FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of March 1, 2007
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 X 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 X
----- -----
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- .
---
Tenaris Announces 2006 Fourth Quarter and Annual Results
The financial and operational information contained in this press
release is based on audited consolidated financial statements prepared
in accordance with International Financial Reporting Standards (IFRS)
and presented in U.S. dollars.
LUXEMBOURG--(BUSINESS WIRE)--Feb. 28, 2007--Tenaris S.A. (NYSE:TS)
(BI:TEN) (BMV:TS) (BCBA:TS) ("Tenaris") today announced its results
for the fourth quarter and year ended December 31, 2006 with
comparison to its results for the fourth quarter and year ended
December 31, 2005.
Summary of 2006 Fourth Quarter Results
(Comparison with third quarter of 2006 and fourth quarter of 2005)
-------- ------------- -------------
Q4 2006 Q3 2006 Q4 2005
-------- ------------- -------------
Net sales (US$ million) 2,460.9 1,803.6 36% 1,734.8 42%
Operating income (US$ million) 812.6 695.6 17% 574.2 42%
Net income (US$ million) 612.0 510.4 20% 414.8 48%
Shareholders' net income (US$
million) 574.8 479.5 20% 381.0 51%
Earnings per ADS (US$) 0.97 0.81 20% 0.64 51%
Earnings per share (US$) 0.49 0.41 20% 0.32 51%
EBITDA (US$ million) 901.6 751.3 20% 631.8 43%
EBITDA margin (% of net sales) 37% 42% 36%
These fourth quarter results are the first that reflect the
consolidation of Maverick Tube Corporation which was acquired on
October 5, 2006 and the sale of a majority participation in Dalmine
Energie, our Italian energy supply business, on December 1, 2006.
Strong demand for our specialized pipe products, including
TenarisBlue(R) premium connection products, was the principal factor
for the increase in operating income. The contribution of the former
Maverick operations to earnings in this quarter was affected by the
slowdown in drilling activity in Canada and the delayed start up of
the Louisville Conduit plant. Income from the sale of a majority
participation in Dalmine Energie contributed earnings of US$0.03 per
share (US$0.06 per ADS). Free cash flow (net cash provided by
operations less capital expenditures) totaled US$359.6 million, and
net debt at December 31, 2006 was US$2,095.3 million.
Summary of 2006 Annual Results
-------- -------- -------------------
FY 2006 FY 2005 Increase/(Decrease)
-------- -------- -------------------
Net sales (US$ million) 7,727.7 6,209.8 24%
Operating income (US$ million) 2,792.5 1,945.9 44%
Net income (US$ million) 2,059.4 1,387.3 48%
Shareholders' net income (US$
million) 1,945.3 1,277.5 52%
Earnings per ADS (US$) 3.30 2.16 52%
Earnings per share (US$) 1.65 1.08 52%
EBITDA (US$ million) 3,047.5 2,160.1 41%
EBITDA margin (% of net sales) 39% 35%
Our 2006 annual results reflect a further year of strong growth at
Tenaris and benefited from good market conditions and the positioning
we have built up over a number of years. Earnings per share grew 52%
in 2006 following growth of 65% in 2005. Demand for our high-quality
tubular products and services from the oil and gas industry remained
firm throughout the year particularly in the Middle East and Africa.
Following the recent integration of the former Maverick operations,
sales in 2007 are expected to grow strongly in North America.
Annual Dividend Proposal
The board of directors proposes, for the approval of the annual
general shareholders' meeting to be held on June 6, 2007, the payment
of an annual dividend of US$0.30 per share (US$0.60 per ADS), or
approximately US$354 million. If the annual dividend is approved by
the shareholders, it will be paid on June 21 2007 with an ex-dividend
date of June 18, 2007.
