FORM
6 - K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a - 16 or 15d - 16 of
the
Securities Exchange Act of 1934
As of
March 3, 2010
TENARIS,
S.A.
(Translation
of Registrant's name into English)
TENARIS,
S.A.
46a,
Avenue John F. Kennedy
L-1855
Luxembourg
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or 40-F.
Form
20-F ü Form
40-F__
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12G3-2(b) under the Securities Exchange Act of 1934.
Yes __ No ü
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_.
The
attached material is being furnished to the Securities and Exchange Commission
pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934,
as amended.
This
report contains Tenaris's press release announcing its 2009 fourth quarter and
annual results.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date:
March 3, 2010
Tenaris,
S.A.
By: /s/ Cecilia
Bilesio
Cecilia
Bilesio
Corporate
Secretary
 |
 |
Tenaris
Announces 2009 Fourth Quarter and Annual Results
The
Financial and Operational Information Contained in This Press Release Is Based
on Audited Consolidated Financial Statements Prepared in Accordance With
International Financial Reporting Standards (IFRS) and Presented in U.S.
Dollars
LUXEMBOURG--(Marketwire
- February 24, 2010) - Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS) (MILAN: TEN)
("Tenaris") today announced its results for the fourth quarter and year ended
December 31, 2009 with comparison to its results for the fourth quarter and year
ended December 31, 2008.
Summary of 2009 Fourth Quarter Results
(Comparison
with third quarter of 2009 and fourth quarter of 2008)
|
Q4
2009
|
Q3
2009
|
Q4
2008
|
|||
|
Net
sales (US$ million)
|
1,847.2
|
1,771.5
|
4%
|
3,203.4
|
(42%)
|
|
Operating
income (US$ million)
|
330.6
|
360.6
|
(8%)
|
669.2
|
(51%)
|
|
Net
income (US$ million)
|
240.8
|
237.3
|
1%
|
114.5
|
110%
|
|
Shareholders’
net income (US$ million)
|
222.4
|
229.9
|
(3%)
|
93.7
|
137%
|
|
Earnings
per ADS (US$)
|
0.38
|
0.39
|
(3%)
|
0.16
|
137%
|
|
Earnings
per share (US$)
|
0.19
|
0.19
|
(3%)
|
0.08
|
137%
|
|
EBITDA*
(US$ million)
|
459.6
|
488.3
|
(6%)
|
1,190.5
|
(61%)
|
|
EBITDA
margin (% of net sales)
|
25%
|
28%
|
37%
|
||
* EBITDA
is defined as operating income plus depreciation, amortization and impairment charges
Demand
for our tubes improved during the fourth quarter and shipments in our Tubes
operating segment rose by 25% sequentially. Net sales and operating income,
however, did not benefit proportionately as average selling prices declined and
were not fully compensated by the decline in costs. A lower level of shipments
of high-end products also affected the margin of this quarter.
Cash flow
from operations remained positive and we reduced our investment in working
capital by a further US$202.4 million. Our net cash position (total financial
debt less cash and other current investments) increased to US$675.7 million at
the end of the period after paying an interim dividend during the quarter of
US$153.5 million.
Summary
of 2009 Annual Results
|
FY
2009
|
FY
2008
|
Increase/(Decrease)
|
|
|
Net
sales (US$ million)
|
8,149.3
|
11,987.8
|
(32%)
|
|
Operating
income (US$ million)
|
1,813.6
|
3,125.6
|
(42%)
|
|
Net
income (US$ million)
|
1,207.6
|
2,275.6
|
(47%)
|
|
Shareholders’
net income (US$ million)
|
1,161.6
|
2,124.8
|
(45%)
|
|
Earnings
per ADS (US$)
|
1.97
|
3.60
|
(45%)
|
|
Earnings
per share (US$)
|
0.98
|
1.80
|
(45%)
|
|
EBITDA*
(US$ million)
|
2,318.4
|
4,044.4
|
(43%)
|
|
EBITDA
margin (% of net sales)
|
28%
|
34%
|
* EBITDA
is defined as operating income plus depreciation, amortization and impairment
charges
In 2009,
we faced a sharp contraction in demand for our products and services as our
customers adjusted to the effects of the global economic and financial crisis.
