(all
amounts in thousands of U.S. dollars, unless otherwise
stated)
|
Three-month
period
ended
June 30,
|
Six-month
period
ended
June 30,
|
||||||||||||||||||
Notes
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||
Continuing
operations
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||||
Net
sales
|
3
|
2,096,344 | 3,110,103 | 4,530,632 | 5,710,424 | |||||||||||||||
Cost
of sales
|
3
& 4
|
(1,264,899 | ) | (1,820,717 | ) | (2,628,211 | ) | (3,302,831 | ) | |||||||||||
Gross
profit
|
831,445 | 1,289,386 | 1,902,421 | 2,407,593 | ||||||||||||||||
Selling,
general and administrative expenses
|
3
& 5
|
(395,926 | ) | (469,669 | ) | (783,006 | ) | (878,038 | ) | |||||||||||
Other
operating income (expense), net
|
3
|
1,278 | (3,708 | ) | 3,024 | (4,947 | ) | |||||||||||||
Operating
income
|
436,797 | 816,009 | 1,122,439 | 1,524,608 | ||||||||||||||||
Interest
income
|
6
|
8,163 | 16,493 | 12,737 | 28,681 | |||||||||||||||
Interest
expense
|
6
|
(24,435 | ) | (33,962 | ) | (63,582 | ) | (100,124 | ) | |||||||||||
Other
financial results
|
6
|
(15,907 | ) | 4,235 | (52,266 | ) | (9,572 | ) | ||||||||||||
Income
before equity in earnings of associated companies and income
tax
|
404,618 | 802,775 | 1,019,328 | 1,443,593 | ||||||||||||||||
Equity
in earnings of associated companies
|
66,514 | 48,102 | 57,935 | 97,963 | ||||||||||||||||
Income
before income tax
|
471,132 | 850,877 | 1,077,263 | 1,541,556 | ||||||||||||||||
Income
tax
|
(114,518 | ) | (219,339 | ) | (319,592 | ) | (428,464 | ) | ||||||||||||
Income
for continuing operations
|
356,614 | 631,538 | 757,671 | 1,113,092 | ||||||||||||||||
Discontinued
operations
|
||||||||||||||||||||
Result
for discontinued operations
|
12
|
(20,176 | ) | 398,497 | (28,138 | ) | 416,906 | |||||||||||||
Income
for the period
|
336,438 | 1,030,035 | 729,533 | 1,529,998 | ||||||||||||||||
Attributable
to:
|
||||||||||||||||||||
Equity
holders of the Company
|
343,268 | 987,471 | 709,315 | 1,460,514 | ||||||||||||||||
Minority
interest
|
(6,830 | ) | 42,564 | 20,218 | 69,484 | |||||||||||||||
336,438 | 1,030,035 | 729,533 | 1,529,998 | |||||||||||||||||
Earnings
per share attributable to the equity holders of the Company during
year
|
||||||||||||||||||||
Weighted
average number of outstanding ordinary shares (thousands)
|
7
|
1,180,537 | 1,180,537 | 1,180,537 | 1,180,537 | |||||||||||||||
Earnings
per share (U.S. dollars per share)
|
7
|
0.29 | 0.84 | 0.60 | 1.24 | |||||||||||||||
Earnings
per ADS (U.S. dollars per ADS)
|
7
|
0.58 | 1.67 | 1.20 | 2.47 |
(all
amounts in thousands of U.S. dollars, unless otherwise
stated)
|
Three-month
period
ended
June 30,
|
Six-month
period
ended
June 30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Income
for the period
|
336,438 | 1,030,035 | 729,533 | 1,529,998 | ||||||||||||
Other
comprehensive income:
|
||||||||||||||||
Currency
translation adjustment
|
295,277 | 72,355 | 161,862 | 176,272 | ||||||||||||
Cash
flow hedges
|
3,169 | (8,294 | ) | (8,349 | ) | (6,365 | ) | |||||||||
Share
of other comprehensive income of associates
|
||||||||||||||||
Currency
translation adjustment
|
12,093 | 17,137 | (4,430 | ) | 20,481 | |||||||||||
Cash
