LUXEMBOURG--(Marketwired - July 30, 2014) - 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









Source: Tenaris S.A.

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