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 February 24, 2005
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__\/__ 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__\/__
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 results for the fourth quarter of 2004.
Tenaris Announces 2004 Annual and Fourth Quarter Results
LUXEMBOURG--(BUSINESS WIRE)--Feb. 23, 2005--Tenaris S.A. (NYSE:TS) (Buenos
Aires:TS) (BMV:TS) (MTA Italy:TEN)
-- 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.
Tenaris S.A. ("Tenaris") today announces its results for the year
and quarter ended December 31, 2004 with comparison to its results for
the year and quarter ended December 31, 2003.
Summary of 2004 Annual Results
-- Net sales of US$4,136.1 million, up 30% from US$3,179.7
million
-- Operating income of US$813.5 million, up 182% from US$288.2
million
-- Net income of US$784.7 million, up 273% from US$210.3 million
-- Net earnings per share of US$0.665 (US$6.65 per ADS), up 269%
from US$0.18 per share
-- Increase of 48% proposed in annual dividend to US$0.169 per
share (US$1.69 per ADS)
These results reflect strong market demand and growth in our
seamless pipe business, where we are the leading suppliers of seamless
pipe products to the global energy industry. Net sales of our seamless
pipes, which accounted for 79% of our total net sales, rose 37% and we
were able to increase our seamless pipe selling prices sufficiently to
offset the impact of higher raw material costs. In addition, we
recorded a strong equity income gain from our investment in Sidor, the
Venezuelan steel producer, where we have recently increased our
participation. We also recorded a one-time operating income gain of
US$123.0 million following the conclusion of an arbitration award,
pursuant to which Fintecna, an Italian state-owned company, is
required to compensate us for losses incurred in respect of litigation
settled in 2003 with a consortium led by BHP Billiton Petroleum Ltd.
Excluding both the one-time gain recorded in 2004 in respect of
the arbitration award and the related loss we recorded in 2003 in
respect of the litigation settlement, operating income in 2004 rose
72% to US$690.5 million, or 17% of net sales, compared to US$402.4
million, or 13% of net sales, in 2003. On the same basis, operating
income plus depreciation and amortization in 2004 rose 49% to US$898.6
million, or 22% of net sales, compared to US$602.2 million, or 19% of
net sales, in 2003.
Summary of 2004 Fourth Quarter Results
-- Net sales of US$1,272.7 million, up 67% from US$761.6 million
-- Operating income of US$355.4 million, compared to an operating
loss of US$32.1 million
-- Net income of US$467.4 million, up 34 times from US$13.7
million
-- Net earnings per share of US$0.396 (US$3.96 per ADS), up from
US$0.012 per share
Excluding both the one-time gain recorded in the fourth quarter of
2004 in respect of the arbitration award and the related loss recorded
in the fourth quarter of 2003 in respect of the litigation settlement,
operating income in the fourth quarter of 2004 rose 205% to US$232.4
million, or 18% of net sales, compared to US$76.1 million, or 10% of
net sales, in the fourth quarter of 2003. On the same basis, operating
income plus depreciation and amortization recorded a fourth
consecutive quarterly increase: it rose 123% to US$290.1 million, or
23% of net sales, compared to US$129.9 million, or 17% of net sales,
in the fourth quarter of 2003, and 16% compared to US$250.4 million in
the third quarter of 2004. Our net income result also benefited from a
strong equity income gain on our investment in Sidor, which included
(i) an ordinary gain of US$31.4 million, a non-recurring gain of
US$83.1 million resulting from the exercise of an option to convert
debt into equity and a non-recurring gain of US$34.6 million resulting
from the reversal of an impairment charge.
These fourth quarter results continue the positive trend seen in
our quarterly results throughout the year. They reflect the continuing
strength of demand in our core seamless pipe business, which is
benefiting from increased investment in the global energy industry.
Net sales of seamless pipes rose 69% compared to the fourth quarter of
2003 and 27% compared to the third quarter, reflecting higher volumes
and prices.
