Tenaris S.A. (NYSE: TS) (BAE: TS) (BMV: TS) (MILAN: TEN) ("Tenaris") today
announced its results for the quarter ended June 30, 2014 in comparison with its
results for the quarter ended June 30, 2013.


Summary of 2014 Second Quarter Results

(Comparison with first quarter of 2014 and second quarter of 2013)



                                       Q2 2014     Q1 2014        Q2 2013
Net sales ($ million)                   2,661    2,580    3%    2,829   (6%)
Operating income ($ million)             549      566    (3%)    578    (5%)
Net income ($ million)                   420      428    (2%)    430    (2%)
Shareholders' net income ($ million)     408      423    (3%)    418    (2%)
Earnings per ADS ($)                    0.69     0.72    (3%)   0.71    (2%)
Earnings per share ($)                  0.35     0.36    (3%)   0.35    (2%)
EBITDA- ($ million)                      702      718    (2%)    730    (4%)
EBITDA margin (% of net sales)          26.4%    27.8%          25.8%




-EBITDA is defined as operating income plus depreciation, amortization and
impairment charges/(reversals)


Our second quarter sales increased 3% sequentially and included a record level
of sales in Sub-Saharan Africa which offset the usual seasonal effect in Canada.
Our EBITDA and operating margins continued to benefit from a favorable product
mix.


Cash flow from operations amounted to $566 million during the second quarter of
2014. Following a dividend payment of $354 million in May 2014, and capital
expenditures of $223 million during the quarter, we maintained a net cash
position (cash and other current investments less total borrowings) of $1.3
billion at the end of the quarter.


Market Background and Outlook

In the United States, drilling activity has gradually increased in the first
half. Higher oil production is boosting operator cash flows which is expected to
drive further expansion. The duties on OCTG imports from nine countries,
including South Korea, determined by the U.S. Department of Commerce, if
confirmed by the U.S. International Trade Commission in its injury ruling
expected in August, should provide some relief to domestic OCTG manufacturers
and result in increased sales and a more favorable pricing environment.
Elsewhere in North America, we expect drilling activity and sales in Mexico to
recover slowly in the second half while drilling activity and sales in Canada
should be above last year's levels.


In the rest of the world, drilling activity continues to show a gradual increase
in many regions, led by gas drilling in the Middle East and deepwater drilling
in sub-Saharan Africa. However, our sales and product mix in the second half
will be affected by inventory adjustments in Saudi Arabia and a continuing low
level of sales in Brazil. Sales in the third quarter will be additionally
affected by lower shipments to sub-Saharan Africa following the record level of
this quarter.


Considering these effects, we confirm our expectation that our overall results
for 2014 will be in line with those for 2013, with a decline in the third
quarter followed by a recovery in the fourth.


Analysis of 2014 Second Quarter Results



Tubes Sales volume
(thousand metric tons)                   Q2 2014    Q1 2014       Q2 2013
Seamless                                   703     669     5%    677     4%
Welded                                     199     241   (17%)   286   (30%)
Total                                      902     910    (1%)   963    (6%)



                Tubes                  Q2 2014     Q1 2014        Q2 2013
(Net sales - $ million)
North America                           1,069    1,085   (1%)    986     8%
South America                            454      440     3%     652   (30%)
Europe                                   263      256     3%     218    21%
Middle East & Africa                     560      536     4%     626   (11%)
Far East & Oceania                       101      101     -      137   (26%)
Total net sales ($ million)             2,447    2,418    1%    2,619   (7%)
Operating income ($ million)             538      561    (4%)    553    (3%)
Operating income (% of sales)           22.0%    23.2%          21.1%




Net sales of tubular products and services increased 1% sequentially but
declined 7% year on year. Sales increased sequentially driven by record sales in
Sub-Saharan Africa, which offset the spring breakup effect in Canada. In North
America sales declined due to the seasonal spring break up in Canada, partially
offset by increased sales in Mexico. In South America, sales increased due to
higher sales of OCTG in Argentina. In Europe, higher sales of OCTG more than
offset lower sales of line pipe products. In the Middle East and Africa sales
increased due to record level of shipments to Sub-Saharan Africa deepwater
projects, partially offset by lower sales in the Middle East. In the Far East
and Oceania, sales remained stable. The 7% year on year decline in sales was
mostly due to lower shipments in Brazil.


