The sluggish international crude oil market has produced a series of chain reactions, which have impacted the sales volume of Tenaris and VALLOUREC. In 2019, Tenaris sold 2.6 million tons of seamless steel pipes, a year-on-year decrease of 3%; and 671000 tons of welded pipes, a year-on-year decrease of 24%. The total sales volume was 3.271 million tons, a year-on-year decrease of 8%. In 2019, VALLOUREC sold 2.291 million tons of seamless steel pipes, a year-on-year decrease of 3%.
Tenaris' operating revenue in 2019 was $7.294 billion, down 5% from 2018; EBITDA was $1.372 billion, down 11% from 2018. Tenaris attributed the decline in revenue to sluggish drilling activity in the US and Canada, as well as sluggish markets in the Middle East and Africa. In 2019, the Middle East and Africa market of Tenaris will be greatly affected by Saudi Aramco's destocking, regardless of the advantages brought by the merger of Saudi steel pipe company (SSP) and the bid winning of Indian offshore natural gas project.
VALLOUREC's operating revenue in 2019 was 4.173 billion euros, an increase of 6% over 2018; its EBITDA was 347 million euros, an increase of 131.3% over 2018. Philippe crouzet, the newly retired president of VALLOUREC, said that the downturn in U.S. land drilling and production activities largely offset the growth of oil and gas markets in other regions of the world. Fortunately, Brazil's deep sea mining recovered in the fourth quarter of 2019, and Brazil's iron ore sales increased in volume and price in 2019.
As of December 31, 2019, the asset liability ratio of Tenaris is 17.9%, up about 1.2% year on year; the current ratio is 3.18, flat year on year; the quick ratio is 1.91, up 0.20 year on year. Tenaris has always been known for its steady operation, maintaining a very low asset liability ratio and strong liquidity for a long time. In 2019, Tenaris's net profit was $731 million, a decrease of $143 million compared with 2018, but significantly reduced inventory and accounts receivable; the occupation of working capital was released, and the cash flow from operating activities reached $1528 million. As a result, even after deducting $350 million in capital investment, $133 million in acquisition of Saudi steel pipe company and $484 million in annual dividend, Tenaris held $1554 million in cash and equivalents at the end of the year.
In the same period, VALLOUREC's asset liability ratio was 72.9%, up about 7.8% year-on-year; current ratio was 1.16, down 0.14 year-on-year; quick ratio was 0.85, up 0.10 year-on-year. In 2019, in order to improve the structure of assets and liabilities and enhance liquidity, VALLOUREC implemented two plans, including increasing capital and expanding bank credit line. Through equity investment by partners, VALLOUREC will achieve a capital increase of 800 million euros, thus optimizing the structure of assets and liabilities, and it is expected to reduce financial expenditure by about 50 million euros every year. VALLOUREC increased its loan by 800 million euros by expanding its bank line of credit. VALLOUREC's cash and equivalents at the end of 2019 amounted to EUR 1794 million, more than doubled from the end of 2018.
Although the global oil and gas market situation in 2019 is not satisfactory, as the two giants of the global steel pipe industry, Tenaris and VALLOUREC still show outstanding business performance. Tenaris still has an EBITDA rate of 18.8%, a net profit of $731 million and a net interest rate of 10%. Its profitability and profitability are still leading in the global industry. VALLOUREC bucked the trend and increased its profit, with the EBITDA rate increasing by 4.5 percentage points year on year. The two companies also have one thing in common, that is, they hold a high level of cash and equivalents at the end of the year.
