SEC Filing | Tenaris

View:

Download DOC

Download PDF

Download XLS

tenaris6k.htm

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 August 5, 2013

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' Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2013.

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: August 5, 2013

Tenaris, S.A.

By: /s/ Cecilia Bilesio

Cecilia Bilesio

Corporate Secretary

TENARIS S.A.

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

JUNE 30, 2013

29, Avenue de la Porte-Neuve – 3rd Floor.

L - 2227 Luxembourg

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2013

CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT

(all amounts in thousands of U.S. dollars, unless otherwise stated)			Three-month period ended June 30,						Six-month period ended June 30,
	Notes		2013			2012			2013			2012
			(Unaudited)						(Unaudited)
Net sales		3		2,829,270			2,801,492			5,507,575			5,418,841
Cost of sales		4		(1,714,443	)		(1,694,712	)		(3,359,875	)		(3,305,809	)
Gross profit				1,114,827			1,106,780			2,147,700			2,113,032
Selling, general and administrative expenses		5		(529,329	)		(486,655	)		(1,004,894	)		(930,798	)
Other operating income (expense), net				(7,302	)		761			(11,025	)		4,853
Operating income				578,196			620,886			1,131,781			1,187,087
Interest income		6		6,870			5,706			12,951			15,289
Interest expense		6		(16,620	)		(12,688	)		(30,529	)		(22,613	)
Other financial results		6		(955	)		(16,476	)		(2,336	)		(3,395	)
Income before equity in earnings of associated companies and income tax				567,491			597,428			1,111,867			1,176,368
Equity in earnings of associated companies (1)				11,869			6,168			24,066			20,131
Income before income tax				579,360			603,596			1,135,933			1,196,499
Income tax				(149,795	)		(148,325	)		(283,651	)		(292,999	)
Income for the period				429,565			455,271			852,282			903,500
Attributable to:
Owners of the parent				417,828			456,201			842,605			894,842
Non-controlling interests				11,737			(930	)		9,677			8,658
				429,565			455,271			852,282			903,500
Earnings per share attributable to the owners of the parent during the period:
Weighted average number of ordinary shares (thousands)				1,180,537			1,180,537			1,180,537			1,180,537
Continuing operations
Basic and diluted earnings per share (U.S. dollars per share)				0.35			0.39			0.71			0.76
Basic and diluted earnings per ADS (U.S. dollars per ADS) (2)				0.71			0.77			1.43			1.52

(1) In connection with the acquisition of Usinas Siderúrgicas de Minas Gerais (“Usiminas”), the Company has completed the purchase price allocation in December 31, 2012. Accordingly, following the provisions of IFRS 3, the Company has retrospectively adjusted the reported figures as of June 30, 2012, modifying mainly equity in earnings of associated companies by $10.1 million.

(2) Each ADS equals two shares.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

(all amounts in thousands of U.S. dollars)	Three-month period ended June 30,						Six-month period ended June 30,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
Income for the period		429,565			455,271			852,282			903,500

Items that may be reclassified subsequently to profit or loss:
Currency translation adjustment		(17,990	)		(104,018	)		(40,811	)		(41,512	)
Changes in the fair value of derivatives held as cash flow hedges and others		1,981			(21,751	)		5,219			(20,436	)
Share of other comprehensive income of associates:
- Currency translation adjustment		(52,316	)		(76,141	)		(47,779	)		(92,085	)
- Changes in the fair value of derivatives held as cash flow hedges and others		(599	)		(931	)		1,129			853
Income tax relating to components of other comprehensive income (3)		(8	)		(1,149	)		679			(1,732	)
Other comprehensive loss for the period, net of tax		(68,932	)		(203,990	)		(81,563	)		(154,912	)
Total comprehensive income for the period		360,633			251,281			770,719			748,588
Attributable to:
Owners of the parent		348,751			272,016			761,099			746,012
Non-controlling interests		11,882			(20,735	)		9,620			2,576
		360,633			251,281			770,719			748,588

(3) Relates to cash flow hedges and others.

The accompanying notes are an integral part of these Consolidated Condensed Interim Financial Statements. These Consolidated Condensed Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the fiscal year ended December 31, 2012.

