Tenaris Completes First Segment of Share Buyback Program Worth €276.2 Million

Summary

  • Tenaris S.A., a globally recognized steel pipe manufacturer, has finalized the first segment of its share repurchase plan.
  • The initial tranche involved the acquisition of 17,779,302 ordinary shares at a total cost of around €276.2 million or $300 million.
  • The second section of the buyback program is expected to kick-off not earlier than February 26, 2024.
  • Tenaris, a chief supplier of steel tubes to the energy sector, intends to cancel all shares purchased under this program.

Details on Tenaris’s Share Buyback Program

Tenaris S.A. (NYSE:TS, Mexico:TS, EXM Italy:TEN), an international steel pipe production company, announced on Friday that the first portion of its share buyback program is complete. The company procured 17,779,302 ordinary shares at a total expense of about €276.2 million, equivalent to $300 million. This element of the buyback program commenced on November 6, 2023, and concluded on January 12, 2024.

The organization further clarified that the last week of procured shares, starting from Monday to the present day, encompassed multiple trading platforms including MTA, CEUX, TQEX, and AQXE. Within this duration, shares were purchased at weighted average prices between €14.85 and €15.35, with the exchange rate for purchases in U.S. currency averaging around 1.0979.

The Potential Increase in Value of Remaining Shares

Due to the share transactions, Tenaris presently has 1.51% of its total issued share capital in treasury. The company’s plan is to cancel all shares acquired in this program eventually. This measure is frequently employed to decrease the number of shares in circulation and potentially augment the value of the remaining shares.

Tenaris also announced that the next section of its share repurchase plan will begin no sooner than February 26, 2024, post the conclusion of its blackout period.

Tenaris’s Capital Allocation Strategy

The end of the initial phase of the repurchase plan underlines Tenaris’s capital allocation tactics and demonstrates its continuous endeavours to effectively administer its financial resources. Notably, some of Tenaris’s announcements in the press are considered forward-looking and are subject to various potential risks, including the changes in oil and gas prices that could influence other companies’ investment programs.

Consequently, Tenaris’s strategic financial operations could indirectly impact forex trading and related assets.

Tenaris is acknowledged as a top-tier supplier of steel tubes and correlated facilities to the energy industry and multiple industrial sectors globally. This data is extracted from a press release statement issued by Tenaris.

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