrial system. After capital expenditures of $378 million and dividend payments of $531 million during the year, our net cash position increased to $921 million at the end of the year.

 

Market Background and Outlook

 

In an environment where geopolitical and macro-economic risks as well as inflation remain high, global economic prospects have improved following the fall in energy prices in Europe and the reversal of China’s COVID lockdown strategy. Conditions remain in place for a further increase in investment in the energy industry, with low levels of spare capacity, the implementation of further sanctions on Russian exports and a renewed focus on energy security around the world.

 

Drilling activity increased during 2022 and, although it has plateaued in North America as we enter 2023, it continues to increase in the Middle East and offshore regions. Global demand for OCTG in 2023 is expected to reach its highest level since 2014. Pipeline activity is also advancing to support oil and gas developments, notably in Argentina and the Middle East.

 

For the first half of 2023, we expect our sales and EBITDA to show a further increase as we continue to ramp up production in North America and increase shipments to pipeline projects. The pricing momentum we saw over the last year is levelling out and we expect that margins will remain close to the current level. Cash flow from operations will increase and we expect to stabilize our working capital requirements by the second quarter.

 

Annual Dividend Proposal

 

Upon approval of the Company´s annual accounts in March 2023, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 3, 2023, the payment of dividends in an aggregate amount of approximately $602 million, which would include the interim dividend of approximately $201 million paid in November 2022. If the annual dividend is approved by the shareholders, a dividend of $0.34 per share ($0.68 per ADS), or approximately $401 million, will be paid on May 24, 2023, with an ex-dividend date on May 22, 2023 and record date on May 23, 2023.

 

Analysis of 2022 Fourth Quarter Results

 

Tubes Sales volume (thousand metric tons)		4Q 2022				3Q 2022								4Q 2021
Seamless			809				750				8	%			731				11	%
Welded			156				106				47	%			68				130	%
Total			965				856				13	%			799				21	%

 

Tubes		4Q 2022				3Q 2022								4Q 2021
(Net sales - $ million)
North America			2,105				1,761				20	%			1,118				88	%
South America			802				600				34	%			341				136	%
Europe			185				190				(3	%)			167				11	%
Middle East & Africa			303				234				30	%			209				45	%
Asia Pacific			70				46				51	%			75				(7	%)
Total net sales ($ million)			3,466				2,832				22	%			1,910				81	%
Operating income ($ million)			980				780				26	%			245				300	%
Operating margin (% of sales)			28.3	%			27.5	%							12.8	%

 

Net sales of tubular products and services increased 22% sequentially and 81% year on year. Volumes increased 13% sequentially and 21% year on year while average selling prices increased 9% sequentially and 50% year on year. In North America, sales increased 20% sequentially reflecting higher volumes for OCTG throughout the region and higher OCTG prices in the United States. In South America sales increased 34% sequentially, mainly due to the start of deliveries for a gas pipeline and higher OCTG sales in Argentina. In Europe sales decreased 3% sequentially due to a slight reduction in sales to distributors of mechanical and structural products. In the Middle East and Africa sales increased 30% reflecting higher sales of OCTG in the United Arab Emirates and higher sales of line pipe in Iraq and the Caspian area. In Asia Pacific sales increased 51% sequentially, due to higher sales in Indonesia and sales of casing to a geothermal project in the Philippines.

 

Operating income from tubular products and services, amounted to $980 million in the fourth quarter of 2022, compared to $780 million in the previous quarter and $245 million in the fourth quarter of 2021. Operating results of the quarter include a $63 million impairment charge on certain idle assets and some small cash generating units. During the quarter the operating margin increased following a 9% increase in average selling prices which more than offset higher energy and raw material costs.

 

 

Others		4Q 2022				3Q 2022								4Q 2021
Net sales ($ million)			154				143				8	%			147				5	%
Operating income ($ million)			33				23				42	%			29				16	%
Operating margin (% of sales)			21.4	%			16.2	%							19.4	%

 

Net sales of other products and services increased 8% sequentially and 5% year on year. Sequentially, sales and operating income improved mainly due to higher sales and results from our oil services business in Argentina which offers hydraulic fracturing and coiled tubing services. Operating results of the quarter include a $14 million impairment charge.