Operating income from tubular products and services decreased 4% sequentially
and 3% year on year. Sequentially, the decrease in operating income was mainly
due to higher SG&A expenses.




                 Others                  Q2 2014    Q1 2014       Q2 2013
Net sales ($ million)                      214     162    32%    210     2%
Operating income ($ million)                12      4     200%    26   (54%)
Operating income (% of sales)              5.6%    2.8%         12.2%




Net sales of other products and services increased 32% sequentially, mainly due
to higher sales of sucker rods, industrial equipment in Brazil and pipes for
electric conduit in the USA. Sequentially, the operating margin increased
following the increase in sales and a recovery in operating margins.


Selling, general and administrative expenses, or SG&A, amounted to $518
million, or 19.5% of net sales, in the second quarter of 2014, compared to $489
million, 18.9% in the previous quarter and $529 million, 18.7% in the second
quarter of 2013. The sequential increase was mainly due to higher service and
logistics costs.


Financial results in the second quarter of 2014 amounted to zero, compared to a
gain of $42 million in the previous quarter and a loss of $11 million in the
second quarter of 2013. The gain in the previous quarter was mainly related to a
22.3% Argentine peso devaluation in the first quarter of 2014.


Equity in earnings of associated companies generated a gain of $14 million in
the second quarter of 2014, compared to a gain of $19 million in the previous
quarter and a gain of $12 million in the second quarter of last year. These
results are mainly derived from our equity investment in Ternium (NYSE: TX).


Income tax charges totaled $144 million in the second quarter of 2014,
equivalent to 26.2% of income before equity in earnings of associated companies
and income tax, compared to $199 million, or 32.7% in the previous quarter and
$150 million or 26.4% in the second quarter of 2013.


Results attributable to non-controlling interests amounted to gains of $12
million in the second quarter of 2014, compared to $6 million in the previous
quarter and $12 million in the second quarter of 2013. These results are mainly
attributable to NKKTubes, our Japanese subsidiary.


Cash Flow and Liquidity of 2014 Second Quarter

Net cash provided by operations during the second quarter of 2014 was $566
million, compared to $612 million in the previous quarter and $607 million in
the second quarter of 2013.


Capital expenditures amounted to $223 million for the second quarter of 2014,
compared to $189 million in the previous quarter and $180 million in the second
quarter of 2013. The increase has to do with the progress in the construction of
the greenfield seamless facility in Bay City, Texas.


Following a dividend payment of $354 million in May 2014, our financial position
at June 30, 2014, amounted to a net cash position (cash and other current
investments less total borrowings) of $1.3 billion, a similar level to that of
the previous quarter.


Analysis of 2014 First Half Results



                                        H1 2014  H1 2013 Increase/(Decrease)
Net sales ($ million)                    5,241    5,508          (5%)
Operating income ($ million)             1,115    1,132          (1%)
Net income ($ million)                    848      852           (1%)
Shareholders' net income ($ million)      830      843           (1%)
Earnings per ADS ($)                     1.41     1.43           (1%)
Earnings per share ($)                   0.70     0.71           (1%)
EBITDA ($ million)                       1,421    1,429          (1%)
EBITDA margin (% of net sales)           27.1%    25.9%



















































































Our sales in the first half of 2014 declined 5% compared to the first half of
2013, mainly due to lower shipments of welded pipes in Brazil. EBITDA declined
1% to $1,421 million in the first half of 2014 compared to $1,429 million in the
first half of the previous year, as an improvement in margins, driven by a
better mix of products sold, partially offset the decline in sales.


Cash flow from operations amounted to $1,178 million during the first half of
2014. Following a dividend payment of $354 million in May 2014, and capital
expenditures of $412 million during the first half of 2014, we reached a net
cash position (cash and other current investments less total borrowings) of $1.3
billion at the end of June 2014.


