Tenaris Announces 2009 First Quarter Results

The Financial and Operational Information Contained in This Press
Release Is Based on Unaudited Consolidated Condensed Interim
Financial Statements Prepared in Accordance With International
Financial Reporting Standards (IFRS) and Presented in U.S. dollars

LUXEMBOURG -- (MARKET WIRE) -- 05/06/09 -- Tenaris S.A. (NYSE: TS)
(BAE: TS) (MXSE: TS) (MILAN: TEN) ("Tenaris") today announced its
results for the quarter ended March 31, 2009 with comparison to its
results for the quarter ended March 31, 2008.

Summary of 2009 First Quarter Results

(Comparison with fourth and first quarters of 2008)

                               Q1 2009        Q4 2008            Q1 2008
Net sales (US$ million)        2,449.5    3,238.8   (24%)   2,626.2    (7%)
Operating income (US$ million)   678.1      559.3    21%      710.9    (5%)
Net income (US$ million)         393.1      114.5   243%      500.0   (21%)
Shareholders' net income (US$
 million)                        366.0       93.7   291%      473.0   (23%)
Earnings per ADS (US$)            0.62       0.16   291%       0.80   (23%)
Earnings per share (US$)          0.31       0.08   291%       0.40   (23%)
EBITDA (US$ million)             799.8    1,191.4   (33%)     845.4    (5%)
EBITDA margin (% of net sales)      33%        37%               32%

Our operating results in the first quarter partially reflect the
change in the market environment that has occurred since the third
quarter of last year. Shipments, particularly in the U.S. market,
were sharply lower. However, selling prices during the period still
reflect the effect of price increases set in different market
conditions. Our operating income declined 5% year on year but our
earnings per share declined further as in the first quarter of 2008
we benefited from a strong result on our equity investment in Ternium
(NYSE: TX) which was not repeated this year. Our net financial debt
(total financial debt less cash and other current investments)
decreased by US$610.7 million to US$781.7 million during the quarter
as we focused on reducing inventories in our production system.

Market Background and Outlook

Following their collapse in the second half of 2008 to a low of
around US$30 per barrel at the end of the year, global oil prices
have recovered slightly and begun to stabilize around a level of
US$50 per barrel. Expectations have risen that declining non-OPEC
production and OPEC production cuts can offset the decline in global
consumption in the ongoing economic contraction. North American gas
prices, however, have continued to fall during the first part of 2009
to current levels of around US$3.50 per million BTU as the carry over
of 2008 US production increases combined with reduced demand has
resulted in high levels of gas in storage.

The international count of active drilling rigs, as published by
Baker Hughes, has shown a moderate decline so far this year. It
averaged 1,025 during the first quarter of 2009, 6% lower than the
fourth quarter of 2008 and 2% lower than the same quarter of the
previous year. The corresponding rig count in USA, which is more
sensitive to North American gas prices, has plummeted in the year to
date and is now down 53% from its high in September 2008. It averaged
1,326 during the first quarter,30% lower than the fourth quarter of
2008 and 25% lower than the first quarter of 2008 and as of May 1,
2009 had fallen to 945. In Canada, the corresponding rig count, which
is affected by seasonal drilling patterns, averaged 329 during the
quarter, a decrease of 35% compared to first quarter of 2008.

Demand for our pipes from the global energy industry is being
affected by the decline in oil and gas drilling activity and the
actions taken by customers to adjust to current conditions, including
procurement delays and cancellations and the postponement of new
project activity. Demand in the US and Canada has been further
affected by a continuing surge of Chinese OCTG imports which has
resulted in extraordinarily high levels of inventories. Demand from
other customers has been affected by the decline in activity in the
industrial and power generation segments, particularly in Europe.

Following the high level of shipments for our large-diameter pipes
for pipeline projects in South America during 2008, demand is
expected to be lower this year reflecting delays and postponements in
the implementation of new projects.

Steelmaking raw material costs for our seamless pipe products are
expected to slightly decline in the coming quarters. However costs
for our North American welded products are being adversely affected
by very low production levels and high cost of steel procured under
different market conditions.

Considering the decrease in apparent demand and declining prices we
expect lower level of sales and EBITDA into the coming quarters.

Annual Shareholders Assembly

The annual general shareholders' meeting of the Company will take
place at 11:00 am on June 3, 2009 in Luxembourg. The notice and
agenda for the meeting, the shareholder meeting brochure and proxy
statement together with the Company's 2008 annual report can be
downloaded from our website at www.tenaris.com/investors and may be
obtained on request by calling 1-800-555-2470 (within the USA) or +
1-267-468-0786 (outside the USA).