Changes in Segment Reporting
Following the acquisition of Maverick and the sale of a majority
participation in Dalmine Energie, we reassessed the definition of our
business segments. Starting with the financial statements for the year
and quarter ended December 31, 2006, Tenaris will report under three
business segments: Tubes (tubular products and services), Projects
(pipes for pipeline projects), and Others (other products and
services). The operating results of the former Maverick energy
products division are included in Tubes and those of its electrical
products division are included in Others. The operating results of
Dalmine Energie are classified as discontinued operations.
Market Background and Outlook
In 2006, global demand for oil and gas continued to rise
reflecting economic growth and the importance of oil and gas in the
energy matrix. Encouraged by continuing high levels of oil and gas
prices, oil and gas companies throughout the world continued to
increase their level of spending and drilling activity to offset
declining rates of production from mature fields and to explore and
develop new reserves. The international count of active drilling rigs,
as published by Baker Hughes, rose steadily quarter on quarter
throughout the year to average 952 during the fourth quarter, showing
an increase of 9% compared to the same quarter of the previous year
matching the average increase for the year overall compared to 2005.
The corresponding percentage annual rig count increases in the U.S.
and Canadian markets, which are more sensitive to North American
natural gas prices, were 19% and 3% respectively. For the fourth
quarter, however, the Canadian rig count registered a 23% decline
compared to the fourth quarter of 2005. The U.S. rig count, although
up 16% over the fourth quarter of 2005, was flat compared to the third
quarter of 2006.
We estimate that global apparent consumption of OCTG (oil country
tubular goods) in 2006 grew approximately 14% compared to 2005, and
will continue to grow in 2007. However, the rate of growth is expected
to slow from the high rates of the past three years and we are likely
to see downwards inventory adjustments in North America. Demand from
the energy sector for specialized pipe products, including premium
connections, used in complex drilling and other high-performance
applications, is expected to remain strong.
Favorable market conditions and increased demand for our
specialized pipe products, including premium connections, helped us to
record sales growth and an increase in operating margin for our
tubular products and services (Tubes) segment in the first nine months
of the year. The consolidation of the energy products division of
Maverick within this segment during the fourth quarter resulted in an
increase in sales but a reduction in the operating margin from the
previous quarter. For 2007, we expect to record further growth in
sales in our Tubes segment due to the consolidation of Maverick for
the full year and to maintain, or improve, the segment operating
margin from that recorded in the fourth quarter of 2006 as we make
progress in integrating welded OCTG and line pipe products under our
sales strategy for North America.
Demand for our large diameter pipes for pipeline projects in South
America in 2006 was affected by delays in the implementation of major
gas pipeline infrastructure projects in Brazil and Argentina. This
resulted in a substantial decline in shipments and margins in our
Projects segment from those recorded in 2005 notwithstanding an
increase in sales for pipeline projects in North America and Africa.
With orders in hand for the delayed projects in Brazil and Argentina
and deliveries expected to begin at the end of the first quarter, we
expect a significant increase in sales and improved margins in 2007
for our Projects segment, assuming there are no further delays to
deliveries to these projects.
