Tenaris S A : CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT - Form 6-K

August 05, 2022 at 03:56 pm EDT

CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT

			Three-month period ended June 30,		Six-month period ended June 30,
			2022		2021	2022		2021
	Notes		(Unaudited)		(Unaudited)
Net sales		3		2,800,474		1,528,511			5,167,515		2,710,300
Cost of sales		4		(1,735,342	)	(1,113,782	)		(3,257,284	)	(1,996,781	)
Gross profit				1,065,132		414,729			1,910,231		713,519
Selling, general and administrative expenses		5		(411,740	)	(296,785	)		(776,662	)	(551,811	)
Other operating income (expense), net		6		9,453		33,750			13,530		41,577
Operating income				662,845		151,694			1,147,099		203,285
Finance Income		7		6,441		21,517			15,266		27,215
Finance Cost		7		(6,127	)	(5,831	)		(7,962	)	(10,506	)
Other financial results		7		(11,771	)	(6,074	)		(19,879	)	4,680
Income before equity in earnings of non-consolidated companies and income tax				651,388		161,306			1,134,524		224,674
Equity in earnings of non-consolidated companies		15		103,102		145,829			190,706		224,970
Income before income tax				754,490		307,135			1,325,230		449,644
Income tax				(120,464	)	(16,953	)		(187,771	)	(58,697	)
Income for the period				634,026		290,182			1,137,459		390,947

Attributable to:
Shareholders' equity				636,718		293,940			1,139,492		400,286
Non-controlling interests				(2,692	)	(3,758	)		(2,033	)	(9,339	)
				634,026		290,182			1,137,459		390,947
Earnings per share attributable to shareholders' equity during the period:
Weighted average number of ordinary shares (thousands)				1,180,537		1,180,537			1,180,537		1,180,537

Basic and diluted earnings per share (U.S. dollars per share)				0.54		0.25			0.97		0.34
Basic and diluted earnings per ADS (U.S. dollars per ADS) ^(*)				1.08		0.50			1.93		0.68

^(*) Each ADS equals two shares.

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, 2021.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

	Three-month period ended June 30,			Six-month period ended June 30,
	2022			2021		2022	2021
	(Unaudited)			(Unaudited)
Income for the period		634,026			290,182		1,137,459		390,947
Items that may be subsequently reclassified to profit or loss:
Currency translation adjustment		(75,098	)		42,972		(47,013	)	(17,534	)
Reclassification of currency translation adjustment reserve ^(*)		(71,252	)		-		(71,252	)	-
Change in value of cash flow hedges and instruments at fair value		4,917			2,910		(7,320	)	556
Income tax relating to components of other comprehensive income		-			532		-		(2,411	)
From participation in non-consolidated companies:
- Currency translation adjustment		(22,380	)		18,649		8,481		7,803
- Changes in the fair value of derivatives held as cash flow hedges and others		(519	)		472		(2,095	)	(676	)
		(164,332	)		65,535		(119,199	)	(12,262	)
Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations		25			705		(301	)	893
Income tax on items that will not be reclassified		(139	)		(1,046	)	(139	)	(1,728	)
Remeasurements of post employment benefit obligations of non-consolidated companies		(486	)		3,353		(512	)	2,981
		(600	)		3,012		(952	)	2,146
Other comprehensive (loss) income for the period		(164,932	)		68,547		(120,151	)	(10,116	)
Total comprehensive income for the period		469,094			358,729		1,017,308		380,831
Attributable to:
Shareholders' equity		472,140			362,484		1,019,683		387,609
Non-controlling interests		(3,046	)		(3,755	)	(2,375	)	(6,778	)
		469,094			358,729		1,017,308		380,831

^(*) As of June 30, 2022 as result of NKKTubes' definitive cease of operations, the currency translation adjustment reserve belonging to the shareholders has been reclassified with impact in the income statement. For more information see note 35 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

		At June 30, 2022		At December 31, 2021
	Notes	(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net	9		5,662,744			5,824,801
Intangible assets, net	10		1,358,935			1,372,176
Right-of-use assets, net	11		109,340			108,738
Investments in non-consolidated companies	15		1,539,006			1,383,774
Other investments NC	12		184,222			320,254
Derivative financial instruments NCA	13		8,279			7,080
Deferred tax assets			264,161			245,547
Receivables, net			228,610		9,355,297	205,888	9,468,258
Current assets
Inventories, net			3,370,139			2,672,593
Receivables and prepayments, net			134,661			96,276
Current tax assets			201,786			193,021
Trade receivables, net			1,890,697			1,299,072
Derivative financial instruments CA	13		27,064			4,235
Other investments C	12		559,827			397,849
Cash and cash equivalents	12		636,571		6,820,745	318,127	4,981,173
Total assets					16,176,042		14,449,431
EQUITY
Shareholders' equity					12,649,677		11,960,578
Non-controlling interests					144,371		145,124
Total equity					12,794,048		12,105,702
LIABILITIES
Non-current liabilities
Borrowings			16,931			111,432
Lease liabilities	11		83,315			82,694
Deferred tax liabilities			279,799			274,721
Other liabilities			236,224			231,681
Provisions			93,312		709,581	83,556	784,084
Current liabilities
Borrowings			727,497			219,501
Lease liabilities	11		29,357			34,591
Derivative financial instruments CL	13		12,811			11,328
Current tax liabilities			232,437			143,486
Other liabilities			317,846			203,725
Provisions			10,045			9,322
Customer advances			343,613			92,436
Trade payables			998,807		2,672,413	845,256	1,559,645
Total liabilities					3,381,994		2,343,729
Total equity and liabilities					16,176,042		14,449,431

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

	Shareholders' equity
	Share Capital ⁽¹⁾	Legal Reserves	Share Premium	Currency Translation Adjustment		Other Reserves ⁽²⁾		Retained Earnings ⁽³⁾		Total		Non- controlling interests		Total
														(Unaudited)
Balance at December 31, 2021	1,180,537	118,054	609,733	(1,051,133	)	(336,200	)	11,439,587		11,960,578		145,124		12,105,702
Income (loss) for the period	-	-	-	-		-		1,139,492		1,139,492		(2,033	)	1,137,459
Currency translation adjustment	-	-	-	(46,688	)	-		-		(46,688	)	(325	)	(47,013	)
Reclassification of currency translation adjustment reserve ⁽⁴⁾	-	-	-	(71,252	)	-		-		(71,252	)	-		(71,252	)
Remeasurements of post employment benefit obligations, net of taxes	-	-	-	-		(470	)	-		(470	)	30		(440	)
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes	-	-	-	-		(7,273	)	-		(7,273	)	(47	)	(7,320	)
From other comprehensive income of non-consolidated companies	-	-	-	8,481		(2,607	)	-		5,874		-		5,874
Other comprehensive (loss) for the period	-	-	-	(109,459	)	(10,350	)	-		(119,809	)	(342	)	(120,151	)
Total comprehensive income (loss) for the period	-	-	-	(109,459	)	(10,350	)	1,139,492		1,019,683		(2,375	)	1,017,308
Acquisition and other changes in non-controlling interests	-	-	-	-		-		-		-		1,622		1,622
Dividends paid	-	-	-	-		-		(330,584	)	(330,584	)	-		(330,584	)
Balance at June 30, 2022	1,180,537	118,054	609,733	(1,160,592	)	(346,550	)	12,248,495		12,649,677		144,371		12,794,048

	Shareholders' equity
	Share Capital ⁽¹⁾		Legal Reserves	Share Premium		Currency Translation Adjustment	Other Reserves ⁽²⁾		Retained Earnings ⁽³⁾	Total		Non- controlling interests	Total
													(Unaudited)
Balance at December 31, 2020		1,180,537			118,054			609,733			(958,374	)		(345,217	)	10,658,155		11,262,888		183,585		11,446,473
Income (loss) for the period		-			-			-			-			-		400,286		400,286		(9,339	)	390,947
Currency translation adjustment		-			-			-			(17,418	)		-		-		(17,418	)	(116	)	(17,534	)
Remeasurements of post employment benefit obligations, net of taxes		-			-			-			-			(835	)	-		(835	)	-		(835	)
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes		-			-			-			-			(4,532	)	-		(4,532	)	2,677		(1,855	)
From other comprehensive income of non-consolidated companies		-			-			-			7,803			2,305		-		10,108		-		10,108
Other comprehensive (loss) income for the period		-			-			-			(9,615	)		(3,062	)	-		(12,677	)	2,561		(10,116	)
Total comprehensive income (loss) for the period		-			-			-			(9,615	)		(3,062	)	400,286		387,609		(6,778	)	380,831
Acquisition and other changes in non-controlling interests ⁽⁵⁾		-			-			-			-			-		-		-		4,885		4,885
Dividends paid		-			-			-			-			-		(165,275	)	(165,275	)	(3,207	)	(168,482	)
Balance at June 30, 2021		1,180,537			118,054			609,733			(967,989	)		(348,279	)	10,893,166		11,485,222		178,485		11,663,707

⁽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, 2022 and 2021 there were 1,180,536,830 shares issued. All issued shares are fully paid.

⁽²⁾ Other reserves includes mainly the result of transactions with non-controlling interest that do not result in a loss of control, the remeasurement of post-employment benefit obligations and the changes in value of cash flow hedges and in financial instruments measured at fair value through other comprehensive income.