flow hedges
|
1,176 | (296 | ) | 1,815 | (296 | ) | ||||||||||
Income
tax relating to components of other comprehensive income
|
180 | 4,023 | 2,876 | 4,023 | ||||||||||||
Other
comprehensive income for the period, net of tax
|
311,895 | 84,925 | 153,774 | 194,115 | ||||||||||||
Total
comprehensive income for the period
|
648,333 | 1,114,960 | 883,307 | 1,724,113 | ||||||||||||
Attributable
to:
|
||||||||||||||||
Equity
holders of the Company
|
592,430 | 1,058,717 | 815,388 | 1,613,624 | ||||||||||||
Minority
interest
|
55,903 | 56,243 | 67,919 | 110,489 | ||||||||||||
648,333 | 1,114,960 | 883,307 | 1,724,113 |
(all
amounts in thousands of U.S. dollars)
|
At
June 30, 2009
|
At
December 31, 2008
|
||||||||||||||||||
Notes
|
(Unaudited)
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Non-current
assets
|
||||||||||||||||||||
Property,
plant and equipment, net
|
8
|
3,122,122 | 2,982,871 | |||||||||||||||||
Intangible
assets, net
|
9
|
3,736,821 | 3,826,987 | |||||||||||||||||
Investments
in associated companies
|
575,628 | 527,007 | ||||||||||||||||||
Other
investments
|
29,488 | 38,355 | ||||||||||||||||||
Deferred
tax assets
|
217,686 | 390,323 | ||||||||||||||||||
Receivables
|
84,595 | 7,766,340 | 82,752 | 7,848,295 | ||||||||||||||||
Current
assets
|
||||||||||||||||||||
Inventories
|
2,150,785 | 3,091,401 | ||||||||||||||||||
Receivables
and prepayments
|
228,791 | 251,481 | ||||||||||||||||||
Current
tax assets
|
203,244 | 201,607 | ||||||||||||||||||
Trade
receivables
|
1,536,984 | 2,123,296 | ||||||||||||||||||
Available
for sale assets
|
14
|
21,572 | - | |||||||||||||||||
Other
investments
|
273,450 | 45,863 | ||||||||||||||||||
Cash
and cash equivalents
|
1,622,908 | 6,037,734 | 1,538,769 | 7,252,417 | ||||||||||||||||
Total
assets
|
13,804,074 | 15,100,712 | ||||||||||||||||||
EQUITY
|
||||||||||||||||||||
Capital
and reserves attributable to the Company’s equity holders
|
8,637,036 | 8,176,571 | ||||||||||||||||||
Minority
interest
|
569,535 | 525,316 | ||||||||||||||||||
Total
equity
|
9,206,571 | 8,701,887 | ||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||
Non-current
liabilities
|
||||||||||||||||||||
Borrowings
|
998,251 | 1,241,048 | ||||||||||||||||||
Deferred
tax liabilities
|
867,000 | 1,053,838 | ||||||||||||||||||
Other
liabilities
|
209,365 | 223,142 | ||||||||||||||||||
Provisions
|
79,470 | 89,526 | ||||||||||||||||||
Trade
payables
|
2,418 | 2,156,504 | 1,254 | 2,608,808 | ||||||||||||||||
Current
liabilities
|
||||||||||||||||||||
Borrowings
|
1,019,972 | 1,735,967 | ||||||||||||||||||
Current
tax liabilities
|
333,638 | 610,313 | ||||||||||||||||||
Other
liabilities
|
247,478 | 242,620 | ||||||||||||||||||
Provisions
|
51,385 | 28,511 | ||||||||||||||||||
Customer
advances
|
256,922 | 275,815 | ||||||||||||||||||
Trade
payables
|
531,604 | 2,440,999 | 896,791 | 3,790,017 | ||||||||||||||||
Total
liabilities
|
4,597,503 | 6,398,825 | ||||||||||||||||||
Total
equity and liabilities
|
13,804,074 | 15,100,712 |
Attributable
to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share
Capital
|
Legal
Reserves
|
Share
Premium
|
Currency
Translation Adjustment
|
Other
Reserves
|
Retained
