Q3
2008
|
Q2
2008
|
Q3
2007
|
||||||||||||||||||
Net
sales (US$ million)
|
3,118.5 | 3,148.4 | (1 | %) | 2,433.8 | 28 | % | |||||||||||||
Operating
income (US$ million)
|
933.9 | 823.7 | 13 | % | 671.7 | 39 | % | |||||||||||||
Net
income (US$ million)
|
631.2 | 1,030.0 | (39 | %) | 436.4 | 45 | % | |||||||||||||
Shareholders’
net income (US$ million)
|
570.6 | 987.5 | (42 | %) | 401.0 | 42 | % | |||||||||||||
Earnings
per ADS (US$)
|
0.97 | 1.67 | (42 | %) | 0.68 | 42 | % | |||||||||||||
Earnings
per share (US$)
|
0.48 | 0.84 | (42 | %) | 0.34 | 42 | % | |||||||||||||
EBITDA
(US$ million)
|
1,068.8 | 958.1 | 12 | % | 804.5 | 33 | % | |||||||||||||
EBITDA
margin (% of net sales)
|
34 | % | 30 | % | 33 | % |
Sales
volume (metric tons)
|
Q3
2008
|
Q3
2007
|
Increase/(Decrease)
|
|||||||||
Tubes
– Seamless
|
682,000 | 659,000 | 3 | % | ||||||||
Tubes
– Welded
|
263,000 | 240,000 | 10 | % | ||||||||
Tubes
– Total
|
945,000 | 899,000 | 5 | % | ||||||||
Projects
– Welded
|
155,000 | 127,000 | 22 | % | ||||||||
Total
|
1,100,000 | 1,026,000 | 7 | % |
Tubes
|
Q3
2008
|
Q3
2007
|
Increase/(Decrease)
|
|||||||||
(Net
sales - $ million)
|
||||||||||||
North
America
|
1,280.8 | 744.1 | 72 | % | ||||||||
South
America
|
398.4 | 310.6 | 28 | % | ||||||||
Europe
|
408.1 | 360.3 | 13 | % | ||||||||
Middle
East & Africa
|
344.2 | 471.7 | (27 | %) | ||||||||
Far
East & Oceania
|
169.9 | 175.9 | (3 | %) | ||||||||
Total
net sales ($ million)
|
2,601.4 | 2,062.6 | 26 | % | ||||||||
Cost
of sales (% of sales)
|
53 | % | 54 | % | ||||||||
Operating
income ($ million)
|
859.5 | 615.5 | ||||||||||
Operating
income (% of sales)
|
33 | % | 30 | % |
Projects
|
Q3
2008
|
Q3
2007
|
Increase/(Decrease)
|
|||||||||
Net
sales ($ million)
|
319.1 | 235.6 | 35 | % | ||||||||
Cost
of sales (% of sales)
|
73 | % | 72 | % | ||||||||
Operating
income ($ million)
|
44.3 | 42.0 | 5 | % | ||||||||
Operating
income (% of sales)
|
14 | % | 18 | % |
Others
|
Q3
2008
|
Q3
2007
|
Increase/(Decrease)
|
|||||||||
Net
sales ($ million)
|
198.0 | 135.6 | 46 | % | ||||||||
Cost
of sales (% of sales)
|
69 | % | 73 | % | ||||||||
Operating
income ($ million)
|
30.1 | 14.2 | 112 | % | ||||||||
Operating
income (% of sales)
|
15 | % | 10 | % |
Sales
volume (metric tons)
|
9M
2008
|
9M
2007
|
Increase/(Decrease)
|
|||||||||
Tubes
– Seamless
|
2,157,000 | 2,156,000 | 0 | % | ||||||||
Tubes
– Welded
|
815,000 | 706,000 | 15 | % | ||||||||
Tubes
– Total
|
2,972,000 | 2,862,000 | 4 | % | ||||||||
Projects
– Welded
|
457,000 | 317,000 | 44 | % | ||||||||
Total
|
3,429,000 | 3,179,000 | 8 | % |
Tubes
|
9M
2008
|
9M
2007
|
Increase/(Decrease)
|
|||||||||
(Net
sales - $ million)
|
||||||||||||
North
America
|
3,099.9 | 2,165.7 | 43 | % | ||||||||
South
America
|
970.8 | 897.7 | 8 | % | ||||||||
Europe
|
1,336.5 | 1,200.6 | 11 | % | ||||||||
Middle
East & Africa
|
1,385.5 | 1,598.9 | (13 | %) | ||||||||
Far
East & Oceania
|
533.5 | 536.8 | (1 | %) | ||||||||
Total
net sales ($ million)
|