Market Background and Outlook
In 2004, a number of factors, including higher energy demand
growth, declining production rates from developed reserves and
persistently high oil and gas prices, led the oil and gas majors, the
national oil companies and other oil and gas producers to increase
their investment in exploration and production. Rig count levels have
risen during the year with strong increases seen in North and South
America, and, in the second half of the year, in the Middle East. The
same factors are likely to persist throughout 2005, which should
result in further increases in global exploration and production
activity. In particular, activity is expected to increase in the
Middle East, Canada, Venezuela, West African deepwater, the Caspian
and the development of gas reserves associated with major LNG
projects.
We estimate that global apparent consumption of seamless OCTG (oil
country tubular goods) grew some 17% compared to 2003, and will grow
further in 2005. Demand for other seamless products also increased
contributing to an overall estimated increase in apparent consumption
of seamless pipe products worldwide of some 12% in 2004 over 2003.
As a result of this strong market demand selling prices for our
seamless pipe products increased significantly over the course of the
year and we were able to offset the effect of substantially higher raw
material costs on our margins. Average selling prices and many of our
raw material costs are expected to increase further in 2005.
Demand for our welded pipe products, which depend to a substantial
extent on specific projects, particularly those for the construction
of oil and gas pipelines in the regional market of our two welded pipe
mills in South America, can vary significantly from year to year.
Projects to extend the gas pipeline infrastructure in Brazil and to
construct an oil pipeline to pipe oil from reserves in Rio de Janeiro
state to refineries in Sao Paolo state were suspended in the second
half of 2003, abruptly affecting demand for our products. In the
second half of 2004, gas pipeline infrastructure project activity
resumed in Brazil. In Argentina, after two years with no significant
pipeline investment activity, projects to expand the capacity of the
existing gas pipeline infrastructure are expected to commence during
2005. We currently have significant orders for a number of projects in
Brazil, including a bauxite slurry pipeline project, which should
result in substantially higher sales of welded pipes in 2005.
Assuming no major change in current conditions, we expect to
register a significant increase in net sales for the second
consecutive year and to maintain or further improve our current level
of operating margins.
Annual Dividend
The board of directors proposes, for the approval of the annual
general shareholders' meeting to be held on May 25, 2005, the payment
of a dividend of US$0.169 per share (US$1.69 per ADS), or
approximately US$200 million, with payment and ex-dividend dates of
June 13, 2005 and June 8, 2005, respectively.
Analysis of 2004 Annual Results
Results for the year ended December 31, 2004 with comparison to
the results for the corresponding period of 2003.
(metric tons)
Sales volume FY 2004 FY 2003 Increase/(Decrease)
------------ ------- ------- -------------------
North America 757,000 608,000 25%
Europe 679,000 617,000 10%
Middle East & Africa 421,000 365,000 15%
Far East & Oceania 412,000 366,000 13%
South America 377,000 322,000 17%
Total seamless pipes 2,646,000 2,278,000 16%
Welded pipes 316,000 355,000 (11%)
Total steel pipes 2,963,000 2,633,000 13%
Sales volume of seamless pipes increased by 16% to 2,646,000 tons
in 2004 from 2,278,000 tons in 2003. This includes 71,000 tons
produced at Silcotub, the Romanian seamless pipe mill acquired in
July, the majority of which were sold in Europe. Demand for our
seamless pipe products increased in all regions led by higher demand
from oil and gas customers.
In North America, demand for our seamless steel pipe products
increased due to higher exploration and production expenditure by
Pemex, higher sales in Canada (related to an increased use of seamless
pipes in oil and gas drilling activity resulting from the greater
average depth of wells drilled), and higher sales to the NAFTA
industrial and automotive market.