The following table shows our net sales by business segment for the periods
indicated below:




Net sales ($ million)        H1 2014         H1 2013     Increase/(Decrease)
Tubes                     4,865    93%    5,107    93%           (5%)
Others                     376      7%     400      7%           (6%)
Total                     5,241    100%   5,508    100%          (5%)




Tubes
The following table indicates, for our Tubes business segment, sales volumes of
seamless and welded pipes for the periods indicated below:




Sales volume
(thousand metric tons)                  H1 2014  H1 2013 Increase/(Decrease)
Seamless                                 1,372    1,334           3%
Welded                                    440      576          (24%)
Total                                    1,812    1,910          (5%)




The following table indicates, for our Tubes business segment, net sales by
geographic region, operating income and operating income as a percentage of net
sales for the periods indicated below:




            Tubes              H1 2014  H1 2013 Increase/(Decrease)
(Net sales - $ million)
North America                   2,154    2,129           1%
South America                    894     1,247         (28%)
Europe                           519      486            7%
Middle East & Africa            1,096    1,026           7%
Far East & Oceania               202      219           (8%)
Total net sales ($ million)     4,865    5,107          (5%)
Operating income ($ million)    1,099    1,079           2%
Operating income (% of sales)   22.6%    21.1%




Net sales of tubular products and services decreased 5% to $4,865 million in the
first half of 2014, compared to $5,107 million in the first half of 2013, as a
result of flat average selling prices and lower shipments of welded pipes in
Brazil.


Operating income from tubular products and services increased 2% to $1,099
million in the first half of 2014, from $1,079 million in the first half of
2013. Despite a 5% decrease in net sales, operating income increased due to an
improvement in the operating margin, mainly due to a better mix of products
sold.


Others
The following table indicates, for our Others business segment, net sales,
operating income and operating income as a percentage of net sales for the
periods indicated below:




                Others                  H1 2014  H1 2013 Increase/(Decrease)
Net sales ($ million)                     376      400           (6%)
Operating income ($ million)              16       53           (70%)
Operating income (% of sales)            4.3%     13.3%




Net sales of other products and services decreased 6% to $376 million in the
first half of 2014, compared to $400 million in the first half of 2013, mainly
due to lower sales of industrial equipment in Brazil.


Operating income from other products and services decreased 70%, to $16 million
in the first half of 2014, compared to $53 million during the first half of
2013, due to a 6% decline in sales and a lower operating margin.


Selling, general and administrative expenses, or SG&A, amounted to $1,007
million in the first half of 2014 and $1,005 million in the first half of 2013,
however, it increased as a percentage of net sales to 19.2% in the first half of
2014 compared to 18.2% in the first half of 2013 mainly due to the effect of
fixed and semi fixed expenses on lower sales.


Financial results amounted to a gain of $43 million in the first half of 2014,
compared to a loss of $20 million in the first half of 2013. Net interest
expenses amounted to $5 million in the first half of 2014, compared to $18
million in the first half of 2013. The decrease in interest expenses was due to
an increase in our net cash position. In addition, in the first half of 2014 we
had positive other financial results amounting to $48 million, mainly due to the
positive impact from the Argentine peso devaluation against the U.S. dollar on
our Argentine peso-denominated borrowings and liabilities.


Equity in earnings of associated companies generated a gain of $33 million in
the first half of 2014, compared to a gain of $24 million in the first half of
2013. These results are mainly derived from our equity investment in Ternium
(NYSE: TX) and Usiminas (BSP: USIM).


Income tax charges amounted to $343 million in the first half of 2014,
equivalent to 29.6% of income before equity in earnings of associated companies
and income tax, compared to $284 million in the first half of 2013, or 25.5% of
income before equity in earnings of associated companies and income tax. During
the first half of 2014, the tax rate was negatively affected by the effect of
the Argentine peso devaluation on the tax base used to calculate deferred taxes.


Income attributable to non-controlling interests amounted to $18 million in the
first half of 2014, compared to $10 million in the first half of 2013. These
results are mainly attributable to NKKTubes, our Japanese subsidiary.


Cash Flow and Liquidity of 2014 First Half

Net cash provided by operations during the first half of 2014 amounted to $1,178
million, compared to $1,163 million in the first half of 2013.


Capital expenditures amounted to $412 million in the first half of 2014,
compared to $364 million in the first half of 2013. The increase has to do
mainly with the progress in the construction of the greenfield seamless facility
in Bay City, Texas.


Following a dividend payment of $354 million in May 2014, our financial position
at June 30, 2014, amounted to a net cash position (i.e., cash and other current
investments less total borrowings) of $1.3 billion, compared with a net cash
position of $214 million at June 30, 2013.


Tenaris Files Half-Year Report

Tenaris S.A. announces that it has filed its half-year report for the six-month
period ended June 30, 2014 with the Luxembourg Stock Exchange. The half-year
report can be downloaded from the Luxembourg Stock Exchange's website at
www.bourse.lu and from Tenaris's website at www.tenaris.com/investors.