Analysis of 2006 Fourth Quarter Results
------------------------------ ---------- -------- -------------------
Sales volume (metric tons) Q4 2006 Q4 2005 Increase/(Decrease)
------------------------------ ---------- -------- -------------------
Tubes - Seamless 730,000 738,000 (1%)
Tubes - Welded 264,000 -
Tubes - Total 994,000 738,000 35%
Projects - Welded 98,000 110,000 (11%)
Total 1,092,000 848,000 29%
-------------------------------- -------- -------- -------------------
Tubes Q4 2006 Q4 2005 Increase/(Decrease)
-------------------------------- -------- -------- -------------------
(Net sales - $ million)
North America 770.8 413.6 87%
South America 244.9 223.9 9%
Europe 363.5 289.8 25%
Middle East & Africa 613.4 306.7 100%
Far East & Oceania 139.5 222.9 (37%)
Total net sales ($ million) 2,132.2 1,456.9 46%
Cost of sales (% of sales) 49% 50%
Operating income ($ million) 761.9 524.5 45%
Operating income (% of sales) 36% 36%
Net sales of tubular products and services rose 46% to US$2,132.2
million in the fourth quarter of 2006, compared to US$1,456.9 million
in the fourth quarter of 2005, due to the incorporation of sales from
the former Maverick operations and an increase in the average selling
price of our tubular products. Sales rose particularly in the Middle
East and Africa as there was strong demand for our TenarisBlue(R)
premium connection and other specialized OCTG products and services
particularly in Saudi Arabia where there has been a sustained increase
in investment in oil and gas drilling activity. In North America,
excluding the sales from the former Maverick operations, there was an
increase in sales of our deepwater riser and flowline products in the
Gulf of Mexico but a decline in sales of OCTG products and services in
Canada where sales were affected by a slowdown in drilling activity
and distributor inventory adjustments. In South America, there was an
increase in sales in Colombia, reflecting the incorporation of the
former Maverick operations in that country but sales of OCTG products
and services were lower in Venezuela as PDVSA drew down inventories
and in Argentina where oil and gas drilling activity was affected by
strike activity. In Europe, the increase in sales was due mainly to
higher average selling prices reflecting a product mix more oriented
to specialized products. In the Far East and Oceania, sales declined
primarily due to lower sales of OCTG products and services in the
region.
---------------------------------- ------- ------- -------------------
Projects Q4 2006 Q4 2005 Increase/(Decrease)
---------------------------------- ------- ------- -------------------
Net sales ($ million) 172.4 195.1 (12%)
Cost of sales (% of sales) 72% 62%
Operating income ($ million) 23.1 44.0 (48%)
Operating income (% of sales) 13% 23%
Net sales of pipes for pipeline projects declined 12% to US$172.4
million in the fourth quarter of 2006, compared to US$195.1 million in
the fourth quarter of 2005, due to lower sales volumes. The increased
level of activity compared to the third quarter of 2006 reflects sales
for pipeline projects in Peru, North America and Africa. Operating
margins and sales in this segment are expected to improve once
deliveries to delayed projects in Brazil and Argentina commence.
---------------------------------- ------- ------- -------------------
Others Q4 2006 Q4 2005 Increase/(Decrease)
---------------------------------- ------- ------- -------------------
Net sales ($ million) 156.3 82.8 89%
Operating income ($ million) 27.6 5.8 371%
Operating income (% of sales) 18% 7%
Net sales of other products and services rose 89% to US$156.3
million in the fourth quarter of 2006, compared to US$82.8 million in
the fourth quarter of 2005, reflecting the inclusion of sales of
conduit pipes from the former Maverick electrical products division
and higher sales of hot briquetted iron from our plant in Venezuela.
Selling, general and administrative expenses, or SG&A, increased
as a percentage of net sales to 14.1% in the quarter ended December
31, 2006 compared to 13.6% in the corresponding quarter of 2005 due
primarily to an increase in amortization expenses following the
incorporation of Maverick. Amortization of customer relationships and
other intangibles acquired with Maverick amounted to US$38 million in
the quarter and will be a recurring expense.
Other operating expenses included a write-off of US$2.8 million in
relation to fixed assets at our Romanian steel shop.
Net interest expenses rose to US$33.5 million in the fourth
quarter of 2006 compared to net interest expenses of US$4.4 million in
the same period of 2005 reflecting an increased net debt position
following the Maverick acquisition.
Other financial results contributed a gain of US$18.2 million
during the fourth quarter of 2006, compared to a loss of US$15.4
million during the fourth quarter of 2005. 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. They arise due to the fact that
most of our subsidiaries prepare their financial statements in
currencies other than the U.S. dollar in accordance with IFRS.
Equity in earnings of associated companies generated a gain of
US$17.9 million in the fourth quarter of 2006, compared to a gain of
US$22.4 million in the fourth quarter of 2005. These gains were
derived mainly from our equity investment in Ternium.