Earnings (*)
|
Total
|
Minority
Interest
|
Total
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
Balance
at January 1, 2009
|
1,180,537 | 118,054 | 609,733 | (223,779 | ) | 2,127 | 6,489,899 | 8,176,571 | 525,316 | 8,701,887 | ||||||||||||||||||||||||||
Income
for the period
|
- | - | - | - | - | 709,315 | 709,315 | 20,218 | 729,533 | |||||||||||||||||||||||||||
Other
comprehensive income por the period
|
- | - | - | 106,799 | (726 | ) | - | 106,073 | 47,701 | 153,774 | ||||||||||||||||||||||||||
Total
comprehensive income por the period
|
- | - | - | 106,799 | (726 | ) | 709,315 | 815,388 | 67,919 | 883,307 | ||||||||||||||||||||||||||
Acquisition
and decrease of minority interest
|
- | - | - | - | (783 | ) | - | (783 | ) | 3,476 | 2,693 | |||||||||||||||||||||||||
Change
in equity reserves
|
- | - | - | - | 21 | - | 21 | - | 21 | |||||||||||||||||||||||||||
Dividends
paid in cash
|
- | - | - | - | - | (354,161 | ) | (354,161 | ) | (27,176 | ) | (381,337 | ) | |||||||||||||||||||||||
Balance
at June 30, 2009
|
1,180,537 | 118,054 | 609,733 | (116,980 | ) | 639 | 6,845,053 | 8,637,036 | 569,535 | 9,206,571 |
Attributable
to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share
Capital
|
Legal
Reserves
|
Share
Premium
|
Currency
Translation Adjustment
|
Other
Reserves
|
Retained
Earnings
|
Total
|
Minority
Interest
|
Total
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
Balance
at January 1, 2008
|
1,180,537 | 118,054 | 609,733 | 266,049 | 18,203 | 4,813,701 | 7,006,277 | 523,573 | 7,529,850 | |||||||||||||||||||||||||||
Income
for the period
|
- | - | - | - | - | 1,460,514 | 1,460,514 | 69,484 | 1,529,998 | |||||||||||||||||||||||||||
Other
comprehensive income por the period
|
- | - | - | 150,986 | 2,124 | - | 153,110 | 41,005 | 194,115 | |||||||||||||||||||||||||||
Total
comprehensive income por the period
|
- | - | - | 150,986 | 2,124 | 1,460,514 | 1,613,624 | 110,489 | 1,724,113 | |||||||||||||||||||||||||||
Acquisition
and decrease of minority interest
|
- | - | - | - | - | - | - | (1,865 | ) | (1,865 | ) | |||||||||||||||||||||||||
Dividends
paid in cash
|
- | - | - | - | - | (295,134 | ) | (295,134 | ) | (55,136 | ) | (350,270 | ) | |||||||||||||||||||||||
Balance
at June 30, 2008
|
1,180,537 | 118,054 | 609,733 | 417,035 | 20,327 | 5,979,081 | 8,324,767 | 577,061 | 8,901,828 |
Six-month
period ended June 30,
|
||||||||||||
(all
amounts in thousands of U.S. dollars)
|
Note
|
2009
|
2008
|
|||||||||
Cash
flows from operating activities
|
(Unaudited)
|
(Unaudited)
|
||||||||||
Income
for the period
|
729,533 | 1,529,998 | ||||||||||
Adjustments
for:
|
||||||||||||
Depreciation
and amortization
|
8
& 9
|
248,061 | 268,873 | |||||||||
Income
tax accruals less payments
|
(329,690 | ) | 89,747 | |||||||||
Equity
in earnings of associated companies
|
(57,073 | ) | (98,096 | ) | ||||||||
Income
from the sale of pressure control business
|
- | (394,323 | ) | |||||||||
Interest
accruals less payments, net
|
(23,698 | ) | (7,894 | ) | ||||||||
Changes
in provisions
|
14,200 | 15,243 | ||||||||||
Changes
in working capital
|
1,175,460 | (545,614 | ) | |||||||||
Other,
including currency translation adjustment
|
