Tenaris Announces 2009 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, Feb 24, 2010 (MARKETWIRE via COMTEX News Network) -- Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS) (MILAN: TEN) ("Tenaris") today announced its results for the fourth quarter and year ended December 31, 2009 with comparison to its results for the fourth quarter and year ended December 31, 2008.

Summary  of  2009  Fourth  Quarter  Results
(Comparison with third quarter of 2009 and fourth quarter of 2008)
                               Q4 2009        Q3 2009           Q4 2008
Net sales (US$ million)        1,847.2  1,771.5      4%   3,203.4    (42%)
Operating income (US$ million)   330.6    360.6     (8%)    669.2    (51%)
Net income (US$ million)         240.8    237.3      1%     114.5     110%
Shareholders' net income (US$
 million)                        222.4    229.9     (3%)     93.7     137%
Earnings per ADS (US$)            0.38     0.39     (3%)     0.16     137%
Earnings per share (US$)          0.19     0.19     (3%)     0.08     137%
EBITDA* (US$ million)            459.6    488.3     (6%)  1,190.5    (61%)
EBITDA margin (% of net sales)      25%      28%               37%
* EBITDA is defined as operating income plus depreciation, amortization and
  impairment  charges

Demand for our tubes improved during the fourth quarter and shipments in our Tubes operating segment rose by 25% sequentially. Net sales and operating income, however, did not benefit proportionately as average selling prices declined and were not fully compensated by the decline in costs. A lower level of shipments of high-end products also affected the margin of this quarter.

Cash flow from operations remained positive and we reduced our investment in working capital by a further US$202.4 million. Our net cash position (total financial debt less cash and other current investments) increased to US$675.7 million at the end of the period after paying an interim dividend during the quarter of US$153.5 million.

Summary of 2009 Annual Results
                                                                 Increase/
                                          FY 2009     FY 2008   (Decrease)
Net sales (US$ million)                    8,149.3    11,987.8        (32%)
Operating income (US$ million)             1,813.6     3,125.6        (42%)
Net income (US$ million)                   1,207.6     2,275.6        (47%)
Shareholders' net income (US$ million)     1,161.6     2,124.8        (45%)
Earnings per ADS (US$)                        1.97        3.60        (45%)
Earnings per share (US$)                      0.98        1.80        (45%)
EBITDA* (US$ million)                      2,318.4     4,044.4        (43%)
EBITDA margin (% of net sales)                  28%         34%
* EBITDA is defined as operating income plus depreciation, amortization and
  impairment charges

In 2009, we faced a sharp contraction in demand for our products and services as our customers adjusted to the effects of the global economic and financial crisis. Our actions focused on adjusting to the changing demand and competitive environments while positioning the company to take advantage of an eventual recovery. Net sales declined 32% year on year to US$8.1 billion and our EBITDA decreased by 43% to US$2.3 billion. Our financial position, however, was strengthened as we reduced working capital and turned a net debt position of US$1,392.4 million at December 31, 2008 into net cash of $675.7 million at December 31, 2009.

Annual Dividend Proposal

The board of directors proposes, for the approval of the annual general shareholders' meeting to be held on June 2, 2010, the payment of an annual dividend of US$0.34 per share (US$0.68 per ADS), or approximately US$401 million, which includes the interim dividend of US$0.13 per share (US$0.26 per ADS) paid in November 2009. If the annual dividend is approved by the shareholders, a dividend of US$0.21 per share (US$0.42 per ADS), or approximately US$248 million will be paid on June 24, 2010, with an ex-dividend date of June 21, 2010.

Market Background and Outlook

Global oil prices rose during 2009 from their low of around US$30 per barrel and subsequently have fluctuated within a US$70-80 per barrel range. Global oil demand is expected to resume growth in 2010 following two years of contraction led by increased consumption in non-OECD countries. North American gas prices declined in the first half of the year to a low below US$3.00 per million BTU in August before rising to their current levels above US$5.00 per million BTU.

Taking the year as a whole, the international count of active drilling rigs, as published by Baker Hughes, showed an average decrease of 8% compared to 2008, after declining in the first three quarters of the year and rising in the fourth quarter . The corresponding rig count in the US, which is more sensitive to North American gas prices, after plummeting in the first part of the year to below 900 rigs in June began recovering in the third quarter led by an increase in oil drilling activity, to end the year at 1,172. More recently, gas drilling activity has also increased and the US rig count has increased to 1,345 as of February 19, 2010. Compared to 2008, however, the decline amounted to 42% over the full year. 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, a similar decline of 42% compared to 2008 was registered.

