September 07, 2008

Tenaris eyeing 43% hike in 2007 revenues to USD 11 billion

Mr Paolo Rocca chairman & CEO of Tenaris said that it is expecting an acquisition to help boost 2007 revenues by about 43% to near USD 11 billion. He added that results for Tenaris will include Hydril, a connection and pressure control products maker. The Hydril purchase was completed in May 2007.

Mr Rocca said that "Tenaris is navigating at the level of USD 11 billion of sales, with an EBITDA ratio over 30%. We hope that if demand picks up in Canada there could even be an improvement in EBITDA margin."

Mr Rocca also said that Tenaris may become a supplier for the Shtokman field in Russia, given Gazprom's increasing role in the field. He added that on the development of energy resources in the Arctic is an issue that concerns the very long term.

Tenaris is the supplier of the consortium which is developing the field. The Kazakhstan government has complained about the delays regarding the exploitation of the giant oilfield, which was initially due to start operations in 2005 and has been delayed to 2010.

Luxembourg based Tenaris is controlled by Argentine conglomerate Techint and its shares are listed in Buenos Aires, Milan and New York.