 

Selling, general and administrative expenses, or SG&A, amounted to $454 million (12.6% of net sales), compared to $403 million (13.6%) in the previous quarter and $338 million (16.4%) in the fourth quarter of 2021. While SG&A expenses increased sequentially, mainly due to higher logistic costs, taxes and labor costs, they declined as a percentage of sales.

 

Impairment charge. In December, 2022, we recorded an impairment of $63 million on our Tubes segment and $14 million on our Others segment.

 

Other operating result amounted to a $12 million loss in the fourth quarter of 2022, compared with $2 million loss in the previous quarter and $12 million gain in the fourth quarter of 2021.

 

Financial results were a gain of $36 million in the fourth quarter of 2022, compared with a $29 million loss in the previous quarter and $2 million gain in the fourth quarter of 2021. Results of the quarter are mainly derived from higher net interest income and positive net foreign exchange results.

 

Equity in earnings of non-consolidated companies generated a gain of $13 million in the fourth quarter of 2022, compared to $5 million in the previous quarter and $133 million in the same period of 2021. Quarter results are mainly derived from our equity investment in Ternium (NYSE:TX), Usiminas and Techgen, the Mexican power plant in which we hold a 22% equity interest.

 

Income tax charge amounted to $258 million in the fourth quarter of 2022, compared to $171 million in the previous quarter and $72 million in the fourth quarter of 2021. Taxes increased during the quarter due to the better results at several subsidiaries following the improvement in activity.

 

Cash Flow and Liquidity of 2022 Fourth Quarter

 

Net cash provided by operations during the fourth quarter of 2022 was $524 million, compared with $242 million in the previous quarter and $46 million in the fourth quarter of 2021. As activity continues to increase working capital continues to rise showing a $682 million increase during the quarter, driven by higher sales. Our operating working capital days declined to 128 at year end compared to 134 at the end of the previous quarter.

 

With capital expenditures of $108 million for the fourth quarter of 2022 ($129 million in the previous quarter and $69 million in the fourth quarter of 2021), during the quarter we had a positive free cash flow of $416 million.

 

Following dividend payments of $201 million during the quarter, our positive net cash position increased to $921 million at December 31, 2022.

 

Analysis of 2022 Annual Results

 

Net sales ($ million)		12M 2022								12M 2021								Increase/(Decrease)
Tubes			11,133				95	%			5,994				92	%			86	%
Others			630				5	%			528				8	%			19	%
Total			11,763								6,521								80	%

 

 

Tubes Sales volume (thousand metric tons)		12M 2022				12M 2021				Increase/(Decrease)
Seamless			3,146				2,514				25	%
Welded			387				289				34	%
Total			3,533				2,803				26	%

 

Tubes		12M 2022				12M 2021				Increase/(Decrease)
(Net sales - $ million)
North America			6,796				3,240				110	%
South America			2,213				1,051				111	%
Europe			867				622				39	%
Middle East & Africa			980				832				18	%
Asia Pacific			277				249				11	%
Total net sales ($ million)			11,133				5,994				86	%
Operating income ($ million)			2,867				613				368	%
Operating margin (% of sales)			25.8	%			10.2	%

 

Net sales of tubular products and services increased 86% to $11,133 million in 2022, compared to $5,994 million in 2021, reflecting a 26% increase in volumes and a 47% increase in average selling prices. Sales increased in all regions, mainly in North America where there was a recovery in volumes and prices throughout the region, led by the U.S. onshore market and in South America mainly due to higher OCTG sales in the region and deliveries for a gas pipeline in Argentina.

 

Operating results from tubular products and services, amounted to a gain of $2,867 million in 2022, compared to a gain of $613 million in 2021. Tubes operating income in 2022 is net of a $63 million impairment charge, while in 2021 it includes an impairment charge of $57 million. The improvement in operating results was driven by the recovery in shipment volumes and in prices and higher level of utilization of production capacity, which more than offset an increase in energy and raw material costs.

 

Others		12M 2022				12M 2021				Increase/(Decrease)
Net sales ($ million)			630				528				19	%
Operating income ($ million)			96				95				1	%
Operating margin (% of sales)			15.2	%			17.9	%

 

Net sales of other products and services increased 19% from $528 million in 2021 to $630 million in 2022, mainly due to higher sales of sucker rods, of our oilfield services business in Argentina which offers hydraulic fracturing and coiled tubing services and excess raw materials, partially offset by lower sales from the discontinued industrial equipment business in Brazil.