We estimate that apparent demand for OCTG worldwide declined by more than 30% in 2009, reflecting the decline in oil and gas drilling activity and efforts made to adjust inventory levels, particularly in the USA.

With activity levels now recovering and inventories at more reasonable levels, we can expect shipments in our Tubes operating segment to show a recovery in 2010 from the low level recorded in 2009. In our Projects segment, however, we expect lower shipments since the order backlog for our large-diameter pipes for pipeline projects in South America declined throughout the year and ended at a low level.

In the first quarter, a low level of shipments of high-end products will continue to affect our results. Subsequently, shipments of high-end products should recover. For the year overall, we expect operating margins to be similar to those recorded in 2009.

Analysis of 2009 Fourth Quarter Results
                                                                 Increase/
   Sales volume (metric tons)               Q4 2009     Q4 2008 (Decrease)
Tubes - Seamless                            487,000     692,000       (30%)
Tubes - Welded                              104,000     242,000       (57%)
Tubes - Total                               591,000     934,000       (37%)
Projects - Welded                            63,000     134,000       (53%)
Total                                       654,000   1,068,000       (39%)
                                                                  Increase/
          Tubes                           Q4 2009     Q4 2008    (Decrease)
(Net sales - $ million)
North America                                563.8     1,419.3        (60%)
South America                                261.8       351.7        (26%)
Europe                                       167.1       369.1        (55%)
Middle East & Africa                         414.2       424.4         (2%)
Far East & Oceania                            93.8       193.1        (51%)
Total net sales ($ million)                1,500.6     2,757.6        (46%)
Cost of sales (% of sales)                      61%         50%
Operating income ($ million)*                264.7       628.9        (58%)
Operating income (% of sales)                   18%         23%
* Operating income includes impairment charges of US$354.9 million in
  Q4 2008

Net sales of tubular products and services decreased 46% to US$1,500.6 million in the fourth quarter of 2009, compared to US$2,757.6 million in the fourth quarter of 2008, due to a 37% reduction in sales volumes and a 14% decrease in average selling prices. In North America, although demand for OCTG products increased in Mexico, regional sales were affected by the adjustment in demand and prices for OCTG and line pipe in the USA and Canada, reflecting the decline in drilling activity and inventory reductions. Sales in South America were affected by low levels of demand in Venezuela and Argentina. In Europe, sales were affected by lower demand from distributors serving the process and power plant sector and lower sales of OCTG principally in Romania. In the Far East and Oceania, sales decreased mainly due to lower demand from the process and power plant sector and lower demand for industrial products.

                                                                  Increase/
        Projects                        Q4 2009       Q4 2008    (Decrease)
Net sales ($ million)                    221.2         311.9          (29%)
Cost of sales (% of sales)                  69%           63%
Operating income ($ million)              54.6          75.8          (28%)
Operating income (% of sales)               25%           24%

Net sales of pipes for pipeline projects decreased 29% to US$221.2 million in the fourth quarter of 2009, compared to US$311.9 million in the fourth quarter of 2008, as the decrease in volumes was partially offset by an increase in average selling prices.

                                                                  Increase/
        Others                              Q4 2009     Q4 2008  (Decrease)
Net sales ($ million)                        125.5       133.9        (6%)
Cost of sales (% of sales)                      76%         80%
Operating income ($ million)*                 11.3       (35.5)        132%
Operating income (% of sales)                    9%      (27%)
* Operating income includes impairment charges of US$ 39.3 million
  in Q4 2008

Net sales of other products and services decreased 6% to US$125.5 million in the fourth quarter of 2009, compared to US$133.9 million in the fourth quarter of 2008, mainly reflecting lower sales of welded pipes for electric conduits in USA and sucker rods, partially offset by higher sales of industrial equipment.

Selling, general and administrative expenses, or SG&A, increased as a percentage of net sales to 19.7% in the quarter ended December 31, 2009 compared to 14.3% in the corresponding quarter of 2008, mainly due to the effect of fixed and semi-fixed expenses over lower revenues.

Other operating income (expense) amounted to a net gain of US$3.5 million compared to a net loss of US$391.6 million in the corresponding quarter of 2008, which loss was mainly related to impairment charges at our North American operations.