Our actions focused on adjusting to the changing demand and competitive
environments while positioning the company to take advantage of an eventual
recovery. Net sales declined 32% year on year to US$8.1 billion and our EBITDA
decreased by 43% to US$2.3 billion. Our financial position, however, was
strengthened as we reduced working capital and turned a net debt position of
US$1,392.4 million at December 31, 2008 into net cash of $675.7 million at
December 31, 2009.
Annual
Dividend Proposal
The board
of directors proposes, for the approval of the annual general shareholders'
meeting to be held on June 2, 2010, the payment of an annual dividend of US$0.34
per share (US$0.68 per ADS), or approximately US$401 million, which includes the
interim dividend of US$0.13 per share (US$0.26 per ADS) paid in November 2009.
If the annual dividend is approved by the shareholders, a dividend of US$0.21
per share (US$0.42 per ADS), or approximately US$248 million will be paid on
June 24, 2010, with an ex-dividend date of June 21, 2010.
Market
Background and Outlook
Global
oil prices rose during 2009 from their low of around US$30 per barrel and
subsequently have fluctuated within a US$70-80 per barrel range. Global oil
demand is expected to resume growth in 2010 following two years of contraction
led by increased consumption in non-OECD countries. North American gas prices
declined in the first half of the year to a low below US$3.00 per million BTU in
August before rising to their current levels above US$5.00 per million
BTU.
Taking
the year as a whole, the international count of active drilling rigs, as
published by Baker Hughes, showed an average decrease of 8% compared to 2008,
after declining in the first three quarters of the year and rising in the fourth
quarter . The corresponding rig count in the US, which is more sensitive to
North American gas prices, after plummeting in the first part of the year to
below 900 rigs in June began recovering in the third quarter led by an increase
in oil drilling activity, to end the year at 1,172. More recently, gas drilling
activity has also increased and the US rig count has increased to 1,345 as of
February 19, 2010. Compared to 2008, however, the decline amounted to 42% over
the full year. In Canada, the corresponding rig count, which is also sensitive
to North American gas prices and where oil and gas drilling activity is affected
by seasonal factors, a similar decline of 42% compared to 2008 was
registered.
We
estimate that apparent demand for OCTG worldwide declined by more than 30% in
2009, reflecting the decline in oil and gas drilling activity and efforts made
to adjust inventory levels, particularly in the USA.
With
activity levels now recovering and inventories at more reasonable levels, we can
expect shipments in our Tubes operating segment to show a recovery in 2010 from
the low level recorded in 2009. In our Projects segment, however, we expect
lower shipments since the order backlog for our large-diameter pipes for
pipeline projects in South America declined throughout the year and ended at a
low level.
In the
first quarter, a low level of shipments of high-end products will continue to
affect our results. Subsequently, shipments of high-end products should recover.
For the year overall, we expect operating margins to be similar to those
recorded in 2009.
Analysis
of 2009 Fourth Quarter Results
|
Sales
volume (metric tons)
|
Q4
2009
|
Q4
2008
|
Increase/(Decrease)
|
|
Tubes
– Seamless
|
487,000
|
692,000
|
(30%)
|
|
Tubes
– Welded
|
104,000
|
242,000
|
(57%)
|
|
Tubes
– Total
|
591,000
|
934,000
|
(37%)
|
|
Projects
– Welded
|
63,000
|
134,000
|
(53%)
|
|
Total
|
654,000
|
1,068,000
|
(39%)
|
|
Tubes
|
Q4
2009
|
Q4
2008
|
Increase/(Decrease)
|
|
(Net
sales - $ million)
|
|||
|
North
America
|
563.8
|
1,419.3
|
(60%)
|
|
South
America
|
261.8
|
351.7
|
(26%)
|
|
Europe
|
167.1
|
369.1
|
(55%)
|
|
Middle
East & Africa
|
414.2
|
424.4
|
(2%)
|
|
Far
East & Oceania
|
93.8
|
193.1
|
(51%)
|
|
Total
net sales ($ million)
|
1,500.6
|
2,757.6
|
(46%)
|
|
Cost
of sales (% of sales)
|
61%
|
50%
|
|
|
Operating
income ($ million)*
|
264.7
|
628.9
|
(58%)
|
|
Operating
income (% of sales)
|
18%
|
23%
|
*
Operating income includes impairment charges of US$354.9 million in Q4
2008
Net sales of tubular products and services
decreased 46% to US$1,500.6 million in the fourth quarter of 2009, compared to
US$2,757.6 million in the fourth quarter of 2008, due to a 37% reduction in
sales volumes and a 14% decrease in average selling prices. In North America,
although demand for OCTG products increased in Mexico, regional sales were
affected by the adjustment in demand and prices for OCTG and line pipe in the
USA and Canada, reflecting the decline in drilling activity and inventory
reductions. Sales in South America were affected by low levels of demand in
Venezuela and Argentina. In Europe, sales were affected by lower demand from
distributors serving the process and power plant sector and lower sales of OCTG
principally in Romania. In the Far East and Oceania, sales decreased mainly due
to lower demand from the process and power plant sector and lower demand for
industrial products.