Income tax charges totaled US$243.7 million in the fourth quarter
of 2006, equivalent to 31% of income before equity in earnings of
associated companies and income tax.
Income from discontinued operations amounted to US$40.4 million in
the fourth quarter of 2006, compared to US$1.4 million in the fourth
quarter of 2005.
Income attributable to minority interest rose to US$37.2 million
in the fourth quarter of 2006, compared to US$33.9 million in the
corresponding quarter of 2005 reflecting higher operating and
financial results at our NKKTubes subsidiaries partially offset by
lower operating and financial results at our Confab subsidiary.
Cash Flow and Liquidity
Net cash provided by operations during the fourth quarter of 2006
was US$499.0 million (US$1,810.9 million for the year), compared to
US$363.4 million in the fourth quarter of 2005 (US$1,295.3 million
during the year). Working capital increased by US$218.9 million during
the fourth quarter. Inventories increased by US$175.7 million and
trade receivables by US$112.4 million. The increase in working capital
for the full year was US$469.5 million.
Capital expenditures increased to US$139.4 million for the fourth
quarter of 2006, compared to US$90.0 million in the fourth quarter of
2005. This fourth quarter coincided with the peak disbursement period
in the implementation of our two-year investment program to increase
capacity for specialized products. Capital expenditure for the full
year increased to US$441.5 million in 2006 compared to US$284.5
million in 2005.
During 2006, total financial debt increased by US$2,640.9 million
to US$3,651.2 million at December 31, 2006 from US$1,010.3 million at
December 31, 2005, reflecting the use of debt to finance the
acquisition of Maverick. Net financial debt during 2006 increased by
US$1,912.3 million to US$2,095.3 million at December 31, 2006.
Analysis of 2006 Annual Results
---------------------------- ---------- ---------- -------------------
Sales volume (metric tons) Q4 2006 Q4 2005 Increase/(Decrease)
---------------------------- ---------- ---------- -------------------
Tubes - Seamless 2,919,000 2,870,000 2%
Tubes - Welded 297,000 -
Tubes - Total 3,216,000 2,870,000 12%
Projects - Welded 281,000 501,000 (44%)
Total - Tubes + Projects 3,497,000 3,371,000 4%
-------------------------------- -------- -------- -------------------
Tubes FY 2006 FY 2005 Increase/(Decrease)
-------------------------------- -------- -------- -------------------
Net sales ($ million)
- North America 1,992.4 1,663.5 20%
- South America 960.0 838.8 14%
- Europe 1,314.4 1,022.7 29%
- Middle East & Africa 1,895.3 933.0 103%
- Far East & Oceania 662.3 666.0 (1%)
Total net sales 6,824.3 5,124.0 33%
Cost of sales (% of sales) 47% 53%
Operating income ($ million) 2,670.5 1,701.5 57%
Operating income (% of sales) 39% 33%
Net sales of tubular products and services rose 33% to US$6,824.3
million in 2006, compared to US$5,124.0. million in 2005, due
primarily to an increase in the average selling price of our tubular
products and services and the incorporation of sales from the former
Maverick operations in the fourth quarter. Sales rose particularly
strongly in the Middle East and Africa as there was strong demand for
our TenarisBlue(R) premium connection and other specialized OCTG
products and services, particularly in Saudi Arabia but more generally
throughout the region, where there has been a sustained increase in
investment in oil and gas drilling activity. In North America,
excluding sales from the former Maverick operations, sales declined
primarily due to reduced demand for our OCTG products and services in
Mexico, where drilling activity was impacted by oilfield cost
inflation and Pemex budgetary constraints, as well as lower sales of
line pipe products for process and power plant construction to
engineering companies in the USA and Canada. In South America, an
increase in average selling prices offset a decline in sales of OCTG
products in Venezuela as PDVSA reduced its stock of tubular
inventories during the year. In Europe, there was an increase in sales
of line pipe products to European-based process and power plant
contractors and of OCTG products and services for the North Sea and a
reduction in sales of tubes to industrial and automotive customers. In
the Far East and Oceania, although the average selling price of our
products increased, sales volumes of line pipe products to process and
power plant customers in China and throughout the region declined, as
did sales of industrial products in Japan and OCTG products throughout
the region.