117,792 | (15,017 | ) | |||||||||
Net
cash provided by operating activities
|
1,874,585 | 842,917 | ||||||||||
Cash
flows from investing activities
|
||||||||||||
Capital
expenditures
|
8
& 9
|
(226,335 | ) | (205,366 | ) | |||||||
Acquisitions
of subsidiaries and minority interest
|
11
|
(73,535 | ) | (1,865 | ) | |||||||
Proceeds
from the sale of pressure control business (*)
|
12
|
- | 1,113,805 | |||||||||
Proceeds
from disposal of property, plant and equipment and intangible
assets
|
10,328 | 8,826 | ||||||||||
Investments
in short terms securities
|
(227,587 | ) | (264,401 | ) | ||||||||
Dividends
received
|
5,223 | 13,636 | ||||||||||
Other
|
- | (3,428 | ) | |||||||||
Net
cash (used in) provided by investing activities
|
(511,906 | ) | 661,207 | |||||||||
Cash
flows from financing activities
|
||||||||||||
Dividends
paid
|
(354,161 | ) | (295,134 | ) | ||||||||
Dividends
paid to minority interest in subsidiaries
|
(27,176 | ) | (55,136 | ) | ||||||||
Proceeds
from borrowings
|
263,841 | 430,088 | ||||||||||
Repayments
of borrowings
|
(1,149,484 | ) | (1,332,755 | ) | ||||||||
Net
cash used in financing activities
|
(1,266,980 | ) | (1,252,937 | ) | ||||||||
Increase
in cash and cash equivalents
|
95,699 | 251,187 | ||||||||||
Movement
in cash and cash equivalents
|
||||||||||||
At
the beginning of the period
|
1,525,022 | 954,303 | ||||||||||
Effect
of exchange rate changes
|
(2,330 | ) | 113,559 | |||||||||
Decrease
due to deconsolidation
|
(9,696 | ) | - | |||||||||
Increase
in cash and cash equivalents
|
95,699 | 251,187 | ||||||||||
At
June 30,
|
1,608,695 | 1,319,049 | ||||||||||
At
June 30,
|
||||||||||||
Cash
and cash equivalents
|
2009
|
2008
|
||||||||||
Cash
and bank deposits
|
1,622,908 | 1,337,838 | ||||||||||
Bank
overdrafts
|
(14,213 | ) | (18,789 | ) | ||||||||
1,608,695 | 1,319,049 |
1
|
General
information
|
2
|
Accounting
policies and basis of presentation
|
3
|
Segment
information
|
4
|
Cost
of sales
|
5
|
Selling,
general and administrative expenses
|
6
|
Financial
results
|
7
|
Earnings
and dividends per share
|
8
|
Property,
plant and equipment, net
|
9
|
Intangible
assets, net
|
10
|
Contingencies,
commitments and restrictions on the distribution of
profits
|
11
|
Business
combinations and other acquisitions
|
12
|
Discontinued
operations
|
13
|
Related
party transactions
|
14
|
Processes
in Venezuela
|
1
|
General
information
|
2
|
Accounting
policies and basis of presentation
|
(all
amounts in thousands of U.S. dollars)
|
Tubes
|
Projects
|
Other
|
Total
Continuing operations
|
Total
Discontinued operations (*)
|
|||||||||||||||
Six-month
period ended June 30, 2009
|
||||||||||||||||||||
Net
sales
|
3,809,353 | 476,624 | 244,655 | 4,530,632 | 18,558 | |||||||||||||||
Cost
of sales
|
(2,077,069 | ) | (345,108 | ) | (206,034 | ) | (2,628,211 | ) | (31,866 | ) | ||||||||||
Gross
profit
|
1,732,284 | 131,516 | 38,621 | 1,902,421 | (13,308 | ) | ||||||||||||||
Selling,
general and administrative expenses
|
(707,979 | ) | (38,476 | ) | (36,551 | ) | (783,006 | ) | (9,540 | ) | ||||||||||
Other
operating income (expenses), net
|
2,002 | 1,458 | (436 | ) | 3,024 | (179 | ) | |||||||||||||
Operating
income
|
