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 27, 2009
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 ü 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 ü
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 2008 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:
February 27, 2009
Tenaris,
S.A.
By: /s/ Cecilia
Bilesio
Cecilia
Bilesio
Corporate
Secretary
Giovanni
Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
Tenaris
Announces 2008 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, February 25, 2009.
- Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: 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$153.5
million.
Summary
of 2008 Annual Results
|
FY
2008
|
FY
2007
|
Increase/(Decrease)
|
|
|
Net
sales (US$ 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
|
Sales
volume (metric tons)
|
Q4
2008
|
Q4
2007
|
Increase/(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%)
|
|
Tubes
|
Q4
2008
|
Q4
2007
|
Increase/(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$2,153.0 million in the fourth quarter of 2007, as an increase in
our average selling price for tubular products and services offset a 3% decline
in sales volume. Sales rose strongly in North America, led by increased volumes
and prices for OCTG products throughout the region. Sales also increased in
South America and Far East and Oceania reflecting higher average selling prices.
In Europe, sales were affected by the decline in industrial activity and imports
from China which are causing injury to the European pipe industry.
|
Projects
|
Q4
2008
|
Q4
2007
|
Increase/(Decrease)
|
|
Net
sales ($ 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$315.4 million in the fourth quarter of 2007, as the increase in
average selling prices almost entirely offset the decrease in
volumes.
|
Others
|
Q4
2008
|
Q4
2007
|
Increase/(Decrease)
|
|
Net
sales ($ 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$1,392.4 million at December 31, 2008.
Analysis of 2008 Annual
Results
|
Sales
volume (metric tons)
|
FY
2008
|
FY
2007
|
Increase/(Decrease)
|
|
Tubes
- Seamless
|
2,861,000
|
2,870,000
|
(0%)
|
|
Tubes
– Welded
|
1,057,000
|
965,000
|
10%
|
|
Tubes
- Total
|
3,918,000
|
3,835,000
|
2%
|
|
Projects
- Welded
|
591,000
|
474,000
|
25%
|
|
Total
– Tubes + Projects
|
4,509,000
|
4,309,000
|
5%
|
|
Tubes
|
FY
2008
|
FY
2007
|
Increase/(Decrease)
|
|
Net
sales ($ 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$2,713.9 million in 2007 as higher sales more than offset a lower margin
resulting from the impairment charges.
|
Projects
|
FY
2008
|
FY
2007
|
Increase/(Decrease)
|
|
Net
sales ($ 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$184.8
million in 2007, due to the increase in net sales and a relatively stable
operating margin.
|
Others
|
FY
2008
|
FY
2007
|
Increase/(Decrease)
|
|
Net
sales ($ 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:
|
Holders
|
Number
of shares
|
%
of capital and voting rights
|
|
San
Faustin N.V.(1)
|
717,440,187
|
60.8
|
|
Capital
World Investors (2)
|
64,633,440
|
5.5
|
(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 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 of U.S. dollars)
|
Three-month
period ended December 31,
|
Year
ended December 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 ended December 31,
|
Twelve-month
period 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
|
||