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2013

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

(all amounts in thousands of U.S. dollars)			At June 30, 2013			At December 31, 2012
	Notes		(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net		8		4,536,995			4,434,970
Intangible assets, net		9		3,131,767			3,199,916
Investments in associated companies				929,251			977,011
Other investments				2,552			2,603
Deferred tax assets				192,433			215,867
Receivables				121,765	8,914,763		142,060	8,972,427
Current assets
Inventories				2,697,932			2,985,805
Receivables and prepayments				246,710			260,532
Current tax assets				152,066			175,562
Trade receivables				2,179,089			2,070,778
Available for sale assets		13		21,572			21,572
Other investments				1,113,065			644,409
Cash and cash equivalents				618,435	7,028,869		828,458	6,987,116
Total assets					15,943,632			15,959,543
EQUITY
Capital and reserves attributable to owners of the parent					11,724,417			11,328,031
Non-controlling interests					165,436			171,561
Total equity					11,889,853			11,499,592
LIABILITIES
Non-current liabilities
Borrowings				423,442			532,407
Deferred tax liabilities				672,918			728,541
Other liabilities				292,715			302,444
Provisions				73,379	1,462,454		67,185	1,630,577

Current liabilities
Borrowings				1,093,810			1,211,785
Current tax liabilities				253,805			254,603
Other liabilities				369,299			318,828
Provisions				20,014			26,958
Customer advances				34,342			134,010
Trade payables				820,055	2,591,325		883,190	2,829,374
Total liabilities					4,053,779			4,459,951
Total equity and liabilities					15,943,632			15,959,543
					2			3

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2013

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

(all amounts in thousands of U.S. dollars)

	Attributable to owners of the parent
	Share Capital (1)		Legal Reserves		Share Premium		Currency Translation Adjustment			Other Reserves			Retained Earnings (2)			Total			Non-controlling interests			Total
																						(Unaudited)
Balance at December 31, 2012		1,180,537		118,054		609,733		(317,425	)		(252,907	)		10,050,024			11,388,016			172,310			11,560,326
Effect of adopting IAS 19R		-		-		-		-			(59,985	)		-			(59,985	)		(749	)		(60,734	)
Balance at January 1, 2013		1,180,537		118,054		609,733		(317,425	)		(312,892	)		10,050,024			11,328,031			171,561			11,499,592

Income for the period		-		-		-		-			-			842,605			842,605			9,677			852,282
Currency translation adjustment		-		-		-		(40,754	)		-			-			(40,754	)		(57	)		(40,811	)
Hedge reserve, net of tax and others		-		-		-		-			5,898			-			5,898			-			5,898
Share of other comprehensive income of associates		-		-		-		(47,779	)		1,129			-			(46,650	)		-			(46,650	)
Other comprehensive (loss) income for the period		-		-		-		(88,533	)		7,027			-			(81,506	)		(57	)		(81,563	)
Total comprehensive income for the period		-		-		-		(88,533	)		7,027			842,605			761,099			9,620			770,719
Acquisition of non-controlling interests		-		-		-		-			(10,552	)		-			(10,552	)		2,784			(7,768	)
Dividends paid in cash		-		-		-		-			-			(354,161	)		(354,161	)		(18,529	)		(372,690	)
Balance at June 30, 2013		1,180,537		118,054		609,733		(405,958	)		(316,417	)		10,538,468			11,724,417			165,436			11,889,853

	Attributable to owners of the parent
	Share Capital (1)		Legal Reserves		Share Premium		Currency Translation Adjustment			Other Reserves			Retained Earnings			Total			Non-controlling interests			Total
																						(Unaudited)
Balance at December 31, 2011		1,180,537		118,054		609,733		(211,366	)		9,688			8,799,581			10,506,227			666,716			11,172,943
Effect of adopting IAS 19R		-		-		-		-			(49,522	)		-			(49,522	)		(685	)		(50,207	)
Balance at January 1, 2012		1,180,537		118,054		609,733		(211,366	)		(39,834	)		8,799,581			10,456,705			666,031			11,122,736

Income for the period		-		-		-		-			-			894,842			894,842			8,658			903,500
Currency translation adjustment		-		-		-		(34,261	)		-			-			(34,261	)		(7,251	)		(41,512	)
Hedge reserve, net of tax		-		-		-		-			(23,256	)		-			(23,256	)		1,088			(22,168	)
Share of other comprehensive income of associates		-		-		-		(92,085	)		772			-			(91,313	)		81			(91,232	)
Other comprehensive loss for the period		-		-		-		(126,346	)		(22,484	)		-			(148,830	)		(6,082	)		(154,912	)
Total comprehensive income for the period		-		-		-		(126,346	)		(22,484	)		894,842			746,012			2,576			748,588
Acquisition of non-controlling interests (3)		-		-		-		-			(268,517	)		-			(268,517	)		(490,022	)		(758,539	)
Dividends paid in cash		-		-		-		-			-			(295,134	)		(295,134	)		(905	)		(296,039	)
Balance at June 30, 2012		1,180,537		118,054		609,733		(337,712	)		(330,835	)		9,399,289			10,639,066			177,680			10,816,746

(1) The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of USD1.00 per share. As of June 30, 2013 and 2012 there were 1,180,536,830 shares issued. All issued shares are fully paid.