Analysis of 2009 First Quarter Results

                                                                 Increase/
Sales volume (metric tons)             Q1 2009      Q1 2008      (Decrease)
Tubes - Seamless                         583,000      691,000        (16%)
Tubes - Welded                           110,000      282,000        (61%)
Tubes - Total                            693,000      973,000        (29%)
Projects - Welded                         84,000      132,000        (36%)
Total                                    777,000    1,105,000        (30%)

                                                                 Increase/
Tubes                                  Q1 2009      Q1 2008      (Decrease)
(Net sales - $ million)
North America                            1,015.8         832.6        22%
South America                              264.5         238.2        11%
Europe                                     262.6         447.6       (41%)
Middle East & Africa                       395.3         475.7       (17%)
Far East & Oceania                         167.6         176.6        (5%)
Total net sales ($ million)              2,105.8       2,170.7        (3%)
Cost of sales (% of sales)                    53%           54%
Operating income ($ million)               639.8         637.4         0%
Operating income (% of sales)                 30%           29%

Net sales of tubular products and services decreased 3% to US$2,105.8
million in the first quarter of 2009, compared to US$2,170.7 million
in the first quarter of 2008, as a 29% decrease in sales volume was
largely offset by higher average selling prices. In North America,
although shipments in Mexico remained stable, in the USA and Canada
they were affected by the decline in drilling activity and the
extraordinarily high levels of inventories mainly driven by Chinese
OCTG imports. Sales in South America increased as higher average
selling prices more than offset a decline in volumes sold. In Europe,
sales were affected by continuing imports from China which are
causing injury to the European pipe industry, a sharp decline in
industrial activity, lower demand from distributors serving the
process plant sector and lower sales of OCTG products. Sales in the
Middle East and Africa declined as sales of OCTG products were lower
throughout the region.

                                                                 Increase/
Projects                               Q1 2009       Q1 2008     (Decrease)
Net sales ($ million)                      222.2         271.7       (18%)
Cost of sales (% of sales)                   70%            72%
Operating income ($ million)               49.0           51.3        (4%)
Operating income (% of sales)                22%           19%

Net sales of pipes for pipeline projects decreased 18% to US$222.2
million in the first quarter of 2009, compared to US$271.7 million in
the first quarter of 2008, reflecting a lower level of shipments to
gas and other pipeline projects in Brazil and Argentina.

                                                                 Increase/
Others                                 Q1 2009       Q1 2008     (Decrease)
Net sales ($ million)                      121.5         183.8       (34%)
Cost of sales (% of sales)                    94%           73%
Operating income ($ million)               (10.7)         22.2      (148%)
Operating income (% of sales)                 (9%)          12%

Operating income from other products and services resulted in a loss
of US$10.7 million in the first quarter of 2009, compared to a gain
of US$22.2 million in the first quarter of 2008, as we recorded
losses on our electric conduits operations in the USA and our HBI
operations in Venezuela.

Selling, general and administrative expenses, or SG&A, increased as a
percentage of net sales to 16.0% in the quarter ended March 31, 2009
compared to 15.7% in the corresponding quarter of 2008.

Net interest expense decreased to US$36.2 million in the first
quarter of 2009 compared to a net interest expense of US$54.8 million
in the same period of 2008, mainly reflecting a lower level of net
debt.

Other financial results generated a loss of US$37.2 million during
the first quarter of 2009, compared to a loss of US$14.3 million
during the first quarter of 2008. 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 loss of US$8.5
million in the first quarter of 2009, compared to a gain of US$50.0
million in the first quarter of 2008. These results were derived
mainly from our equity investment in Ternium (NYSE: TX).

Income tax charges totalled US$203.1 million in the first quarter of
2009, equivalent to 34% of income from continuing operations before
equity in earnings of associated companies and income tax, compared
to US$208.6 million, or 33% of income before equity in earnings of
associated companies and income tax, in the first quarter of 2008.

Income attributable to minority interest was US$27.0 million in the
first quarter of 2009, compared to US$26.9 million in the
corresponding quarter of 2008.

Cash Flow and Liquidity

Net cash provided by operations during the first quarter of 2009 was
US$763.4 million, compared to US$568.9 million in the first quarter
of 2008. Working capital decreased by US$387.9 million during the
quarter, as we reduced our inventories by US$527.7 million and our
receivables by US$87.9 million, which was partially offset by a
decrease in trade payables of US$254.8 million.

Capital expenditures amounted to US$119.8 million for the first
quarter of 2009, compared to US$88.5 million in the first quarter of
2008. The increase in investments mainly reflect the progress in our
new rolling mill in Mexico.

During the first quarter of 2009, total financial debt decreased by
US$151.7 million to US$2,825,4 million at March 31, 2009 from
US$2,977.0 million at December 31, 2008, and net financial debt
decreased by US$610.7 million to US$781.7 million at March 31, 2009.

