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Why Was Tenaris’s Free Cash Flow Negative in the First Quarter?

Alex Chamberlin
Why Was Tenaris’s Free Cash Flow Negative in the First Quarter?

Tenaris’s (TS) cash from operating activities (or CFO) deteriorated significantly in the first quarter compared to Q1 2017. Its CFO was -$121.5 million in the first quarter, even though its first-quarter revenue was significantly higher than the previous year. CFO declined as a result of adverse changes in working capital. That reflected an increase in receivables associated with the high level of sales toward the end of the first quarter. TS’s capex and free cash flow