Operating income from tubular products and services rose 57% to
US$2,670.5 million in 2006, from US$1,701.5 million, reflecting the
increase in sales and an increase in the gross margin.
---------------------------------- ------- ------- -------------------
Projects FY 2006 FY 2005 Increase/(Decrease)
---------------------------------- ------- ------- -------------------
Net sales ($ million) 453.5 790.0 (43%)
Cost of sales (% of sales) 72% 66%
Operating income ($ million) 56.3 179.6 (69%)
Operating income (% of sales) 12% 23%
Net sales of pipes for pipeline projects declined 43% to US$453.5
million in 2006, compared to US$790.0 million in 2005, due to lower
sales volumes. Regional demand for pipes for pipeline projects in
South America was strong in 2005 due to a significant number of
projects in Brazil. In 2006, demand in the region was affected as
large pipeline projects planned in Brazil and Argentina were delayed.
Sales to projects outside South America increased with sales made to
pipeline projects in North America and Africa.
Operating income from pipes for pipeline projects fell 69% to
US$56.3 million in 2006, from US$179.6 million, due primarily to the
decrease in shipments, higher logistics costs and higher
administrative costs expressed as a percentage of net sales.
--------------------------------- ------- -------- -------------------
Others FY 2006 FY 2005 Increase/(Decrease)
--------------------------------- ------- -------- -------------------
Net sales ($ million) 449.9 295.8 52%
Operating income ($ million) 65.7 64.8 (1%)
Operating income (% of sales) 15% 22%
Net sales of other products and services rose 52% to US$449.9
million in 2006, compared to US$295.8 million in 2005, as sales of the
principal product categories (hot briquetted iron, sucker rods,
metallic structures) included in this segment all increased and the
sales of conduit pipes from the former Maverick electrical products
division were included from the fourth quarter.
Operating income from other products and services rose 1% to
US$65.7 million in 2006, from US$64.8 million in 2005, due to higher
sales. The operating margin decreased due primarily to a reduction in
margins on sales of hot briquetted iron. These sales represented
around 40% of total sales in this segment in 2006.
Selling, general and administrative expenses, or SG&A, increased
marginally as a percentage of net sales to 13.6% in 2006 compared to
13.4% in 2005. Total SG&A rose to US$1,054.8 million in 2006, from
US$832.3 million in 2005, due to higher labor costs, higher
commission, freight and other selling expenses (reflecting higher
sales) and increased charges for amortization of intangible assets
relating principally to assets acquired in connection with the
Maverick acquisition.
Net interest expenses totaled US$31.8 million in 2006, compared to
net interest expenses of US$28.8 million in 2005. Net interest
expenses increased substantially in the fourth quarter of 2006
reflecting the change in net debt position following the acquisition
of Maverick.
Other financial results contributed a gain of US$26.8 million in
2006, compared to a loss of US$79.8 million during 2005. 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. They arise due to the
fact that most of our subsidiaries prepare their financial statements
in currencies other than the US dollar in accordance with IFRS.
Equity in earnings of associated companies generated a gain of
US$94.7 million in 2006, compared to a gain of US$117.4 million in
2005. These gains were derived mainly from our equity investment in
Ternium and our former indirect equity investment in Sidor, prior to
its exchange for an investment in Ternium in September 2005.
Income tax charges of US$870.0 million were recorded during 2006,
equivalent to 31% of income before equity in earnings of associated
companies and income tax, compared to income tax charges of US$567.4
million, equivalent to 31% of income before equity in earnings of
associated companies and income tax, during 2005.
Income from discontinued operations amounted to US$47.2 million in
2006, compared to a breakeven result in 2005.