|
Projects
|
Q4
2009
|
Q4
2008
|
Increase/(Decrease)
|
|
Net
sales ($ million)
|
221.2
|
311.9
|
(29%)
|
|
Cost
of sales (% of sales)
|
69%
|
63%
|
|
|
Operating
income ($ million)
|
54.6
|
75.8
|
(28%)
|
|
Operating
income (% of sales)
|
25%
|
24%
|
Net sales of pipes for pipeline projects
decreased 29% to US$221.2 million in the fourth quarter of 2009, compared to
US$311.9 million in the fourth quarter of 2008, as the decrease in volumes was
partially offset by an increase in average selling prices.
|
Others
|
Q4
2009
|
Q4
2008
|
Increase/(Decrease)
|
|
Net
sales ($ million)
|
125.5
|
133.9
|
(6%)
|
|
Cost
of sales (% of sales)
|
76%
|
80%
|
|
|
Operating
income ($ million)*
|
11.3
|
(35.5)
|
132%
|
|
Operating
income (% of sales)
|
9%
|
(27%)
|
Net sales of other products and services
decreased 6% to US$125.5 million in the fourth quarter of 2009, compared to
US$133.9 million in the fourth quarter of 2008, mainly reflecting lower sales of
welded pipes for electric conduits in USA and sucker rods, partially offset by
higher sales of industrial equipment.
Selling, general and administrative expenses,
or SG&A, increased as a percentage of net sales to 19.7% in the quarter
ended December 31, 2009 compared to 14.3% in the corresponding quarter of 2008,
mainly due to the effect of fixed and semi-fixed expenses over lower
revenues.
Other operating income (expense) amounted to a
net gain of US$3.5 million compared to a net loss of US$391.6 million in the
corresponding quarter of 2008, which loss was mainly related to impairment
charges at our North American operations.
Net interest expense decreased to US$16.1
million in the fourth quarter of 2009, compared to a net interest expense of
US$38.2 million in the same period of 2008, reflecting the change in our net
debt position and lower interest rates.
Other financial results generated a gain of
US$3.4 million during the fourth quarter of 2009, compared to a loss of US$58.6
million during the fourth quarter of 2008. These results largely reflect gains
and losses on net foreign exchange transactions and the fair value of derivative
instruments and are to a large extent offset by changes to our net equity
position. These gains and losses are mainly attributable to variations in the
exchange rates between our subsidiaries' functional currencies (other than the
US dollar) and the US dollar in accordance with IFRS.
Equity in earnings of associated companies
generated a gain of US$18.8 million in the fourth quarter of 2009, compared to a
loss of US$32.8 million in the fourth quarter of 2008. These results mainly
derived from our equity investment in Ternium.
Income tax charges totalled US$96.0 million in
the fourth quarter of 2009, equivalent to 30% of income before equity in
earnings of associated companies and income tax. In the fourth quarter of 2008,
income tax charges amounted to US$314.2 million, which excluding the effect of
impairment losses of US$394.3 million during the quarter, resulted in a tax rate
of 33%.
Income attributable to minority interest
decreased to US$18.4 million in the fourth quarter of 2009, compared to US$20.8
million in the corresponding quarter of 2008.