In Europe, the increase in sales was primarily due to the
incorporation of sales of Silcotub's products in the second half of
the year, but also as a result of increased sales to oil and gas
customers in the North Sea and Scandinavia, and in certain industrial
segments such as automotive, hydraulic cylinders and construction
machinery. Overall demand was affected, however, by slow growth in
industrial activity and competition from low-cost producers in Eastern
Europe.
In the Middle East and Africa, demand increased due to the
development of gas projects in Egypt and higher oil and gas production
activity in the Middle East. Activity is expected to continue to
increase in this region as Saudi Arabia increases its production
capacity and deepwater projects in West Africa begin production.
In the Far East and Oceania, demand increased due to stronger
activity from the industrial sector in Japan and Korea and increased
oil and gas drilling activity in Indonesia. Sales in China, our
largest market in this region, remained stable.
In South America, demand increased due to higher sales in
Venezuela, following the general strike which affected demand in 2003,
and higher drilling and industrial activity in Argentina.
Sales volume of welded pipes decreased by 11% to 316,000 tons in
2004 from 355,000 tons in 2003. This decrease reflects substantially
lower sales in the local Brazilian market following delays in
implementing pipeline projects in the Brazilian market in the first
half, whereas in the first half of 2003 demand for welded pipes for
pipeline projects in the Brazilian market had been strong. Sales to
projects in the non-regional markets of Africa and North America
increased.
Sales of electric energy in Italy remained stable at 3.0 TWh in
2004 as in 2003 and sales of natural gas increased by 30% to 652
million scm in 2004 from 503 million scm in 2003. The increases in
sales of natural gas reflects the continuing expansion of the customer
base.
(US$ million)
Net sales FY 2004 FY 2003 Increase/(Decrease)
-------------- ------- ------- -------------------
Seamless pipes 3,273.3 2,388.2 37%
Welded pipes 348.1 350.7 (1%)
Energy 417.9 333.2 25%
Others 96.8 107.5 (10%)
Total 4,136.1 3,179.7 30%
Net sales in 2004 increased 30% to US$4,136.1 million, compared to
US$3,179.7 million in 2003. Net sales of seamless pipes rose by 37%,
reflecting strong market demand for our products and the incorporation
of Silcotub in the second half of the year. Average selling prices for
seamless pipes increased by 18% in 2004 compared to 2003. Net sales of
welded pipes, which included US$68 million in sales of metal
structures made by our Brazilian welded pipe subsidiary in 2004 and
US$63 million of such sales in 2003, declined 1% as higher selling
prices reflecting higher steel costs did not offset the reduction in
sales volume. Net sales of electricity and natural gas to third
parties by Dalmine Energie increased by 25% reflecting the continued
expansion of the business and the higher value of the Euro against the
U.S. dollar. Net sales of other goods and services, which in 2003
included US$49 million of sales of products whose sales have been
discontinued, decreased 10%. Excluding such discontinued sales, net
sales of other goods and services increased by 65% due primarily to
the addition of sales to third parties of pre-reduced iron produced at
our recently acquired Venezuelan HBI plant and increased sales of
sucker rods used in oil extraction.
(percentage of net sales)
Cost of sales FY 2004 FY 2003
-------------- ------- -------
Seamless pipes 63% 64%
Welded pipes 72% 78%
Energy 95% 95%
Others 56% 79%
Total 67% 69%
Cost of sales, expressed as a percentage of net sales, decreased
to 67% in 2004, compared to 69% in 2003. This decrease resulted
primarily from an improvement in the gross margin recorded on the
sales of seamless pipes and higher sales of seamless pipes as a
proportion of total sales. Cost of sales for seamless pipe products,
expressed as a percentage of net sales, declined from 64% to 63% as
higher prices and volume-related efficiencies offset substantial
increases in raw material costs. Cost of sales for welded pipe
products, expressed as a percentage of net sales, decreased to 72%
from 78% due to a higher gross margin on the sale of welded pipes
reflecting higher associated selling expenses and the non-recurrence
of operating losses on the sales of metal structures included in this
segment. Cost of sales for energy products, expressed as a percentage
of net sales, remained stable. Cost of sales for other products,
expressed as a percentage of net sales, decreased primarily due to the
discontinuation of sales of low-margin, non-pipe steel products
produced by third parties.