 

Operating results from other products and services, amounted to a gain of $96 million in 2022, similar to the $95 million gained in 2021. Results were mainly derived from our sucker rods business and our oilfield services business in Argentina, partially offset by $20 million loss related to our discontinued industrial equipment business in Brazil. The operating income for other products and services in 2022 includes a $14 million impairment charge.

 

Selling, general and administrative expenses, or SG&A, amounted to $1,635 million (13.9% of net sales), compared to $1,207 million (18.5%) in 2021. The 2022 increase in SG&A is mainly due to higher logistic costs, while they decrease as a percentage of sales.

 

Impairment charge, in 2022, we recorded a $77 million impairment: $63 million on our Tubes segment and $14 million on our Others segment, while in 2021 we recorded a $57 million impairment on our Tubes segment, as a result of the termination of the NKKTubes joint venture.

 

Other operating results amounted to zero in 2022, compared to a gain of $62 million in 2021. Results in 2022 include a $78 million charge from the settlement with the U.S. SEC, a $71 million non-cash gain from the reclassification to the income statement of NKKTubes’s cumulative foreign exchange adjustments belonging to the shareholders due to the cease of its operations and an $18 million gain from the sale of land in Canada after the relocation of the Prudential facility. The gain in 2021 was mainly due to a $36 million recognition of fiscal credits in Brazil and the profit from the sale of assets.

 

Financial results amounted to a loss of $6 million in 2022, compared to a gain of $23 million in 2021. 2022 financial loss includes a loss of $10 million related to the change in fair value of certain financial instruments obtained in an operation of settlement of trade receivables and a $30 million loss related to the transfer of Argentine sovereign bonds paid as dividend from an Argentine subsidiary to its shareholders.

 

Equity in earnings of non-consolidated companies generated a gain of $209 million in 2022, compared to $513 million in 2021. These results were mainly derived from our equity investment in Ternium (NYSE:TX). In 2022 they included $34 million impairment charges on our participations in the joint venture with Severstal ($15 million) and in Usiminas ($19 million).

 

Income tax charge amounted to $617 million in 2022, compared to $189 million in 2021, reflecting the improvement in results in several subsidiaries.

 

Cash Flow and Liquidity of 2022

 

Net cash provided by operations in 2022 was $1,167 million (net of $2,131 million used in working capital), compared to $119 million (net of $1,071 million used in working capital) in 2021.

With capital expenditures of $378 million, we had a positive free cash flow of $789 million in 2022, compared to a negative free cash flow of $120 million in 2021.

Following dividend payments of $531 million during 2022, our positive net cash position increased to $921 million at December 31, 2022.

 

Conference call

 

Tenaris will hold a conference call to discuss the above reported results, on February 16, 2023, at 09:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

To listen to the conference please join through one of the following options:

ir.tenaris.com/events-and-presentations or

https://edge.media-server.com/mmc/p/emnrvnrf

If you wish to participate in the Q&A session please register at the following link:

https://register.vevent.com/register/BI64374f61f04b4af9b05406336279305b

 

Please connect 10 minutes before the scheduled start time.

A replay of the conference call will also be available on our webpage at:

ir.tenaris.com/events-and-presentations

 

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.

 

Consolidated Income Statement

 

 

(all amounts in thousands of U.S. dollars)		Three-month period ended December 31,								Twelve-month period ended December 31,
		2022				2021				2022				2021
Net sales			3,620,210				2,057,164				11,762,526				6,521,207
Cost of sales			(2,063,969	)			(1,400,370	)			(7,087,739	)			(4,611,602	)
Gross profit			1,556,241				656,794				4,674,787				1,909,605
Selling, general and administrative expenses			(454,478	)			(338,050	)			(1,634,575	)			(1,206,569	)
Impairment charge			(76,725	)			(57,075	)			(76,725	)			(57,075	)
Other operating income (expense), net			(11,987	)			11,646				(212	)			61,548
Operating income			1,013,051				273,315				2,963,275				707,509
Finance income			37,756				5,845				80,020				38,048
Finance cost			(20,237	)			(6,851	)			(45,940	)			(23,677	)
Other financial results			18,127				2,591				(40,120	)			8,295
Income before equity in earnings of non-consolidated companies and income tax			1,048,697				274,900				2,957,235				730,175
Equity in earnings of non-consolidated companies			12,701				133,482				208,702				512,591
Income before income tax			1,061,398				408,382				3,165,937				1,242,766
Income tax			(258,226	)			(72,246	)			(617,236	)			(189,448	)
Income for continuing operations			803,172				336,136				2,548,701				1,053,318
Attributable to:
Shareholders’ Equity			807,318				370,034				2,553,280				1,100,191
Non-controlling interests			(4,146	)			(33,898	)			(4,579	)			(46,873	)
			803,172				336,136				2,548,701				1,053,318

