Tenaris (TEN) Investor Update summary

Strategic Positioning and Market Outlook

• Maintains a leading role in the global energy sector, with pipes as a critical component for oil and gas infrastructure and energy transition projects.

• Global energy demand is projected to rise, with oil and gas maintaining over 50% share of primary energy through 2050, and gas gaining a larger share as renewables grow rapidly.

• Sees stable to growing CapEx needs due to higher decline rates in oil and gas fields, requiring more wells and drilling.

• Holds a unique global footprint, operating in 15 countries with integrated manufacturing and centralized supply chain management.

• Sustained investment in oil and gas production is necessary to prevent sharp declines in output, as new resources and projects are required to meet future demand.

Innovation, Product Portfolio, and Service Integration

• Invests $600–$700 million annually in modernization, automation, and digitalization, with advanced plants like Bay City and new Consteel furnaces.

• Drives industry standards with proprietary R&D, including 180 ongoing product development projects and strategic alliances for advanced materials.

• 70% of global OCTG sales are under the Rig Direct model, providing integrated, just-in-time delivery and digital traceability.

• Offers a comprehensive range of products and services for demanding applications, including high-alloy grades, premium connections, and solutions for both onshore and offshore markets.

• Service integration includes Rig DirectⓇ logistics, digital well monitoring, and project management for offshore pipelines.

Regional Market Dynamics

• U.S. and Canada remain central, with high market penetration and strong relationships with major operators; Rig DirectⓇ enhances capital efficiency and well integrity.

• Offshore and Middle East markets are robust, with high technical complexity and local content requirements driving long-term agreements and investments; Tenaris is expanding local content and service offerings in Saudi Arabia and Abu Dhabi.

• Latin America shows high market share but mixed activity; Argentina's Vaca Muerta and Brazil's offshore developments present significant future opportunities, while Guyana grows and political uncertainty affects other markets.

• Offshore investment is rising, with new technologies enabling deeper projects and integrated project management services for pipelines.

• High OCTG imports in North America impact inventories and prices.