Selling, general and administrative expenses, or SG&A, declined,
as a percentage of net sales, to 16.3% in 2004, compared to 17.8% of
net sales during 2003, but rose in absolute terms to US$672.4 million
from US$566.8 million. Selling expenses, on a per ton basis, rose
primarily due to higher freight costs but remained stable when
expressed as a percentage of net sales. Administrative expenses
decreased, when expressed as a percentage of net sales, but rose in
absolute terms due to the incorporation of acquisitions and higher
labor costs including the effect of currency appreciations against the
US dollar.
Net financial income totalled US$5.8 million in 2004, compared to
net financial expenses of US$29.4 million in 2003. Net interest
expenses increased to US$32.7 million compared to US$16.7 million,
reflecting a higher net debt position and rising interest rates.
However, Tenaris recorded a gain of US$33.1 million on the fair value
of its derivatives and net foreign exchange translations in 2004,
compared to a loss of US$16.2 million in 2003. This gain was due
primarily to the impact of the devaluation of the US dollar against
the other currencies to which we have a net foreign exchange exposure
and currency hedging. In accordance with IFRS, we recorded an increase
in our debt of approximately US$45 million due to the appreciation of
the Euro and the Japanese yen against the US dollar.
Equity in earnings of associated companies generated a gain of
US$206,0 million in 2004, compared to a gain of US$27.6 million in
2003. This gain results predominately from our investment, held
through Ylopa Servicos de Consultadoria Lda. (Ylopa) and Consorcio
Siderurgia Amazonia Ltd. (Amazonia), in Sidor, whose results have
benefited from strong global demand and prices for steel products. The
gain on this investment included (i) an ordinary gain of US$73.0
million, (ii) a non-recurring gain of US$51.9 million, following the
reversal of an impairment provision recorded on our investment in
Amazonia in 2003, and (iii) a non-recurring gain of US$83.1 million
recorded in respect of Ylopa's conversion of its subordinated loan
with Amazonia into equity, increasing our participation in Amazonia to
21.2% from 14.5% and our indirect participation in Sidor to 12.6% from
8.7%, and which reflects the difference between the value of the
shares subsequently acquired pursuant to the conversion and the value
of the loan that was converted.
Income tax provisions of US$220.4 million were recorded during
2004, compared to US$63.9 million in 2003. Excluding the effect of
non-recurring factors, such as an adjustment on net deferred tax
assets and liabilities following the reduction in the corporate income
tax rate in Mexico that came into force this year, income tax
provisions represented approximately 36% of income before income tax,
equity in earnings of associated companies and minority interest. This
compares with an equivalent rate of 40% in the previous year.
Analysis of 2004 Fourth Quarter Results
(metric tons)
Sales volume Q4 2004 Q4 2003 Increase/(Decrease)
------------ ------- ------- -------------------
North America 226,000 164,000 38%
Europe 185,000 145,000 28%
Middle East & Africa 101,000 66,000 53%
Far East & Oceania 98,000 80,000 23%
South America 96,000 91,000 5%
Total seamless pipes 707,000 545,000 30%
Welded pipes 50,000 39,000 28%
Total steel pipes 756,000 584,000 29%
Sales volume of seamless pipes increased by 30% to 707,000 tons in
the fourth quarter of 2004 from 545,000 tons in the same period of
2003, and up 11% from the previous quarter. This includes 48,000 tons
produced by Silcotub, the majority of which were sold in Europe. Sales
increased in all regions compared to the fourth quarter of 2003 but
the increase was particularly strong in North America and the Middle
East & Africa.
