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 -- (MARKET WIRE) -- 02/25/09 -- 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, 2008 with
comparison to its results for the fourth quarter and year ended
December 31, 2007.
Summary of 2008 Fourth Quarter Results
(Comparison with third quarter of 2008 and fourth quarter of 2007)
Q4 2008 Q3 2008 Q4 2007
-------- -------------- --------------
Net sales (US$ million) 3,238.8 3,118.5 4% 2,628.0 23%
Operating income (US$ million) 559.3 933.9 (40%) 756.7 (26%)
Net income (US$ million) 114.5 631.2 (82%) 595.8 (81%)
Shareholders' net income (US$
million) 93.7 570.6 (84%) 546.5 (83%)
Earnings per ADS (US$) 0.16 0.97 (84%) 0.93 (83%)
Earnings per share (US$) 0.08 0.48 (84%) 0.46 (83%)
EBITDA* (US$ million) 1,191.4 1,068.8 11% 890.9 34%
EBITDA margin (% of net sales) 37% 34% 34%
*EBITDA is defined as operating income plus depreciation, amortization and
impairment charges
Our operating results in the fourth quarter were affected by
impairment charges on the value of our assets amounting to US$502.9
million, or US$0.43 per share (US$0.85 per ADS). These charges mainly
reflect the impact on the value of the intangible assets coming from
our Maverick acquisition due to changes in our operating environment
in North America, particularly in respect of the outlook for natural
gas drilling in the region over the next two years. Our EBITDA,
however, measured before impairment charges, reached a record level
reflecting strong sales growth, particularly in North America, and a
recovery of operating margins. Our net financial debt (total
financial debt less cash and other current investments) decreased by
US$95.8 million to US$1,392.4 million, from US$1,488.2 million at the
end of the previous quarter, as our free cash flow (net cash provided
by operations less capital expenditures) was US$273.2 million and we
paid an interim dividend during the quarter amounting to US$153.5
million.
Summary of 2008 Annual Results
Increase/
FY 2008 FY 2007 (Decrease)
----------- ----------- -----------
Net sales (US$ million) 12,131.8 10,042.0 21%
Operating income (US$ million) 3,027.9 2,957.2 2%
Net income (US$ million) 2,275.6 2,076.1 10%
Shareholders' net income (US$
million) 2,124.8 1,923.7 10%
Earnings per ADS (US$) 3.60 3.26 10%
Earnings per share (US$) 1.80 1.63 10%
EBITDA* (US$ million) 4,063.7 3,449.3 18%
EBITDA margin (% of net sales) 33% 34%
*EBITDA is defined as operating income plus depreciation, amortization and
impairment charges
2008 was a year of strong growth at Tenaris as we consolidated our
integrated product and service offering in an expanding North
American market. Net sales grew by 21%, compared to 2007, and EBITDA,
measured before impairment charges, rose 18% to reach US$4.1 billion.
Operating income, after accounting for asset write-downs reflecting
changes in our operating environment, rose 2% and earnings per share
rose 10% for the year. Net financial debt was reduced by US$1,577.8
million to US$1,392.4 million at year end.
Annual Dividend Proposal
The board of directors proposes, for the approval of the annual
general shareholders' meeting to be held on June 3, 2009, the payment
of an annual dividend of US$0.43 per share (US$0.86 per ADS), or
approximately US$507 million, which includes the interim dividend of
US$0.13 per share (US$0.26 per ADS) paid on November 27, 2008. This
would represent an increase of 13% over the annual dividend paid for
the 2007 fiscal year. If the annual dividend is approved by the
shareholders, a dividend of US$0.30 per share (US$0.60 per ADS), or
approximately US$354 million will be paid on June 25, 2009, with an
ex-dividend date of June 22, 2009.