1,026,307 | 94,498 | 1,634 | 1,122,439 | (23,027 | ) | ||||||||||||||
Depreciation and
amortization
|
227,226 | 8,381 | 12,427 | 248,034 | 27 | |||||||||||||||
Six-month
period ended June 30, 2008
|
||||||||||||||||||||
Net
sales
|
4,681,221 | 639,848 | 389,355 | 5,710,424 | 162,536 | |||||||||||||||
Cost
of sales
|
(2,564,622 | ) | (456,549 | ) | (281,660 | ) | (3,302,831 | ) | (98,481 | ) | ||||||||||
Gross
profit
|
2,116,599 | 183,299 | 107,695 | 2,407,593 | 64,055 | |||||||||||||||
Selling,
general and administrative expenses
|
(773,278 | ) | (54,067 | ) | (50,693 | ) | (878,038 | ) | (27,431 | ) | ||||||||||
Other
operating income (expenses), net
|
(1,308 | ) | (316 | ) | (3,323 | ) | (4,947 | ) | 409 | |||||||||||
Operating
income
|
1,342,013 | 128,916 | 53,679 | 1,524,608 | 37,033 | |||||||||||||||
Depreciation
and amortization
|
242,715 | 10,432 | 11,501 | 264,648 | 13,190 |
(all
amounts in thousands of U.S. dollars)
|
North
America
|
South
America
|
Europe
|
Middle
East & Africa
|
Far
East & Oceania
|
Total
Continuing operations
|
Total
Discontinued operations (*)
|
Six-month
period ended June 30, 2009
|
|||||||
Net
sales
|
1,744,014
|
1,125,490
|
507,205
|
848,525
|
305,398
|
4,530,632
|
18,558
|
Depreciation
and amortization
|
137,582
|
48,123
|
52,543
|
622
|
9,164
|
248,034
|
27
|
Six-month
period ended June 30, 2008
|
|||||||
Net
sales
|
1,994,333
|
1,309,551
|
1,000,841
|
1,041,299
|
364,400
|
5,710,424
|
162,536
|
Depreciation
and amortization
|
151,081
|
50,076
|
55,958
|
621
|
6,912
|
264,648
|
13,190
|
Six-month
period ended June 30,
|
||||||||
(all
amounts in thousands of U.S. dollars)
|
2009
|
2008
|
||||||
(Unaudited)
|
||||||||
Inventories
at the beginning of the period
|
3,091,401 | 2,598,856 | ||||||
Plus:
Charges of the period
|
||||||||
Raw
materials, energy, consumables and other
|
981,233 | 2,825,458 | ||||||
Increase
in inventory due to business combinations
|
53,541 | - | ||||||
Services
and fees
|
123,894 | 204,830 | ||||||
Labor
cost
|
346,720 | 463,678 | ||||||
Depreciation
of property, plant and equipment
|
126,330 | 144,107 | ||||||
Amortization
of intangible assets
|
1,257 | 1,061 | ||||||
Maintenance
expenses
|
82,756 | 105,953 | ||||||
Provisions
for contingencies
|
1,374 | 12 | ||||||
Allowance
for obsolescence
|
20,614 | (10,259 | ) | |||||
Taxes
|
3,576 | 4,953 | ||||||
Other
|
21,892 | 54,513 | ||||||
1,763,187 | 3,794,306 | |||||||
Transfer
to assets available for sale
|
(43,726 | ) | - | |||||
Less:
Inventories at the end of the period
|
(2,150,785 | ) | (2,991,850 | ) | ||||
2,660,077 | 3,401,312 | |||||||
From
Discontinued operations
|
(31,866 | ) | (98,481 | ) | ||||
2,628,211 | 3,302,831 |
Six-month
period ended June 30,
|
||||||||
(all
amounts in thousands of U.S. dollars)
|
2009
|
2008
|
||||||
(Unaudited)
|
||||||||
Services
and fees
|
106,450 | 108,024 | ||||||
Labor
cost
|
220,461 | 221,264 | ||||||
Depreciation
of property, plant and equipment
|
5,517 | 6,402 | ||||||
Amortization
of intangible assets
|
114,957 | 126,268 | ||||||
Commissions,
freight and other selling expenses
|
208,554 | 283,484 | ||||||
Provisions
for contingencies
|
16,346 | 15,632 | ||||||
Allowances
