UPDATE 1-Tenaris 3rd qtr net profit plunges 62 pct
(Adds net sales, details)
BUENOS AIRES, Nov 5 (Reuters) - Earnings for Tenaris, the world's top producer of seamless steel pipes for the energy industry, dropped more than expected in the third quarter from a year earlier, as sales slumped amid a global slowdown, the company said on Thursday.
The steelmaker, controlled by Argentina's Techint group, reported $237.3 million in quarterly profit, down 62 percent from $631.2 million in the year ago period.
Analysts polled by Reuters forecast a $245 million profit for the company in the period.
The company also said net sales totaled $1.77 billion, down from $3.07 billion in the same period of 2008.
"Our results in the third quarter reflect weak demand for our products and services from our customers in all regions though sales in the Middle East and Africa region registered a modest year on year increase," the company said in a statement.
Tenaris' (TENR.MI) (TENA.BA) (TS.N) fortunes are closely linked to global energy exploration and oil prices, which soared in mid-2008 prompting investment in drilling.
Oil prices dropped gradually from a record $147 per barrel down to nearly $30 in the last year, due to the global recession. Currently, benchmark prices are around $80 CLc1.
Luxembourg-based Tenaris is the most heavily weighted stock on Argentina's Merval .MERV benchmark stock index, accounting for about half of the trading in the index. (Reporting by Vivianne Rodrigues; Editing by Leslie Gevirtz)