⁽³⁾ The restrictions to the distribution of profits and payment of dividends according to Luxembourg Law are disclosed in note 16.

⁽⁴⁾ Related to NKKTubes' cease of operations. For more information see note 35 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

⁽⁵⁾ Mainly related to the agreement for the construction of Tenaris Baogang Baotou Steel Pipes Ltd.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

			Six-month period ended June 30,
	Notes		2022	2021
			(Unaudited)
Cash flows from operating activities
Income for the period					1,137,459		390,947
Adjustments for:
Depreciation and amortization		9, 10 & 11			286,100		294,096
Income tax accruals less payments					45,951		(567	)
Equity in earnings of non-consolidated companies		15			(190,706	)	(224,970	)
Interest accruals less payments, net					(1,611	)	(12,047	)
Changes in provisions					10,479		9,598
Reclassification of currency translation adjustment reserve ^(*)		6			(71,252	)	-
Changes in working capital					(807,099	)	(397,090	)
Currency translation adjustment and others					(8,173	)	(39,826	)
Net cash provided by operating activities					401,148		20,141

Cash flows from investing activities
Capital expenditures		9 & 10			(141,343	)	(96,565	)
Changes in advance to suppliers of property, plant and equipment					(19,855	)	(5,728	)
Acquisition of subsidiaries, net of cash acquired		20			(4,082	)	-
Proceeds from disposal of property, plant and equipment and intangible assets					45,996		5,339
Dividends received from non-consolidated companies		15			45,488		49,131
Changes in investments in securities					(43,571	)	242,923
Net cash (used in) provided by investing activities					(117,367	)	195,100

Cash flows from financing activities
Dividends paid		8			(330,584	)	(165,275	)
Dividends paid to non-controlling interest in subsidiaries					-		(3,207	)
Changes in non-controlling interests					1,622		-
Payments of lease liabilities					(28,405	)	(26,304	)
Proceeds from borrowings					851,736		286,120
Repayments of borrowings					(441,176	)	(303,888	)
Net cash provided by (used in) financing activities					53,193		(212,554	)

Increase in cash and cash equivalents					336,974		2,687

Movement in cash and cash equivalents
At the beginning of the period					318,067		584,583
Effect of exchange rate changes					(19,113	)	(2,031	)
Increase in cash and cash equivalents					336,974		2,687
At June 30,					635,928		585,239

					At June 30,
Cash and cash equivalents					2022		2021
Cash and bank deposits					636,571		587,337
Bank overdrafts					(643	)	(2,098	)
					635,928		585,239

^(*) Related to NKKTubes' cease of operations. For more information see note 35 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

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	Other operating income (expense), net
7	Financial results
8	Dividend distribution
9	Property, plant and equipment, net
10	Intangible assets, net
11	Right-of-use assets, net and lease liabilities
12	Cash and cash equivalents and other investments
13	Derivative financial instruments
14	Category of financial instruments and classification within the fair value hierarchy
15	Investments in non-consolidated companies
16	Contingencies, commitments and restrictions to the distribution of profits
17	Cancellation of title deed in Saudi Steel Pipe Company
18	Foreign exchange control measures in Argentina
19	Related party transactions
20	Business Combinations
21	Nationalization of Venezuelan Subsidiaries
22	The Russia-Ukraine armed conflict and its impact on Tenaris's operations
23	Subsequent events

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

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 32 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

The Company's shares trade on the Italian Stock Exchange and the Mexican Stock Exchange; and its 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 3, 2022.

2	Accounting policies and basis of presentation

These Consolidated Condensed Interim Financial Statements have been prepared in accordance with IAS 34, "Interim Financial Reporting" as issued by the International Accounting Standard Board ("IASB") and as adopted by the European Union ("EU"). 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, 2021. These Consolidated Condensed Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2021, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB and in conformity with IFRS as adopted by the EU.

The preparation of Consolidated Condensed Interim Financial Statements 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. The main areas involving significant estimates or judgments are impairment of goodwill and long-lived assets; income taxes; obsolescence of inventory; loss contingencies; allowance for trade receivables; post-employment benefits; business combinations; useful lives of property, plant and equipment and other long-lived assets; fair value estimation of certain financial instruments and property title ownership restriction. During the period there were no material changes in the significant accounting estimates.

The Company is carefully assessing the potential impact of climate change and the energy transition on its business in terms of the risks to its markets and its physical assets and is adapting its business strategy accordingly. These events did not impact materially management judgments and estimates used in the preparation of these Consolidated Condensed Interim Financial Statements.

Material intercompany 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 their respective local currency, some financial gains (losses) arising from intercompany transactions are generated. These are included in the Consolidated Condensed Interim Income Statement under Other financial results.

There were no significant changes in valuation techniques during the period and there have been no changes in any risk management policies since the year ended December 31, 2021.

None of the accounting pronouncements applicable after December 31, 2021, and as of the date of these Consolidated Condensed Interim Financial Statements had a material effect on the Company's financial condition or result of its operations.

Whenever necessary, certain comparative amounts have been reclassified to conform to changes in presentation in the current period.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

3	Segment information

Reportable operating segment

(All amounts in millions of U.S. dollars)

Six-month period ended June 30, 2022	Tubes		Other	Total
IFRS - Net Sales		4,836			332	5,168

Management view - operating income		865			32	897
Difference in cost of sales		173			8	181
Differences in depreciation and amortization		1			-	1
Differences in selling, general and administrative expenses		(4	)		-	(4	)
Differences in other operating income (expenses), net and others		72			-	72
IFRS - operating income		1,107			40	1,147
Financial income (expense), net						(13	)
Income before equity in earnings of non-consolidated companies and income tax						1,134
Equity in earnings of non-consolidated companies						191
Income before income tax						1,325
Capital expenditures		140			1	141
Depreciation and amortization		275			11	286

Six-month period ended June 30, 2021	Tubes		Other	Total
IFRS - Net Sales		2,476			234		2,710

Management view - operating (loss) income		(47	)		25		(22	)
Difference in cost of sales		217			11		227
Differences in depreciation and amortization		1			(1	)	-
Differences in other operating income (expenses), net		(2	)		-		(2	)
IFRS - operating income		169			35		203
Financial income (expense), net							21
Income before equity in earnings of non-consolidated companies and income tax							225
Equity in earnings of non-consolidated companies							225
Income before income tax							450
Capital expenditures		84			13		97
Depreciation and amortization		284			10		294

In the six-month period ended June 30, 2022 and 2021, transactions between segments, which were eliminated in consolidation, are mainly related to sales of scrap, energy, surplus raw materials and others from the Other segment to the Tubes segment for $30.1 million and $10.1 million respectively.

There are no material differences between the IFRS and management views in total revenues and by reportable segments.

The differences between operating income under the IFRS and management views are mainly related to the cost of goods sold, reflecting the effect of raw materials prices increases on the valuation of the replacement cost considered for management view compared to IFRS cost calculated at historical cost on a FIFO basis, and other timing differences. Additionally, for the six-month period ended June 30, 2022, operating income under the IFRS view includes the effect of the reclassification of the currency translation adjustment reserve related to NKK Tubes' definitive cease of operations, not impacting the management view. For more information see note II.C "Segment information" in the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

In addition to the amounts reconciled above, the main differences in net income arise from the impact of functional currencies on financial result, deferred income taxes as well as the result of investment in non-consolidated companies.

Geographical information

	North America		South America	Europe		Middle East & Africa	Asia Pacific		Total
Six-month period ended June 30, 2022
Net sales		2,978,222			992,948			565,479		469,451	161,415	5,167,515
Capital expenditures		60,842			44,986			23,299		1,115	11,101	141,343
Depreciation and amortization		163,246			55,516			37,744		17,322	12,272	286,100

Six-month period ended June 30, 2021
Net sales		1,276,271			507,484			367,780		435,740	123,025	2,710,300
Capital expenditures		35,668			36,929			13,956		4,795	5,217	96,565
Depreciation and amortization		140,987			68,517			49,593		19,917	15,082	294,096

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

Allocation of net sales to geographical information is based on the final destination of the products sold. 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). The principal countries from which the Company derives its revenues are USA, Argentina, Mexico, Canada, Brazil, Italy and Saudi Arabia.

Revenue is mainly recognized at a point in time to direct customers, when control has been transferred and there is no unfulfilled performance obligation that could affect the acceptance of the product by the customer. In the six-month period ended June 30, 2022 and 2021, revenues related to governmental institutions represented approximately 21% and 24% respectively.

