LUXEMBOURG -- (Marketwire) -- 11/07/12 -- Tenaris S.A. (NYSE: TS) (BAE: TS) (BVM: TS) (MILAN: TEN) ("Tenaris") today announced its results for the quarter and nine months ended September 30, 2012 with comparison to its results for the quarter and nine months ended September 30, 2011.

Summary of 2012 Third Quarter Results



(Comparison with second quarter of 2012 and third quarter of 2011)



                                     Q3 2012     Q2 2012         Q3 2011

Net sales (US$ million)              2,657.1   2,801.5   (5%)  2,494.8    7%

Operating income (US$ million)         583.6     620.9   (6%)    468.6   25%

Net income (US$ million)               437.5     460.2   (5%)    365.5   20%

Shareholders' net income (US$

 million)                              436.4     461.1   (5%)    325.0   34%

Earnings per ADS (US$)                  0.74      0.78   (5%)     0.55   34%

Earnings per share (US$)                0.37      0.39   (5%)     0.28   34%

EBITDA* (US$ million)                  679.0     758.6  (10%)    603.6   12%

EBITDA margin (% of net sales)            26%       27%             24%



*EBITDA is defined as operating income plus depreciation, amortization and

 impairment charges/(reversals) and in Q3 2012 excludes a non-recurring

 gain of $49 million, recorded in Other operating income corresponding to a

 tax related lawsuit collected in Brazil.

Sales increased year on year led by higher demand in North and South America, but, sequentially, they were affected by lower shipments to the Middle East and lower demand for industrial products in Europe, in addition to seasonal factors.

EBITDA, excluding extraordinary items, declined 10% sequentially with margins being affected by product mix (a lower proportion of seamless products in the sales mix) and efficiency losses related to operational issues at the Tamsa steel shop and plant maintenance shutdowns.

Cash flow from operations remains strong and amounted to US$491.4 million for the quarter. Our net debt (total borrowings less cash and other current investments) decreased to US$265.8 million, at the end of the third quarter of 2012, from US$540.5 million at the end of the previous quarter.

Interim Dividend Payment

Our board of directors approved the payment of an interim dividend of US$0.13 per share (US$0.26 per ADS), or approximately US$153 million. The payment date will be November 22, 2012 (however, because such date is not a business day in the U.S., shareholders in all jurisdictions may receive their interim dividend on or after November 23, 2012, which is the first business day following the stated payment date), and the ex-dividend date will be November 19, 2012.

Changes in Segment Reporting

Following the acquisition of the non-controlling interests in Confab Industrial S.A. (Confab) and its further delisting, we have changed our internal organization and therefore combined the Tubes and Projects segments.

Therefore, starting with the financial statements for the period ended September 30, 2012, we will report under segments: Tubes (tubular products and services) and Others (other products and services).

Additionally, the coiled tubing operations, which were previously included in the Tubes segment and which accounted for 1% of total sales in 2011, have been reclassified to Others.

Market Background and Outlook

In spite of the weak economic recovery, demand for energy has remained stable and oil prices are at levels which should continue to support investment in exploration and production activity worldwide during 2013.

North American natural gas prices have risen above their early year lows as demand shows strong year on year growth. In 2013, we expect drilling activity for gas to recover gradually.

In the fourth quarter of 2012, however, our sales in North America will be affected by the current market uncertainty that is driving a reduction in OCTG inventories.

In the rest of the world, drilling activity should increase gradually led by the growth in the exploration and development of deepwater and unconventional reserves. In the coming quarters, sales to oil and gas customers in the Middle East are expected to recover from the low level of the third quarter.

Sales to industrial markets, particularly in Europe, are expected to remain at low levels.

EBITDA margins are expected to remain at the level of this third quarter, as the impact of lower prices in less differentiated segments is likely to offset product mix and industrial efficiency improvements.