(2) The Distributable Reserve and Retained Earnings as of December 31, 2012 calculated in accordance with Luxembourg Law are disclosed in Note 10.

(3) See Note 11.

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the six-month period ended June 30, 2013

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

(all amounts in thousands of U.S. dollars)			Six-month period ended June 30,
	Notes		2013			2012
Cash flows from operating activities			(Unaudited)
Income for the period				852,282			903,500
Adjustments for:
Depreciation and amortization	8 & 9			296,972			275,884
Income tax accruals less payments				25,021			(105,779	)
Equity in earnings of associated companies				(24,066	)		(20,131	)
Interest accruals less payments, net				(35,021	)		(18,256	)
Changes in provisions				(917	)		(16,557	)
Changes in working capital				72,457			51,343
Other, including currency translation adjustment				(12,263	)		(47,567	)
Net cash provided by operating activities				1,174,465			1,022,437

Cash flows from investing activities
Capital expenditures	8 & 9			(363,559	)		(400,926	)
Acquisition of associated company		11		-			(504,597	)
Proceeds from disposal of property, plant and equipment and intangible assets				6,746			2,915
Dividends received from associated companies				16,127			18,702
Changes in investments in short terms securities				(468,656	)		11,367
Net cash used in investing activities				(809,342	)		(872,539	)

Cash flows from financing activities
Dividends paid				(354,161	)		(295,134	)
Dividends paid to non-controlling interest in subsidiaries				(18,529	)		(905	)
Acquisitions of non-controlling interests		11		(7,768	)		(758,539	)
Proceeds from borrowings				1,220,390			1,214,234
Repayments of borrowings				(1,354,772	)		(439,116	)
Net cash used in financing activities				(514,840	)		(279,460	)

Decrease in cash and cash equivalents				(149,717	)		(129,562	)
Movement in cash and cash equivalents
At the beginning of the period				772,656			815,032
Effect of exchange rate changes				(16,913	)		8,242
Decrease in cash and cash equivalents				(149,717	)		(129,562	)
At June 30,				606,026			693,712

			At June 30,
Cash and cash equivalents				2013			2012
Cash and bank deposits				618,435			742,618
Bank overdrafts				(12,409	)		(48,906	)
				606,026			693,712

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

1	General information
2	Accounting policies and basis of presentation
3	Segment information
4	Cost of sales
5	Selling, general and administrative expenses
6	Financial results
7	Dividends distribution
8	Property, plant and equipment, net
9	Intangible assets, net
10	Contingencies, commitments and restrictions to the distribution of profits
11	Other acquisitions
12	Related party transactions
13	Nationalization of Venezuelan subsidiaries

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

(In the notes all amounts are shown in U.S. dollars, unless otherwise stated)

1	General information

Tenaris S.A. (the "Company") was established as a public limited liability company (Société Anonyme) under the laws of the Grand-Duchy of Luxembourg on December 17, 2001. The Company holds, either directly or indirectly, controlling interests in various subsidiaries in the steel pipe manufacturing and distribution businesses. References in these Consolidated Condensed Interim Financial Statements to "Tenaris" refer to Tenaris S.A. and its consolidated subsidiaries. A list of the principal Company’s subsidiaries is included in Note 30 to the Company’s audited Consolidated Financial Statements for the year ended December 31, 2012.

The Company’s shares trade on the Buenos Aires Stock Exchange, the Italian Stock Exchange and the Mexican Stock Exchange; the Company’s American Depositary Securities (“ADS”) trade on the New York Stock Exchange.

These Consolidated Condensed Interim Financial Statements were approved for issuance by the Company’s board of directors on August 1, 2013.

2	Accounting policies and basis of presentation

These Consolidated Condensed Interim Financial Statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies used in the preparation of these Consolidated Condensed Interim Financial Statements are consistent with those used in the audited Consolidated Financial Statements for the year ended December 31, 2012, except for changes described below. These Consolidated Condensed Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2012, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”) and adopted by the European Union (“EU”).

The preparation of Consolidated Condensed Interim Financial Statements in conformity with IFRS requires management to make certain accounting estimates and assumptions that might affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet dates, and the reported amounts of revenues and expenses for the reported periods. Actual results may differ from these estimates.

Material inter-company transactions, balances and unrealized gains (losses) on transactions between Tenaris’s subsidiaries have been eliminated in consolidation. However, since the functional currency of some subsidiaries is its respective local currency, some financial gains (losses) arising from inter-company transactions are generated. These are included in the Consolidated Condensed Interim Income Statement under Other financial results.

The comparative amounts have been reclassified to conform to changes in presentation in the current year.