Cash Flow
and Liquidity
Net cash
provided by operations during the fourth quarter of 2009 was US$417.0 million
(US$3,063.9 million for the year), compared to US$379.3 million in the fourth
quarter of 2008 (US$1,465.0 million during the year). Working capital decreased
by US$202.4 million during the fourth quarter (US$1,737.3 million during the
year), due to a decrease in inventories.
Capital
expenditures amounted to US$133.1 million for the fourth quarter of 2009 and
US$460.9 million for the year, compared to US$106.1 million in the fourth
quarter of 2008 and US$443.2 million for the year. Capital expenditures are
expected to increase in 2010 as we complete the construction of our new rolling
mill in Mexico.
During
2009, total financial debt decreased by US$1,530.3 million to US$1,446.8 million
at December 31, 2009 from US$2,977.0 million at December 31, 2008. Liquidity
(cash and cash equivalents and other current investments) increased by US$537.9
million to US$2,122.5 million at December 31, 2009 from US$1,584.6 million at
December 31, 2008. Net financial debt during 2009 decreased by US$2,068.1
million to a positive net cash position of US$675.7 million at December 31,
2009.
Analysis
of 2009 Annual Results
|
Sales
volume (metric tons)
|
FY
2009
|
FY
2008
|
Increase/(Decrease)
|
|
Tubes
– Seamless
|
1,970,000
|
2,818,000
|
(30%)
|
|
Tubes
– Welded
|
346,000
|
1,057,000
|
(67%)
|
|
Tubes
– Total
|
2,316,000
|
3,875,000
|
(40%)
|
|
Projects
– Welded
|
334,000
|
591,000
|
(43%)
|
|
Total
– Tubes + Projects
|
2,650,000
|
4,466,000
|
(41%)
|
|
Tubes
|
FY
2009
|
FY
2008
|
Increase/(Decrease)
|
|
Net
sales ($ million)
|
|||
|
-
North America
|
2,756.1
|
4,519.3
|
(39%)
|
|
-
South America
|
981.9
|
1,248.7
|
(21%)
|
|
-
Europe
|
828.8
|
1,705.6
|
(51%)
|
|
-
Middle East & Africa
|
1,622.6
|
1,809.9
|
(10%)
|
|
-
Far East & Oceania
|
481.5
|
726.6
|
(34%)
|
|
Total
net sales
|
6,670.9
|
10,010.1
|
(33%)
|
|
Cost
of sales (% of sales)
|
57%
|
53%
|
|
|
Operating
income ($ million)
|
1,576.8
|
2,827.0
|
(44%)
|
|
Operating
income (% of sales)
|
24%
|
28%
|
Net sales of tubular products and services
decreased 33% to US$6,670.9 million in 2009, compared to US$10,010.1 million in
2008, due to a sharp reduction in volumes (down 40%). This reduction in
shipments was partially offset by higher average selling prices (up 12%),
reflecting, in part, a higher proportion of sales of specialized high-end
products and the lagged effect of price variations as average selling prices
rose to a peak in the second quarter of 2009. In North America, notwithstanding
higher demand for OCTG products in Mexico, sales decreased 39%, due primarily to
substantially lower demand for OCTG and line pipe products in the US and Canada,
reflecting the decline in drilling activity and inventory adjustments following
the surge in imports of Chinese products in the second half of 2008 and first
half of 2009. In South America, sales decreased reflecting sharply lower demand
from all sectors in Argentina and for OCTG in Venezuela. In Europe, sales were
affected by lower demand from all sectors, including the process and power plant
sector, the industrial and automotive sector and the oil and gas sector. Sales
in the Middle East and Africa declined by 10% as reduced demand for OCTG
products was partially offset by higher sales of deepwater linepipe products in
West Africa. In the Far East and Oceania, sales decreased in China and demand
for all our products decreased in the rest of the region.
Cost of sales of tubular products and services
expressed as a percentage of net sales, rose from 53% to 57%, mainly due to the
negative effect of low production capacity utilization rates, on efficiency,
absorption of fixed and semi-fixed costs and on the time lag between raw
material cost decreases and their impact on the cost of sales.