Tenaris to Acquire Control of Seamless Pipe Indonesia Jaya
Tenaris has signed an agreement to acquire from Bakrie & Brothers
TbK, Green Pipe International Limited and Cakrawala Baru a 77.45%
holding in Seamless Pipe Indonesia Jaya ("SPIJ"), an Indonesian OCTG
processing business with heat treatment and premium connection
threading facilities, for a purchase price of US$73.5 million, with
US$ 24.9 million being payable as consideration for SPIJ's equity and
US$ 48.6 million as consideration for the assignment of certain
sellers' loan to SPIJ. SPIJ has an annual processing capacity of
120,000 tons and has had a commercial alliance with Tenaris for more
than a decade. SPIJ employs around 500 persons and had revenues of
approximately US$140 million in 2008.
The acquisition, whose completion is subject to customary conditions,
including regulatory approval and compliance with certain minority
shareholder rights, would allow Tenaris to strengthen its global
production capabilities and its local presence in Indonesia, one of
the world's leading producers of LNG.
Market Background and Outlook
Global business and market conditions changed markedly during 2008 as
the financial crisis, which had started towards the end of 2007,
intensified in September and spread rapidly to other sectors all over
the world. It has become increasingly clear that the impact on the
real economy is likely to be severe and long-lasting.
Global oil prices rose strongly in the first half of the year,
peaking in July in excess of US$140 per barrel, before falling even
more abruptly in the second half to their current levels of around
US$40 per barrel, reflecting expectations of a significant reduction
in demand in the current recessionary environment. North American gas
prices also rose rapidly during the first half of the year, peaking
in excess of US$12 per million BTU, before falling even more steeply
to their current levels close to US$4 per million BTU as increased
investment in US gas production resulted in significantly higher
production levels at a time when demand began to be affected by lower
industrial production.
Taking the year as a whole, the international count of active
drilling rigs, as published by Baker Hughes, showed an average
increase compared to 2007 of 7%. The corresponding rig count in the
US, which is more sensitive to North American gas prices, after
rising steadily in the first part of the year to peak at 2,031 during
the month of September, began falling in the fourth quarter to end
the year at 1,623 and has subsequently fallen to 1,300 as of February
20, 2009. For the full year, an average increase of 6% compared to
2007, was registered. 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, showed an average
annual increase of 11% compared to 2007.
We estimate that global apparent demand for OCTG in 2008 rose by
around 11% in 2008 compared to 2007. This increase includes a
substantial surge in inventories in the US fueled by surging Chinese
imports of standard and non heat-treated products. We expect that
apparent demand for OCTG will suffer a strong adjustment in 2009,
reflecting an expected decline in oil and gas drilling activity and
efforts to reduce inventories. Demand for premium and other high-end
OCTG products should hold up better than for standard product grades
as oil and gas companies maintain their investments in complex
projects already underway.
Demand for our large-diameter pipes for pipeline projects in South
America rose during 2008 as we made deliveries to a number of
pipeline projects in Brazil, Argentina and Colombia. However, sales
are expected to decline in 2009 as the current order backlog is lower
than last year and customers delay the implementation of new
projects.
Steelmaking raw material costs for our seamless pipe products and
steel costs for our welded pipe products rose steeply in the first
half of the year but fell even more steeply during the second half of
the year as the recessionary environment had an almost immediate
impact on global steelmaking activity. Pipe prices, which had risen
during the second and third quarter are now declining following the
correction in raw material and energy costs.
Considering the decrease in apparent demand and declining prices we
expect lower level of sales and EBITDA into the coming quarters.