Accounting pronouncements applicable as from January 1, 2013 and relevant for Tenaris

IAS 1, “Financial statement presentation”

In June 2011, the IASB issued IAS 1 (amended 2011), “Financial statement presentation”. The amendment requires entities to separate items presented in Other comprehensive income into two groups, based on whether or not they may be recycled to profit or loss in the future. See impact of the application in the Consolidated Condensed Interim Statement of Other Comprehensive Income.

IAS 19 (amended 2011), “Employee benefits”

In June 2011, the IASB issued IAS 19 (amended 2011), “Employee benefits”, which makes significant changes to the recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits. IAS 19 (amended 2011) was applied retrospectively, as indicated in the transitional provisions of such IFRS. These changes are related to recognizing in other comprehensive income of the period in which they arise the actuarial gains and losses arising from past experience adjustments and changes in actuarial assumptions. Past-service costs are recognized immediately in the income statement.

2	Accounting policies and basis of presentation (Cont.)

Accounting pronouncements applicable as from January 1, 2013 and relevant for Tenaris (Cont.)

IAS 19 (amended 2011), “Employee benefits” (Cont.)

As from January 1, 2013, the Company adopted IAS 19 (amended 2011). The effect of these changes in the recognition and measurement of pension obligations and other post-employment obligations was $60.7 million ($77.0 million in other long term liabilities net of a deferred income tax of $22.3 million and $6.0 million related to the adoption of IAS 19 in associated companies) and $50.2 million ($63.6 million in other long term liabilities net of a deferred income tax of $18.6 million and $5.2 million related to the adoption of IAS 19 in associated companies) for 2012 and 2011, respectively.

IFRS 10, “Consolidated financial statements”, IFRS 11, “Joint arrangements” and IFRS 12, “Disclosure of interests in other entities”.

The application of these standards did not materially affect the Company’s financial condition or results of operations.

IFRS 13, “Fair value measurement”

In May 2011, the IASB issued IFRS 13, “Fair value measurement”. This standard explains how to measure fair value and aims to enhance fair value disclosures.

IFRS 13 requires for financial instruments that are measured at fair value, a disclosure of fair value measurements by level. See Section III.C. and D. to the Consolidated Financial Statements as of December 31, 2012 for definitions of levels of fair values and figures at that date.

The following table presents the assets and liabilities that are measured at fair value as of June 30, 2013:

June 30, 2013	Level 1		Level 2		Level 3 (*)		Total
Assets
Cash and cash equivalents		618,435		-		-		618,435
Other investments		633,415		479,650		2,552		1,115,617
Derivatives financial instruments		-		24,554		-		24,554
Available for sale assets		-		-		21,572		21,572
Total		1,251,850		504,204		24,124		1,780,178
Liabilities
Derivatives financial instruments		-		6,122		-		6,122
Total		-		6,122		-		6,122

(*) Main balances included in this level correspond to Available for sale assets related to Tenaris’s interest in nationalized Venezuelan companies. For further detail regarding Available for sale assets, see Note 13.

Borrowings are classified under other financial liabilities and measured at their carrying amount. Tenaris estimates that the fair value of its main financial liabilities is approximately 101% of its carrying amount including interests accrued as of June 30, 2013. Tenaris estimates that a change of 100 basis points in the reference interest rates would have an estimated impact of approximately 0.2% in the fair value of borrowings as of June 30, 2013. Fair values were calculated using standard valuation techniques for floating rate instruments and comparable market rates for discounting flows.

3	Segment Information

As explained in Section II.C. of the audited Consolidated Financial Statements for the year ended December 31, 2012, as from September 2012, following the acquisition of the non-controlling interest in Confab, its further delisting and after including the operations of the formerly Projects segment into Tubes, the Company is organized in one major business segment, Tubes, which is also the reportable operating segment.

Reportable operating segment

(all amounts in thousands of U.S. dollars)	(Unaudited)
Six-month ended June 30, 2013	Tubes			Other			Total

Management View - Net Sales		5,107,375			360,118			5,467,493
· Sales of energy, surplus raw materials and others		-			40,082			40,082
IFRS - Net Sales		5,107,375			400,200			5,507,575


Management View - Operating income		1,112,813			50,434			1,163,247
· Differences in cost of sales and others		(31,713	)		2,844			(28,869	)
· Depreciation and amortization		(2,384	)		(213	)		(2,597	)
IFRS - Operating income		1,078,716			53,065			1,131,781
Financial income (expense), net								(19,914	)
Income before equity in earnings of associated companies and income tax								1,111,867
Equity in earnings of associated companies								24,066
Income before income tax								1,135,933

Capital expenditures		346,118			17,441			363,559
Depreciation and amortization		287,036			9,936			296,972