Tubes segment revenues by market:

(All amounts in millions of U.S. dollars)

	Six-month period ended June 30,
Revenues Tubes	2022		2021
	(Unaudited)
Oil and Gas		4,094		2,008
Hydrocarbon Processing and Power Generation		352		197
Industrial and Other		390		271
Total		4,836		2,476

4	Cost of sales

	Six-month period ended June 30,
	2022		2021
	(Unaudited)
Inventories at the beginning of the period		2,672,593		1,636,673
Plus: Charges of the period
Raw materials, energy, consumables and other		2,778,840		1,644,120
Services and fees		150,652		96,023
Labor cost		549,319		375,699
Depreciation of property, plant and equipment		216,658		221,754
Amortization of intangible assets		5,043		3,746
Depreciation of right-of-use assets		17,586		17,645
Maintenance expenses		124,309		72,762
Allowance for obsolescence		(3,265	)	19,920
Taxes		39,384		18,283
Other		76,304		35,716
		3,954,830		2,505,668
Less: Inventories at the end of the period		(3,370,139	)	(2,145,560	)
		3,257,284		1,996,781

5	Selling, general and administrative expenses

	Six-month period ended June 30,
	2022		2021
	(Unaudited)
Services and fees		70,279		54,633
Labor cost		255,160		207,932
Depreciation of property, plant and equipment		10,657		11,145
Amortization of intangible assets		28,313		32,007
Depreciation of right-of-use assets		7,843		7,799
Commissions, freight and other selling expenses		307,821		173,341
Provisions for contingencies		8,450		13,004
Allowances for doubtful accounts		(744	)	(2,084	)
Taxes		50,220		33,068
Other		38,663		20,966
		776,662		551,811

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

6	Other operating income (expense), net

		Six-month period ended June 30,
		2022			2021
		(Unaudited)
(i)	Other operating income
	Net income from other sales		24,838			2,788
	Net rents		2,820			2,663
	Reclassification of currency translation adjustment reserve ^(*)		71,252			-
	Other ^(**)		-			39,500
			98,910			44,951
(ii)	Other operating expenses
	Contributions to welfare projects and non-profits organizations		(6,698	)		(3,726)
	Allowance for doubtful receivables		(290	)		352
	Securities Exchange Commission investigation settlement ^(***)		(78,100	)		-
	Other		(292	)		-
			(85,380	)		(3,374)
	Total		13,530			41,577

^(**) On 13 May 2021, the Brazilian Supreme Court issued a final judgment which confirmed that the methodology for calculating PIS and COFINS (Federal Social Contributions on Gross Revenues) tax claims to which taxpayers are entitled to, should exclude from its base the total output of ICMS, calculated on a gross basis. This decision led to a recognition of $50.8 million tax credit in Brazilian subsidiaries, out of which $34.1 million were recognized in other operating income and $16.7 million in financial results. In addition the tax charge related to this gain amounted to $17.7 million.

^(***) For more information see note 16 "Contingencies, commitments and restrictions to the distribution of profits - Contingencies - Ongoing investigation".

7	Financial results

	Six-month period ended June 30,
	2022		2021
	(Unaudited)
Interest Income		25,730		27,215
Net result on changes in FV of financial assets at FVTPL		(10,464	)	-
*Finance Income ^()**		15,266		27,215
Finance Cost		(7,962	)	(10,506	)
Net foreign exchange transactions results ^(**)		4,693		13,364
Foreign exchange derivatives contracts results ^(***)		(24,441	)	(8,259	)
Other		(131	)	(425	)
Other Financial results		(19,879	)	4,680
Net Financial results		(12,575	)	21,389

^(*)Finance Income:

The six-month period ended June 2022 and 2021 includes $12.8 and $1.4 million of interest related to instruments carried at FVTPL, respectively.

The six-month period ended June 2022 also includes a realized loss of $10.5 million related to the change in FV of certain financial instruments obtained in an operation of settlement of trade receivables.

The six-month period ended June 2021 also includes $17.5 million of non-financial interest related to PIS and COFINS taxes recovery in Brazilian subsidiaries. For more information, see note 6.

^(**)Net foreign exchange transactions results:

The six-month period ended June 2022 mainly includes the result from Japanese yen depreciation against the U.S. dollar on Japanese yen-denominated trade, social and fiscal payables at the Japanese subsidiary whose functional currency is the U.S. dollar, together with the result from Euro depreciation against the U.S. dollar on Euro denominated intercompany liabilities in subsidiaries with functional currency U.S. dollar, largely offset by an increase in currency translation adjustment reserve from an Italian subsidiary, and the result from Argentine peso depreciation against the U.S. dollar on Argentine peso-denominated trade, social and fiscal payables at certain Argentine subsidiaries whose functional currency is the U.S. dollar, offset by Chinese yuan depreciation against the U.S. dollar on Chinese yuan-denominated trade receivables at Chinese subsidiaries whose functional currency is the U.S. dollar.

The six-month period ended June 2021 mainly includes the result from Euro depreciation against the U.S. dollar on Euro denominated intercompany liabilities in subsidiaries with functional currency U.S. dollar, largely offset by an increase in currency translation adjustment reserve from an Italian subsidiary, together with the result from Brazilian real appreciation against the U.S. dollar on U.S. dollar denominated intercompany liabilities in subsidiaries with functional currency Brazilian real, largely offset by an increase in currency translation adjustment reserve from a Brazilian subsidiary.

^(***) Foreign exchange derivatives contracts results:

The six-month period ended June 2022 includes mainly losses on derivatives covering net receivables in Brazilian real, together with losses on derivatives covering net liabilities in Euro and Japanese yen.

The six-month period ended June 2021 includes mainly losses on derivatives covering net liabilities in Japanese yen, Euro and losses on derivatives covering net receivables in Brazilian real and Mexican peso.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

8	Dividend distribution

On May 3, 2022, the Company's Shareholders approved an annual dividend in the amount of $0.41 per share ($0.82 per ADS). The amount approved included the interim dividend previously paid in November 24, 2021 in the amount of $0.13 per share ($0.26 per ADS). The balance, amounting to $0.28 per share ($0.56 per ADS), was paid on May 25, 2022, for an amount of approximately $331 million. In the aggregate, the interim dividend paid in November 2021 and the balance paid in May 2022 amounted to approximately $484 million.

On May 3, 2021, the Company's Shareholders approved an annual dividend in the amount of $0.21 per share ($0.42 per ADS). The amount approved included the interim dividend previously paid in November 25, 2020 in the amount of $0.07 per share ($0.14 per ADS). The balance, amounting to $0.14 per share ($0.28 per ADS), was paid on May 26, 2021, for an amount of approximately $165 million. In the aggregate, the interim dividend paid in November 2020 and the balance paid in May 2021 amounted to approximately $248 million.

9	Property, plant and equipment, net

	2022		2021
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		5,824,801		6,193,181
Currency translation adjustment		(33,279	)	(12,955	)
Increase due to business combinations ^(*)		187		-
Additions		124,846		83,762
Disposals / Consumptions		(27,659	)	(7,951	)
Transfers / Reclassifications		1,163		976
Depreciation charge		(227,315	)	(232,899	)
At June 30,		5,662,744		6,024,114

^(*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 20.

See note 17 for a description of certain restricted assets with a carrying value of $56.2 million held in Saudi Arabia by the Company's subsidiary Saudi Steel Pipe Company ("SSPC"), in which Tenaris holds a 47.79%.

10	Intangible assets, net

	2022		2021
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		1,372,176		1,429,056
Currency translation adjustment		798		399
Increase due to business combinations ^(*)		4,018		-
Additions		16,497		12,803
Disposals / Consumptions		(35	)	(1,264	)
Transfers / Reclassifications		(1,163	)	(976	)
Amortization charge		(33,356	)	(35,753	)
At June 30,		1,358,935		1,404,265

^(*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 20.

11	Right-of-use assets, net and lease liabilities

Right-of-use assets, net evolution

	2022		2021
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		108,738		241,953
Currency translation adjustment		(518	)	(298	)
Additions		29,683		13,837
Disposals / Consumptions		(3,134	)	(5,534	)
Depreciation charge		(25,429	)	(25,444	)
At June 30,		109,340		224,514

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

Right-of-use assets, net by underlying category

	At June 30,		At December 31,
	2022		2021
		(Unaudited)
Land and Civil Buildings		18,533		22,077
Industrial Buildings, Plant and Production Equipment		77,400		77,089
Vehicles, furniture and fixtures		12,309		9,572
Others		1,098		-
		109,340		108,738

Depreciation of right-of-use assets was mainly included in Tubes segment.

Lease liabilities evolution

	2022		2021
	(Unaudited)
Six-month period ended June 30,
Opening net book amount		117,285		257,343
Translation differences		(2,177	)	(8,541	)
Additions		29,667		13,802
Cancellations		(4,326	)	(6,294	)
Repayments of lease liabilities including interests		(29,421	)	(27,664	)
Interest accrued		1,644		1,734
At June 30,		112,672		230,380

The amount of remaining payments with maturity less than 1 year, between 2 and 5 years and more than 5 years is approximately 26%, 40% and 34% of the total remaining payments, respectively.

12	Cash and cash equivalents and other investments

	At June 30,		At December 31,
	2022		2021
Cash and cash equivalents		(Unaudited)
Cash at banks		182,729		167,455
Liquidity funds		263,761		105,697
Short - term investments		190,081		44,975
		636,571		318,127

Other investments - current
Bonds and other fixed income		277,317		158,107
Fixed Income (time-deposit, zero coupon bonds, commercial papers)		282,510		239,742
		559,827		397,849
Other investments - non-current
Bonds and other fixed income		177,594		312,619
Others		6,628		7,635
		184,222		320,254

13	Derivative financial instruments

	At June 30,		At December 31,
	2022		2021
		(Unaudited)
Derivatives hedging borrowings and investments		5,925		2,472
Other derivatives		29,418		8,843
Contracts with positive fair values		35,343		11,315

Derivatives hedging borrowings and investments		187		147
Other derivatives		12,624		11,181
Contracts with negative fair values		12,811		11,328

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

14	Category of financial instruments and classification within the fair value hierarchy

The following table illustrates the three hierarchical levels for valuing financial instruments at fair value and those measured at amortized cost as of June 30, 2022 and December 31, 2021.