Analysis of 2008 Fourth Quarter Results
Increase/
Sales volume (metric tons) Q4 2008 Q4 2007 (Decrease)
---------- ---------- ----------
Tubes - Seamless 704,000 714,000 (1%)
Tubes - Welded 242,000 259,000 (7%)
Tubes - Total 946,000 973,000 (3%)
Projects - Welded 134,000 157,000 (15%)
Total 1,080,000 1,130,000 (4%)
Increase/
Tubes Q4 2008 Q4 2007 (Decrease)
---------- ---------- ----------
(Net sales - $ million)
North America 1,419.3 756.0 88%
South America 382.9 324.0 18%
Europe 369.1 460.8 (20%)
Middle East & Africa 424.4 458.7 (7%)
Far East & Oceania 193.1 153.5 26%
Total net sales ($ million) 2,788.8 2,153.0 30%
Cost of sales (% of sales) 50% 53%
Operating income ($ million)* 618.0 656.9 (6%)
Operating income (% of sales) 22% 31%
*Operating income includes impairment charges of US$368.5 million
Net sales of tubular products and services rose 30% to US$2,788.8
million in the fourth quarter of 2008, compared to US$2,153.0 million
in the fourth quarter of 2007, as an increase in our average selling
price for tubular products and services offset a 3% decline in sales
volume. Sales rose strongly in North America, led by increased
volumes and prices for OCTG products throughout the region. Sales
also increased in South America and Far East and Oceania reflecting
higher average selling prices. In Europe, sales were affected by the
decline in industrial activity and imports from China which are
causing injury to the European pipe industry.
Increase/
Projects Q4 2008 Q4 2007 (Decrease)
---------- ---------- ----------
Net sales ($ million) 311.9 315.4 (1%)
Cost of sales (% of sales) 63% 71%
Operating income ($ million) 75.8 78.1 (3%)
Operating income (% of sales) 24% 25%
Net sales of pipes for pipeline projects decreased 1% to US$311.9
million in the fourth quarter of 2008, compared to US$315.4 million in
the fourth quarter of 2007, as the increase in average selling prices
almost entirely offset the decrease in volumes.
Increase/
Others Q4 2008 Q4 2007 (Decrease)
----------- ----------- -----------
Net sales ($ million) 138.0 159.6 (14%)
Cost of sales (% of sales) 82% 71%
Operating income ($ million)* (134.5) 21.7 -
Operating income (% of sales) (97%) 14%
*Operating income includes impairment charges of US$ 134.4 million
Net sales of other products and services decreased 14% to US$138.0
million in the fourth quarter of 2008, compared to US$159.6 million
in the fourth quarter of 2007, mainly reflecting lower sales of
excess raw materials and welded pipes for electric conduits in the
USA, partially offset by higher sales of sucker rods.
Selling, general and administrative expenses, or SG&A, decreased as a
percentage of net sales to 14.5% in the quarter ended December 31,
2008 compared to 15.7% in the corresponding quarter of 2007 but
increased in absolute terms to US$468.2 million compared to US$413.0
million. This increase in absolute terms was related primarily to
higher activity in terms of net sales and higher selling costs.
Other operating income (expense) amounted to a net loss of US$500.7
million compared to a net gain of US$16.0 million in the
corresponding quarter of 2007, due to impairment charges mainly
related to changes in the market outlook for our North American
operations.
Net interest expense decreased to US$40.2 million in the fourth
quarter of 2008, compared to a net interest expense of US$41.8
million in the same period of 2007.
Other financial results generated a loss of US$59.1 million during
the fourth quarter of 2008, compared to a loss of US$12.0 million
during the fourth quarter of 2007. 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 loss of
US$32.8 million in the fourth quarter of 2008, compared to a gain of
US$39.7 million in the fourth quarter of 2007. These results mainly
derived from our equity investment in Ternium and, in the fourth
quarter of 2007, included a gain of US$18.4 million recorded on the
sale of our remaining 25% participation in Dalmine Energie.
Income tax charges totalled US$312.8 million in the fourth quarter of
2008. Excluding the effect of impairment losses during the quarter
amounting to US$502.9 million, the tax rate was equivalent to 32% of
income before equity in earnings of associated companies and income
tax.
Income attributable to minority interest decreased to US$20.8 million
in the fourth quarter of 2008, compared to US$49.3 million in the
corresponding quarter of 2007.
