Tenaris net profit falls on Americas slowdown, launches new buyback plan

(Reuters) -Italian steel pipe maker Tenaris late on Wednesday posted a 10% decline in third-quarter net profit due to a slowdown in North and South America and lower shipments to offshore projects and Argentina.

The company's shares were up 7.9% by 0833 GMT, on track for their biggest daily increase since February, as it also announced a $1.2 billion share buyback programme citing "significant cash flow generation and strong balance sheet".

Its net profit fell to $547 million, while core profit (EBITDA) rose 6% to $1 billion in the quarter through September, including a $32 million one-off gain from a court decision on Venezuela's nationalized assets. This corresponded to an EBITDA margin of 31%.

Tenaris said it expected its EBITDA margin to decline in the fourth quarter, reflecting lower prices in North and South America, while its free cash flow would "adjust to a lower EBITDA and a more stable working capital position".

The group, which produces pipes for oil and gas exploration, said it would pay an interim dividend of $0.20 per share on Nov. 22.

(Reporting by Romolo Tosiani; editing by Milla Nissi)