Net interest expense decreased to US$16.1 million in the fourth quarter of 2009, compared to a net interest expense of US$38.2 million in the same period of 2008, reflecting the change in our net debt position and lower interest rates.

Other financial results generated a gain of US$3.4 million during the fourth quarter of 2009, compared to a loss of US$58.6 million during the fourth quarter of 2008. 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$18.8 million in the fourth quarter of 2009, compared to a loss of US$32.8 million in the fourth quarter of 2008. These results mainly derived from our equity investment in Ternium.

Income tax charges totalled US$96.0 million in the fourth quarter of 2009, equivalent to 30% of income before equity in earnings of associated companies and income tax. In the fourth quarter of 2008, income tax charges amounted to US$314.2 million, which excluding the effect of impairment losses of US$394.3 million during the quarter, resulted in a tax rate of 33%.

Income attributable to minority interest decreased to US$18.4 million in the fourth quarter of 2009, compared to US$20.8 million in the corresponding quarter of 2008.

Cash Flow and Liquidity

Net cash provided by operations during the fourth quarter of 2009 was US$417.0 million (US$3,063.9 million for the year), compared to US$379.3 million in the fourth quarter of 2008 (US$1,465.0 million during the year). Working capital decreased by US$202.4 million during the fourth quarter (US$1,737.3 million during the year), due to a decrease in inventories.

Capital expenditures amounted to US$133.1 million for the fourth quarter of 2009 and US$460.9 million for the year, compared to US$106.1 million in the fourth quarter of 2008 and US$443.2 million for the year. Capital expenditures are expected to increase in 2010 as we complete the construction of our new rolling mill in Mexico.

During 2009, total financial debt decreased by US$1,530.3 million to US$1,446.8 million at December 31, 2009 from US$2,977.0 million at December 31, 2008. Liquidity (cash and cash equivalents and other current investments) increased by US$537.9 million to US$2,122.5 million at December 31, 2009 from US$1,584.6 million at December 31, 2008. Net financial debt during 2009 decreased by US$2,068.1 million to a positive net cash position of US$675.7 million at December 31, 2009.

Analysis of 2009 Annual Results
                                                                  Increase/
    Sales volume (metric tons)           FY 2009      FY 2008    (Decrease)
Tubes - Seamless                        1,970,000    2,818,000        (30%)
Tubes - Welded                            346,000    1,057,000        (67%)
Tubes - Total                           2,316,000    3,875,000        (40%)
Projects - Welded                         334,000      591,000        (43%)
Total - Tubes + Projects                2,650,000    4,466,000        (41%)
                                                                  Increase/
    Tubes                              FY 2009      FY 2008      (Decrease)
Net sales ($ million)
 - North America                         2,756.1      4,519.3         (39%)
 - South America                           981.9      1,248.7         (21%)
 - Europe                                  828.8      1,705.6         (51%)
 - Middle East & Africa                  1,622.6      1,809.9         (10%)
 - Far East & Oceania                      481.5        726.6         (34%)
Total net sales                          6,670.9     10,010.1         (33%)
Cost of sales (% of sales)                    57%          53%
Operating income ($ million)             1,576.8      2,827.0         (44%)
Operating income (% of sales)                 24%          28%

Net sales of tubular products and services decreased 33% to US$6,670.9 million in 2009, compared to US$10,010.1 million in 2008, due to a sharp reduction in volumes (down 40%). This reduction in shipments was partially offset by higher average selling prices (up 12%), reflecting, in part, a higher proportion of sales of specialized high-end products and the lagged effect of price variations as average selling prices rose to a peak in the second quarter of 2009. In North America, notwithstanding higher demand for OCTG products in Mexico, sales decreased 39%, due primarily to substantially lower demand for OCTG and line pipe products in the US and Canada, reflecting the decline in drilling activity and inventory adjustments following the surge in imports of Chinese products in the second half of 2008 and first half of 2009. In South America, sales decreased reflecting sharply lower demand from all sectors in Argentina and for OCTG in Venezuela. In Europe, sales were affected by lower demand from all sectors, including the process and power plant sector, the industrial and automotive sector and the oil and gas sector. Sales in the Middle East and Africa declined by 10% as reduced demand for OCTG products was partially offset by higher sales of deepwater linepipe products in West Africa. In the Far East and Oceania, sales decreased in China and demand for all our products decreased in the rest of the region.