Cash Flow and Liquidity
Net cash provided by operations during the fourth quarter of 2008 was
US$379.3 million (US$1,465.0 million for the year), compared to
US$231.5 million in the fourth quarter of 2007 (US$2,020.6 million
during the year). Working capital increased by US$248.6 million
during the fourth quarter, mainly due to an increase in trade
receivables and a reduction in trade payables and customer advances,
partially offset by a decrease in the value of inventories.
Capital expenditures amounted to US$106.1 million for the fourth
quarter of 2008 and US$443.2 million for the year, compared to
US$113.3 million in the fourth quarter of 2007 and US$447.9 million
for the year. Since last September, we are reducing our capital
expenditure plans to take account of changed market expectations
while confirming our most relevant projects in technology, safety and
quality and our expansion plan to serve the growing Mexican market.
During 2008, total financial debt decreased by US$1,043.2 million to
US$2,977.0 million at December 31, 2008 from US$4,020.2 million at
December 31, 2007. Liquidity (cash and cash equivalents and other
current investments) increased by US$534.6 million to US$1,584.6
million at December 31, 2008 from US$1,050.0 million at December 31,
2007. Net financial debt during 2008 decreased by US$1,577.8 million
to US$1,392.4 million at December 31, 2008.
Analysis of 2008 Annual Results
Increase/
Sales volume (metric tons) FY 2008 FY 2007 (Decrease)
------------ ------------ ------------
Tubes - Seamless 2,861,000 2,870,000 (0%)
Tubes - Welded 1,057,000 965,000 10%
Tubes - Total 3,918,000 3,835,000 2%
Projects - Welded 591,000 474,000 25%
Total - Tubes + Projects 4,509,000 4,309,000 5%
Increase/
Tubes FY 2008 FY 2007 (Decrease)
------------ ------------ ------------
Net sales ($ million)
- North America 4,519.2 2,921.7 55%
- South America 1,353.7 1,221.7 11%
- Europe 1,705.6 1,661.4 3%
- Middle East & Africa 1,809.9 2,057.6 (12%)
- Far East & Oceania 726.6 690.2 5%
Total net sales 10,115.0 8,552.6 18%
Cost of sales (% of sales) 53% 52%
Operating income ($ million) 2,822.1 2,713.9 4%
Operating income (% of sales) 28% 32%
Net sales of tubular products and services rose 18% to US$10,115.0
million in 2008, compared to US$8,552.6 million in 2007, due to
higher average selling prices and higher volumes of welded pipe
sales. In North America, demand for our products increased throughout
the region, particularly for our OCTG products as we consolidated our
integrated product and service offering following the acquisition of
Hydril in May 2007 in an expanding market. In South America, sales
increased due primarily to higher OCTG demand in Venezuela and
Ecuador. In Europe, sales increased, as higher average selling prices
offset a decrease in volumes due to lower industrial activity and an
increase in Chinese imports. In the Middle East and Africa, sales
were affected by inventory adjustments and lower sales of API OCTG
products. In the Far East and Oceania, sales increased as higher
average selling prices more than offset a decrease in volumes.
Cost of sales of tubular products and services, expressed as a
percentage of net sales, rose from 52% to 53%, reflecting a steep
increase in raw material costs for our seamless pipe products and
steel costs for our welded pipe products in the first half of the
year, which then started to correct towards the end of the year.
Operating income from tubular products and services, which included
US$368.5 million in impairment charges, rose 4% to US$2,822.1 million
in 2008, from US$2,713.9 million in 2007 as higher sales more than
offset a lower margin resulting from the impairment charges.
Increase/
Projects FY 2008 FY 2007 (Decrease)
---------- ---------- ----------
Net sales ($ million) 1,270.9 876.3 45%
Cost of sales (% of sales) 70% 71%
Operating income ($ million) 249.0 184.8 35%
Operating income (% of sales) 20% 21%
Net sales of pipes for pipeline projects rose 45% to US$1,270.9
million in 2008, compared to US$876.3 million in 2007, reflecting
strong shipments to gas and other pipeline projects in Brazil,
Argentina and Colombia and higher average selling prices.