Sales volumes of welded pipes increased by 28% to 50,000 tons in
the fourth quarter of 2004 from 39,000 tons in the same period of 2003
but declined by 56% compared to the previous quarter. These sales were
made principally in the local Brazilian market where demand has been
recovering after a period in which investments in oil and gas pipeline
construction activity were effectively halted and which was reflected
in the low sales volumes recorded in the fourth quarter of 2003.
(US$ million)
Net sales Q4 2004 Q4 2003 Increase/(Decrease)
---------- ------- ------- -------------------
Seamless pipes 1,006.2 595.2 69%
Welded pipes 77.7 51.0 52%
Energy 140.6 99.2 42%
Others 48.2 16.2 198%
Total 1,272.7 761.6 67%
Net sales in the quarter ended December 31, 2004 increased 67% to
US$1,272.7 million, compared to US$761.6 million in the corresponding
quarter of 2003. Net sales of seamless pipes rose by 69%, due to
higher average selling prices and higher sales volumes. Net sales of
welded pipes, which included US$17.5 million in sales of metal
structures made by our Brazilian welded pipe subsidiary in the fourth
quarter of 2004 and US$16.6 million of such sales in the fourth
quarter of 2003, rose by 52% due to a higher sales volume. Net sales
of energy rose by 42% due to continued expansion in the business and
the higher value of the Euro against the US dollar. Net sales of other
goods and services increased 198% due to the start of sales to third
parties of pre-reduced hot briquetted iron and higher sales of sucker
rods used in oil extraction.
(percentage of net sales)
Cost of sales Q4 2004 Q4 2003
-------------- ------- -------
Seamless pipes 62% 66%
Welded pipes 72% 85%
Energy 92% 93%
Others 52% 64%
Total 66% 70%
Cost of sales, expressed as a percentage of net sales, decreased
to 66% in the fourth quarter of 2004, compared to 70% in the same
period of 2003. This decrease resulted primarily from an improvement
in the gross margin recorded on the sales of seamless pipes and higher
sales of seamless pipes as a proportion of total sales. Cost of sales
for seamless pipe products, expressed as a percentage of net sales,
decreased to 62% in the fourth quarter of 2004 compared to 66% in the
same period of 2003 as higher average selling prices and
volume-related efficiencies offset increased raw material costs.
Selling, general and administrative expenses, or SG&A, declined as
a percentage of net sales to 15.4% in the quarter ended December 31,
2004 compared to 19.4% in the corresponding quarter of 2003 but rose
in absolute terms to US$196.2 million compared to US$147.8 million.
Selling expenses, on a per ton basis, rose due to higher freight costs
and administrative expenses increased in absolute terms due to higher
expenses associated with the incorporation of new subsidiaries and
higher labor costs associated with currency movements and higher
end-of-year bonuses.
Net financial income totalled US$28.3 million in the fourth
quarter of 2004, compared to net financial income of US$7.2 million in
the same period of 2003. Net interest expenses increased to US$10.6
million compared to US$3.8 million, reflecting a higher net debt
position and higher interest rates. However, Tenaris recorded a gain
of US$39.6 million on the fair value of its derivatives and net
foreign exchange translations in the fourth quarter of 2004, compared
to a gain of US$10.1 million in the corresponding quarter of 2003.
This gain was due primarily to the impact of the devaluation of the US
dollar against the other currencies to which we have a net foreign
exchange exposure and our currency hedging activities.
Equity in earnings of associated companies generated a gain of
US$149.1 million in the fourth quarter of 2004, compared to a gain of
US$11.3 million in the fourth quarter of 2003. This gain, as discussed
above, included non-recurring gains of US$117.7 million.
Cash Flow and Liquidity
Net cash provided by operations during 2004 was US$98.3 million.
Cash flow from operations was affected by a substantial increase in
working capital of US$621.2 million, reflecting an increase in
inventories of US$411.0 million, a net increase in trade receivables
less customer advances and trade payables of US$82.8 million, and the
payment of the first and second instalments of the liability towards
the consortium led by BHP Billiton Petroleum Ltd. (US$116.9 million).