for doubtful accounts
|
10,094 | 4,881 | ||||||
Taxes
|
59,275 | 77,928 | ||||||
Other
|
50,892 | 61,586 | ||||||
792,546 | 905,469 | |||||||
From
Discontinued operations
|
(9,540 | ) | (27,431 | ) | ||||
783,006 | 878,038 |
(all
amounts in thousands of U.S. dollars)
|
Six-month
period ended June 30,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
Interest
income
|
12,892 | 29,020 | ||||||
Interest
expense
|
(67,162 | ) | (102,285 | ) | ||||
Interest
net
|
(54,270 | ) | (73,265 | ) | ||||
Net
foreign exchange transaction results and changes in fair value of
derivative instruments (*)
|
(49,688 | ) | (5,714 | ) | ||||
Other
|
(3,460 | ) | (7,430 | ) | ||||
Other
financial results
|
(53,148 | ) | (13,144 | ) | ||||
Net
financial results
|
(107,418 | ) | (86,409 | ) | ||||
From
Discontinued operations
|
4,307 | 5,394 | ||||||
(103,111 | ) | (81,015 | ) |
Six-month
period ended June 30,
|
||||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
Income
attributable to equity holders
|
709,315 | 1,460,514 | ||||||
Weighted
average number of ordinary shares in issue (thousand)
|
1,180,537 | 1,180,537 | ||||||
Basic
and diluted earnings per share ( U.S. dollars per share)
|
0.60 | 1.24 | ||||||
Basic
and diluted earnings per ADS ( U.S. dollars per ADS) (*)
|
1.20 | 2.47 | ||||||
Result
for discontinued operations
|
(28,138 | ) | 416,906 | |||||
Basic
and diluted earnings per share
|
(0.02 | ) | 0.35 | |||||
Basic
and diluted earnings per ADS (*)
|
(0.05 | ) | 0.71 |
(all
amounts in thousands of U.S. dollars)
|
2009
|
2008
|
||||||
(Unaudited)
|
||||||||
Six-month
period ended June 30,
|
||||||||
Opening
net book amount
|
2,982,871 | 3,269,007 | ||||||
Currency
translation differences
|
47,637 | 125,124 | ||||||
Increase
due to business combinations
|
24,123 | - | ||||||
Additions
|
217,169 | 185,440 | ||||||
Disposals
|
(9,782 | ) | (7,338 | ) | ||||
Transfers
|
(1,989 | ) | (906 | ) | ||||
Depreciation
charge
|
(131,847 | ) | (148,255 | ) | ||||
Disposals
due to deconsolidation
|
(6,060 | ) | - | |||||
At
June 30,
|
3,122,122 | 3,423,072 |
(all
amounts in thousands of U.S. dollars)
|
2009
|
2008
|
||||||
(Unaudited)
|
||||||||
Six-month
period ended June 30,
|
||||||||
Opening
net book amount
|
3,826,987 | 4,542,352 | ||||||
Currency
translation differences
|
15,869 | (13,592 | ) | |||||
Increase
due to business combinations
|
- | - | ||||||
Additions
|
9,166 | 19,926 | ||||||
Disposals
|
(546 | ) | (1,488 | ) | ||||
Transfers
|
1,989 | 906 | ||||||
Amortization
charge
|
(116,214 | ) | (120,618 | ) | ||||
Disposals
due to deconsolidation
|
(430 | ) | - | |||||
At
June 30,
|
3,736,821 | 4,427,486 |
|
Ongoing
investigation
|
·
|
A
Tenaris company is a party to a five-year contract with Nucor Corporation,
under which it committed to purchase from Nucor steel coils, with
deliveries starting in January 2007 on a monthly basis. As a result of
current global downturn and the lower level of steel coil purchases
planned for future months, the Tenaris company has negotiated and obtained
from Nucor a waiver of the monthly committed volumes. The Company is
reviewing its steel purchasing requirements with Nucor each quarter,