	Carrying		Measurement Categories	At Fair Value
June 30, 2022	amount		Amortized Cost	Fair Value		Level 1	Level 2		Level 3
Assets
Cash and cash equivalents		636,571			372,810			263,761		263,761	-	-
Other investments		559,827			282,510			277,317		277,317	-	-
Fixed Income (time-deposit, zero coupon bonds, commercial papers)		282,510			282,510			-		-	-	-
Non - U.S. Sovereign Bills		101,954			101,954			-		-	-	-
Certificates of Deposits		45,142			45,142			-		-	-	-
Other notes		135,414			135,414			-		-	-	-
Bonds and other fixed income		277,317			-			277,317		277,317	-	-
Non - U.S. government securities		83,801			-			83,801		83,801	-	-
Corporates securities		193,516			-			193,516		193,516	-	-
Derivative financial instruments		35,343			-			35,343		-	35,343	-
Other Investments Non-current		184,222			-			184,222		177,594	-	6,628
Bonds and other fixed income		177,594			-			177,594		177,594	-	-
Other investments		6,628			-			6,628		-	-	6,628
Trade receivables		1,890,697			1,890,697			-		-	-	-
**Receivables C and NC ^()***		363,271			80,327			48,659		-	-	48,659
Other receivables		128,986			80,327			48,659		-	-	48,659
Other receivables (non-financial)		234,285			-			-		-	-	-
Total					2,626,344			809,302		718,672	35,343	55,287
Liabilities
Borrowings C and NC		744,428			744,428			-		-	-	-
Trade payables		998,807			998,807			-		-	-	-
Lease Liabilities C and NC		112,672			112,672			-		-	-	-
Derivative financial instruments		12,811			-			12,811		-	12,811	-
Total					1,855,907			12,811		-	12,811	-

	Carrying		Measurement Categories	At Fair Value
December 31, 2021	amount		Amortized Cost	Fair Value		Level 1	Level 2		Level 3
Assets
Cash and cash equivalents		318,127			212,430			105,697		105,697	-	-
Other investments		397,849			239,742			158,107		158,107	-	-
Fixed income (time-deposit, zero coupon bonds, commercial papers)		239,742			239,742					-		-
Certificates of deposits		94,414			94,414			-		-	-	-
Commercial papers		30,062			30,062			-		-	-	-
Other notes		115,266			115,266			-		-	-	-
Bonds and other fixed income		158,107			-			158,107		158,107	-	-
Non - U.S. government securities		10,660			-			10,660		10,660	-	-
Corporates securities		147,447			-			147,447		147,447	-	-
Derivative financial instruments		11,315			-			11,315		-	11,315	-
Other Investments Non-current		320,254			-			320,254		312,619	-	7,635
Bonds and other fixed income		312,619			-			312,619		312,619	-	-
Other investments		7,635			-			7,635		-	-	7,635
Trade receivables		1,299,072			1,299,072			-		-	-	-
**Receivables C and NC ^()***		302,164			85,220			48,659		-	-	48,659
Other receivables		133,879			85,220			48,659		-	-	48,659
Other receivables (non-financial)		168,285			-			-		-	-	-
Total					1,836,464			644,032		576,423	11,315	56,294
Liabilities
Borrowings C and NC		330,933			330,933			-		-	-	-
Trade payables		845,256			845,256			-		-	-	-
Finance Lease Liabilities C and NC		117,285			117,285			-		-	-	-
Derivative financial instruments		11,328			-			11,328		-	11,328	-
Total					1,293,474			11,328		-	11,328	-

^(*) Includes balances related to non-current derivative financial instruments and interest in our Venezuelan companies, see note 21.

There were no transfers between Levels during the period.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1 and comprise primarily corporate and sovereign debt securities.

The fair value of financial instruments that are not traded in an active market (such as certain debt securities, certificates of deposits with original maturity of more than three months, forward and interest rate derivative instruments) is determined by using valuation techniques which maximize the use of observable market data when available and rely as little as possible on entity specific estimates. If all significant inputs required to value an instrument are observable, the instrument is included in Level 2. The Company values its assets and liabilities included in this level using bid prices, interest rate curves, broker quotations, current exchange rates, forward rates and implied volatilities obtained from market contributors as of the valuation date.

The fair value of all outstanding derivatives is determined using specific pricing models that include inputs that are observable in the market or can be derived from or corroborated by observable data. The fair value of forward foreign exchange contracts is calculated as the net present value of the estimated future cash flows in each currency, based on observable yield curves, converted into U.S. dollars at the spot rate of the valuation date.

If one or more of the significant inputs are not based on observable market data, the instruments are included in Level 3. The Company values its assets and liabilities in this level using observable market inputs and management assumptions which reflect the Company's best estimate on how market participants would price the asset or liability at measurement date. Main balances included in this level correspond to the Company's interest in Venezuelan companies, see note 21.

Borrowings are comprised primarily of fixed rate debt and variable rate debt with a short term portion where interest has already been fixed. They are classified under other financial liabilities and measured at their amortized cost. The Company estimates that the fair value of its main financial liabilities is approximately 99.2% of its carrying amount including interests accrued as of June 30, 2022 as compared with 99.6% as of December 31, 2021. Fair values were calculated using standard valuation techniques for floating rate instruments and comparable market rates for discounting flows.

15	Investments in non-consolidated companies

This note supplements and should be read in conjunction with note 13 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

	Six-month period ended June 30,
	2022		2021
	(Unaudited)
At the beginning of the period		1,383,774		957,352
Translation differences		8,481		7,803
Equity in earnings of non-consolidated companies		205,630		224,970
Impairment loss in non-consolidated companies ^(*)		(14,924	)	-
Dividends and distributions received ^(**)		(41,348	)	(48,239	)
(Decrease) /increase in equity reserves and others		(2,607	)	2,305
At the end of the period		1,539,006		1,144,191

^(*) Related to the joint venture with PAO Severstal ("Severstal"). For more information see note 22.

^(**) Related to Ternium and Usiminas. During 2022 and 2021 $45.5 million and $49.1 million respectively were collected.

Ternium

Ternium S.A. ("Ternium") is a steel producer with production facilities in Mexico, Argentina, Brazil, Colombia, United States and Guatemala and is one of Tenaris's main suppliers of round steel bars and flat steel products for its pipes business.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

As of June 30, 2022, the closing price of Ternium's ADSs as quoted on the New York Stock Exchange was $36.09 per ADS, giving Tenaris's ownership stake a market value of approximately $829 million. As of that date, the carrying value of Tenaris's ownership stake in Ternium, based on Ternium's IFRS Financial Statements, was approximately $1,355.4 million. The Company reviews its participation in Ternium whenever events or circumstances indicate that the asset's carrying amount may not be recoverable. As of June 30, 2022, the Company concluded that the carrying amount did not exceed the recoverable value of the investment.

On July 29, 2022, the Board of Directors of Ternium Argentina S.A. approved the payment of a dividend in kind of approximately $300 million in Argentine peso denominated financial instruments. Considering the impact of foreign exchange restrictions in Argentina, there would be a negative effect at the time those financial instruments will be transferred to the controlling shareholder of Ternium Argentina S.A.

b)	Usiminas

Usinas Siderúrgicas de Minas Gerais S.A. ("Usiminas") is a Brazilian producer of high-quality flat steel products used in the energy, automotive and other industries.

As of June 30, 2022, the closing price of the Usiminas' ordinary and preferred shares, as quoted on the B3 - Brasil Bolsa Balcão S.A, was BRL8.21 ($1.57) and BRL8.65 ($1.65), respectively, giving Tenaris's ownership stake a market value of approximately $59.3 million. As of that date, the carrying value of Tenaris's ownership stake in Usiminas was approximately $123.9 million.

Techgen

Techgen S.A. de C.V. ("Techgen") is a Mexican company that operates a natural gas-fired combined cycle electric power plant in the Pesquería area of the State of Nuevo León, Mexico. The company started producing energy on December 1, 2016, with a power capacity of 900 MW. As of June 30, 2022, Tenaris held 22% of Techgen's share capital, and its affiliates, Ternium and Tecpetrol Investments S.L. (Unipersonal) (a wholly-owned subsidiary of San Faustin S.A., the controlling shareholder of both Tenaris and Ternium), held 48% and 30% respectively. As of June 30, 2022, the carrying value of Tenaris's ownership stake in Techgen was approximately $35.6 million.

Techgen entered into certain transportation capacity agreements, equipment and other services related to the equipment, and an agreement for the purchase of clean energy certificates. As of June 30, 2022, Tenaris's exposure under these agreements amounted to $44.1 million, $0.9 million and $17.3 million respectively.

Techgen's sponsors granted certain subordinated loans to Techgen. As of June 30, 2022, the aggregate outstanding principal amount under these subordinated loans was $264.2 million, of which $58.1 million correspond to Tenaris's contribution.

On February 13, 2019, Techgen entered into a $640 million syndicated loan agreement with several banks to refinance an existing loan, resulting in the release of certain corporate guarantees previously issued by Techgen's shareholders to secure the replaced facility.