Operating income from tubular products and
services decreased 44% to US$1,576.8 million in 2009, from US$2,827.0
million in 2008, (in 2008 operating income included impairment charges amounting
to US$354.9 million), mainly due to the decrease in volumes.
|
Projects
|
FY
2009
|
FY
2008
|
Increase/(Decrease)
|
|
Net
sales ($ million)
|
986.5
|
1,270.9
|
(22%)
|
|
Cost
of sales (% of sales)
|
71%
|
70%
|
|
|
Operating
income ($ million)
|
208.6
|
249.0
|
(16%)
|
|
Operating
income (% of sales)
|
21%
|
20%
|
Net sales of pipes for pipeline projects
decreased 22% to US$986.5 million in 2009, compared to US$1,270.9 million in
2008, reflecting a sharp decrease in shipments to gas and other pipeline
projects in Brazil, Argentina and Colombia partially offset by higher average
selling prices particularly for offshore projects in Brazil.
Operating income from pipes for pipeline
projects decreased 16% to US$208.6 million in 2009, from US$249.0 million
in 2008, due to the decrease in net sales and a stable operating
margin.
|
Others
|
FY
2009
|
FY
2008
|
Increase/(Decrease)
|
|
Net
sales ($ million)
|
491.8
|
706.8
|
(30%)
|
|
Cost
of sales (% of net sales)
|
79%
|
73%
|
|
|
Operating
income ($ million)
|
28.1
|
49.6
|
(43%)
|
|
Operating
income (% of sales)
|
6%
|
7%
|
Net sales of other products and services
decreased 30% to US$491.8 million in 2009, compared to US$706.8 million in 2008,
mainly due to lower sales of welded pipes for electric conduits in USA as well
as sucker rods.
Operating income from other products and
services decreased 43% to US$28.1 million in 2009, from US$49.6 million
in 2008, due to the decrease in net sales.
Selling, general and administrative expenses,
or SG&A, increased as a percentage of net sales to 18.1% in 2009 compared to
14.9% in 2008, mainly due to the effect of fixed and semi-fixed expenses over
lower revenues. However, in absolute terms SG&A decreased US$314.2 million
to US$1,473.8 million in 2009, from US$1,788.0 million in 2008, mainly due to
lower commissions, freight and other selling expenses, taxes and labor costs,
reflecting lower activity in terms of net sales.
Other operating income and expenses resulted in
net income of US$3.0 million in 2009, compared to a net loss of US$375.9 million
in 2008, which loss was mainly related to impairment charges at our North
American operations.
Net interest expenses totalled US$87.5 million
in 2009, compared to net interest expenses of US$131.2 million in 2008,
reflecting the change in our net debt position and lower interest
rates.
Other financial results generated a loss of
US$64.2 million in 2009, compared to a loss of US$99.8 million during 2008.
These results largely reflect losses on net foreign exchange transactions and
the fair value of derivative instruments and are to a large extent offset by
changes to our net equity position. These losses are mainly attributable to
variations in the exchange rates between our subsidiaries' functional currencies
(other than the US dollar) and the US dollar in accordance with
IFRS.
Equity in earnings of associated companies
generated a gain of US$87.0 million in 2009, compared to a gain of US$89.4
million in 2008. These gains were derived mainly from our equity investment in
Ternium.
Income tax charges of US$513.2 million were
recorded during 2009, equivalent to 31% of income before equity in earnings of
associated companies and income tax, like in 2008, when excluding the effect of
impairment losses during the year amounting to US$394.3 million, the tax rate
was also 31%.
Result for discontinued operations amounted to
a loss of US$28.1 million in 2009, relating to the discontinuation of Tavsa and
Matesi's operations, compared to a gain of US$306.9 million in 2008, relating to
income from discontinued operations, which was principally attributed to the
result of the sale of Hydril's pressure control business. In May 2009, the
Venezuelan government announced the nationalization of Tavsa and Matesi. In
August 2009, Venezuela, acting through the transition committee appointed by the
Venezuelan Ministry of Basic Industries and Mining, unilaterally assumed
exclusive operational control over the assets of Matesi. In November 2009,
Venezuela, acting through PDVSA Industrial S.A. (a subsidiary of Petroleos de
Venezuela S.A.), formally assumed exclusive operational control over the assets
of Tavsa.