 

Consolidated Statement of Financial Position

 

(all amounts in thousands of U.S. dollars)		At December 31, 2022								At December 31, 2021
ASSETS
Non-current assets
Property, plant and equipment, net			5,556,263								5,824,801
Intangible assets, net			1,332,508								1,372,176
Right-of-use assets, net			111,741								108,738
Investments in non-consolidated companies			1,540,646								1,383,774
Other investments			119,902								320,254
Derivative financial instruments			—								7,080
Deferred tax assets			208,870								245,547
Receivables, net			211,720				9,081,650				205,888				9,468,258
Current assets
Inventories, net			3,986,929								2,672,593
Receivables and prepayments, net			183,811								96,276
Current tax assets			243,136								193,021
Trade receivables, net			2,493,940								1,299,072
Derivative financial instruments			30,805								4,235
Other investments			438,448								397,849
Cash and cash equivalents			1,091,527				8,468,596				318,127				4,981,173
Total assets							17,550,246								14,449,431
EQUITY
Shareholders' equity							13,905,709								11,960,578
Non-controlling interests							128,728								145,124
Total equity							14,034,437								12,105,702
LIABILITIES
Non-current liabilities
Borrowings			46,433								111,432
Lease liabilities			83,616								82,694
Deferred tax liabilities			269,069								274,721
Other liabilities			230,142								231,681
Provisions			98,126				727,386				83,556				784,084
Current liabilities
Borrowings			682,329								219,501
Lease liabilities			28,561								34,591
Derivative financial instruments			7,127								11,328
Current tax liabilities			376,240								143,486
Other liabilities			260,614								203,725
Provisions			11,185								9,322
Customer advances			242,910								92,436
Trade payables			1,179,457				2,788,423				845,256				1,559,645
Total liabilities							3,515,809								2,343,729
Total equity and liabilities							17,550,246								14,449,431

 

Consolidated Statement of Cash Flows

 

		Three-month period ended December 31,								Twelve-month period ended December 31,
(all amounts in thousands of U.S. dollars)		2022				2021				2022				2021
Cash flows from operating activities
Income for the year			803,172				336,136				2,548,701				1,053,318
Adjustments for:
Depreciation and amortization			179,135				152,160				607,723				594,721
Impairment charge			76,725				57,075				76,725				57,075
Income tax accruals less payments			139,061				23,972				257,651				35,602
Equity in earnings of non-consolidated companies			(12,701	)			(133,482	)			(208,702	)			(512,591	)
Interest accruals less payments, net			(3,672	)			1,174				1,480				(11,363	)
Changes in provisions			7,164				(6,835	)			16,433				7,381
Reclassification of currency translation adjustment reserve			—				—				(71,252	)			—
Result of sale of subsidiaries			—				(6,768	)			—				(6,768	)
Changes in working capital			(682,115	)			(381,720	)			(2,131,245	)			(1,071,464	)
Currency translation adjustment and others			17,173				4,318				69,703				(26,836	)
Net cash provided by operating activities			523,942				46,030				1,167,217				119,075
Cash flows from investing activities
Capital expenditures			(107,646	)			(68,647	)			(378,446	)			(239,518	)
Changes in advance to suppliers of property, plant and equipment			(13,108	)			(655	)			(18,901	)			(5,075	)
Proceeds from sale of subsidiaries, net of cash			—				24,332				—				24,332
Acquisition of subsidiaries, net of cash acquired			—				—				(4,082	)			—
Investment in companies under cost method			—				—				—				(692	)
Proceeds from disposal of property, plant and equipment and intangible assets			1,690				8,380				48,458				22,735
Dividends received from non-consolidated companies			20,674				26,798				66,162				75,929
Changes in investments in securities			38,079				111,763				123,254				390,186
Net cash (used in) provided by investing activities			(60,311	)			101,971				(163,555	)			267,897
Cash flows from financing activities
Dividends paid			(200,658	)			(153,469	)			(531,242	)			(318,744	)
Dividends paid to non-controlling interest in subsidiaries			—				—				(10,432	)			(3,355	)
Changes in non-controlling interests			2,099				—				(1,407	)			—
Payments of lease liabilities			(13,560	)			(10,252	)			(52,396	)			(48,473	)
Proceeds from borrowings			161,785				267,970				1,511,503				843,668
Repayments of borrowings			(300,783	)			(446,728	)			(1,094,370	)			(1,121,053	)
Net cash used in financing activities			(351,117	)			(342,479	)			(178,344	)			(647,957	)
Increase (decrease) in cash and cash equivalents			112,514				(194,478	)			825,318				(260,985	)
Movement in cash and cash equivalents
At the beginning of the year			990,803				513,665				318,067				584,583
Effect of exchange rate changes			(11,883	)			(1,120	)			(51,952	)			(5,531	)
Increase (decrease) in cash and cash equivalents			112,514				(194,478	)			825,318				(260,985	)
At December 31,			1,091,434				318,067				1,091,433				318,067