The existing syndicated loan agreement is non-recourse on the sponsors. Techgen's obligations thereunder are guaranteed by a Mexican security trust (covering shares, assets, accounts and contract rights), account pledges and certain direct agreements -customary for these type of transactions-. The commercial terms and conditions governing the purchase by the Company's Mexican subsidiary, Tubos de Acero de México, S.A. ("Tamsa"), of 22% of the energy generated by Techgen remain substantially unchanged.

Under the loan agreement, Techgen is committed to maintain a debt service reserve account covering debt service becoming due during two consecutive quarters; such account is funded by stand-by letters of credit issued for the account of Techgen's sponsors in proportion to their respective participations in Techgen. Accordingly, the Company applied for stand-by letters of credit covering 22% of the debt service coverage ratio, which as of June 30, 2022, amounted to $10.3 million.

d)	Global Pipe Company

Global Pipe Company ("GPC") is a Saudi-German joint venture, established in 2010 and located in Jubail, Saudi Arabia, which manufactures LSAW pipes. Tenaris, through its subsidiary SSPC, currently owns 35% of the share capital of GPC. As of June 30, 2022, the carrying value of Tenaris's ownership stake in GPC was approximately $21.4 million.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

SSPC and the other three owners of GPC have issued corporate guarantees to secure repayment of loan agreements entered into by GPC, with the Saudi Investment Development Fund, the Saudi British Bank, the National Commercial Bank and Banque Saudi Fransi to finance GPC's capital expenditures and working capital. As of June 30, 2022, SSPC's exposure under the guarantees amounted to $84 million.

16	Contingencies, commitments and restrictions to the distribution of profits

(i)

Contingencies

Tenaris is from time to time subject to various claims, lawsuits and other legal proceedings, including customer, employee, tax and environmental-related claims, in which third parties are seeking payment for alleged damages, reimbursement for losses, or indemnity. Management with the assistance of legal counsel periodically reviews the status of each significant matter and assesses potential financial exposure.

Some of these claims, lawsuits and other legal proceedings involve highly complex issues, and often these issues are subject to substantial uncertainties and, therefore, the probability of loss and an estimation of damages are difficult to ascertain. Accordingly, with respect to a large portion of such claims, lawsuits and other legal proceedings, the Company is unable to make a reliable estimate of the expected financial effect that will result from ultimate resolution of the proceeding. In those cases, the Company has not accrued a provision for the potential outcome of these cases.

If a potential loss from a claim, lawsuit or other proceeding is considered probable and the amount can be reasonably estimated, a provision is recorded. Accruals for loss contingencies reflect a reasonable estimate of the losses to be incurred based on information available to management as of the date of preparation of the financial statements and take into consideration litigation and settlement strategies. In a limited number of ongoing cases, the Company was able to make a reliable estimate of the expected loss or range of probable loss and, depending on the likelihood of occurrence, in some of such cases has accrued a provision for such loss but believes that publication of this information on a case-by-case basis would seriously prejudice the Tenaris's position in the ongoing legal proceedings or in any related settlement discussions. Accordingly, in these cases, the Company has disclosed information with respect to the nature of the contingency but has not disclosed its estimate of the range of potential loss.

The Company believes that the aggregate provisions recorded for potential losses in these Consolidated Condensed Interim Financial Statements are adequate based upon currently available information. However, if management's estimates prove incorrect, current reserves could be inadequate and the Company could incur a charge to earnings which could have a material adverse effect on its results of operations, financial condition, net worth and cash flows.

Below is a summary description of Tenaris's material legal proceedings which are outstanding as of the date of these Consolidated Condensed Interim Financial Statements. In addition, the Company is subject to other legal proceedings, none of which is believed to be material.

§	CSN claims relating to the January 2012 acquisition of Usiminas

Confab, a Brazilian subsidiary of the Company, is one of the defendants in a lawsuit filed in Brazil by Companhia Siderúrgica Nacional ("CSN") and various entities affiliated with CSN against Confab and several Ternium subsidiaries that acquired a participation in Usiminas' control group 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 non-controlling 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' control group, and Confab would have a 17.9% share in that offer.

On September 23, 2013, the first instance court dismissed the CSN lawsuit, and on February 8, 2017, the court of appeals maintained the understanding of the first instance court. On March 6, 2017, CSN filed a motion for clarification against the decision of the Court of Appeals of São Paulo, which was rejected on July 19, 2017. On August 18, 2017, CSN filed an appeal to the Superior Court of Justice seeking the review and reversal of the decision issued by the Court of Appeals. On March 5, 2018, the court of appeals ruled that CSN's appeal did not meet the requirements for submission to the Superior Court of Justice and rejected the appeal. On May 8, 2018, CSN appealed against such ruling and on January 22, 2019, the court of appeals rejected it and ordered that the case be submitted to the Superior Court of Justice. On September 10, 2019, the Superior Court of Justice declared CSN's appeal admissible. The Superior Court of Justice will review the case and then render a decision on the merits. The Superior Court of Justice is restricted to the analysis of alleged violations to federal laws and cannot assess matters of fact.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

The Company continues to believe that all of CSN's claims and allegations are groundless and without merit, as confirmed by several opinions of Brazilian legal counsel, two decisions issued by the Brazilian securities regulator ("CVM") in February 2012 and December 2016, and the first and second instance court decisions referred to above.

§	Veracel celulose accident litigation

On September 21, 2007, an accident occurred in the premises of Veracel Celulose S.A. ("Veracel") in connection with a rupture in one of the tanks used in an evaporation system manufactured by Confab. The Veracel accident allegedly resulted in material damages to Veracel. Itaú Seguros S.A. ("Itaú"), Veracel's insurer at the time of the Veracel accident and then replaced by Chubb Seguros Brasil S/A ("Chubb"), initiated a lawsuit against Confab seeking reimbursement of damages paid to Veracel in connection with the Veracel accident. Veracel initiated a second lawsuit against Confab seeking reimbursement of the amount paid as insurance deductible with respect to the Veracel accident and other amounts not covered by insurance. Itaú and Veracel claimed that the Veracel accident was caused by failures and defects attributable to the evaporation system manufactured by Confab. Confab believes that the Veracel accident was caused by the improper handling by Veracel's personnel of the equipment supplied by Confab in violation of Confab's instructions. The two lawsuits were consolidated and are considered by the 6th Civil Court of São Caetano do Sul. However, each lawsuit will be adjudicated separately.

On September 28, 2018, Confab and Chubb entered into a settlement agreement pursuant to which on October 9, 2018, Confab paid an amount of approximately $3.5 million to Chubb, without assuming any liability for the accident or the claim.

On October 10, 2018, Confab was notified that the court had issued rulings for both lawsuits. Both decisions were unfavorable to Confab:

§	With respect to Chubb's claim, the court subsequently homologated the above-mentioned settlement and, accordingly, the claim was finalized.

With respect to Veracel's claim, Confab was ordered to pay the insurance deductible and other concepts not covered by insurance, currently estimated to amount to BRL89.3 million (approximately $17.1 million) including interest, fees and expenses. Both parties filed motions for clarification against the court's decision, which were partially granted. Although the contract between Confab and Veracel expressly provided that Confab would not be liable for damages arising from lost profits, the court award would appear to include BRL76.6 million (approximately $14.6 million) of damages arising therefrom. Confab has additional defense arguments in respect of a claim for lost profits. On December 18, 2018, Confab filed an appeal against the first instance court decision, and on April 30, 2019, Veracel filed its response to the appeal. In June 2022, the court resolved that it lacked jurisdiction to decide on the appeal and the parties are currently waiting for the re-allocation of the case to another court. At this stage the Company cannot predict the outcome of the claim or the amount or range of loss in case of an unfavorable outcome.

Ongoing investigation

The Company is aware that Brazilian, Italian and Swiss authorities investigated whether certain payments were made prior to 2014 from accounts of entities presumably associated with affiliates of the Company to accounts allegedly linked to individuals related to Petróleo Brasileiro S.A. ("Petrobras") and whether any such payments were intended to benefit the Company's Brazilian subsidiary Confab.

Upon learning of the investigation, the Audit Committee of the Company's Board of Directors engaged external counsel in connection with the Company's review of these matters. In addition, the Company voluntarily notified the U.S. Securities and Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ") in October 2016. The Company conducted, with the assistance of external counsel, an internal investigation and found no evidence corroborating any involvement by the Company or its directors, officers or employees in respect of improper payments. An internal investigation commissioned by Petrobras also found no evidence that Confab obtained any unfair commercial benefit or advantage from Petrobras in return for payments, including improperly obtained contracts. On June 2, 2022, the Company resolved the investigation by the SEC, and the DOJ informed that it had closed its parallel inquiry without taking action. Under the settlement with the SEC, the Company neither admits nor denies the SEC's findings and on June 24, 2022 paid $53.1 million in disgorgement and prejudgment interest and $25 million for a civil penalty to conclude the matter.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

In July 2019, the Company learned that the public prosecutors' office of Milan, Italy, had completed a preliminary investigation into the same alleged payments and had included in the investigation, among other persons, the Company's Chairman and Chief Executive Officer, two other board members, Gianfelice Rocca and Roberto Bonatti, and the Company's controlling shareholder, San Faustin. The Company is not a party to the proceedings. On March 22, 2022, upon completion of the evidentiary phase of the trial, the acting prosecutor requested the first-instance court in Milan in charge of the case to impose sanctions on our Chairman and Chief Executive Officer, on the other two board members, and on San Faustin. The Company's outside counsel in Italy advised the Company that neither the case file nor the prosecutor's request contain or identify any evidence of involvement in, or knowledge of, the alleged wrongdoing by any of the three directors. On May 26, 2022, the first-instance court dismissed the case brought by the public prosecutor against the defendants for lack of jurisdiction and stated that the criminal proceeding should not have been initiated. The first-instance court's decision may be appealed by the public prosecutor before a higher court.