7,326.2 | 6,399.7 | 14 | % | ||||||||
Cost
of sales (% of sales)
|
54 | % | 51 | % | ||||||||
Operating
income ($ million)
|
2,204.1 | 2,057.0 | 7 | % | ||||||||
Operating
income (% of sales)
|
30 | % | 32 | % |
Projects
|
9M
2008
|
9M
2007
|
Increase/(Decrease)
|
|||||||||
Net
sales ($ million)
|
959.0 | 560.9 | 71 | % | ||||||||
Cost
of sales (% of sales)
|
72 | % | 71 | % | ||||||||
Operating
income ($ million)
|
173.2 | 106.7 | 62 | % | ||||||||
Operating
income (% of sales)
|
18 | % | 19 | % |
Others
|
9M
2008
|
9M
2007
|
Increase/(Decrease)
|
|||||||||
Net
sales ($ million)
|
607.9 | 453.5 | 34 | % | ||||||||
Cost
of sales (% of sales)
|
70 | % | 78 | % | ||||||||
Operating
income ($ million)
|
91.3 | 36.8 | 148 | % | ||||||||
Operating
income (% of sales)
|
15 | % | 8 | % |
(all
amounts in thousands of U.S. dollars, unless otherwise
stated)
|
Three-month
period ended September 30,
|
Nine-month
period ended September 30,
|
||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Continuing
operations
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
Net
sales
|
3,118,512 | 2,433,773 | 8,893,084 | 7,414,040 | ||||||||||||
Cost
of sales
|
(1,745,064 | ) | (1,375,736 | ) | (5,088,664 | ) | (4,041,552 | ) | ||||||||
Gross
profit
|
1,373,448 | 1,058,037 | 3,804,420 | 3,372,488 | ||||||||||||
Selling,
general and administrative expenses
|
(459,165 | ) | (387,632 | ) | (1,350,835 | ) | (1,160,908 | ) | ||||||||
Other
operating income (expense), net
|
19,633 | 1,277 | 14,966 | (11,075 | ) | |||||||||||
Operating
income
|
933,916 | 671,682 | 2,468,551 | 2,200,505 | ||||||||||||
Interest
income
|
16,881 | 22,635 | 45,660 | 65,017 | ||||||||||||
Interest
expense
|
(40,184 | ) | (79,728 | ) | (142,454 | ) | (205,437 | ) | ||||||||
Other
financial results
|
(32,032 | ) | (12,851 | ) | (45,188 | ) | (10,725 | ) | ||||||||
Income
before equity in earnings of
associated companies and income tax
|
878,581 | 601,738 | 2,326,569 | 2,049,360 | ||||||||||||
Equity
in earnings of associated companies
|
24,290 | 18,280 | 122,386 | 73,585 | ||||||||||||
Income
before income tax
|
902,871 | 620,018 | 2,448,955 | 2,122,945 | ||||||||||||
Income
tax
|
(271,714 | ) | (195,856 | ) | (698,910 | ) | (662,070 | ) | ||||||||
Income
for continuing operations
|
631,157 | 424,162 | 1,750,045 | 1,460,875 | ||||||||||||
Discontinued
operations
|
||||||||||||||||
Income
for discontinued operations
|
- | 12,202 | 411,110 | 19,369 | ||||||||||||
Income
for the period
|
631,157 | 436,364 | 2,161,155 | 1,480,244 | ||||||||||||
Attributable
to:
|
||||||||||||||||
Equity
holders of the Company
|
570,635 | 400,952 | 2,031,149 | 1,377,206 | ||||||||||||
Minority
interest
|
60,522 | 35,412 | 130,006 | 103,038 | ||||||||||||
631,157 | 436,364 | 2,161,155 | 1,480,244 |
(all
amounts in thousands of U.S. dollars)
|
At
September 30, 2008
|
At
December 31, 2007
|
||||||||||||||
(Unaudited)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Non-current
assets
|
||||||||||||||||
