Global pipe producer Tenaris expects lower shipments in the Middle East during the second quarter of 2026 due to disruptions linked to the Iran war and the prolonged closure of the Strait of Hormuz, while the company expects sales and margins to recover in the second half of the year assuming the strait reopens in the short term.
The company stated that the conflict in the Middle East has changed the outlook for the global energy industry, with oil and LNG prices rising due to supply concerns and expected inventory drawdowns. According to Tenaris, oil and gas drilling activity in the region is expected to initially focus on restoring production levels and spare capacity once the Strait of Hormuz reopens.
Tenaris added that higher energy prices and supply security concerns are also expected to support increased investment in short-cycle shale projects and offshore developments globally.
In the first quarter of 2026, Tenaris reported net sales of USD 3.1 bln, up 6pct YoY and 4pct quarter-on-quarter. EBITDA reached USD 735 mln with an EBITDA margin of 23.7pct, while net income increased to USD 564 mln.
The company said first-quarter sales benefited from customer stock-building activity in North Africa and advanced shipments in Saudi Arabia ahead of the regional disruptions. In the Asia Pacific, Middle East and Africa region, sales increased 2pct quarter-on-quarter to USD 712 mln, supported by a recovery in OCTG sales in Saudi Arabia following previous destocking activity.
Tenaris’s total tube sales volumes increased 3pct quarter-on-quarter to 995,000 tons in the first quarter of 2026, including 784,000 tons of seamless pipes and 211,000 tons of welded pipes.
The company also noted that second-quarter margins are expected to be impacted by higher logistics costs and lower absorption of fixed costs linked to the regional disruptions.
Tenaris is a global manufacturer of steel pipes and related services for the energy industry, supplying tubular products and technical solutions for oil and gas drilling, production and industrial applications.
Tenaris has an established industrial and commercial presence across the Middle East, particularly in Saudi Arabia and the UAE. In Saudi Arabia, the company operates TenarisSSP following its acquisition of a stake in Saudi Steel Pipe Company in 2019, while its TenarisGPC facility in Jubail expanded LSAW pipe production capacity after the acquisition of Global Pipe Company in 2023. The company also maintains facilities in Dammam and a commercial office in Riyadh.
In the UAE, Tenaris operates the Etihad Tubulars complex in Abu Dhabi, which includes an OCTG threading facility and pipe service yard, alongside a coating facility in Ras Al Khaimah serving regional energy projects.
The company also maintains operations in Oman and Egypt supporting regional oil, gas, and energy infrastructure projects.