therefore, the current waiver of monthly commitments is valid until
September 30, 2009.
|
·
|
A
Tenaris company is a party to a ten-year raw material purchase contract
with QIT, under which it committed to purchase steel bars, with deliveries
starting in July 2007. The estimated aggregate amount of the contract at
current prices is approximately $277.7 million. The contract allows the
Tenaris company to claim lower commitments in market downturns and severe
market downturns subject to certain
limitations.
|
·
|
A
Tenaris company is a party to a contract with SMS Meer GmbH for the
purchase of equipment, engineering, training and other services related to
the equipment for an outstanding amount of approximately EUR84.7
(approximately $119.7 million). The Tenaris company may terminate the
contract at any time paying a cancellation fee in the amount of EUR48.0
million (approximately $67.8
million).
|
·
|
A
Tenaris company is a party to transportation capacity agreements with
Transportadora de Gas del Norte S.A. for purchasing capacity of 1,000,000
cubic meters per day until 2017. As of June 30, 2009, the outstanding
value of this commitment was approximately $29.2 million. The Tenaris
company also expects to obtain additional gas transportation capacity of
315,000 cubic meters per day until 2027. This additional commitment is
subject to completion of the enlargement of certain pipelines in
Argentina.
|
·
|
A
Tenaris company is a party to a contract with Siderar for the supply of
steam generated at the power generation facility owned by Tenaris in San
Nicolas, Argentina. Under this contract, the Tenaris company is required
to provide 250 tn/hour of steam and Siderar has the obligation to take or
pay this volume. The contract terminates in
2018.
|
Share
capital
|
1,180,537 | |||
Legal
reserve
|
118,054 | |||
Share
premium
|
609,733 | |||
Retained
earnings including net income for the year ended December 31,
2008
|
3,174,932 | |||
Total
shareholders equity in accordance with Luxembourg law
|
5,083,256 |
Retained
earnings at December 31, 2007 under Luxembourg law
|
2,399,973 | |||
Dividends
received
|
1,338,868 | |||
Other
income and expenses for the year ended December 31, 2008
|
(115,305 | ) | ||
Dividends
paid
|
(448,604 | ) | ||
Retained
earnings at December 31, 2008 under Luxembourg law
|
3,174,932 |
Six
month period ended June 30, 2009
|
||||
Other
assets and liabilities (net)
|
(1,309 | ) | ||
Property,
plant and equipment
|
24,123 | |||
Net
assets acquired
|
22,814 | |||
Minority
interest
|
3,121 | |||
Sub-total
|
25,935 | |||
Assumed liabilities
|
47,600 | |||
Sub-total
|
73,535 | |||
Cash-acquired
|
5,501 | |||
Purchase
consideration
|
79,036 |
(all
amounts in thousands of U.S. dollars)
|
Six-month
period ended June 30,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
Gross
(loss) profit
|
(13,308 | ) | 64,055 | |||||
Operating
(loss) income
|
(23,027 | ) | 37,033 | |||||
After
tax gain on the sale of pressure control business
|
- | 394,323 | ||||||
Result
for discontinued operations
|
(28,138 | ) | 416,906 |
·
|
San
Faustin N.V. owned 713,605,187 shares in the Company, representing 60.45%
of the Company’s capital and voting
rights.