Property,
plant and equipment, net
|
3,307,590 | 3,269,007 | ||||||||||||||
Intangible
assets, net
|
4,347,873 | 4,542,352 | ||||||||||||||
Investments
in associated companies
|
630,426 | 509,354 | ||||||||||||||
Other
investments
|
38,099 | 35,503 | ||||||||||||||
Deferred
tax assets
|
356,333 | 310,590 | ||||||||||||||
Receivables
|
50,857 | 8,731,178 | 63,738 | 8,730,544 | ||||||||||||
Current
assets
|
||||||||||||||||
Inventories
|
3,334,040 | 2,598,856 | ||||||||||||||
Receivables
and prepayments
|
248,805 | 222,410 | ||||||||||||||
Current
tax assets
|
143,251 | 242,757 | ||||||||||||||
Trade
receivables
|
2,027,081 | 1,748,833 | ||||||||||||||
Other
investments
|
26,997 | 87,530 | ||||||||||||||
Cash
and cash equivalents
|
1,489,787 | 7,269,961 | 962,497 | 5,862,883 | ||||||||||||
Current
and non current assets held for sale
|
- | 651,160 | ||||||||||||||
7,269,961 | 6,514,043 | |||||||||||||||
Total
assets
|
16,001,139 | 15,244,587 | ||||||||||||||
EQUITY
|
||||||||||||||||
Capital
and reserves attributable to the Company’s equity holders
|
8,686,199 | 7,006,277 | ||||||||||||||
Minority
interest
|
572,234 | 523,573 | ||||||||||||||
Total
equity
|
9,258,433 | 7,529,850 | ||||||||||||||
LIABILITIES
|
||||||||||||||||
Non-current
liabilities
|
||||||||||||||||
Borrowings
|
1,600,884 | 2,869,466 | ||||||||||||||
Deferred
tax liabilities
|
1,111,196 | 1,233,836 | ||||||||||||||
Other
tax liabilities
|
7,772 | - | ||||||||||||||
Other
liabilities
|
181,872 | 185,410 | ||||||||||||||
Provisions
|
100,292 | 97,912 | ||||||||||||||
Trade
payables
|
1,155 | 3,003,171 | 47 | 4,386,671 | ||||||||||||
Current
liabilities
|
||||||||||||||||
Borrowings
|
1,404,051 | 1,150,779 | ||||||||||||||
Current
tax liabilities
|
560,430 | 341,028 | ||||||||||||||
Other
liabilities
|
296,819 | 252,204 | ||||||||||||||
Provisions
|
27,801 | 19,342 | ||||||||||||||
Customer
advances
|
360,093 | 449,829 | ||||||||||||||
Trade
payables
|
1,090,341 | 3,739,535 | 847,842 | 3,061,024 | ||||||||||||
Liabilities
associated with current and
non-current assets held for sale
|
- | 267,042 | ||||||||||||||
3,739,535 | 3,328,066 | |||||||||||||||
Total
liabilities
|
6,742,706 | 7,714,737 | ||||||||||||||
Total
equity and liabilities
|
16,001,139 | 15,244,587 |
Three-month
period ended September 30,
|
Nine-month
period ended September 30,
|
|||||||||||||||
(all
amounts in thousands of U.S. dollars)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Income
for the period
|
631,157 | 436,364 | 2,161,155 | 1,480,244 | ||||||||||||
Adjustments
for:
|
- | - | ||||||||||||||
Depreciation
and amortization
|
134,885 | 140,876 | 403,758 | 371,647 | ||||||||||||
Income
tax accruals less payments
|
(309,497 | ) | 29,211 | (219,750 | ) | (220,582 | ) | |||||||||
Equity
in earnings of associated companies
|
(24,290 | ) | (18,280 | ) | (122,386 | ) | (73,585 | ) | ||||||||
Income
from the sale of pressure control business
|
- | - | (394,323 | ) | - | |||||||||||
Interest