(all amounts in thousands of U.S. dollars)	(Unaudited)
Six-month ended June 30, 2012	Tubes			Other			Total

Management View - Net Sales		4,974,848			405,758			5,380,606
· Sales of energy, surplus raw materials and others		-			38,235			38,235
IFRS - Net Sales		4,974,848			443,993			5,418,841


Management View - Operating income		1,011,739			67,489			1,079,228
· Differences in cost of sales and others		(4,021	)		3,889			(132	)
· Depreciation and amortization		110,314			(2,323	)		107,991
IFRS - Operating income		1,118,032			69,055			1,187,087
Financial income (expense), net								(10,719	)
Income before equity in earnings of associated companies and income tax								1,176,368
Equity in earnings of associated companies								20,131
Income before income tax								1,196,499

Capital expenditures		389,718			11,208			400,926
Depreciation and amortization		266,248			9,636			275,884

Net income under Management view amounted to $773.6 million, while under IFRS amounted to $852.3 million. In addition to the above, the main differences arise from the impact of functional currencies on financial result, income taxes as well as the result of investments in associated companies.

3	Segment Information (Cont.)

Geographical information

	(Unaudited)
(all amounts in thousands of U.S. dollars)	North America		South America		Europe		Middle East & Africa		Far East & Oceania		Total
Six-month ended June 30, 2013
Net sales		2,287,402		1,434,293		523,107		1,041,049		221,724		5,507,575
Capital expenditures		114,123		184,600		51,761		2,174		10,901		363,559
Depreciation and amortization		161,994		52,993		65,942		5,260		10,783		296,972

Six-month ended June 30, 2012
Net sales		2,703,754		1,233,801		574,294		646,529		260,463		5,418,841
Capital expenditures		175,405		107,731		106,219		4,446		7,125		400,926
Depreciation and amortization		152,959		52,504		55,925		3,071		11,425		275,884

Allocation of net sales to geographical information is based on customer location. Allocation of depreciation and amortization is based on the geographical location of the underlying assets.

There are no revenues from external customers attributable to the Company’s country of incorporation (Luxembourg). For geographical information purposes, “North America” comprises Canada, Mexico and the USA; “South America” comprises principally Argentina, Brazil, Colombia, Ecuador and Venezuela; “Europe” comprises principally Germany, Italy, Norway, Romania and United Kingdom; “Middle East and Africa” comprises principally Angola, Iraq, Nigeria, Saudi Arabia and United Arab Emirates; “Far East and Oceania” comprises principally China, Indonesia and Japan.

4	Cost of sales

	Six-month period ended June 30,
(all amounts in thousands of U.S. dollars)	2013			2012
	(Unaudited)
Inventories at the beginning of the period		2,985,805			2,806,409

Plus: Charges of the period
Raw materials, energy, consumables and other		1,867,398			2,242,550
Services and fees		206,052			221,487
Labor cost		596,968			631,199
Depreciation of property, plant and equipment		176,895			159,575
Amortization of intangible assets		3,659			3,924
Maintenance expenses		109,172			121,007
Allowance for obsolescence		35,274			24,581
Taxes		2,646			3,766
Other		73,938			76,367
		3,072,002			3,484,456
Less: Inventories at the end of the period		(2,697,932	)		(2,985,056	)
		3,359,875			3,305,809

5	Selling, general and administrative expenses

	Six-month period ended June 30,
(all amounts in thousands of U.S. dollars)	2013		2012
	(Unaudited)
Services and fees		92,971		111,590
Labor cost		293,781		283,056
Depreciation of property, plant and equipment		9,128		6,770
Amortization of intangible assets		107,290		105,615
Commissions, freight and other selling expenses		312,514		283,841
Provisions for contingencies		18,114		1,453
Allowances for doubtful accounts		26,376		(4,196	)
Taxes		83,316		76,080
Other		61,404		66,589
		1,004,894		930,798

6	Financial results

(all amounts in thousands of U.S. dollars)	Six-month period ended June 30,
	2013			2012
	(Unaudited)
Interest income		12,951			15,289
Interest expense		(30,529	)		(22,613	)
Interest net		(17,578	)		(7,324	)

Net foreign exchange transaction results		3,953			(11,868	)
Foreign exchange derivatives contracts results		3,949			7,513
Other		(10,238	)		960
Other financial results		(2,336	)		(3,395	)
Net financial results		(19,914	)		(10,719	)

Net foreign exchange transaction results include those amounts that affect the gross margin of certain subsidiaries which functional currencies are different from the U.S. dollar.

7	Dividends distribution

On May 2, 2013 the Company’s Shareholders approved an annual dividend in the amount of $0.43 per share ($0.86 per ADS). The amount approved included the interim dividend previously paid in November 22, 2012 in the amount of $0.13 per share ($0.26 per ADS). The balance, amounting to $0.30 per share ($0.60 per ADS), was paid on May 23, 2013. In the aggregate, the interim dividend paid in November 2012 and the balance paid in May 2013 amounted to approximately $507.6 million.