|
·
|
San
Faustín N.V. owned all of its shares in the Company through its
wholly-owned subsidiary I.I.I. Industrial Investments
Inc.
|
·
|
Rocca
& Partners S.A. controlled a significant portion of the voting power
of San Faustín N.V. and had 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 were
no controlling shareholders for Rocca & Partners
S.A.
|
·
|
Tenaris’s
directors and executive officers as a group owned 0.17% of the Company’s
outstanding shares, while the remaining 39.38% were publicly
traded.
|
(all amounts in thousands of U.S. dollars) |
(Unaudited)
|
|||
Six
month period ended June 30, 2009
|
||||
Associated
(1)
|
Other
|
Total
|
||
(i)
|
Transactions
(3)
|
|||
(a)
Sales of goods and services
|
||||
Sales
of goods
|
8,789
|
60,150
|
68,939
|
|
Sales
of services
|
7,134
|
2,795
|
9,929
|
|
15,923
|
62,945
|
78,868
|
||
(b)
Purchases of goods and services
|
||||
Purchases
of goods
|
20,611
|
6,313
|
26,924
|
|
Purchases
of services
|
48,670
|
32,849
|
81,519
|
|
69,281
|
39,162
|
108,443
|
(Unaudited)
|
||||
Six
month period ended June 30, 2008
|
||||
Associated
(2)
|
Other
|
Total
|
||
(i)
|
Transactions
(4)
|
|||
(a)
Sales of goods and services
|
||||
Sales
of goods
|
32,893
|
17,365
|
50,258
|
|
Sales
of services
|
11,711
|
1,985
|
13,696
|
|
44,604
|
19,350
|
63,954
|
||
(b)
Purchases of goods and services
|
||||
Purchases
of goods
|
45,501
|
7,460
|
52,961
|
|
Purchases
of services
|
55,390
|
31,818
|
87,208
|
|
100,891
|
39,278
|
140,169
|
(Unaudited)
|
||||
At
June 30, 2009
|
||||
Associated
(1)
|
Other
|
Total
|
||
(ii)
|
Period-end
balances
|
|||
(a)
Arising from sales / purchases of goods / services
|
||||
Receivables
from related parties
|
20,607
|
14,674
|
35,281
|
|
Payables
to related parties
|
(28,282)
|
(5,354)
|
(33,636)
|
|
(7,675)
|
9,320
|
1,645
|
||
(b)
Financial debt
|
||||
Borrowings
|
(1,621)
|
-
|
(1,621)
|
At
December 31, 2008
|
||||
Associated
(1)
|
Other
|
Total
|
||
(ii)
|
Year-end
balances
|
|||
(a)
Arising from sales / purchases of goods / services
|
||||
Receivables
from related parties
|
50,137
|
15,504
|
65,641
|
|
Payables
to related parties
|
(44,470)
|
(5,974)
|
(50,444)
|
|
5,667
|
9,530
|
15,197
|
||
(b)
Financial debt
|
||||
Borrowings
|
(2,294)
|
-
|
(2,294)
|
Ricardo Soler | |
Chief Financial Officer |