Cost of sales of tubular products and services expressed as a percentage of net sales, rose from 53% to 57%, mainly due to the negative effect of low production capacity utilization rates, on efficiency, absorption of fixed and semi-fixed costs and on the time lag between raw material cost decreases and their impact on the cost of sales.

Operating income from tubular products and services decreased 44% to US$1,576.8 million in 2009, from US$2,827.0 million in 2008, (in 2008 operating income included impairment charges amounting to US$354.9 million), mainly due to the decrease in volumes.

                                                                  Increase/
    Projects                                FY 2009     FY 2008  (Decrease)
Net sales ($ million)                        986.5     1,270.9        (22%)
Cost of sales (% of sales)                      71%         70%
Operating income ($ million)                 208.6       249.0        (16%)
Operating income (% of sales)                   21%         20%

Net sales of pipes for pipeline projects decreased 22% to US$986.5 million in 2009, compared to US$1,270.9 million in 2008, reflecting a sharp decrease in shipments to gas and other pipeline projects in Brazil, Argentina and Colombia partially offset by higher average selling prices particularly for offshore projects in Brazil.

Operating income from pipes for pipeline projects decreased 16% to US$208.6 million in 2009, from US$249.0 million in 2008, due to the decrease in net sales and a stable operating margin.

                                                                  Increase/
    Others                                  FY 2009     FY 2008  (Decrease)
Net sales ($ million)                        491.8       706.8        (30%)
Cost of sales (% of net sales)                  79%         73%
Operating income ($ million)                  28.1        49.6        (43%)
Operating income (% of sales)                    6%          7%

Net sales of other products and services decreased 30% to US$491.8 million in 2009, compared to US$706.8 million in 2008, mainly due to lower sales of welded pipes for electric conduits in USA as well as sucker rods.

Operating income from other products and services decreased 43% to US$28.1 million in 2009, from US$49.6 million in 2008, due to the decrease in net sales.

Selling, general and administrative expenses, or SG&A, increased as a percentage of net sales to 18.1% in 2009 compared to 14.9% in 2008, mainly due to the effect of fixed and semi-fixed expenses over lower revenues. However, in absolute terms SG&A decreased US$314.2 million to US$1,473.8 million in 2009, from US$1,788.0 million in 2008, mainly due to lower commissions, freight and other selling expenses, taxes and labor costs, reflecting lower activity in terms of net sales.

Other operating income and expenses resulted in net income of US$3.0 million in 2009, compared to a net loss of US$375.9 million in 2008, which loss was mainly related to impairment charges at our North American operations.

Net interest expenses totalled US$87.5 million in 2009, compared to net interest expenses of US$131.2 million in 2008, reflecting the change in our net debt position and lower interest rates.

Other financial results generated a loss of US$64.2 million in 2009, compared to a loss of US$99.8 million during 2008. These results largely reflect 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 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$87.0 million in 2009, compared to a gain of US$89.4 million in 2008. These gains were derived mainly from our equity investment in Ternium.

Income tax charges of US$513.2 million were recorded during 2009, equivalent to 31% of income before equity in earnings of associated companies and income tax, like in 2008, when excluding the effect of impairment losses during the year amounting to US$394.3 million, the tax rate was also 31%.

Result for discontinued operations amounted to a loss of US$28.1 million in 2009, relating to the discontinuation of Tavsa and Matesi's operations, compared to a gain of US$306.9 million in 2008, relating to income from discontinued operations, which was principally attributed to the result of the sale of Hydril's pressure control business. In May 2009, the Venezuelan government announced the nationalization of Tavsa and Matesi. In August 2009, Venezuela, acting through the transition committee appointed by the Venezuelan Ministry of Basic Industries and Mining, unilaterally assumed exclusive operational control over the assets of Matesi. In November 2009, Venezuela, acting through PDVSA Industrial S.A. (a subsidiary of Petroleos de Venezuela S.A.), formally assumed exclusive operational control over the assets of Tavsa.

Net income decreased to US$1,207.6 million in 2009, compared to US$2,275.6 million in 2008, mainly reflecting lower operating results.

Income attributable to equity holders was US$1,161.6 million, or US$0.98 per share (US$1.97 per ADS), in 2009, compared to US$2,124.8 million, or US$1.80 per share (US$3.60 per ADS) in 2008.

