Author: Gordon Platt
DR News

Tenaris, a manufacturer of seamless steel pipes for drilling oil and gas wells, has been a gusher in the depositary-receipt market this year. The company’s revenue and earnings have spurted as demand for its seamless pipes has increased due to higher drilling activity. Tenaris is the top-performing DR in the world so far this year, with a gain of more than 129% as of October 14, according to The Bank of New York.

The company is a constituent of the bank’s Argentina, emerging markets and Latin America ADR indexes. Based in Luxembourg, with roots in Italy, Tenaris is the holding company for a global organization that has manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico, Romania and Venezuela. It is the leading supplier of welded steel pipes for oil and gas pipelines in South America.

Demand for the company’s welded pipes is benefiting from pipeline projects in Brazil, where Petrobras is building the country’s gas-pipeline infrastructure, and in Argentina, where existing pipelines are being expanded to meet growing consumption of gas. Tenaris also makes steel pipes for boilers and other industrial applications. Its Canadian mill has experienced growing demand in the US from power-plant customers.

Most of the trading in Tenaris stock takes place in Milan and Buenos Aires. The Argentina-based Techint Group holds a 60% share. The company’s ADRs are listed on the New York Stock Exchange. JPMorgan Chase is the depositary bank for the ADR program.

Gordon Platt