In June 2020, the Company learned that the Brazilian public prosecutors' office requested the indictment of several individuals, including three executives or former executives of Confab and a former agent of Confab, charging them with the alleged crimes of corruption in relation to contracts executed between 2007 and 2010, and money laundering in relation to payments between 2009 and 2013. The proceedings are underway. Neither the Company nor Confab is a party to the proceedings.

§Putative class actions

Following the Company's November 27, 2018, announcement that its Chairman and CEO Paolo Rocca had been included in an Argentine court investigation known as the Notebooks Case (a decision subsequently reversed by a higher court), two putative class action complaints were filed in the U.S. District Court for the Eastern District of New York. On April 29, 2019, the court consolidated the complaints into a single case, captioned "In re Tenaris S.A. Securities Litigation", and appointed lead plaintiffs and lead counsel. On July 19, 2019, the lead plaintiffs filed an amended complaint purportedly on behalf of purchasers of Tenaris securities during the putative class period of May 1, 2014, through December 5, 2018. The individual defendants named in the complaint are Tenaris's Chairman and CEO and Tenaris's former CFO. The complaint alleges that during the class period, the Company and the individual defendants inflated the Tenaris share price by failing to disclose that the nationalization proceeds received by Ternium (in which the Company held an 11.46% stake) when Sidor was expropriated by Venezuela were received or expedited as a result of allegedly improper payments made to Argentine officials. The complaint does not specify the damages that plaintiff is seeking. On October 9, 2020, the court granted in part and denied in part the defendants' motions to dismiss. The court partially granted and partially denied the motion to dismiss the claims against the Company and its Chairman and CEO. In addition, the court granted the motions to dismiss as to all claims against San Faustin, Techint, and Tenaris's former CFO. The case is now proceeding based on the claims that survived the motion to dismiss. Management believes the Company has meritorious defenses to these claims; however, at this stage Tenaris cannot predict the outcome of the claim or the amount or range of loss in case of an unfavorable outcome.

§Administrative proceeding concerning Brazilian tax credits

Confab is a party to an administrative proceeding concerning the recognition and transfer of tax credits for an amount allegedly exceeding the amount that Confab would have been entitled to recognize and / or transfer. The proceeding resulted in the imposition of a fine against Confab representing approximately 75% of the allegedly undue credits, which was appealed by Confab. On January 21, 2019, Confab was notified of an administrative decision denying Confab's appeal, thereby upholding the tax determination and the fine against Confab. On January 28, 2019, Confab challenged such administrative decision and is currently awaiting a resolution. In case of an unfavorable resolution, Confab may appeal before the courts. The estimated amount of this claim is BRL58.2 million (approximately $11.1 million). At this stage, the Company cannot predict the outcome of this claim.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

§U.S. patent infringement litigation

Tenaris Coiled Tubes, LLC ("TCT"), a U.S. subsidiary of the Company, was sued in 2017 by its competitor Global Tubing, alleging defamatory conduct by TCT and seeking a declaration that certain Global Tubing products do not infringe patents held by TCT. TCT subsequently counterclaimed that certain Global Tubing products infringe patents held by TCT, Global Tubing has since sought to invalidate such patents. On December 13, 2019, Global Tubing filed an amended complaint (including the Company as defendant), alleging that TCT and the Company misled the patent office in order to monopolize the coiled tubing market for quench and tempered products. In order to prevail on the antitrust claim, Global Tubing must first demonstrate that TCT misled the patent office and that the deceptive acts constitute inequitable conduct. On March 26, 2021, a magistrate to the principal judge in the case found that Global Tubing had established a prima facie case that TCT had misled the patent office by failing to disclose a previous attempt to quench and temper coiled tubing. On August 25, 2021, the principal judge in the case affirmed the magistrate's order and found possible evidence of intent to commit fraud on the patent office. Such determination is not final. TCT is considering several avenues to challenge this decision, and believes that it has meritorious defenses to this claim. Trial is expected to take place in November 2022. At this time, it is not possible to predict the outcome of this matter or estimate the range of potential losses that may result from the resolution of this claim.

§Tax assessment from Italian tax authorities

Dalmine, an Italian subsidiary of the Company, received on December 27, 2019, a tax assessment from the Italian tax authorities, related to fiscal year 2014, mainly referred to the compensation for certain intercompany transactions in connection with sales of products and R&D activities. On June 14, 2021, Dalmine received a tax assessment related to fiscal year 2015 with respect to the same matters. As of June 30, 2022, the aggregate amount claimed by the Italian tax authorities for fiscal years 2014 and 2015 was approximately EUR 37.4 million (approximately $38.8 million), comprising EUR 28.7 million (approximately $29.8 million) in principal and EUR8.7 million (approximately $9 million) in interest and penalties. Dalmine timely filed first-instance appeals before the Milan tax court against both tax assessments. On July 22, 2022, however, Dalmine and the Italian tax authorities entered into a settlement agreement covering both the 2014 and 2015 tax assessments and all subsequent fiscal years through 2020. Under the settlement agreement, Dalmine will pay to the Italian tax authorities an aggregate amount of EUR15.6 million (approximately $16.2 million) without acknowledging any fault, and the matter will be finally closed.

§U.S. Antidumping Duty and Countervailing Duty Investigations

On October 27, 2021, the U.S. Department of Commerce ("DOC") announced the initiation of antidumping duty investigations of oil country tubular goods ("OCTG") from Argentina, Mexico, and Russia and countervailing duty investigations of OCTG from Russia and South Korea. The investigations were initiated on the basis of a petition by U.S. Steel Tubular Products, Inc., a small number of other U.S. domestic welded OCTG producers, and a steelworkers' union. On November 22, 2021, the International Trade Commission ("ITC") made a preliminary determination of injury, allowing the investigations to proceed. In May 2022, the DOC issued affirmative preliminary antidumping determinations with respect to imports from Argentina, Mexico and Russia. The investigations are currently proceeding, with final determinations by DOC and the ITC likely to occur in the second half of 2022.

Tenaris, which imports OCTG from Argentina and Mexico to complement its significant and continuously growing production in the United States, believes that the petition, the DOC initiation and the preliminary determinations of injury and antidumping are unjustified and is vigorously challenging any claim that its imports are unfairly traded or are causing or threatening injury to the U.S. domestic OCTG industry.

At this time, the Company cannot predict the outcome of this matter or estimate the potential impact, if any, that the resolution of this matter may have on the Company's business.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

(ii)

Commitments and guarantees

Set forth is a description of the Tenaris's main outstanding commitments:

§	Certain subsidiaries of the Company entered into a contract with Praxair S.A. for the service of oxygen and nitrogen supply. As of June 30, 2022, the aggregate amount to take or pay the committed volumes for an original 14-year term totaled approximately $40 million.

A subsidiary of the Company entered into a 25-year contract (effective as of December 1, 2016, through December 1, 2041) with Techgen for the supply of 197 MW (which represents 22% of Techgen's capacity). Monthly payments are determined on the basis of capacity charges, operation costs, back-up power charges, and transmission charges. As of the seventh contract year (as long as Techgen's existing or replacing bank facility has been repaid in full), the Company's subsidiary has the right to suspend or early terminate the contract if the rate payable under the agreement is higher than the rate charged by the Comisión Federal de Electricidad ("CFE") or its successors. The Company's subsidiary may instruct Techgen to sell to any affiliate, to CFE, or to any other third party all or any part of unused contracted energy under the agreement and the Company's subsidiary will benefit from the proceeds of such sale.

A U.S. subsidiary of the Company is a party to a contract with Nucor Steel Memphis Inc. under which it is committed to purchase on a monthly basis a specified minimum volume of steel bars, at prices subject to quarterly adjustments. The contract became effective upon delivery of the first purchase order, which occurred in April 2021, and will remain in force for a 3-year term. As of June 30, 2022, the estimated aggregate contract amount calculated at current prices, is approximately $185.7 million. The contract gives the subsidiary of the Company the right to temporarily reduce the quantities to be purchased thereunder to 75% of the agreed-upon minimum volume in cases of material adverse changes in prevailing economic or market conditions.

In connection with the closing of the acquisition of IPSCO, a U.S. subsidiary of the Company entered into a 6-year master distribution agreement (the "MDA") with PAO TMK ("TMK") whereby, since January 2, 2020, Tenaris is the exclusive distributor of TMK's OCTG and line pipe products in United States and Canada. At the end of the MDA's 6-year term, TMK will have the option to extend the duration of its term for an additional 12-month period. Under the MDA, the Company is required to purchase specified minimum volumes of TMK-manufactured OCTG and line pipe products, based on the aggregate market demand for the relevant product category in the United States in the relevant year. In February 2022, however, the Company and TMK agreed that there shall be no minimum yearly purchase requirement for the OCTG product category for the year ending December 31, 2022, and there shall be no minimum yearly purchase requirement for TMK line pipe products under the MDA neither for the contract year ending December 31, 2022, nor for any subsequent contract year until expiration of the MDA's term. For further information, see note 26 to the Company's Consolidated Financial Statements for the year ended December 31, 2021.