8	Property, plant and equipment, net

(all amounts in thousands of U.S. dollars)	2013			2012
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		4,434,970			4,053,653
Currency translation adjustment		(26,719	)		(44,949	)
Additions		320,348			380,430
Disposals		(6,193	)		(6,155	)
Increase due to consolidation of joint operations		1,554			-
Transfers		(942	)		(887	)
Depreciation charge		(186,023	)		(166,345	)
At June 30,		4,536,995			4,215,747

9	Intangible assets, net

(all amounts in thousands of U.S. dollars)	2013			2012
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		3,199,916			3,375,930
Currency translation adjustment		(800	)		(986	)
Additions		43,211			20,496
Transfers		942			887
Amortization charge		(110,949	)		(109,539	)
Disposals		(553	)		-
At June 30,		3,131,767			3,286,788

10	Contingencies, commitments and restrictions to the distribution of profits

This note should be read in conjunction with Note 26 to the Company’s audited Consolidated Financial Statements for the year ended December 31, 2012.

Commitments

A Tenaris company is a party to a contract with Nucor corporation under which it committed to purchase Steel Coils on a monthly basis with deliveries starting in July 2013 until December 2015. As of June 30, 2013 the estimated aggregate amount of the contract at current prices is approximately $656 million.

A Tenaris company entered into a contract with Siderar, a subsidiary of Ternium S.A. (“Ternium”) for the supply of steam generated at the power generation facility that Tenaris owns in the compound of the Ramallo facility of Siderar. Under this contract, Tenaris is required to provide to Siderar 250 tn/hour of steam through to 2018, and Siderar has the obligation to take or pay this volume. The amount of this gas supply agreement totals approximately $73.1 million.

Restrictions to the distribution of profits and payment of dividends

As of December 31, 2012, equity as defined under Luxembourg law and regulations consisted of:

(all amounts in thousands of U.S. dollars)
Share capital			1,180,537
Legal reserve			118,054
Share premium			609,733
Retained earnings including net income for the year ended December 31, 2012			22,411,870
Total equity in accordance with Luxembourg law			24,320,194

At least 5% of the Company’s net income per year, as calculated in accordance with Luxembourg law and regulations, must be allocated to the creation of a legal reserve equivalent to 10% of the Company’s share capital. As of December 31, 2012, this reserve was fully allocated and additional allocations to the reserve are not required under Luxembourg law. Dividends may not be paid out of the legal reserve.

The Company may pay dividends to the extent, among other conditions, that it has distributable retained earnings calculated in accordance with Luxembourg law and regulations.

At December 31, 2012, distributable amount under Luxembourg law totals $23.0 billion, as detailed below:

(all amounts in thousands of U.S. dollars)
Retained earnings at December 31, 2011 under Luxembourg law	23,024,194
Other income and expenses for the year ended December 31, 2012	(163,720	)
Dividends paid	(448,604	)
Retained earnings at December 31, 2012 under Luxembourg law	22,411,870
Share premium	609,733
Distributable amount at December 31, 2012 under Luxembourg law	23,021,603

11	Other acquisitions

Acquisition of participation in Usinas Siderúrgicas de Minas Gerais S.A. (“Usiminas”)

On January 16, 2012, Tenaris’s Brazilian subsidiary, Confab acquired 25 million ordinary shares of Usiminas, representing 5.0% of the shares with voting rights and 2.5% of the total share capital. The price paid for each ordinary share was Brazilian reais (“BRL”) 36, representing a total cost to Confab of $504.6 million. Confab financed the acquisition through an unsecured 5-year term loan in the principal amount of $350 million and cash on hand.

This acquisition is part of a larger transaction pursuant to which Ternium, certain of its subsidiaries and Confab joined Usiminas’s existing control group through the acquisition of ordinary shares representing 27.7% of Usiminas’s total voting capital and 13.8% of Usiminas’s total share capital. In addition, Ternium, its subsidiaries and Confab entered into an amended and restated Usiminas shareholders’ agreement with Nippon Steel, Mitsubishi, Metal One and Caixa dos Empregados da Usiminas (“CEU”), an Usiminas employee fund, governing the parties’ rights within the Usiminas control group. As a result of these transactions, the control group, which holds 329.4 million ordinary shares representing the majority of Usiminas’s voting rights, is now formed as follows: Nippon Group 47.2%, Ternium/Tenaris Group 42.4%, and CEU 10.4%. The rights of Ternium and its subsidiaries and Confab within the Ternium/Tenaris Group are governed under a separate shareholders agreement.