A third and final instalment on this liability of UKGBP 30.4 million
(approximately US$62 million) is due to be paid in December 2005 but
we expect to receive the payment due from Fintecna of EUR 92.6 million
(approximately US$126 million) following the arbitration award prior
to such payment. The increase in our cost of inventories is mainly due
to substantial increases in raw material costs and an increase in
business activity. The increase in our trade receivables of US$271.2
million reflects higher quarterly net sales.
Net cash used in investment activities was US$199.9 million which
included US$183.3 million in capital expenditure, US$97.6 million in
acquisitions, dividends of US$48.6 million received on our indirect
investments in Sidor and in the release of US$20.4 million held in
trust funds. Capital expenditure in 2004 rose to US$183.3, compared to
US$162.6 million in 2003, and is expected to increase significantly in
2005 due to our project to build a power generation facility at our
mill in Italy, an acceleration of investment in finishing facilities
to add capacity in high value products, and investments in Silcotub
which was acquired in 2004.
Cash and cash equivalents, excluding investments of US$119.7
million in trust funds originally established in 2001 to support our
Argentine operations, increased by US$63.4 million to US$311.6 million
during 2004. Total financial debt increased by US$425.7 million to
US$1,259.3 million from US$833.7 million at December 31, 2003. A
substantial proportion of our total financial debt (67%) falls due
within the next twelve months and we plan to extend the average
maturity of our debt during 2005. We also expect that our total
financial debt will reduce in 2005 as we expect cash flow from
operations to be higher than in 2004.
Some of the statements contained in this press release are
"forward-looking statements." Forward-looking statements are based on
management's current views and assumptions and involve known and
unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising
from uncertainties as to future oil prices and their impact on
investment programs by oil companies.
Consolidated Income Statement
Three-month period Fiscal year ended
ended December 31, December 31,
(All amounts in US$ -------------------- -----------------------
thousands) 2004 2003 2004 2003
Net sales 1,272,711 761,566 4,136,063 3,179,652
Cost of sales (837,531) (536,357) (2,776,936) (2,207,827)
---------- --------- ----------- -----------
Gross profit 435,180 225,209 1,359,127 971,825
Selling, general and
administrative expenses (196,162) (147,758) (672,449) (566,835)
Other operating income
and expenses 116,358 (109,519) 126,840 (116,800)
---------- --------- ----------- -----------
Operating income 355,376 (32,068) 813,518 288,190
Financial income
(expenses), net 28,257 7,183 5,802 (29,420)
---------- --------- ----------- -----------
Income before equity in
earnings (losses) of
associated companies,
income tax and minority
interest 383,633 (24,885) 819,320 258,770
Equity in earnings
(losses) of associated
companies 149,068 11,312 206,037 27,585
---------- --------- ----------- -----------
Income before income tax
and minority interest 532,701 (13,573) 1,025,357 286,355
Income tax (53,192) 26,130 (220,376) (63,918)
---------- --------- ----------- -----------
Net income before
minority interest 479,509 12,557 804,981 222,437
Minority interest (12,087) 1,126 (20,278) (12,129)
---------- --------- ----------- -----------
Net income 467,422 13,683 784,703 210,308
Consolidated Balance Sheet
December 31, 2004 December 31, 2003
(All amounts in US$
thousands)
Assets
Non-current assets
Property, plant and
equipment, net 2,164,601 1,960,314
Intangible assets, net 49,211 54,037
Investments in associated
companies 99,451 45,814
Other investments 24,395 23,155
Deferred tax assets 161,173 130,812
