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$153.5 million.
Summary of 2009 Annual Results
Increase/
FY 2009 FY 2008 (Decrease)
Net sales (US$ 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
Increase/
Sales volume (metric tons) Q4 2009 Q4 2008 (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%)
Increase/
Tubes Q4 2009 Q4 2008 (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$2,757.6 million in
the fourth quarter of 2008, due to a 37% reduction in sales volumes and a
14% decrease in average selling prices. In North America, although demand
for OCTG products increased in Mexico, regional sales were affected by the
adjustment in demand and prices for OCTG and line pipe in the USA and
Canada, reflecting the decline in drilling activity and inventory
reductions. Sales in South America were affected by low levels of demand in
Venezuela and Argentina. In Europe, sales were affected by lower demand
from distributors serving the process and power plant sector and lower
sales of OCTG principally in Romania. In the Far East and Oceania, sales
decreased mainly due to lower demand from the process and power plant
sector and lower demand for industrial products.
Increase/
Projects Q4 2009 Q4 2008 (Decrease)
Net sales ($ 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$311.9 million in the fourth
quarter of 2008, as the decrease in volumes was partially offset by an
increase in average selling prices.
Increase/
Others Q4 2009 Q4 2008 (Decrease)
Net sales ($ 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%)
* Operating income includes impairment charges of US$ 39.3 million
in Q4 2008
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$675.7 million at December 31, 2009.
Analysis of 2009 Annual Results
Increase/
Sales volume (metric tons) FY 2009 FY 2008 (Decrease)
Tubes - Seamless 1,970,000 2,818,000 (30%)
Tubes - Welded 346,000 1,057,000 (67%)
Tubes - Total 2,316,000 3,875,000 (40%)
Projects - Welded 334,000 591,000 (43%)
Total - Tubes + Projects 2,650,000 4,466,000 (41%)
Increase/
Tubes FY 2009 FY 2008 (Decrease)
Net sales ($ 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$354.9
million), mainly due to the decrease in volumes.
Increase/
Projects FY 2009 FY 2008 (Decrease)
Net sales ($ 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$249.0 million in 2008, due to the decrease in net
sales and a stable operating margin.
Increase/
Others FY 2009 FY 2008 (Decrease)
Net sales ($ 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 Three-month period Year ended
otherwise stated) ended December 31, 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 Year ended
ended December 31, 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
Contact Information: Giovanni Sardagna Tenaris 1-888-300-5432 www.tenaris.com