Operating income from pipes for pipeline projects rose 35% to
US$249.0 million in 2008, from US$184.8 million in 2007, due to the
increase in net sales and a relatively stable operating margin.
Increase/
Others FY 2008 FY 2007 (Decrease)
---------- ---------- ----------
Net sales ($ million) 745.9 613.1 22%
Cost of sales (% of net sales) 73% 76%
Operating income ($ million) (43.3) 58.5 -
Operating income (% of sales) (6%) 10%
Net sales of other products and services rose 22% to US$745.9 million
in 2008, compared to US$613.1 million in 2007, reflecting higher
sales of electric conduits, sucker rods, industrial equipment and
excess raw materials.
Operating income from other products and services, for the year 2008
were affected by impairment charges of US$134.4 million on our assets
in this segment.
Selling, general and administrative expenses, or SG&A, decreased as a
percentage of net sales to 15.0% in 2008 compared to 15.7% in 2007
but increased in absolute terms to US$1,819.0 million compared to
US$1,573.9 million. SG&A increased in absolute terms due to higher
commissions, freight and other selling expenses, higher labor costs
and higher taxes and services and fees. These increases were related
primarily to higher activity in terms of net sales.
Other operating income and expenses resulted in net expenses of
US$485.8 million in 2008, compared to net income of US$4.9 million in
2007, as in 2008 we recorded impairment charges amounting to US$502.9
million. These charges reflect changes in our operating environment,
particularly in respect of the outlook for natural gas drilling in
North America over the next two years.
Net interest expenses totalled US$137.0 million in 2008, compared to
net interest expenses of US$182.3 million in 2007, reflecting a lower
net debt position and lower interest rates.
Other financial results generated a loss of US$104.3 million in 2008,
compared to a loss of US$22.8 million during 2007. 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$89.6 million in 2008, compared to a gain of US$113.3 million in
2007. These gains were derived mainly from our equity investment in
Ternium but, in 2007, also included a gain of US$18.4 million
recorded on the sale of our remaining 25% participation in Dalmine
Energie.
Income tax charges of US$1,011.7 million were recorded during 2008.
Excluding the effect of impairment losses during the year amounting
to US$502.9 million, the tax rate was equivalent to 31% of income
before equity in earnings of associated companies and income tax. In
2007, we recorded income tax charges amounting to US$823.9 million,
equivalent to 30% of income before equity in earnings of associated
companies and income tax.
Income from discontinued operations amounted to US$411.1 million in
2008, compared to US$34.5 million in 2007. The 2008 income included
the result of the sale of Hydril's pressure control business,
completed on April 1, 2008, amounting to US$394.3 million.
Net income rose to US$2,275.6 million in 2008, compared to US$2,076.1
million in 2007, reflecting a 2% increase in the operating income
after impairment charges and the result of the sale of Hydril's
pressure control business.
Income attributable to equity holders was US$2,124.8 million, or
US$1.80 per share (US$3.60 per ADS), in 2008, compared to US$1,923.7
million, or US$1.63 per share (US$3.26 per ADS) in 2007.
Income attributable to minority interest was US$150.8 million in
2008, compared to US$152.3 million in 2007 as higher results at
Confab were offset by lower results at NKKTubes and losses at other
subsidiaries.
Registered Major Holders
The following holders have notified Tenaris of holdings in excess of
5% of its capital or voting rights:
% of capital
Number of and voting
Holders shares rights
-------------- --------------
San Faustin N.V.(1) 717,440,187 60.8
Capital World Investors (2) 64,633,440 5.5
(1) San Faustin 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 Faustin N.V. and has the ability to influence matters affecting,
or submitted to a vote of the shareholders of, San Faustin N.V., such
as the election of directors, the approval of certain corporate
transaction and other matters concerning the company's policies.