Analysis of 2012 Third Quarter Results



Tubes Sales volume

 (metric tons)                    Q3 2012      Q2 2012          Q3 2011

Seamless                           642,000    701,000  (8%)    650,000  (1%)

Welded                             305,000    287,000   6%     266,000  15%

Total                              947,000    988,000  (4%)    916,000   3%





              Tubes              Q3 2012       Q2 2012          Q3 2011

(Net sales - $ million)

North America                     1,260.0    1,270.1   (1%)   1,014.4   24%

South America                       610.3      537.4   14%      490.3   24%

Europe                              252.9      285.1  (11%)     273.2   (7%)

Middle East & Africa                235.9      352.5  (33%)     355.2  (34%)

Far East & Oceania                  109.4      130.4  (16%)     142.2  (23%)

Total net sales ($ million)       2,468.5    2,575.4   (4%)   2,275.2    8%

Operating income ($ million)        559.8      589.3   (5%)     440.8   27%

Operating margin (% of sales)          23%        23%              19%

Net sales of tubular products and services increased 8% year on year but decreased 4% sequentially as sales were mainly affected by lower shipments to the Middle East and lower demand for industrial products in Europe. In North America, sequentially lower sales of deepwater line pipe in the Gulf of Mexico were largely offset by higher sales in Mexico. Sales increased in South America, mainly in Argentina and Colombia. In Europe, lower demand from the industrial sector and seasonally lower sales to distributors were the main causes of the sequential decrease. In the Middle East and Africa sales decreased sequentially due to lower shipments relating to the timing of orders. In the Far East and Oceania sales decreased sequentially due to lower sales of OCTG and structural products.

Operating income from tubular products and services, which, in the third quarter of 2012, included a non-recurring gain of US$49.2 million, increased 27% year on year but decreased 5% sequentially. The sequential decline in operating income reflects a lower proportion of seamless pipes in the sales mix and efficiency losses related to operational issues at the Tamsa steel shop and plant maintenance shutdowns.

              Others                Q3 2012     Q2 2012         Q3 2011

Net sales ($ million)                 188.5     226.6  (17%)    219.6  (14%)

Operating income ($ million)           23.8      31.5  (24%)     27.7  (14%)

Operating margin (% of sales)            13%       14%             13%

Net sales of other products and services decreased 14% year on year and 17% sequentially, reflecting lower sales of industrial equipment in Brazil, which also impacted operating income and margins.

Selling, general and administrative expenses, or SG&A, amounted to 17.3% of net sales in the third quarter of 2012, compared to 17.4% in the previous quarter and 18.5% in the third quarter of 2011.

Other operating income, net, amounted to US$44.2 million in the third quarter of 2012, compared to US$0.8 million in the previous quarter and US$1.6 million in the third quarter of 2011. In August, 2012, Confab, our Brazilian subsidiary, collected US$49 million from the Brazilian government, in interest and monetary adjustment over a tax benefit received in 1991.

Net interest expenses amounted to US$8.8 million in the third quarter of 2012, compared to US$7.0 million in the previous quarter and US$8.5 million in the third quarter of 2011.

Other financial results generated a loss of US$15.2 million during the third quarter of 2012, compared to a loss of US$16.5 million in the previous quarter and a gain of US$28.0 million during the third quarter of 2011. These results largely reflect gains and losses on net foreign exchange transactions and the fair value of derivative instruments and are partially offset by changes to our net equity position. During the third quarter of 2011, these gains were mainly attributable to the revaluation of the US dollar against the Brazilian real (+18.6%), as our Brazilian subsidiaries held a positive net financial position in US dollar in the quarter.

Equity in earnings of associated companies generated a gain of US$14.4 million in the third quarter of 2012, compared to a gain of US$11.1 million in the previous quarter and a gain of US$1.5 million in the third quarter of 2011. These gains were derived mainly from our equity investment in Ternium and reflected higher results at Ternium.

Income tax charges totaled US$136.5 million in the third quarter of 2012, equivalent to 24% of income before equity in earnings of associated companies and income tax, compared to 25% in the previous quarter and in the third quarter of 2011.

Results attributable to non-controlling interests amounted to gains of US$1.1 million in the third quarter of 2012, compared to losses of US$0.9 million in the previous quarter and to gains of US$40.5 million in the third quarter of 2011. Year on year, the reduction in gains attributable to non-controlling interests is due to the acquisition of all the non-controlling interests in Confab in the second quarter of 2012.

Cash Flow and Liquidity of 2012 Third Quarter

Net cash provided by operations during the third quarter of 2012 was US$491.4 million, compared to US$414.5 million in the previous quarter and US$336.3 million in the third quarter of 2011. Working capital increased by US$107.1 million during the third quarter of 2012, compared to a decrease of US$53.1 million in the previous quarter and a negligible increase in the third quarter of 2011. The increase in working capital in the third quarter of 2012, was mainly due to a decrease in trade payables, following the conclusion of several plant maintenance shutdowns.