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

Consolidated Condensed Interim Income Statement

(all amounts in thousands of U.S. dollars, unless     Three-month period
 otherwise stated)                                      ended March 31,
                                                    ----------------------
                                                       2009        2008
                                                    ----------  ----------
Continuing operations                                     (Unaudited)
Net sales                                            2,449,485   2,626,187
Cost of sales                                       (1,380,415) (1,500,689)
                                                    ----------  ----------
Gross profit                                         1,069,070   1,125,498
Selling, general and administrative expenses          (392,355)   (413,594)
Other operating income (expense), net                    1,384        (991)
                                                    ----------  ----------
Operating income                                       678,099     710,913
Interest income                                          4,613      12,269
Interest expense                                       (40,827)    (67,092)
Other financial results                                (37,233)    (14,302)
                                                    ----------  ----------
Income before equity in earnings of associated
 companies and income tax                              604,652     641,788
Equity in earnings of associated companies              (8,459)     49,994
                                                    ----------  ----------
Income before income tax                               596,193     691,782
Income tax                                            (203,098)   (208,606)
                                                    ----------  ----------
Income for continuing operations                       393,095     483,176

Discontinued operations
Income (loss) for discontinued operations                    -      16,787
                                                    ----------  ----------

Income for the period                                  393,095     499,963

Attributable to:
Equity holders of the Company                          366,047     473,043
                                                    ----------  ----------
Minority interest                                       27,048      26,920
                                                    ----------  ----------
                                                       393,095     499,963

Consolidated Condensed Interim Statement of Financial Position

(all amounts in thousands of
 U.S. dollars)                    At March 31, 2009   At December 31, 2008
                                --------------------- ---------------------

ASSETS
Non-current assets
  Property, plant and
   equipment, net                2,936,160             2,982,871
  Intangible assets, net         3,760,964             3,826,987
  Investments in associated
   companies                       501,745               527,007
  Other investments                 37,727                38,355
  Deferred tax assets              370,633               390,323
  Receivables                       57,214  7,664,443     82,752  7,848,295
                                ----------            ----------
Current assets
  Inventories                    2,563,726             3,091,401
  Receivables and prepayments      226,631               251,481
  Current tax assets               191,627               201,607
  Trade receivables              2,035,348             2,123,296
  Other investments                 63,113                45,863
  Cash and cash equivalents      1,980,586  7,061,031  1,538,769  7,252,417
                                ----------            ----------

                                           ----------            ----------
Total assets                               14,725,474            15,100,712
                                           ==========            ==========
EQUITY
Capital and reserves
 attributable to the Company's
 equity holders                             8,399,259             8,176,571
Minority interest                             531,681               525,316
                                           ----------            ----------
Total equity                                8,930,940             8,701,887
                                           ==========            ==========
LIABILITIES
Non-current liabilities
  Borrowings                     1,174,876             1,241,048
  Deferred tax liabilities       1,037,656             1,053,838
  Other liabilities                223,929               223,142
  Provisions                        73,120                89,526
  Trade payables                     1,216  2,510,797      1,254  2,608,808
                                ----------            ----------
Current liabilities
  Borrowings                     1,650,483             1,735,967
  Current tax liabilities          443,604               610,313
  Other liabilities                250,667               242,620
  Provisions                        33,442                28,511
  Customer advances                263,571               275,815
  Trade payables                   641,970  3,283,737    896,791  3,790,017
                                ----------            ----------

Total liabilities                           5,794,534             6,398,825
                                           ==========            ==========
Total equity and liabilities               14,725,474            15,100,712
                                           ==========            ==========

Consolidated Condensed Interim Statement of Cash Flows

                                                 Three-month period ended
                                                        March 31,
(all amounts in thousands of U.S. dollars)          2009          2008
                                                ------------  ------------
                                                        (Unaudited)
Cash flows from operating activities
Income for the period                                393,095       499,963
Adjustments for:
Depreciation and amortization                        121,741       134,483
Income tax accruals less payments                   (150,496)      107,538
Equity in earnings of associated companies             8,459       (49,994)
Interest accruals less payments, net                  24,167        54,308
Changes in provisions                                (11,475)        7,496
Changes in working capital                           387,945      (218,720)
Other, including currency translation
 adjustment                                           (9,989)       33,857
                                                ------------  ------------
Net cash provided by operating activities            763,447       568,931
                                                ============  ============

Cash flows from investing activities
Capital expenditures                                (119,829)      (88,455)
Acquisitions of minority interest                     (5,942)       (1,026)
Proceeds from disposal of property, plant and
 equipment and intangible assets                       2,579         5,007
Investments in short terms securities                (17,250)      (47,918)
Dividends and distributions received from
 associated companies                                    940             -
Other                                                      -        (3,428)
                                                ------------  ------------
Net cash (used in)  investing activities            (139,502)     (135,820)
                                                ============  ============

Cash flows from financing activities
Proceeds from borrowings                             194,745       130,387
Repayments of borrowings                            (340,683)     (490,277)
                                                ------------  ------------
Net cash (used in) financing activities             (145,938)     (359,890)
                                                ============  ============

Increase in cash and cash equivalents                478,007        73,221

Movement in cash and cash equivalents
At the beginning of the period                     1,525,022       954,303
Effect of exchange rate changes                      (34,322)       45,461
Increase in cash and cash equivalents                478,007        73,221
                                                ------------  ------------
At March 31,                                       1,968,707     1,072,985
                                                ============  ============

                                                --------------------------
Cash and cash equivalents                              At March 31,
                                                --------------------------
                                                    2009          2008
Cash and bank deposits                             1,980,586     1,080,555
Bank overdrafts                                      (11,879)       (7,570)
                                                ------------  ------------
                                                   1,968,707     1,072,985
                                                ============  ============

Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com


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