Income attributable to minority interest was US$46.0 million in 2009, compared to US$150.8 million in 2008, mainly reflecting lower results at Confab and losses at NKKTubes.

Registered Major Holders

The following holder has 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)       713,605,187                    60.45

(1) San Faustin 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 Faustin N.V. and has the ability to influence matters affecting, or submitted to a vote of the shareholders of, San Faustin N.V., such as the election of directors, the approval of certain corporate transactions and other matters concerning the company's policies. There are no controlling shareholders for Rocca & Partners.

Pursuant to Schedule 13G/A filed with the U.S. Securities and Exchange Commission on February 10, 2010, Capital World Investors, a division of Capital Research and Management Company, is deemed to be the beneficial owner of 48,317,436 ordinary shares of Tenaris, representing 4.1% of Tenaris's capital and voting rights. Accordingly, Capital World Investors has fallen below the 5% share ownership threshold referred to in Luxembourg Transparency Law.

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, unless      Three-month period          Year ended
 otherwise stated)            ended December 31,         December 31,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Continuing operations
Net sales                    1,847,213   3,203,359   8,149,320  11,987,760
Cost of sales               (1,156,550) (1,683,037) (4,864,922) (6,698,285)
                            ----------  ----------  ----------  ----------
Gross profit                   690,663   1,520,322   3,284,398   5,289,475
Selling, general and
 administrative expenses      (363,551)   (459,461) (1,473,791) (1,787,952)
Other operating income
 (expenses) net                  3,504    (391,614)      3,000    (375,873)
                            ----------  ----------  ----------  ----------
Operating income               330,616     669,247   1,813,607   3,125,650
Interest income                  7,659       3,120      30,831      48,711
Interest expense               (23,712)    (41,319)   (118,301)   (179,885)
Other financial results          3,413     (58,615)    (64,230)    (99,850)
                            ----------  ----------  ----------  ----------
Income before equity in
 earnings of associated
 companies and income tax      317,976     572,433   1,661,907   2,894,626
Equity in earnings of
 associated companies           18,812     (32,830)     87,041      89,423
                            ----------  ----------  ----------  ----------
Income before income tax       336,788     539,603   1,748,948   2,984,049
Income tax                     (96,036)   (314,202)   (513,211) (1,015,334)
                            ----------  ----------  ----------  ----------
Income for continuing
 operations                    240,752     225,401   1,235,737   1,968,715
Discontinued operations
Results for discontinued
 operations                          -    (110,936)    (28,138)    306,905
                            ----------  ----------  ----------  ----------
Income for the Year            240,752     114,465   1,207,599   2,275,620
                            ----------  ----------  ----------  ----------
Attributable to:
Equity holders of the
 Company                       222,367      93,653   1,161,555   2,124,802
Minority interest               18,385      20,812      46,044     150,818
                            ----------  ----------  ----------  ----------
                               240,752     114,465   1,207,599   2,275,620
Consolidated Statement of Financial Position
(all amounts in thousands of
 U.S. dollars)                  At December 31, 2009  At December 31, 2008
                                --------------------- ---------------------
ASSETS
Non-current assets
  Property, plant and
   equipment, net                3,254,587             2,982,871
  Intangible assets, net         3,670,920             3,826,987
  Investments in associated
   companies                       602,572               527,007
  Other investments                 34,167                38,355
  Deferred tax assets              197,603               390,323
  Receivables                      101,618  7,861,467     82,752  7,848,295
                                ----------            ----------
Current assets
  Inventories                    1,687,059             3,091,401
  Receivables and prepayments      220,124               251,481
  Current tax assets               260,280               201,607
  Trade receivables              1,310,302             2,123,296
  Available for sale assets         21,572                     -
  Other investments                579,675                45,863
  Cash and cash equivalents      1,542,829  5,621,841  1,538,769  7,252,417
                                ---------- ---------- ---------- ----------
Total assets                               13,483,308            15,100,712
EQUITY
Capital and reserves
 attributable to the Company's
 equity holders                             9,092,164             8,176,571
Minority interest                             628,672               525,316
                                           ----------            ----------
Total equity                                9,720,836             8,701,887
LIABILITIES
Non-current liabilities
  Borrowings                       655,181             1,241,048
  Deferred tax liabilities         860,787             1,053,838
  Other liabilities                192,467               223,142
  Provisions                        80,755                89,526