On July 25, 2013, Usiminas approved its interim accounts as of and for the six months period ended June 30, 2013, which indicate that revenues, post-tax losses from continuing operations and net assets amounted to $3.169 million, $106 million and $7.426 million, respectively. As of June 30, 2013, the Company’s investment in Usiminas, amounted to $315.3 million.

Tenaris Brazilian subsidiary, Confab, was notified of a lawsuit filed in Brazil by Companhia Siderúrgica Nacional (CSN) and various entities affiliated with CSN against this subsidiary and various subsidiaries of Ternium. The entities named in the CSN lawsuit had acquired a participation in Usiminas in January 2012.

The CSN lawsuit alleges that, under applicable Brazilian laws and rules, the acquirers were required to launch a tag-along tender offer to all minority holders of Usiminas ordinary shares for a price per share equal to 80% of the price per share paid in such acquisition, or BRL28.8, and seeks an order to compel the acquirers to launch an offer at that price plus interest. If so ordered, the offer would need to be made to 182,609,851 ordinary shares of Usiminas not belonging to Usiminas's control group, and Confab would have a 17.9% share in the offer. On March 20, 2013, Confab and other defendants filed their response to the CSN lawsuit. On May 8, 2013 the plaintiffs filed a reply (“réplica”), and on June 12, 2013, Confab and other defendants filed their response thereto (“tréplica”). Tenaris believes that CSN's allegations are groundless and without merit, as confirmed by several opinions of Brazilian counsel and previous decisions by Brazil's securities regulator Comissão de Valores Mobiliários, including a February 2012 decision determining that the above mentioned acquisition did not trigger any tender offer requirement. Accordingly, no provision was recorded in these Consolidated Condensed Interim Financial Statements.

Non controlling interests

During the six-month period ended June 30, 2013, additional shares of certain Tenaris subsidiaries were acquired from non-controlling shareholders for approximately $7.8 million. In 2012 corresponds mainly to the acquisition of the non-controlling interests in Confab, see Note 27 to the Company’s audited Consolidated Financial Statements for the year ended December 31, 2012.

12	Related party transactions

As of June 30, 2013:

§	San Faustin S.A., a Luxembourg public limited liability company (Société Anonyme) (“San Faustin”), owned 713,605,187 shares in the Company, representing 60.45% of the Company’s capital and voting rights.

§	San Faustin owned all of its shares in the Company through its wholly-owned subsidiary Techint Holdings S.à r.l., a Luxembourg private limited liability company (Société à Responsabilité Limitée) (“Techint”).

§	Rocca & Partners Stichting Administratiekantoor Aandelen San Faustin, a Dutch private foundation (Stichting) (“RP STAK”) held shares in San Faustin sufficient in number to control San Faustin.

§	No person or group of persons controls RP STAK.

12	Related party transactions (Cont.)

Based on the information most recently available to the Company, Tenaris’s directors and senior management as a group owned 0.12% of the Company’s outstanding shares.

At June 30, 2013, the closing price of the Ternium’s ADSs as quoted on the New York Stock Exchange was $22.63 per ADS, giving Tenaris’s ownership stake a market value of approximately $519.8 million. At June 30, 2013, the carrying value of Tenaris’s ownership stake in Ternium, based on Ternium’s IFRS financial statements was approximately $598.4 million.

Transactions and balances disclosed as with “Associated” companies are those with companies over which Tenaris exerts significant influence or joint control in accordance with IFRS, but does not have control. All other transactions and balances with related parties which are not Associated and which are not consolidated are disclosed as “Other”.

The following transactions were carried out with related parties.

	(all amounts in thousands of U.S. dollars)	Six-month period ended June 30,
		2013		2012
(i)	Transactions	(Unaudited)
	(a) Sales of goods and services
	Sales of goods to associated parties		18,192		18,297
	Sales of goods to other related parties		64,192		26,721
	Sales of services to associated parties		8,446		6,707
	Sales of services to other related parties		2,447		2,343
			93,277		54,068

	(b) Purchases of goods and services
	Purchases of goods to associated parties		169,757		210,400
	Purchases of goods to other related parties		6,898		12,048
	Purchases of services to associated parties		39,061		46,721
	Purchases of services to other related parties		50,864		36,357
			266,580		305,526

	(all amounts in thousands of U.S. dollars)	At June 30,			At December 31,
		2013			2012
(ii)	Period-end balances	(Unaudited)
	(a) Arising from sales / purchases of goods / services
	Receivables from associated parties		35,555			64,125
	Receivables from other related parties		34,733			20,389
	Payables to associated parties		(41,610	)		(86,379	)
	Payables to other related parties		(11,969	)		(14,123	)
			16,709			(15,988	)