Income attributable to minority interest was US$114.1 million in
2006, compared to US$109.8 million in 2005. Higher income attributable
to minority interest at our NKKTubes subsidiary more than offset a
decline in income attributable to minority interest at our Confab
subsidiary.
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
(Thousands of U.S. Three-month period
dollars) ended December 31, Year ended December 31,
---------------------- -----------------------
2006 2005 2006 2005
----------- ---------- ----------- -----------
Continuing operations
Net sales 2,460,910 1,734,761 7,727,745 6,209,791
Cost of sales (1,298,328) (912,493) (3,884,226) (3,429,365)
----------- ---------- ----------- -----------
Gross profit 1,162,582 822,268 3,843,519 2,780,426
Selling, general and
administrative
expenses (347,871) (236,367) (1,054,806) (832,315)
Other operating income 3,226 58 13,077 12,396
Other operating
expenses (5,311) (11,739) (9,304) (14,595)
----------- ---------- ----------- -----------
Operating income 812,626 574,220 2,792,486 1,945,912
Interest income 17,495 8,783 60,798 23,815
Interest expense (51,018) (13,138) (92,576) (52,629)
Other financial results 18,225 (15,440) 26,826 (79,772)
----------- ---------- ----------- -----------
Income before equity in
earnings of associated
companies and income
tax 797,328 554,425 2,787,534 1,837,326
Equity in earnings of
associated companies 17,942 22,433 94,667 117,377
----------- ---------- ----------- -----------
Income before income
tax 815,270 576,858 2,882,201 1,954,703
Income tax (243,679) (163,416) (869,977) (567,368)
----------- ---------- ----------- -----------
Income for continuing
operations 571,591 413,442 2,012,224 1,387,335
Discontinued operations
Income (loss) for
discontinued
operations 40,403 1,402 47,180 (3)
----------- ---------- ----------- -----------
Income for the Year 611,994 414,844 2,059,404 1,387,332
Attributable to:
Equity holders of the
Company 574,750 380,960 1,945,314 1,277,547
Minority interest 37,244 33,884 114,090 109,785
----------- ---------- ----------- -----------
611,994 414,844 2,059,404 1,387,332
----------- ---------- ----------- -----------
Consolidated Balance Sheet
(Thousands of U.S.
dollars) At December 31, 2006 At December 31, 2005
---------------------- ---------------------
ASSETS
Non-current assets
Property, plant and
equipment, net 2,939,241 2,230,038
Intangible assets, net 2,844,498 159,099
Investments in
associated companies 422,958 257,234
Other investments 26,834 25,647
Deferred tax assets 291,641 194,874
Receivables 41,238 6,566,410 65,852 2,932,744
---------- ----------
Current assets
Inventories 2,372,308 1,376,113
Receivables and
prepayments 272,632 143,282
Current tax assets 202,718 102,455
Trade receivables 1,625,241 1,324,171
Other investments 183,604 119,907
Cash and cash
equivalents 1,372,329 6,028,832 707,356 3,773,284
---------- ----------- ---------- ----------
Total assets 12,595,242 6,706,028
EQUITY
Capital and reserves
attributable to the
Company's equity holders
Share capital 1,180,537 1,180,537
Legal reserves 118,054 118,054
Share premium 609,733 609,733
Currency translation
adjustments 3,954 (59,743)
Other reserves 28,757 2,718
Retained earnings 3,397,584 5,338,619 1,656,503 3,507,802
---------- ----------
Minority interest 363,011 268,071
----------- ----------
Total equity 5,701,630 3,775,873
----------- ----------
LIABILITIES
Non-current liabilities
Borrowings 2,857,046 678,112
Deferred tax
liabilities 991,945 353,395
Other liabilities 186,724 154,378
Provisions 92,027 43,964
Trade payables 366 4,128,108 1,205 1,231,054
---------- ----------
Current liabilities
Borrowings 794,197 332,180
Current tax liabilities 565,985 452,534
Other liabilities 187,701 138,875
Provisions 26,645 36,945
Customer advances 352,717 113,243
Trade payables 838,259 2,765,504 625,324 1,699,101
-------- ----------- -------- ----------
Total liabilities 6,893,612 2,930,155
Total equity and liabilities 12,595,242 6,706,028
Consolidated Cash Flow Statement
Three-month period Twelve-month period
ended December 31, ended December 31,
--------------------- -----------------------
(Thousands of U.S.