  Trade payables                     2,812  1,792,002      1,254  2,608,808
                                ----------            ----------
Current liabilities
  Borrowings                       791,583             1,735,967
  Current tax liabilities          306,539               610,313
  Other liabilities                192,190               242,620
  Provisions                        28,632                28,511
  Customer advances                 95,107               275,815
  Trade payables                   556,419  1,970,470    896,791  3,790,017
                                ---------- ---------- ---------- ----------
Total liabilities                           3,762,472             6,398,825
Total equity and liabilities               13,483,308            15,100,712
Consolidated Statement of Cash Flows
                              Three-month period         Year ended
                              ended December 31,         December 31,
                              --------------------   ---------------------
(all amounts in thousands
 of U.S. dollars)              2009        2008        2009        2008
Cash flows from operating
 activities
Income for the year            240,752     114,465   1,207,599   2,275,620
Adjustments for:
Depreciation and
 amortization                  129,014     129,176     504,864     532,934
Income tax accruals less
 payments                     (112,655)     (5,288)   (458,086)   (225,038)
Equity in earnings of
 associated companies          (18,812)     32,830     (86,179)    (89,556)
Interest accruals less
 payments, net                  (6,210)     28,985     (24,167)     55,492
Income from disposal of
 investment and other                -           -           -    (394,323)
Changes in provisions          (11,294)    (10,056)     (7,268)        783
Impairment charge                    -     502,899           -     502,899
Changes in working capital     202,400    (248,554)  1,737,348  (1,051,632)
Other, including currency
 translation adjustment         (6,233)   (165,143)    189,837    (142,174)
                            ----------  ----------  ----------  ----------
Net cash provided by
 operating activities          416,962     379,314   3,063,948   1,465,005
                            ----------  ----------  ----------  ----------
Cash flows from investing
 activities
Capital expenditures          (133,132)   (106,100)   (460,927)   (443,238)
Acquisitions of
 subsidiaries and minority
 interest                          (20)     (8,717)    (73,584)    (18,585)
Other disbursements
 relating to the
 acquisition of Hydril               -           -           -           -
Proceeds from the sale of
 pressure control business
 (*)                                 -           -           -   1,113,805
Decrease in subsidiaries /
 associated                          -           -           -           -
Proceeds from disposal of
 property, plant and
 equipment and intangible
 assets                          4,306       4,995      16,310      17,161
Dividends and distributions
 received from associated
 companies                       2,517       1,396      11,420      15,032
Investments in short terms
 securities                    (50,814)    (18,866)   (533,812)     41,667
Other                                -           -           -      (3,428)
                            ----------  ----------  ----------  ----------
Net cash used in investing
 activities                   (177,143)   (127,292) (1,040,593)    722,414
                            ----------  ----------  ----------  ----------
Cash flows from financing
 activities
Dividends paid                (153,470)   (153,470)   (507,631)   (448,604)
Dividends paid to minority
 interest in subsidiaries      (13,388)    (27,083)    (46,086)    (87,200)
Proceeds from borrowings       121,742     356,444     631,544   1,087,649
Repayments of borrowings      (392,752)   (344,804) (2,096,925) (2,122,268)
                            ----------  ----------  ----------  ----------
Net cash used in financing
 activities                   (437,868)   (168,913) (2,019,098) (1,570,423)
                            ----------  ----------  ----------  ----------
(Decrease) increase in cash
 and cash equivalents         (198,049)     83,109       4,257     616,996
Movement in cash and cash
 equivalents
At the beginning of the
 period                      1,733,420   1,463,642   1,525,022     954,303
Effect of exchange rate
 changes                        (6,664)    (21,729)      9,124     (46,277)
Decrease in cash due to
 deconsolidation                     -           -      (9,696)          -
Increase (decrease) in cash
 and cash equivalents         (198,049)     83,109       4,257     616,996
                              --------   ---------   ---------   ---------
At December 31,              1,528,707   1,525,022   1,528,707   1,525,022
Cash and cash equivalents        At December 31,         At December 31,
                              --------------------   ---------------------
                                2009        2008        2009        2008
Cash and bank deposits       1,542,829   1,538,769   1,542,829   1,538,769
Bank overdrafts                (14,122)    (13,747)    (14,122)    (13,747)
Restricted bank deposits             -           -           -           -
                              --------   ---------   ---------   ---------
                             1,528,707   1,525,022   1,528,707   1,525,022

Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com


SOURCE: Tenaris S.A.

http://www.tenaris.com

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