Net income decreased to US$1,207.6 million in
2009, compared to US$2,275.6 million in 2008, mainly reflecting lower operating
results.
Income attributable to equity holders was
US$1,161.6 million, or US$0.98 per share (US$1.97 per ADS), in 2009, compared to
US$2,124.8 million, or US$1.80 per share (US$3.60 per ADS) in 2008.
Income attributable to minority interest was
US$46.0 million in 2009, compared to US$150.8 million in 2008, mainly reflecting
lower results at Confab and losses at NKKTubes.
Registered
Major Holders
The
following holder has notified Tenaris of holdings in excess of 5% of its capital
or voting rights:
|
Holders
|
Number
of shares
|
%
of capital and voting rights
|
|
San
Faustin N.V (1)
|
713,605,187
|
60.45
|
(1) San
Faustín N.V. owns all of its shares in the Company through its wholly-owned
subsidiary I.I.I. Industrial Investments Inc. Rocca & Partners S.A. controls
a significant portion of the voting power of San Faustín N.V. and has the
ability to influence matters affecting, or submitted to a vote of the
shareholders of, San Faustín N.V., such as the election of directors, the
approval of certain corporate transactions and other matters concerning the
company's policies. There are no controlling shareholders for Rocca &
Partners.
Pursuant
to Schedule 13G/A filed with the U.S. Securities and Exchange Commission on
February 10, 2010, Capital World Investors, a division of Capital Research and
Management Company, is deemed to be the beneficial owner of 48,317,436 ordinary
shares of Tenaris, representing 4.1% of Tenaris's capital and voting rights.
Accordingly, Capital World Investors has fallen below the 5% share ownership
threshold referred to in Luxembourg Transparency Law.
Some of
the statements contained in this press release are "forward-looking statements."
Forward-looking statements are based on management's current views and
assumptions and involve known and unknown risks that could cause actual results,
performance or events to differ materially from those expressed or implied by
those statements. These risks include but are not limited to risks arising from
uncertainties as to future oil and gas prices and their impact on investment
programs by oil and gas companies.
Consolidated
Income Statement
|
(all
amounts in thousands of U.S. dollars, unless otherwise
stated)
|
Three-month
period ended
December 31,
|
Year
ended December 31,
|
||
|
2009
|
2008
|
2009
|
2008
|
|
|
Continuing
operations
|
||||
|
Net
sales
|
1,847,213
|
3,203,359
|
8,149,320
|
11,987,760
|
|
Cost
of sales
|
(1,156,550)
|
(1,683,037)
|
(4,864,922)
|
(6,698,285)
|
|
Gross
profit
|
690,663
|
1,520,322
|
3,284,398
|
5,289,475
|
|
Selling,
general and administrative expenses
|
(363,551)
|
(459,461)
|
(1,473,791)
|
(1,787,952)
|
|
Other
operating income (expenses) net
|
3,504
|
(391,614)
|
3,000
|
(375,873)
|
|
Operating
income
|
330,616
|
669,247
|
1,813,607
|
3,125,650
|
|
Interest
income
|
7,659
|
3,120
|
30,831
|
48,711
|
|
Interest
expense
|
(23,712)
|
(41,319)
|
(118,301)
|
(179,885)
|
|
Other
financial results
|
3,413
|
(58,615)
|
(64,230)
|
(99,850)
|
|
Income
before equity in earnings of associated companies and income
tax
|