There are no controlling shareholders for Rocca & Partners.
(2) Capital World Investors is a division of Capital Research and
Management Company (CRMC). Capital World Investors is deemed to be
the beneficial owner of these shares as a result of CRMC acting as
investment adviser to various investment companies. Accordingly,
Capital World Investors does not own any shares for its own account;
rather, they are owned by accounts under the discretionary management
of Capital World Investors.
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 Three-month period Year ended December
of U.S. dollars) ended December 31, 31,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Continuing operations
Net sales 3,238,752 2,627,968 12,131,836 10,042,008
Cost of sales (1,710,525) (1,474,215) (6,799,189) (5,515,767)
---------- ---------- ---------- ----------
Gross profit 1,528,227 1,153,753 5,332,647 4,526,241
Selling, general and
administrative expenses (468,176) (413,041) (1,819,011) (1,573,949)
Other operating income
(expense), net (500,738) 16,012 (485,772) 4,933
---------- ---------- ---------- ----------
Operating income 559,313 756,724 3,027,864 2,957,225
Interest income 3,213 28,375 48,873 93,392
Interest expense (43,382) (70,211) (185,836) (275,648)
Other financial results (59,084) (12,029) (104,272) (22,754)
---------- ---------- ---------- ----------
Income before equity in
earnings of associated
companies and income tax 460,060 702,859 2,786,629 2,752,215
Equity in earnings of
associated companies (32,830) 39,691 89,556 113,276
---------- ---------- ---------- ----------
Income before income tax 427,230 742,550 2,876,185 2,865,491
Income tax (312,765) (159,156) (1,011,675) (823,924)
---------- ---------- ---------- ----------
Income for continuing
operations 114,465 583,394 1,864,510 2,041,567
Discontinued operations
Income for discontinued
operations - 12,421 411,110 34,492
---------- ---------- ---------- ----------
Income for the year 114,465 595,815 2,275,620 2,076,059
---------- ---------- ---------- ----------
Attributable to:
Equity holders of the
Company 93,653 546,542 2,124,802 1,923,748
Minority interest 20,812 49,273 150,818 152,311
---------- ---------- ---------- ----------
114,465 595,815 2,275,620 2,076,059
========== ========== ========== ==========
Consolidated Balance Sheet
(all amounts in thousands of
U.S. dollars) At December 31, 2008 At December 31, 2007
--------------------- ---------------------
ASSETS
Non-current assets
Property, plant and
equipment, net 2,982,871 3,269,007
Intangible assets, net 3,826,987 4,542,352
Investments in associated
companies 527,007 509,354
Other investments 38,355 35,503
Deferred tax assets 390,323 310,590
Receivables 82,752 7,848,295 63,738 8,730,544
---------- ----------
Current assets
Inventories 3,091,401 2,598,856
Receivables and prepayments 251,481 222,410
Current tax assets 201,607 242,757
Trade receivables 2,123,296 1,748,833
Other investments 45,863 87,530
Cash and cash equivalents 1,538,769 7,252,417 962,497 5,862,883
---------- ----------
Current and non current
assets held for sale - 651,160
---------- ----------
7,252,417 6,514,043
---------- ----------
Total assets 15,100,712 15,244,587
========== ==========
EQUITY
Capital and reserves
attributable to the Company's
equity holders 8,176,571 7,006,277
Minority interest 525,316 523,573
---------- ----------
Total equity 8,701,887 7,529,850
========== ==========
LIABILITIES
Non-current liabilities
Borrowings 1,241,048 2,869,466
Deferred tax liabilities 1,053,838 1,233,836
Other liabilities 223,142 185,410
Provisions 89,526 97,912
Trade payables 1,254 2,608,808 47 4,386,671
---------- ----------
Current liabilities
Borrowings 1,735,967 1,150,779
Current tax liabilities 610,313 341,028
Other liabilities 242,620 252,204
Provisions 28,511 19,342