§	A subsidiary of the Company entered into a contract with the supplier Voestalpine Grobblech GmbH from which it committed to purchase carbon steel for a total amount of approximately $114.3 million to use for manufacturing pipes related to the NFXP-QatarGas project.

§	Certain subsidiaries of the Company entered into agreements with Vestas Group for the supply of materials and services related to the construction of a wind farm in Argentina for a total amount of approximately $108.6 million.

Certain subsidiaries of the Company entered into a one-year contract, renewable for one additional year, with Ternium USA, Inc., under which they are committed to purchase on a monthly basis specified minimum volumes of steel coils. The contract is effective since March 2022, with deliveries beginning in July 2022 until June 2023. As of June 30, 2022, the aggregate commitment totaled approximately $29.1 million.

§	A subsidiary of the Company entered into a contract with Usiminas from which it committed to purchase steel coils for a total amount of approximately $196.6 million to use for manufacturing welded pipes for the construction of the Presidente Nestor Kirchner Gas Pipeline ("GPNK") in Argentina.

In addition, Tenaris (i) applied for stand-by letters of credit as well as corporate guarantees covering certain obligations of Techgen as described in note 15 (c), (ii) issued corporate guarantees securing certain obligations of GPC, as described in note 15 (d); and (iii) issued performance guarantees mainly related to long term commercial contracts with several customers and parent companies for approximately $3.5 billion as of June 30, 2022.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

(iii)

Restrictions to the distribution of profits and payment of dividends

In accordance with Luxembourg Law, the Company is required to transfer a minimum of 5% of its net profit for each financial year to a legal reserve until such reserve equals 10% of the issued share capital.

As of June 30, 2022, this reserve is 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.

17	Cancellation of title deed in Saudi Steel Pipe Company

In early 2021, the Company learned through the Saudi Ministry of Justice's online portal that the electronic title deeds to certain land plots of its Saudi Arabian subsidiary SSPC had become inactive due to cancellation by court order.

The affected land plots, with a total surface of 811,284 square meters, are located in Dammam, Saudi Arabia, and were purchased from a private entity on February 2010, pursuant to a written purchase agreement duly executed by SSPC in full compliance with the laws of the Kingdom of Saudi Arabia. The purchase of the land occurred before Tenaris's acquisition of a 47.79% interest in SSPC in 2019. The affected plots are not part of the production facility of SSPC, have been partially used as a warehouse, and have a carrying value on Tenaris's financial statements of $56.2 million.

As of the date hereof, neither the cancellation nor the court order have been notified to SSPC or otherwise been made public by the authorities, and the legal basis for the court order is unknown. On May 4, 2021, SSPC filed a petition with an ad-hoc newly-created special committee at the Saudi Ministry of Justice, seeking to have its title deeds reinstated. At this time, it is not possible to predict the outcome of this matter.

18	Foreign exchange control measures in Argentina

Beginning in September 2019, the Argentine government has imposed and continues to impose significant restrictions on foreign exchange transactions. Restrictions have tightened significantly over time, including in recent weeks. The main currently applicable measures are described below:

Foreign currency proceeds derived from exports of goods must be sold into the Argentine foreign exchange market and converted into Argentine pesos within 60 days (if made to related parties) or 180 days (if made to unrelated parties) from shipment date, or, if collected earlier, within five days of collection.

§	Foreign currency proceeds from exports of services must be sold into the Argentine foreign exchange market and converted into Argentine pesos within five business days of collection.

§	Access to the Argentine foreign exchange market to pay for imports of services rendered by related parties (including royalties) is generally subject to Argentine Central Bank approval.

Access to the Argentine foreign exchange market to pay for imports of goods is subject to several restrictions. For example, advance payments or at sight cannot be made, and companies cannot access the official foreign exchange market if they hold cash or investments in excess of $100 thousands. More recently, the Argentine government imposed additional limits to the amount of import payments that can be made by any single company per month or per year; companies that exceed such limits are required to obtain import financing of at least 180 days from the date of nationalization of the goods, except to the extent the goods qualify under a very limited number of exceptions, such as the import of capital goods and certain raw materials. Negotiations with the Argentine authorities to raise the foregoing limits and/or expand the list of exceptions to obtain access to foreign currency to pay for import of goods (including raw materials to manufacture goods in Argentina) are ongoing.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

Access to the Argentine foreign exchange market to pay debt service (principal and interest) for financial debts with related parties requires prior Argentine Central Bank approval, unless the loan proceeds are sold in the Argentine foreign exchange market and converted into Argentine pesos after October 2, 2020, and such debts carry an average life of no less than 2 years.

§	Debts with foreign creditors larger than $2 million maturing on or before December 31, 2022, need to be refinanced in at least 60% of outstanding principal and for a minimum period of 2 years.

§	Access to the Argentine foreign exchange market to make dividend payments requires prior Argentine Central Bank approval.

When required, Argentine Central Bank approvals are rarely, if ever, granted.

Tenaris's financial position in Argentine peso as of June 30, 2022, amounted to a net short exposure of approximately $97 million. As of June 30, 2022, the total net equity of Argentine subsidiaries represented approximately 10% of Tenaris's total equity and the sales performed by Argentine subsidiaries during the six-month period ended on June 30, 2022, amounted approximately to 17.5% of Tenaris's total sales. Assets and liabilities denominated in Argentine peso as of June 30, 2022, have been valued at the prevailing official exchange rates.

Management continues to monitor closely the evolution of the main variables affecting its business, identifying the potential impact thereof on its financial and economic situation and determining the appropriate course of action in each case. The Company's Consolidated Condensed Interim Financial Statements should be read taking into account these circumstances.

This context of volatility and uncertainty remains in place as of the issue date of these Consolidated Condensed Interim Financial Statements. If restrictions to access the official foreign exchange market continue to be maintained, or are further tightened, our Argentine subsidiaries could be restricted from making payment of imports for key steelmaking inputs (which would adversely affect their operations), or would need to resort to alternative, more expensive arrangements (which would adversely affect their results of operations).

19	Related party transactions

As of June 30, 2022:

§	San Faustin S.A., a Luxembourg 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 société à responsabilité limitée ("Techint"), who is the holder of record of the above-mentioned Tenaris shares.

§	Rocca & Partners Stichting Administratiekantoor Aandelen San Faustin, a private foundation located in the Netherlands (Stichting) ("RP STAK") held voting shares in San Faustin sufficient in number to control San Faustin.

§	No person or group of persons controls RP STAK.

Based on the information most recently available to the Company, Tenaris's directors and senior management as a group owned 0.08% of the Company's outstanding shares.

Transactions and balances disclosed as with "non-consolidated parties" 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 non-consolidated parties and which are not consolidated are disclosed as "Other".

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

The following transactions were carried out with related parties:

		Six-month period ended June 30,
		2022		2021
(i)	Transactions	(Unaudited)
	(a) Sales of goods and services
	Sales of goods to non-consolidated parties		73,223		36,052
	Sales of goods to other related parties		70,740		20,617
	Sales of services to non-consolidated parties		2,252		2,078
	Sales of services to other related parties		52,182		13,036
			198,397		71,783
	(b) Purchases of goods and services
	Purchases of goods to non-consolidated parties		209,199		137,233
	Purchases of goods to other related parties		21,915		13,466
	Purchases of services to non-consolidated parties		6,373		3,668
	Purchases of services to other related parties		16,749		6,207
			254,236		160,574

		At June 30,		At December 31,
		2022		2021
(ii)	Period-end balances		(Unaudited)
	(a) Arising from sales / purchases of goods / services / others
	Receivables from non-consolidated parties		67,702		66,896
	Receivables from other related parties		42,174		33,122
	Payables to non-consolidated parties		(68,655	)	(45,092	)
	Payables to other related parties		(8,849	)	(2,125	)
			32,372		52,801
	(b) Financial debt
	Finance lease liabilities from non-consolidated parties		(1,740	)	(1,936	)
	Finance lease liabilities from other related parties		(530	)	(624	)
			(2,270	)	(2,560	)

In addition to the tables above, the Company issued various guarantees in favor of Techgen and GPC; for further details, please see note 15 (c and d) and note 16 (ii). No other material guarantees were issued in favor of other related parties.

20	Business Combinations

In connection with the construction of a wind farm in Argentina, in April 2022, Tenaris acquired 100% of the shares of Parques Eólicos de la Buena Ventura S.A. for a price of $4.1 million, which was fully paid. The fair value of the acquired assets and liabilities amounted to $4.1 million, the same value as the consideration paid. Accordingly, no goodwill was recognized.

If the acquisition had occurred on January 1, 2022, Tenaris's unaudited pro forma net sales and net income from continuing operations would not have changed materially.