317,976
|
572,433
|
1,661,907
|
2,894,626
|
|
Equity
in earnings of associated companies
|
18,812
|
(32,830)
|
87,041
|
89,423
|
|
Income
before income tax
|
336,788
|
539,603
|
1,748,948
|
2,984,049
|
|
Income
tax
|
(96,036)
|
(314,202)
|
(513,211)
|
(1,015,334)
|
|
Income
for continuing operations
|
240,752
|
225,401
|
1,235,737
|
1,968,715
|
|
Discontinued
operations
|
||||
|
Results
for discontinued operations
|
-
|
(110,936)
|
(28,138)
|
306,905
|
|
Income
for the Year
|
240,752
|
114,465
|
1,207,599
|
2,275,620
|
|
Attributable
to:
|
||||
|
Equity
holders of the Company
|
222,367
|
93,653
|
1,161,555
|
2,124,802
|
|
Minority
interest
|
18,385
|
20,812
|
46,044
|
150,818
|
|
240,752
|
114,465
|
1,207,599
|
2,275,620
|
|
Consolidated
Statement of Financial Position
| (all amounts in thousands of U.S. dollars) | At December 31, 2009 | At December 31, 2008 | |||
|
ASSETS
|
|||||
|
Non-current
assets
|
|||||
|
Property,
plant and equipment, net
|
3,254,587
|
2,982,871
|
|||
|
Intangible
assets, net
|
3,670,920
|
3,826,987
|
|||
|
Investments
in associated companies
|
602,572
|
527,007
|
|||
|
Other
investments
|
34,167
|
38,355
|
|||
|
Deferred
tax assets
|
197,603
|
390,323
|
|||
|
Receivables
|
101,618
|
7,861,467
|
82,752
|
7,848,295
|
|
|
Current
assets
|
|||||
|
Inventories
|
1,687,059
|
3,091,401
|
|||
|
Receivables
and prepayments
|
220,124
|
251,481
|
|||
|
Current
tax assets
|
260,280
|
201,607
|
|||
|
Trade
receivables
|
1,310,302
|
2,123,296
|
|||
|
Available
for sale
assets
|
21,572
|
-
|
|||
|
Other
investments
|
579,675
|
45,863
|
|||
|
Cash
and cash equivalents
|
1,542,829
|
5,621,841
|
1,538,769
|
7,252,417
|
|
|
Total
assets
|
13,483,308
|
15,100,712
|
|||
|
EQUITY
|
|||||
|
Capital
and reserves attributable to the Company’s equity holders
|
9,092,164
|
8,176,571
|
|||
|
Minority
interest
|
628,672
|
525,316
|
|||
|
Total
equity
|
9,720,836
|
8,701,887
|
|||
|
LIABILITIES
|
|||||
|
Non-current
liabilities
|
|||||
|
Borrowings
|
655,181
|
1,241,048
|
|||
|
Deferred
tax liabilities
|
860,787
|
1,053,838
|
|||
|
Other
liabilities
|
192,467
|
223,142
|
|||
|
Provisions
|
80,755
|
89,526
|
|||
|
Trade
payables
|
2,812
|
1,792,002
|
1,254
|
2,608,808
|
|
|
Current
liabilities
|
|||||
|
Borrowings
|
791,583
|
1,735,967
|
|||
|
Current
tax liabilities
|
306,539
|
610,313
|
|||
|
Other
liabilities
|
192,190
|
242,620
|
|||
|
Provisions
|
28,632
|
28,511
|
|||
|
Customer
advances
|
95,107
|
275,815
|
|||
|
Trade
payables
|
556,419
|
1,970,470
|
896,791
|
3,790,017
|
|
|
Total
liabilities
|
3,762,472
|
6,398,825
|
|||
|
Total
equity and liabilities
|
13,483,308
|
15,100,712
|
|||
Consolidated
Statement of Cash Flows
|
Three-month period ended December 31,
|
Year ended December 31,
|
|||||||||||
|
(all
amounts in thousands of U.S. dollars)
|
2009
|
2008
|
2009
|
2008
|
||||||||
|
Cash
flows from operating activities
|
||||||||||||
|
Income
for the year
|
240,752
|
114,465
|
1,207,599
|
2,275,620
|
||||||||
|
Adjustments
for:
|
||||||||||||
|
Depreciation
and amortization
|
129,014
|
129,176
|
504,864
|
532,934
|
||||||||
|
Income
tax accruals less payments
|
(112,655)
|
(5,288)
|
(458,086)
|
(225,038)
|
||||||||
|
Equity