Holders of Tenaris's shares and ADSs, and any other interested parties, may
request a hard copy of the half-year report, free of charge, at 1-888-300-5432
(toll free from the United States) or 52-229-989-1940 (from outside the United
States).


Conference call

Tenaris will hold a conference call to discuss the above reported results, on
July 31, 2014, at 9:00 a.m. (Eastern Time). Following a brief summary, the
conference call will be opened to questions. To access the conference call dial
in +1 866 383.8009 within North America or +1 617 597.5342 Internationally. The
access number is "62522706". Please dial in 10 minutes before the scheduled
start time. The conference call will be also available by webcast at
www.tenaris.com/investors.


A replay of the conference call will be available on our webpage
http://ir.tenaris.com/ or by phone from 1:00 pm on July 31 through 12:00 am on
August 7. To access the replay by phone, please dial +1 888 286.8010 or +1 617
801.6888 and enter passcode "86199147" when prompted.


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 Condensed Interim Income Statement

(all amounts in thousands of   Three-month period    Six-month period ended
 U.S. dollars)                   ended June 30,             June 30,
                             ----------------------  ----------------------
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
Continuing operations               Unaudited               Unaudited
Net sales                     2,660,882   2,829,270   5,240,826   5,507,575
Cost of sales                (1,590,888) (1,714,443) (3,117,922) (3,359,875)
                             ----------  ----------  ----------  ----------
Gross profit                  1,069,994   1,114,827   2,122,904   2,147,700
Selling, general and
 administrative expenses       (518,237)   (529,329) (1,007,097) (1,004,894)
Other operating income
 (expense) net                   (2,475)     (7,302)       (755)    (11,025)
                             ----------  ----------  ----------  ----------
Operating income                549,282     578,196   1,115,052   1,131,781
Interest income                   9,944       6,870      19,006      12,951
Interest expense                (10,618)    (16,620)    (23,621)    (30,529)
Other financial results           1,144        (955)     47,578      (2,336)
                             ----------  ----------  ----------  ----------
Income before equity in
 earnings of associated
 companies and income tax       549,752     567,491   1,158,015   1,111,867
Equity in earnings of
 associated companies            14,367      11,869      33,188      24,066
                             ----------  ----------  ----------  ----------
Income before income tax        564,119     579,360   1,191,203   1,135,933
Income tax                     (144,219)   (149,795)   (343,284)   (283,651)
                             ----------  ----------  ----------  ----------
Income for the period           419,900     429,565     847,919     852,282
                             ----------  ----------  ----------  ----------


Attributable to:
Owners of the parent            407,885     417,828     830,390     842,605
Non-controlling interests        12,015      11,737      17,529       9,677
                             ----------  ----------  ----------  ----------
                                419,900     429,565     847,919     852,282
                             ----------  ----------  ----------  ----------



Consolidated Condensed Interim Statement of Financial Position

(all amounts in thousands of
 U.S. dollars)                      At June 30, 2014    At December 31, 2013
                                 --------------------- ---------------------
                                       Unaudited
ASSETS
Non-current assets
  Property, plant and equipment,
   net                            4,856,796             4,673,767
  Intangible assets, net          2,993,696             3,067,236
  Investments in associated
   companies                        941,501               912,758
  Other investments                   1,813                 2,498
  Deferred tax assets               219,560               197,159
  Receivables                       219,824  9,233,190    152,080  9,005,498
                                 ----------            ----------

Current assets
  Inventories                     2,774,035             2,702,647
  Receivables and prepayments       232,688               220,224
  Current tax assets                163,340               156,191
  Trade receivables               1,962,412             1,982,979
  Available for sale assets          21,572                21,572
  Other investments               1,727,405             1,227,330
  Cash and cash equivalents         642,382  7,523,834    614,529  6,925,472
                                 ---------- ---------- ---------- ----------
Total assets                                16,757,024            15,930,970
                                            ----------            ----------

EQUITY
Capital and reserves
 attributable to owners of the
 parent                                     12,793,540            12,290,420
Non-controlling interests                      148,483               179,446
                                            ----------            ----------
Total equity                                12,942,023            12,469,866
                                            ----------            ----------

LIABILITIES
Non-current liabilities
  Borrowings                        173,083               246,218
  Deferred tax liabilities          710,151               751,105
  Other liabilities                 284,168               277,257
  Provisions                         72,653  1,240,055     66,795  1,341,375
                                 ----------            ----------


