Tubacex targets operational recovery in Abu Dhabi heading into 2027

Tubacex is prioritizing the normalization of operations and logistics at its integrated corrosion-resistant alloy (CRA) oil country tubular goods (OCTG) manufacturing platform in Abu Dhabi, following disruptions linked to the Middle East conflict. The facility, operated through a joint venture with Mubadala Investment Company, has faced operational and logistical challenges since March 2026, affecting production planning, supply flows and invoicing across the group's value chain.

The global stainless steel tube producer said the disruptions have increased working capital requirements and operating costs. Higher logistics and energy costs, together with lower activity levels, have also weighed on profitability.

The company's working capital reached EUR 384.1 mln (USD 431.6 mln) at the end of September, while net financial debt stood at EUR 405 mln (USD 455.1 mln), both increasing by EUR 60.2 mln from December 2025. Tubacex attributed the rise primarily to its ADNOC supply chain, with EUR 145.5 mln (USD 163.5 mln) of working capital linked to related balances.

These balances are associated with a multi-year USD 1 bln product supply contract with ADNOC under a take-or-pay arrangement, which the company said provides contractual security for their monetization and visibility over future cash flows.

Tubacex reported sales of EUR 475.6 mln (USD 534.4 mln) in January-September 2026, down 9.6pct YoY, while EBITDA declined 36.2pct to EUR 54 mln (USD 60.7 mln). The EBITDA margin narrowed to 11.4pct from 16.1pct a year earlier. The company said that, excluding additional operating costs arising from the Middle East conflict and assuming normalized activity, its EBITDA margin would have remained within its strategic target range.

Tubacex expects the fourth quarter to remain challenging. Looking ahead to 2027, it sees the gradual normalization of Abu Dhabi operations and logistics, execution of its contracted order book and conversion of new project opportunities as key factors supporting a recovery in activity, working capital reduction and stronger cash generation.

Tubacex is a global producer of seamless stainless steel and high-performance alloy tubular products, operating 25 production plants and 17 service centers worldwide.

1 USD / 0.89 EUR