in earnings of associated companies
|
(18,812)
|
32,830
|
(86,179)
|
(89,556)
|
||||||||
|
Interest
accruals less payments, net
|
(6,210)
|
28,985
|
(24,167)
|
55,492
|
||||||||
|
Income
from disposal of investment and other
|
-
|
-
|
-
|
(394,323)
|
||||||||
|
Changes
in provisions
|
(11,294)
|
(10,056)
|
(7,268)
|
783
|
||||||||
|
Impairment
charge
|
-
|
502,899
|
-
|
502,899
|
||||||||
|
Changes
in working capital
|
202,400
|
(248,554)
|
1,737,348
|
(1,051,632)
|
||||||||
|
Other,
including currency translation adjustment
|
(6,233)
|
(165,143)
|
189,837
|
(142,174)
|
||||||||
|
Net
cash provided by operating activities
|
416,962
|
379,314
|
3,063,948
|
1,465,005
|
||||||||
|
Cash
flows from investing activities
|
||||||||||||
|
Capital
expenditures
|
(133,132)
|
(106,100)
|
(460,927)
|
(443,238)
|
||||||||
|
Acquisitions
of subsidiaries and minority interest
|
(20)
|
(8,717)
|
(73,584)
|
(18,585)
|
||||||||
|
Other
disbursements relating to the acquisition of Hydril
|
-
|
-
|
-
|
-
|
||||||||
|
Proceeds
from the sale of pressure control business (*)
|
-
|
-
|
-
|
1,113,805
|
||||||||
|
Decrease
in subsidiaries / associated
|
-
|
-
|
-
|
-
|
||||||||
|
Proceeds
from disposal of property, plant and equipment and intangible
assets
|
4,306
|
4,995
|
16,310
|
17,161
|
||||||||
|
Dividends
and distributions received from associated companies
|
2,517
|
1,396
|
11,420
|
15,032
|
||||||||
|
Investments
in short terms securities
|
(50,814)
|
(18,866)
|
(533,812)
|
41,667
|
||||||||
|
Other
|
-
|
-
|
-
|
(3,428)
|
||||||||
|
Net
cash used in investing activities
|
(177,143)
|
(127,292)
|
(1,040,593)
|
722,414
|
||||||||
|
Cash
flows from financing activities
|
||||||||||||
|
Dividends
paid
|
(153,470)
|
(153,470)
|
(507,631)
|
(448,604)
|
||||||||
|
Dividends
paid to minority interest in subsidiaries
|
(13,388)
|
(27,083)
|
(46,086)
|
(87,200)
|
||||||||
|
Proceeds
from borrowings
|
121,742
|
356,444
|
631,544
|
1,087,649
|
||||||||
|
Repayments
of borrowings
|
(392,752)
|
(344,804)
|
(2,096,925)
|
(2,122,268)
|
||||||||
|
Net
cash used in financing activities
|
(437,868)
|
(168,913)
|
(2,019,098)
|
(1,570,423)
|
||||||||
|
(Decrease)
increase in cash and cash equivalents
|
(198,049)
|
83,109
|
4,257
|
616,996
|
||||||||
|
Movement
in cash and cash equivalents
|
||||||||||||
|
At
the beginning of the period
|
1,733,420
|
1,463,642
|
1,525,022
|
954,303
|
||||||||
|
Effect
of exchange rate changes
|
(6,664)
|
(21,729)
|
9,124
|
(46,277)
|
||||||||
|
Decrease
in cash due to deconsolidation
|
-
|
-
|
(9,696)
|
-
|
||||||||
|
Increase
(decrease) in cash and cash equivalents
|
(198,049)
|
83,109
|
4,257
|
616,996
|
||||||||
|
At
December 31,
|
1,528,707
|
1,525,022
|
1,528,707
|
1,525,022
|
||||||||
| Cash and cash equivalents | At December 31, | At December 31, | ||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Cash and bank deposits | 1,542,829 | 1,538,769 | 1,542,829 | 1,538,769 | ||||||||
| Bank overdrafts | (14,122) | (13,747) | (14,122) | (13,747) | ||||||||
| Restricted bank deposits | - | - | - | - | ||||||||
| 1,528,707 | 1,525,022 | 1,528,707 | 1,525,022 | |||||||||
Giovanni
Sardagna
Tenaris
1-888-300-5432
www.tenaris.com