Receivables 151,365 2,650,196 59,521 2,273,653
Current assets
Inventories 1,269,470 831,879
Receivables and
prepayments 374,446 165,134
Trade receivables 936,931 652,782
Other investments 119,666 138,266
Cash and cash equivalents 311,579 3,012,092 247,834 2,035,895
Total assets 5,662,288 4,309,548
Equity and Liabilities
Shareholders' equity 2,495,924 1,841,280
Minority interest 165,271 119,984
Non-current liabilities
Borrowings 420,751 374,779
Deferred tax liabilities 371,975 418,333
Other liabilities 172,442 191,540
Provisions 31,776 23,333
Trade payables 4,303 1,001,247 11,622 1,019,607
Current liabilities
Borrowings 838,591 458,872
Current tax liabilities 222,735 108,071
Other liabilities 176,393 207,594
Provisions 42,636 39,624
Customers advances 127,399 54,721
Trade payables 592,092 1,999,846 459,795 1,328,677
Total liabilities 3,001,093 2,348,284
Total equity and
liabilities 5,662,288 4,309,548
Consolidated Cash Flow Statement
Three-month period Fiscal year ended
ended December 31,
December 31,
(All amounts in US$ thousands) 2004 2003 2004 2003
Cash flows from operating
activities
Net income 467,422 13,683 784,703 210,308
Depreciation and amortization 57,750 53,862 208,119 199,799
Provision for BHP proceeding 114,182 - 114,182
Fintecna arbitration award (126,126) - (126,126) -
Income tax accruals less payments 8,723 (72,752) 44,659 (138,570)
Equity in (earnings) losses of
associated companies (149,068) (11,312) (206,037) (27,585)
Interest accruals less payments,
net 9,843 (2,479) 16,973 (3,032)
Net provisions 4,445 (2,780) 11,455 (13)
Power plant impairment 11,705 - 11,705 -
Result from disposition of
investment in associated
companies - (1,018) - (1,018)
Minority interest 12,087 (1,126) 20,278 12,129
Change in working capital (209,259)(110,552) (621,187)(107,156)
Currency translation adjustment
and others (35,518) 43,126 (46,254) 16,592
------------------ ------------------
Net cash provided by operating
activities 52,004 22,834 98,288 275,636
------------------ ------------------
Cash flows from investing
activities
Capital expenditures (60,834) (39,164) (183,312)(162,624)
Acquisitions of subsidiaries and
associates, net of cash provided
by business acquisitions (40) (3,627) (97,595) (65,283)
Cost of disposition of property,
plant and equipment and
intangible assets 1,762 2,784 12,054 5,965
Proceeds from sales of
investments in associates - 1,018 - 1,124
Convertible loan to associated
companies - - - (31,128)
Dividends and distributions
received from associated
companies 8,003 - 48,598 -
Acquisitions of minority interest - (299) - (299)
Changes in Trust Fund 20,359 - 20,359 -
------------------ ------------------
Net cash used in investing
activities (30,750) (39,288) (199,896)(252,245)
Cash flows from financing
activities
Dividends paid in cash - - (135,053)(115,002)
Dividends paid to minority
interest in subsidiaries (8) (8,088) (31) (14,064)
Proceeds from borrowings 180,159 219,192 676,862 590,490
Repayments of borrowings (174,609)(155,870) (376,768)(544,606)
------------------ ------------------
Net cash provided by (used in)
financing activities 5,542 55,234 165,010 (83,182)
------------------ ------------------
Increase (decrease) in cash and
cash equivalents 26,796 38,780 63,402 (59,791)
Movement in cash and cash
equivalents
At the beginning of the year, 287,424 208,592 247,834 304,536
Effect of exchange rate changes (2,641) 462 343 3,089
Increase / (Decrease) in cash and
cash equivalents 26,796 38,780 63,402 (59,791)
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At December 31, 311,579 247,834 311,579 247,834
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CONTACT: Tenaris
Nigel Worsnop, 888-300-5432
www.tenaris.com
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.
Tenaris, S.A.
Date: February 24, 2005
By: /s/ Cecilia Bilesio
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Cecilia Bilesio
Corporate Secretary