21	Nationalization of Venezuelan Subsidiaries

Following the nationalization by the Venezuelan government of the Company's interests in its majority-owned subsidiaries TAVSA - Tubos de Acero de Venezuela S.A. ("Tavsa") and Matesi Materiales Siderúrgicos S.A ("Matesi") and in Complejo Siderúrgico de Guayana, C.A ("Comsigua"), the Company 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. in connection with these nationalizations and obtained favorable awards, which are final and not subject to further appeals.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

Matesi

On January 29, 2016, the tribunal released its award on the arbitration proceeding concerning the nationalization of Matesi. The award upheld Tenaris's and Talta's claim and granted compensation in the amount of $87.3 million for the breaches and ordered Venezuela to pay an additional amount of $85.5 million in pre-award interest, aggregating to a total award of $173 million (including $0.2 million of legal fees), payable in full and net of any applicable Venezuelan tax, duty or charge. The tribunal granted Venezuela a grace period of six months from the date of the award to make payment in full of the amount due without incurring post-award interest, and resolved that if no, or no full, payment is made by then, post-award interest will apply at the rate of 9% per annum compounded at six-monthly rests from the date of the award until payment in full. As of June 30, 2022, post-award interest calculated at the award rate amounted to approximately $131.4 million and, accordingly, the total amount owed by Venezuela under the award as of June 30, 2022, was $304.4 million.

On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award in the United States. On July 17, 2020, the court entered judgment recognizing the Matesi award. The judgment orders Venezuela to pay to Tenaris and Talta an amount of $256.4 million, including principal and post-award interest through the judgment date, and provides for post-judgment interest to accrue on this sum at the U.S. federal statutory rate. As of June 30, 2022, post-judgment interest calculated at the U.S. judgment rate amounted to approximately $0.7 million and, accordingly, the total amount owed by Venezuela under the U.S. judgment as of June 30, 2022, was $257.1 million.

Tavsa and Comsigua

On December 12, 2016, the tribunal issued its award upholding Tenaris's and Talta's claim and granted compensation in the amount of $137 million and ordered Venezuela to pay an additional amount of $76 million in pre-award interest and to reimburse Tenaris and Talta $3.3 million in legal fees and ICSID administrative costs. In addition, Venezuela was ordered to pay interest from April 30, 2008, until the day of effective payment at a rate equivalent to LIBOR + 4% per annum. As of June 30, 2022, post-award interest calculated at the award rate amounted to approximately $75.5 million and, accordingly, the total amount owed by Venezuela under the award as of June 30, 2022, was $291.8 million.

On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award in the United States. On March 29, 2021, the court granted Tenaris's and Talta's request to recognize the Tavsa award and on August 24, 2021, the court entered judgment in favor of Tenaris and Talta and against Venezuela in the amount of $276.9 million, with post-judgment interest accruing from the date of judgment at the federal statutory post-judgment interest rate. On November 5, 2021, the court, in response to a motion by Tenaris and Talta, amended the judgment amount to $280.7 million, with post-judgment interest continuing to accrue from August 24, 2021, at the federal statutory post-judgment interest rate. As of June 30, 2022, post-judgment interest calculated at the U.S. judgment rate amounted to approximately $0.1 million and, accordingly, the total amount owed by Venezuela under the U.S. judgment as of June 30, 2022, was $280.8 million.

Both the Matesi and Tavsa judgments, however, may not be enforced in the U.S. to the extent prohibited by the Venezuelan sanctions regulations issued by the U.S. Treasury Department's Office of Foreign Assets Control currently in effect.

For further information on these cases, see note 34 in the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.

22	The Russia-Ukraine armed conflict and its impact on Tenaris's operations

On February 24, 2022, Russia launched a military attack on Ukraine. In response, several jurisdictions, including the United States, the European Union and the United Kingdom imposed a wave of sanctions against certain Russian institutions, companies and citizens. The Russian government retaliated by ordering several economic counter measures, including restrictions on residents transferring foreign currency abroad.

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

Tenaris is seeking alternative sources in response to the interruption in supplies from Ukraine and the impact of sanctions on supplies from Russia and may be faced with supply delays or forced to pay higher prices to secure the raw materials, in particular energy, required for its steelmaking operations. Although it is hard to predict how energy and commodity prices will behave as the conflict unfolds, higher prices and possible shortages of energy and raw materials used in Tenaris's steelmaking operations would result in higher production costs and potential plant stoppages, affecting its profitability and results of operations.

Tenaris's sales to Russian customers were not material in the six-month period ended June 30, 2022. All sales to Russian customers and all purchases from Russian suppliers were made in compliance with applicable regulations. There are no significant exposures or credit losses effects related to Russian counterparties, and the conflict has not created any uncertainty on the value of financial instruments. The currently ongoing events have not changed significant judgements taken into consideration when performing impairments tests as of the end of the previous year, nor have they raised going concern risks. In addition, Tenaris is assessing the potential relocation or closure of its representative office in Moscow, which currently employs 9 people.

In light of the armed conflict involving Russia and Ukraine and the designation of Severstal's controlling shareholder as person subject to EU and UK sanctions, in March 2022, Tenaris recorded an impairment in the amount of approximately $14.9 million in connection with its investment in a joint venture in Russia with Severstal.

23	Subsequent events

Agreement for acquisition of Benteler Steel & Tube Manufacturing Corporation

On July 7, 2022, the Company entered into a definitive agreement to acquire from Benteler North America Corporation, a Benteler group company, 100% of the shares of Benteler Steel & Tube Manufacturing Corporation for an aggregate price of $460 million, on a cash-free, debt-free basis. The acquisition will include approximately $52 million of working capital.

The transaction is subject to regulatory approvals, including approval by the U.S. antitrust authorities, consent by Louisiana Economic Development and other local entities, and other customary conditions. Closing is expected to occur during the fourth quarter of 2022.

Benteler Steel & Tube Manufacturing Corporation is a U.S. producer of seamless steel pipe, with an annual pipe rolling capacity of up to 400,000 metric tons at its production facility located in Shreveport, Louisiana.

Alicia Móndolo

Chief Financial Officer

Attachments

Original Link
Original Document
Permalink

Disclaimer

Tenaris SA published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 19:55:08 UTC.

Market Closed - Borsa Italiana Other stock markets 11:44:59 2024-04-24 am EDT			5-day change	1st Jan Change
17.45 ^EUR	0.00%		-2.24%	+10.83%

Apr. 24	Stock markets bullish; Eni with profit down	AN
Apr. 23	Mib rises; A2A on fifth bullish session in a row.	AN

Stock markets bullish; Eni with profit down	Apr. 24	AN
Mib rises; A2A on fifth bullish session in a row.	Apr. 23	AN
Digital Value purchases nearly 7,000 ordinary shares	Apr. 22	AN
Tenaris buys more than 2 million shares	Apr. 22	AN
Futures await bourses up; China holds rates	Apr. 22	AN
Mib closes bullish; Terna takes top spot	Apr. 19	AN
Indices down, on Mib oil at bottom	Apr. 19	AN
Morgan Stanley Downgrades Tenaris to Underweight From Overweight, Says Stock Screens Less Favorably vs. Peers, Lifts Price Target to $40 From $36 Amid Removal of 'Saudi Risk Premium'	Apr. 18	MT
Mib in green at 33,700; Banca Mediolanum bullish	Apr. 18	AN
Futures bearish; spotlight on Middle East	Apr. 16	AN
Mib better in Europe; Prysmian good after M&A	Apr. 15	AN
Mib bullish; Prysmian bullish after deal	Apr. 15	AN
Tenaris bought back 40,000 of its own ordinary shares	Apr. 08	AN
Fineco good on Mib; Eurozone inflation falls	Apr. 03	AN
Stock markets up slightly; Eurozone macro awaited	Mar. 28	AN
Edgy Insights: The gross profitability premium	Mar. 27
Futures on parity, eyes on MPS and yen	Mar. 27	AN
Mib up slightly, Saipem runs again	Mar. 26	AN
Tenaris purchases shares for more than EUR2 million	Mar. 25	AN
Indexes up; Leonardo tops on Mib.	Mar. 22	AN
Tenaris purchases treasury shares for more than EUR100 million	Mar. 11	AN
Stock markets up tentatively; excellent accounts for Acea	Mar. 06	AN
Mib bullish; Maire and Webuild up double digits	Mar. 05	AN
Europe's only Mib in green; Webuild bullish	Mar. 05	AN
Tenaris purchases treasury shares for more than EUR80 million	Mar. 04	AN

	1st Jan change	Capi.
TENARIS S.A.	+10.83%	21.55B
YANTAI JEREH OILFIELD SERVICES GROUP CO., LTD.	+15.55%	4.63B
SINOPEC OILFIELD EQUIPMENT CORPORATION	+2.76%	825M
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT AG	+4.64%	790M
DRIL-QUIP, INC.	-17.92%	670M
SUZHOU DOUSON DRILLING & PRODUCTION EQUIPMENT CO.,LTD.	-16.78%	630M
DYNA-MAC HOLDINGS LTD.	+25.37%	319M
JIANGSU RUTONG PETRO-MACHINERY CO., LTD	-23.95%	310M
NATURAL GAS SERVICES GROUP, INC.	+50.93%	301M
NEW JCM GROUP CO.,LTD	-29.39%	242M

Tenaris S.A.

Equities

TEN

LU2598331598

Oil Related Services and Equipment

Tenaris S A : CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT - Form 6-K

Latest news about Tenaris S.A.

Chart Tenaris S.A.

Company Profile

Income Statement Evolution

Analysis / Opinion

Ratings for Tenaris S.A.

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Oil Related Equipment