dollars) 2006 2005 2006 2005
----------- --------- ----------- -----------
Cash flows from
operating activities
Income for the year 611,994 414,844 2,059,404 1,387,332
Adjustments for:
Depreciation and
amortization 88,996 57,573 255,004 214,227
Income tax accruals less
payments 54,889 45,062 56,836 149,487
Equity in earnings of
associated companies (17,942) (22,433) (94,667) (117,377)
Interest accruals less
payments, net 20,453 (1,087) 21,909 1,919
Income from disposal of
investment and other (39,548) (46,481) -
Changes in provisions 687 6,920 8,894 6,497
Proceeds from Fintecna
arbitration award net
of BHP settlement - - - 66,594
Changes in working
capital (218,863) (132,563) (469,517) (433,939)
Other, including
currency translation
adjustment (1,622) (4,966) 19,474 20,583
----------- --------- ----------- -----------
Net cash provided by
operating activities 499,044 363,350 1,810,856 1,295,323
----------- --------- ----------- -----------
Cash flows from
investing activities
Capital expenditures (139,395) (90,046) (441,472) (284,474)
Acquisitions of
subsidiaries (2,347,772) (290) (2,387,249) (48,292)
Proceeds from disposal
of subsidiary 52,995 - 52,995 -
Convertible loan to
associated companies - (414) - (40,358)
Proceeds from disposal
of property, plant and
equipment and
intangible assets (1,221) 4,582 15,347 9,995
Dividends and
distributions received
from associated
companies - - - 59,127
Changes in restricted
bank deposits - 1,392 2,027 11,452
Reimbursement from trust
funds - - - (119,907)
Changes in investments
in short terms
securities (48,953) 24,752 (63,697) 119,666
----------- --------- ----------- -----------
Net cash used in
investing activities (2,484,346) (60,024) (2,822,049) (292,791)
----------- --------- ----------- -----------
Cash flows from
financing activities
Dividends paid - (149,928) (204,233) (349,439)
Dividends paid to
minority interest in
subsidiaries (3,573) (6,394) (23,194) (14,318)
Proceeds from borrowings 2,739,385 446,931 3,033,230 1,222,861
Repayments of borrowings (661,770) (444,227) (1,105,098) (1,463,233)
----------- --------- ----------- -----------
Net cash provided by
(used) in financing
activities 2,074,042 (153,618) 1,700,705 (604,129)
----------- --------- ----------- -----------
Increase in cash and
cash equivalents 88,740 149,708 689,512 398,403
Movement in cash and
cash equivalents
At the beginning of the
period 1,276,412 531,462 680,591 293,824
Effect of exchange rate
changes (144) (579) (5,095) (11,636)
Increase in cash and
cash equivalents 88,740 149,708 689,512 398,403
At December 31, 2006 1,365,008 680,591 1,365,008 680,591
Cash and cash
equivalents At December 31, At December 31,
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2006 2005 2006 2005
Cash and bank deposits 1,372,329 707,356 1,372,329 707,356
Bank overdrafts (7,300) (24,717) (7,300) (24,717)
Restricted bank deposits (21) (2,048) (21) (2,048)
1,365,008 680,591 1,365,008 680,591
CONTACT: Tenaris
Nigel Worsnop, 1-888-300-5432
www.tenaris.com
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 2006 Fourth Quarter and Annual Results.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 1, 2007
Tenaris, S.A.
By: /s/ Cecilia Bilesio
-----------------------
Cecilia Bilesio
Corporate Secretary