	(b) Financial debt
	Borrowings from associated parties		-			(3,909	)
	Borrowings from other related parties		(1,589	)		(2,212	)
			(1,589	)		(6,121	)

13	Nationalization of Venezuelan subsidiaries

In May 2009, within the framework of Decree Law 6058, Venezuela’s President announced the nationalization of, among other companies, the Company's majority-owned subsidiaries TAVSA - Tubos de Acero de Venezuela S.A. ("Tavsa") and, Matesi Materiales Siderúrgicos S.A ("Matesi"), and Complejo Siderúrgico de Guayana, C.A ("Comsigua"), in which the Company has a non-controlling interest (collectively, the “Venezuelan Companies").

In July 2009, Decree 6796 was issued, which ordered the acquisition of the Venezuelan Companies' assets and provided that Tavsa's assets would be held by the Ministry of Energy and Oil, while Matesi and Comsigua's assets would be held by the Ministry of Basic Industries and Mining. Decree 6796 also required the Venezuelan government to create certain committees at each of the Venezuelan Companies; each transition committee must ensure the nationalization of each Venezuelan Company and the continuity of its operations, and each technical committee (to be composed of representatives of Venezuela and the private sector) must negotiate over a 60-day period (extendable by mutual agreement) a fair price for each Venezuelan Company to be transferred to Venezuela. In the event the parties failed to reach agreement by the expiration of the 60-day period (or any extension thereof), the applicable Ministry would assume control and exclusive operation of the relevant Venezuelan Company, and the Executive Branch would be required to order their expropriation in accordance with the Venezuelan Expropriation Law. The Decree also specifies that all facts and activities thereunder are subject to Venezuelan law and any disputes relating thereto must be submitted to Venezuelan courts.

In August 2009, Venezuela, acting through the transition committee appointed by the Minister of Basic Industries and Mines of Venezuela, unilaterally assumed exclusive operational control over Matesi, and in November, 2009, Venezuela, acting through PDVSA Industrial S.A. (a subsidiary of Petróleos de Venezuela S.A.), formally assumed exclusive operational control over the assets of Tavsa.

In 2010, Venezuela’s National Assembly declared Matesi’s assets to be of public and social interest and ordered the Executive Branch to take the necessary measures for the expropriation of such assets. In June 2011, Decree 8280 was issued, which orders the expropriation of Matesi’s assets as may be required for the implementation of a state-owned project for the production, sale and distribution of briquettes, and further instructs to commence negotiations and take any actions required for the acquisition of such assets.

Tenaris’s investments in the Venezuelan companies are protected under applicable bilateral investment treaties, including the bilateral investment treaty between Venezuela and the Belgium-Luxembourg Economic Union, and Tenaris continues to reserve all of its rights under contracts, investment treaties and Venezuelan and international law. Tenaris has also consented to the jurisdiction of the International Centre for Settlement of Investment Disputes (“ICSID”) in connection with the nationalization process.

In August 2011, Tenaris and its wholly-owned subsidiary Talta - Trading e Marketing Sociedad Unipessoal Lda (Talta), initiated arbitration proceedings against Venezuela before the ICSID in Washington D.C., pursuant to the bilateral investment treaties entered into by Venezuela with the Belgium-Luxembourg Economic Union and Portugal. In these proceedings, Tenaris and Talta seek adequate and effective compensation for the expropriation of their investment in Matesi. This case was registered by the ICSID on September 30, 2011.

In July 2012, Tenaris and Talta initiated separate arbitration proceedings against Venezuela before the ICSID, seeking adequate and effective compensation for the expropriation of their respective investments in Tavsa and Comsigua. This case was registered by the ICSID on August 27, 2012.

Based on the facts and circumstances described above and following the guidance set forth by IAS 27R, the Company ceased consolidating the results of operations and cash flows of the Venezuelan Companies as from June 30, 2009, and classified its investments in the Venezuelan Companies as financial assets based on the definitions contained in paragraphs 11(c)(i) and 13 of IAS 32.

The Company classified its interests in the Venezuelan Companies as available-for-sale investments since management believes they do not fulfill the requirements for classification within any of the remaining categories provided by IAS 39 and such classification is the most appropriate accounting treatment applicable to non-voluntary dispositions of assets.

13	Nationalization of Venezuelan subsidiaries (Cont.)

Tenaris or its subsidiaries have net receivables with the Venezuelan Companies as of June 30, 2013 for a total amount of approximately $28 million.

The Company records its interest in the Venezuelan Companies at its carrying amount at June 30, 2009, and not at fair value, following the guidance set forth by paragraphs 46(c), AG80 and AG81 of IAS 39.

	Edgardo Carlos
	Chief Financial Officer