accruals less payments, net
|
34,401 | 58,654 | 26,507 | 63,519 | ||||||||||||
Changes
in provisions
|
(4,404 | ) | (799 | ) | 10,839 | (4,279 | ) | |||||||||
Changes
in working capital
|
(257,464 | ) | 220,034 | (803,078 | ) | 94,669 | ||||||||||
Other,
including currency translation adjustment
|
37,986 | 23,695 | 22,969 | 77,498 | ||||||||||||
Net
cash provided by operating activities
|
242,774 | 889,755 | 1,085,691 | 1,789,131 | ||||||||||||
Cash
flows from investing activities
|
||||||||||||||||
Capital
expenditures
|
(131,772 | ) | (105,419 | ) | (337,138 | ) | (334,568 | ) | ||||||||
Acquisitions
of subsidiaries and minority interest
|
(8,003 | ) | (45 | ) | (9,868 | ) | (1,927,227 | ) | ||||||||
Other
disbursements relating to the acquisition of Hydril
|
- | - | - | (71,580 | ) | |||||||||||
Proceeds
from the sale of pressure control business
|
- | - | 1,113,805 | - | ||||||||||||
Decrease
in subsidiaries
|
- | - | - | (1,195 | ) | |||||||||||
Proceeds
from disposal of property, plant and equipment and intangible
assets
|
3,340 | 2,327 | 12,166 | 6,923 | ||||||||||||
Dividends
received
|
- | - | 13,636 | 11,496 | ||||||||||||
Investments
in short terms securities
|
324,934 | (45,035 | ) | 60,533 | (30,842 | ) | ||||||||||
Other
|
- | - | (3,428 | ) | - | |||||||||||
Net
cash provided by / (used in) investing activities
|
188,499 | (148,172 | ) | 849,706 | (2,346,993 | ) | ||||||||||
Cash
flows from financing activities
|
||||||||||||||||
Dividends
paid
|
- | - | (295,134 | ) | (354,161 | ) | ||||||||||
Dividends
paid to minority interest in subsidiaries
|
(4,981 | ) | (5,393 | ) | (60,117 | ) | (45,315 | ) | ||||||||
Proceeds
from borrowings
|
301,117 | 243,937 | 731,205 | 2,451,963 | ||||||||||||
Repayments
of borrowings
|
(444,709 | ) | (228,611 | ) | (1,777,464 | ) | (1,247,324 | ) | ||||||||
Net
cash (used in) / provided by financing activities
|
(148,573 | ) | 9,933 | (1,401,510 | ) | 805,163 | ||||||||||
Increase
in cash and cash equivalents
|
282,700 | 751,516 | 533,887 | 247,301 | ||||||||||||
Movement
in cash and cash equivalents
|
||||||||||||||||
At
the beginning of the period
|
1,319,049 | 883,042 | 954,303 | 1,365,008 | ||||||||||||
Effect
of exchange rate changes
|
(138,107 | ) | 13,996 | (24,548 | ) | 36,245 | ||||||||||
Increase
in cash and cash equivalents
|
282,700 | 751,516 | 533,887 | 247,301 | ||||||||||||
At
September 30,
|
1,463,642 | 1,648,554 | 1,463,642 | 1,648,554 | ||||||||||||
Cash
and cash equivalents
|
At
September 30,
|
At
September 30,
|
||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Cash
and bank deposits
|
1,489,787 | 1,651,780 | 1,489,787 | 1,651,780 | ||||||||||||
Bank
overdrafts
|
(26,145 | ) | (3,205 | ) | (26,145 | ) | (3,205 | ) | ||||||||
Restricted
bank deposits
|
- | (21 | ) | - | (21 | ) | ||||||||||
1,463,642 | 1,648,554 | 1,463,642 | 1,648,554 | |||||||||||||
Non-cash
financing activity
|
||||||||||||||||
Conversion
of debt to equity in subsidiaries
|
- | - | - | 35,140 |