Tenaris S.A. (NYSE:TS) Q4 2022 Earnings Call Transcript

Paolo Rocca: Thank you, Luigi. Well, on the first point is the evolution of prices in the U.S. As I was saying before, I think there are two different area of pricing. One is the area of the value-added product seamless, heat-treated material with semi premium or premium thread. This is a market in which situation will remain relatively tight. I don’t expect in an environment in which the number of wells drilled increase, I don’t expect, let’s say, to softening all these price. There could be a softening of price in the low-end product in the United States, wells in particular. But let’s say, if the price of oil support and the level of well drilled and drilling continue, this will basically depend from import level. Remember, import is also penalized by the 232 in many cases.

So even in this case, I think the softening should be contained. Cost impact I mean, the increase in hot-rolled coils, I don’t know — I mean, contributed to, in my view, contain April. Now the level of stock in the ground is still within, let’s say, a normal ratio, we don’t see stock overhang on the ground. So in this condition, that’s the reason that are suggesting that we shouldn’t be softening beyond a certain level. By the way, our system is less exposed to the low-end product in the United States. And so to some extent, in our accounting, I think we are relatively defended from softening of prices.

Luigi De Bellis: Thank you.

Operator: Thank you. I would now like to turn the conference back to Giovanni Sardagna for closing remarks.

Giovanni Sardagna: Thank you, Gigi. And well, if there are no other questions, I would like to thank everybody who joined us for the quarterly conference call, and we hope to see you soon. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.