Customer advances 275,815 449,829
Trade payables 896,791 3,790,017 847,842 3,061,024
---------- ----------
Liabilities associated with
current and non-current
assets held for sale - 267,042
---------- ----------
3,790,017 3,328,066
---------- ----------
Total liabilities 6,398,825 7,714,737
========== ==========
Total equity and liabilities 15,100,712 15,244,587
========== ==========
Consolidated Cash Flow statement
Three-month period Twelve-month period
ended December 31, ended December 31,
(all amounts in thousands
of U.S. dollars) 2008 2007 2008 2007
---------- ---------- ---------- ----------
Cash flows from operating
activities
Income for the year 114,465 595,815 2,275,620 2,076,059
Adjustments for:
Depreciation and
amortization 129,176 143,173 532,934 514,820
Income tax accruals less
payments (5,288) (172,473) (225,038) (393,055)
Equity in earnings of
associated companies 32,830 (21,303) (89,556) (94,888)
Interest accruals less
payments, net 28,985 (84,821) 55,492 (21,302)
Income from disposal of
investment and other - (18,388) (394,323) (18,388)
Changes in provisions (10,056) 3,858 783 (421)
Impairment charge 502,899 - 502,899 -
Changes in working capital (248,554) (205,094) (1,051,632) (110,425)
Other, including currency
translation adjustment (165,143) (9,274) (142,174) 68,224
---------- ---------- ---------- ----------
Net cash provided by
operating activities 379,314 231,493 1,465,005 2,020,624
========== ========== ========== ==========
Cash flows from investing
activities
Capital expenditures (106,100) (113,349) (443,238) (447,917)
Acquisitions of
subsidiaries and minority
interest (8,717) (35) (18,585) (1,927,262)
Other disbursements
relating to the
acquisition of Hydril - - - (71,580)
Proceeds from the sale of
pressure control business - - 1,113,805 -
Decrease in subsidiaries /
associated - 28,516 - 27,321
Proceeds from disposal of
property, plant and
equipment and intangible
assets 4,995 17,118 17,161 24,041
Dividends and distributions
received from associated
companies 1,396 674 15,032 12,170
Changes in restricted bank
deposits - 21 - 21
Investments in short terms
securities (18,866) 126,916 41,667 96,074
Other - - (3,428) -
---------- ---------- ---------- ----------
Net cash (used in) provided
by investing activities (127,292) 59,861 722,414 (2,287,132)
========== ========== ========== ==========
Cash flows from financing
activities
Dividends paid (153,470) (153,470) (448,604) (507,631)
Dividends paid to minority
interest in subsidiaries (27,083) (14,948) (87,200) (60,263)
Proceeds from borrowings 356,444 266,301 1,087,649 2,718,264
Repayments of borrowings (344,804) (1,099,730) (2,122,268) (2,347,054)
---------- ---------- ---------- ----------
Net cash (used in)
financing activities (168,913) (1,001,847) (1,570,423) (196,684)
========== ========== ========== ==========
Increase (decrease) in cash
and cash equivalents 83,109 (710,493) 616,996 (463,192)
Movement in cash and cash
equivalents
At the beginning of the
period 1,463,642 1,648,554 954,303 1,365,008
Effect of exchange rate
changes (21,729) 16,242 (46,277) 52,487
Increase (decrease) in cash
and cash equivalents 83,109 (710,493) 616,996 (463,192)
========== ========== ========== ==========
At December 31, 1,525,022 954,303 1,525,022 954,303
========== ========== ========== ==========
----------------------
Cash and cash equivalents At December 31, At December 31,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Cash and bank deposits 1,538,769 962,497 1,538,769 962,497
Bank overdrafts (13,747) (8,194) (13,747) (8,194)
========== ========== ========== ==========
1,525,022 954,303 1,525,022 954,303
========== ========== ========== ==========
Non Cash financing
activities
Conversion of debt to
equity in subsidiaries 35,140
CONTACT:
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
|