Capital expenditures amounted to US$187.0 million in the third quarter of 2012, compared to US$204.5 million in the previous quarter and US$212.1 million in the third quarter of 2011.

Our net debt (total borrowings less cash and other current investments) decreased to US$265.8 million, at the end of the third quarter of 2012, from US$540.5 million at the end of the previous quarter.

Analysis of 2012 First Nine Months Results



                                                                  Increase/

                                           9M 2012     9M 2011   (Decrease)

Net sales (US$ million)                     8,075.9     7,221.9          12%

Operating income (US$ million)              1,770.6     1,306.9          35%

Net income (US$ million)                    1,351.1       994.4          36%

Shareholders' net income (US$ million)      1,341.4       931.6          44%

Earnings per ADS (US$)                         2.27        1.58          44%

Earnings per share (US$)                       1.14        0.79          44%

EBITDA* (US$ million)                       2,142.0     1,707.4          25%

EBITDA margin (% of net sales)                   27%         24%



*EBITDA is defined as operating income plus depreciation, amortization and

 impairment charges/(reversals) and in 9M 2012 excludes a non-recurring

 gain of $49 million, recorded in Other operating income corresponding to a

 tax related lawsuit collected in Brazil.





                                                                 Increase/

    Tubes Sales volume (metric tons)      9M 2012     9M 2011    (Decrease)

Seamless                                  2,007,000   1,904,000           5%

Welded                                      882,000     833,000           7%

Total                                     2,889,000   2,737,000           6%





                                                                 Increase/

                 Tubes                    9M 2012     9M 2011   (Decrease)

(Net sales - $ million)

North America                              3,798.6     2,906.4          31%

South America                              1,612.3     1,531.5           5%

Europe                                       799.6       791.7           1%

Middle East & Africa                         869.1       946.0          (8%)

Far East & Oceania                           365.5       410.5         (11%)

Total net sales ($ million)                7,445.2     6,586.1          13%

Operating income ($ million)               1,679.6     1,200.5          40%

Operating margin (% of sales)                   23%         18%

Net sales of tubular products and services increased 13% to US$7,445.2 million in the first nine months of 2012, compared to US$6,586.1 million in the first nine months of 2011, reflecting a 6% increase in volumes and a 4% increase in average selling prices.

Operating income from tubular products and services increased 40% to US$1,679.6 million in the first nine months of 2012, from US$1,200.5 million in the first nine months of 2011, reflecting a 13% increase in sales and an improvement in the operating margin, mainly reflecting a better absorption of fixed and semi-fixed expenses on higher sales.

                                                                 Increase/

                 Others                   9M 2012     9M 2011   (Decrease)

Net sales ($ million)                        630.7       635.8          (1%)

Operating income ($ million)                  91.0       106.5         (14%)

Operating margin (% of sales)                   14%         17%

Net sales of other products and services decreased 1% to US$630.7 million in the first nine months of 2012, compared to US$635.8 million in the first nine months of 2011, mainly due to lower sales of industrial equipment in Brazil and coiled tubing, almost offset by higher sales of sucker rods.

Operating income from other products and services decreased 14% to US$91.0 million in the first nine months of 2012, compared to US$106.5 million during the first nine months of 2011, reflecting lower sales and operating margins.

SG&A amounted to 17.2% of net sales during the first nine months of 2012, compared to 19.2% in the same period of 2011.

Net interest expenses amounted to US$16.2 million in the first nine months of 2012 compared to US$19.6 million in the same period of 2011.

Other financial results amounted to a loss of US$18.5 million during the first nine months of 2012, compared to a gain of US$16.7 million during the first nine months of 2011. These results largely reflect gains and losses on net foreign exchange transactions and the fair value of derivative instruments and are partially offset by changes to our net equity position. These gains and losses are mainly attributable to variations in the exchange rates between our subsidiaries' functional currencies (other than the US dollar) and the US dollar, in accordance with IFRS.

Equity in earnings of associated companies generated a gain of US$44.6 million in the first nine months of 2012, compared to a gain of US$48.5 million in the first nine months of 2011. These gains were derived mainly from our equity investment in Ternium.

Income tax charges totaled US$429.5 million in the first nine months of 2012, equivalent to 25% of income before equity in earnings of associated companies and income tax, compared to US$358.1 million in the first nine months of 2011, equivalent to 27% of income before equity in earnings of associated companies and income tax.