Current liabilities
  Borrowings                        913,125               684,717
  Current tax liabilities           318,334               266,760
  Other liabilities                 342,022               250,997
  Provisions                         28,835                25,715
  Customer advances                  92,041                56,911
  Trade payables                    880,589  2,574,946    834,629  2,119,729
                                 ---------- ---------- ---------- ----------
Total liabilities                            3,815,001             3,461,104
                                            ----------            ----------
Total equity and liabilities                16,757,024            15,930,970
                                            ----------            ----------



Consolidated Condensed Interim Statement of Cash Flows

                               Three-month period    Six-month period ended
                                 ended June 30,             June 30,
                             ----------------------  ----------------------
(all amounts in thousands of
 U.S. dollars)                  2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
                                    Unaudited               Unaudited
Cash flows from operating
 activities
Income for the period           419,900     429,565     847,919     852,282
Adjustments for:
Depreciation and
 amortization                   153,079     151,602     305,743     296,972
Income tax accruals less
payments                       (12,379)      9,808      58,411      25,021
Equity in earnings of
 associated companies           (14,367)    (11,869)    (33,188)    (24,066)
Interest accruals less
 payments, net                   (9,957)     (4,296)    (18,056)    (35,021)
Changes in provisions             4,054      (4,051)      8,978        (917)
Changes in working capital       16,702      56,136      33,362      72,457
Other, including currency
 translation adjustment           9,454     (19,853)    (24,839)    (24,021)
                             ----------  ----------  ----------  ----------
Net cash provided by
 operating activities           566,486     607,042   1,178,330   1,162,707
                             ----------  ----------  ----------  ----------

Cash flows from investing
 activities
Capital expenditures           (223,177)   (179,674)   (412,222)   (363,559)
Advance to suppliers of
 property, plant and
 equipment                        3,802       4,012     (24,849)     11,758
Investment in associated
 companies                            -           -      (1,380)          -
Loan to associated companies     (9,900)          -     (28,648)          -
Proceeds from disposal of
 property, plant and
 equipment and intangible
 assets                           2,579       2,360       6,606       6,746
Dividends received from
 associated companies            17,429      14,931      17,429      16,127
Changes in investments in
 short terms securities        (195,629)   (310,074)   (500,075)   (468,656)
                             ----------  ----------  ----------  ----------
Net cash used in investing
 activities                    (404,896)   (468,445)   (943,139)   (797,584)
                             ----------  ----------  ----------  ----------


Cash flows from financing
 activities
Dividends paid                 (354,161)   (354,161)   (354,161)   (354,161)
Dividends paid to non-
 controlling interest in
 subsidiaries                      (400)     (1,858)    (48,289)    (18,529)
Acquisitions of non-
 controlling interests              (50)     (7,230)       (140)     (7,768)
Proceeds from borrowings        712,807     594,658   1,207,214   1,220,390
Repayments of borrowings       (531,530)   (677,727) (1,000,200) (1,354,772)
                             ----------  ----------  ----------  ----------
Net cash used in financing
 activities                    (173,334)   (446,318)   (195,576)   (514,840)
                             ----------  ----------  ----------  ----------

                             ----------  ----------  ----------  ----------
(Decrease) Increase in cash
 and cash equivalents           (11,744)   (307,721)     39,615    (149,717)
                             ----------  ----------  ----------  ----------

Movement in cash and cash
 equivalents
At the beginning of the
 period                         649,689     925,554     598,145     772,656
Effect of exchange rate
 changes                          1,879     (11,807)      2,064     (16,913)
(Decrease) Increase in cash
 and cash equivalents           (11,744)   (307,721)     39,615    (149,717)
                             ----------  ----------  ----------  ----------
At June 30,                     639,824     606,026     639,824     606,026
                             ----------  ----------  ----------  ----------

                                   At June 30,             At June 30,
                             ----------------------  ----------------------
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
Cash and cash equivalents
Cash and bank deposits          642,382     618,435     642,382     618,435
Bank overdrafts                  (2,558)    (12,409)     (2,558)    (12,409)
                             ----------  ----------  ----------  ----------
                                639,824     606,026     639,824     606,026
                             ----------  ----------  ----------  ----------





















































































FOR FURTHER INFORMATION PLEASE CONTACT: 
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com

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