 

Exhibit I – Alternative performance measures

 

Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

 

EBITDA, Earnings before interest, tax, depreciation and amortization.

EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

 

EBITDA is calculated in the following manner:

 

EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals)

 

EBITDA is a non-IFRS alternative performance measure.

 

(all amounts in thousands of U.S. dollars)		Three-month period ended December 31,								Twelve-month period ended December 31,
		2022				2021				2022				2021
Income for continuing operations			803,172				336,136				2,548,701				1,053,318
Income tax			258,226				72,246				617,236				189,448
Equity in earnings of non-consolidated companies			(12,701	)			(133,482	)			(208,702	)			(512,591	)
Financial results			(35,646	)			(1,585	)			6,040				(22,666	)
Depreciation and amortization			179,135				152,160				607,723				594,721
Impairment charge			76,725				57,075				76,725				57,075
EBITDA			1,268,911				482,550				3,647,723				1,359,305

 

Free Cash Flow

 

Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

 

Free cash flow is calculated in the following manner:

 

Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.

 

Free cash flow is a non-IFRS alternative performance measure.

 

(all amounts in thousands of U.S. dollars)		Three-month period ended December 31,								Twelve-month period ended December 31,
		2022				2021				2022				2021
Net cash provided by operating activities			523,942				46,030				1,167,217				119,075
Capital expenditures			(107,646	)			(68,647	)			(378,446	)			(239,518	)
Free cash flow			416,296				(22,617	)			788,771				(120,443	)

 

Net Cash / (Debt)

 

This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

 

Net cash/ debt is calculated in the following manner:

 

Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current and Non-Current).

 

Net cash/debt is a non-IFRS alternative performance measure.

 

(all amounts in thousands of U.S. dollars)	Year ended December 31,
	2022				2021
Cash and cash equivalents		1,091,527				318,127
Other current investments		438,448				397,849
Non-current investments		113,574				312,619
Derivatives hedging borrowings and investments		6,480				2,325
Current borrowings		(682,329	)			(219,501	)
Non-current borrowings		(46,433	)			(111,432	)
Net cash / (debt)		921,267				699,987

 

Operating working capital days

 

Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

 

Operating working capital days is calculated in the following manner:

 

Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365

 

Operating working capital days is a non-IFRS alternative performance measure.

 

 

(all amounts in thousands of U.S. dollars)	Three-month period ended December 31,
	2022				2021
Inventories		3,986,929				2,672,593
Trade receivables		2,493,940				1,299,072
Customer advances		(242,910	)			(92,436	)
Trade payables		(1,179,457	)			(845,256	)
Operating working capital		5,058,502				3,033,973
Annualized quarterly sales		14,480,840				8,228,656
Operating working capital days		128				135

 

 

 

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