Tubos Reunidos Group expects COVID-19 will wreak havoc on its operations this year. Noting that the oil and gas sector drive demand for seamless steel tubes, the company indicated there were 25pc fewer active rigs in the US at present.
However, the burgeoning upstream sector outside the US is experiencing a backlog compared to a year ago, meaning closing more contracts in the near-term will help the Spanish company remain competitive in the current uncertain climate.
Tubos Reunidos began 2020 with higher backlogs—46pc compared to the beginning of last year. Moreover, because the company diversified in various worldwide regions, its diminishing exposure to the US market has not been as detrimental.
The company’s net sales in 2019 rose by 17pc to €184.4mn ($314.9mn) from €342.5mn in 2018, while its Q4 2019 net sales decreased by 17pc to €72.9mn from €87.9mn. However, Tubos Reunidos’ net sales for the quarter increased by 5pc from €69.7mn during Q3 2019.
The tubes maker’s net income in 2019 totaled €41.5mn, rising by 20pc from €34.4mn a year earlier. During Q4 2019, its net income of €15.1mn decreased by 19pc from €18.7mn. However, net income was 261pc higher than its Q3 income of €4.2mn.
Its revenues in 2019 reached €41.5mn, up 20pc from €34.4mn in the previous year. In Q4 2019, it achieved €15.1mn, down from €18.7mn during the same quarter in 2018, but substantially higher than €4.2mn in Q3 2019. The company’s EBIT in 2019 was €51.3mn, up from €31mn a year earlier. Its Q4 2019 EBIT of €30.4mn increased over its €19.4mn Q4 2018 EBIT, and was higher than the €3.5mn EBIT in Q3 2019.
(€1 = $1.106)