Income attributable to non-controlling interests declined to US$9.7 million in the first nine months of 2012, compared to US$62.8 million in the first nine months of 2011, as in the second quarter of 2012, we acquired all the non-controlling interests in Confab.

Cash Flow and Liquidity of 2012 First Nine Months

During the first nine months of 2012, net cash provided by operations was US$1,513.8 million, compared to US$827.1 million in the same period of 2011. Working capital increased by US$55.7 million in the first nine months of 2012, compared with an increase of US$492.6 million in the first nine months of 2011.

Capital expenditures amounted to US$587.9 million in the first nine months of 2012, compared with US$673.9 million in the same period of 2011.

Following our investments in Brazil during the first half of the year, amounting to US$1.3 billion (US$504.6 million in Usiminas and US$758.5 million in Confab) and the payment of a dividend of US$295.1 million, our financial position at September 30, 2012, amounted to a net debt position (total borrowings less cash and other current investments) of US$265.8 million, compared with a net cash position of US$323.6 million at December 31, 2011.

Some of the statements contained in this press release are "forward-looking statements." Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

Press releases and financial statements can be downloaded from Tenaris's website at www.tenaris.com/investors.

Consolidated Condensed Interim Income Statement



                               Three-month period       Nine-month period

(all amounts in thousands of          ended                   ended

 U.S. dollars)                    September 30,           September 30,

                             ----------------------  ----------------------

                                2012        2011        2012        2011

                             ----------  ----------  ----------  ----------

Continuing operations               Unaudited              (Unaudited)



Net sales                     2,657,069   2,494,840   8,075,910   7,221,927

Cost of sales                (1,658,967) (1,563,520) (4,964,776) (4,534,895)

                             ----------  ----------  ----------  ----------

Gross profit                    998,102     931,320   3,111,134   2,687,032

Selling, general and

 administrative expenses       (458,716)   (464,419) (1,389,514) (1,384,396)

Other operating income

 (expenses) net                  44,174       1,654      49,027       4,303

                             ----------  ----------  ----------  ----------

Operating income                583,560     468,555   1,770,647   1,306,939

Interest income                   9,413       5,547      24,702      19,747

Interest expense                (18,247)    (14,073)    (40,860)    (39,362)

Other financial results         (15,154)     28,019     (18,549)     16,669

                             ----------  ----------  ----------  ----------

Income before equity in

 earnings of associated

 companies and income tax       559,572     488,048   1,735,940   1,303,993

Equity in earnings of

 associated companies            14,406       1,514      44,624      48,519

                             ----------  ----------  ----------  ----------

Income before income tax        573,978     489,562   1,780,564   1,352,512

Income tax                     (136,491)   (124,074)   (429,490)   (358,124)

                             ----------  ----------  ----------  ----------

Income for the period           437,487     365,488   1,351,074     994,388



Attributableto:

Equity holders of the

 Company                        436,431     324,991   1,341,360     931,583

Non-controlling interests         1,056      40,497       9,714      62,805

                             ----------  ----------  ----------  ----------

                                437,487     365,488   1,351,074     994,388

                             ----------  ----------  ----------  ----------







Consolidated Condensed Interim Statement of Financial Position



(all amounts in thousands of

 U.S. dollars)                At September 30, 2012    At December 31, 2011

                             ----------------------- -----------------------

                                   (Unaudited)

ASSETS

Non-current assets

    Property, plant and

     equipment, net            4,327,490               4,053,653

    Intangible assets, net     3,242,640               3,375,930

    Investments in

     associated companies      1,104,436                 670,248

    Other investments              2,567                   2,543

    Deferred tax assets          222,758                 234,760

    Receivables                  129,903   9,029,794     133,280   8,470,414

                             -----------             -----------



Current assets

    Inventories                2,988,690               2,806,409

    Receivables and

     prepayments                 278,126                 241,801

    Current tax assets           182,832                 168,329

    Trade receivables          1,919,482               1,900,591

    Available for sale

     assets                       21,572                  21,572

    Other investments            888,760                 430,776

    Cash and cash

     equivalents                 787,540   7,067,002     823,743   6,393,221

                             ----------- ----------- ----------- -----------

Total assets                              16,096,796              14,863,635

                                         ===========             ===========



EQUITY

Capital and reserves

 attributable to the

 Company's equity holders                 11,172,365              10,506,227

Non-controlling interests                    179,541                 666,716

                                         -----------             -----------

Totalequity                               11,351,906              11,172,943

                                         ===========             ===========



LIABILITIES

Non-current liabilities

    Borrowings                   599,053                 149,775

    Deferred tax liabilities     781,588                 828,545

    Other liabilities            206,340                 233,653

  Provisions                      67,499                  72,975

    Trade payables                 1,222   1,655,702       2,045   1,286,993

                             -----------             -----------



Current liabilities

    Borrowings                 1,343,059                 781,101

    Current tax liabilities      256,893                 326,480

    Other liabilities            385,860                 305,214

  Provisions                      20,899                  33,605

    Customer advances            160,188                  55,564

    Trade payables               922,289   3,089,188     901,735   2,403,699

                             ----------- ----------- ----------- -----------

Total liabilities                          4,744,890               3,690,692

                                         ===========             ===========

Total equity and liabilities              16,096,796              14,863,635

                                         ===========             ===========







Consolidated Condensed Interim Statement of Cash Flow



                               Three-month period       Nine-month period

                                      ended                   ended

                                  September 30,           September 30,

                             ----------------------  ----------------------

(all amounts in thousands of

U.S. dollars)                   2012        2011        2012        2011

                             ----------  ----------  ----------  ----------

                                   (Unaudited)             (Unaudited)

Cash flows from operating

 activities

Income for the period           437,487     365,488   1,351,074     994,388

Adjustments for:

Depreciation and

 amortization                   144,713     135,064     420,597     400,465

Income tax accruals less

 payments                       (20,417)     62,698    (126,196)    109,933

Equity in earnings of

 associated companies           (14,406)     (1,514)    (44,624)    (48,519)

Interest accruals less

 payments, net                   (6,126)       (635)    (24,382)    (28,455)

Changes in provisions            (1,625)     (9,597)    (18,182)     10,319

Changes in working capital     (107,051)      5,946     (55,708)   (492,611)

Other, including currency

 translation adjustment          58,804    (221,176)     11,237    (118,460)

                             ----------  ----------  ----------  ----------

Net cash provided by

 operating activities           491,379     336,274   1,513,816     827,060

Cash flows from investing

 activities

Capital expenditures           (186,964)   (212,139)   (587,890)   (673,930)

Acquisitions of subsidiaries

 and associated companies        (6,228)          -    (510,825)          -

Proceeds from disposal of

 property, plant and

 equipment and intangible

 assets                             883       1,372       3,798       3,339

Dividends and distributions

 received from associated

 companies                            6           -      18,708      17,229

Changes in investments in

 short term securities         (469,351)    236,668    (457,984)     41,986

                             ----------  ----------  ----------  ----------

Net cash used in investing

 activities                    (661,654)     25,901  (1,534,193)   (611,376)

Cash flows from financing

 activities

Dividends paid                        -           -    (295,134)   (247,913)

Dividends paid to non-

 controlling interest in

 subsidiaries                         -      (5,964)       (905)    (11,699)

Acquisitions of non-

 controlling interests              (38)        (90)   (758,577)    (16,579)

Proceeds from borrowings        491,143     223,723   1,705,377     713,518

Repayments of borrowings       (243,114)   (174,150)   (682,230)   (715,262)

                             ----------  ----------  ----------  ----------

Net cash used in financing

 activities                     247,991      43,519     (31,469)   (277,935)

                             ----------  ----------  ----------  ----------



                             ----------  ----------  ----------  ----------

Decrease in cash and cash

 equivalents                     77,716     405,694     (51,846)    (62,251)

                             ----------  ----------  ----------  ----------



Movement in cash and cash

 equivalents

At the beginning of the

 period                         693,712     362,043     815,032     820,165

Effect of exchange rate

 changes                          3,567     (13,621)     11,809      (3,798)

Decrease in cash and cash

 equivalents                     77,716     405,694     (51,846)    (62,251)

                             ----------  ----------  ----------  ----------

At September 30,                774,995     754,116     774,995     754,116



                                At September 30,        At September 30,

Cash and cash equivalents       2012        2011        2012        2011

                             ----------  ----------  ----------  ----------

Cash at banks, liquidity

 funds and short-term

 investments                    787,540     764,787     787,540     764,787

Bank overdrafts                 (12,545)    (10,671)    (12,545)    (10,671)

                             ----------  ----------  ----------  ----------

                                774,995     754,116     774,995     754,116

Giovanni Sardagna

Tenaris

1-888-300-5432

www.tenaris.com

Source: Tenaris S.A.

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