TENARIS SA | CIK:0001190723 |

 

On Tenaris entered into an agreement with Nucor Corporation (NC) pursuant to which it has sold to NC the steel electric conduit business in North America, known as Republic Conduit for an amount of million (net of transaction costs). The sale was completed on with effect from The result of this transaction was an after-tax gain of million, calculated as the net proceeds of the sale less the book value of net assets held for sale, the corresponding tax effect and related expenses.

 

		Year ended December 31,
		2017				2016
Income from discontinued operations			1,848				41,411
After tax gain on the sale of Conduit			89,694				-
Net Income for discontinued operations			91,542				41,411

 

Details of Conduit sale

 

Cash received			331,295
Transaction and other costs			(3,663	)
Carrying amount of net assets sold			(137,814	)
Gain on sale before income tax			189,817
Income tax expense on gain			(100,123	)
Gain on sale after income tax			89,694

 

The financial performances presented are relative to the days of and for the years ended and

 

 

(all amounts in thousands of US dollars, unless otherwise stated)		2017				2016				2015
Net sales			11,899				234,911				197,630
Cost of sales			(7,403	)			(136,587	)			(137,318	)
Gross profit			4,496				98,324				60,312
Selling, general and administrative expenses			(2,041	)			(32,238	)			(30,678	)
Other operating income & expenses			(1	)			(248	)			(1	)
Operating income			2,454				65,838				29,633
Finance Income (expenses), net			(9	)			(88	)			(382	)
Income before income tax			2,445				65,750				29,251
Income tax			(597	)			(24,339	)			(10,121	)
Net income			1,848				41,411				19,130
Earnings per share attributable to discontinued operations:
Weighted average number of ordinary shares (thousands)			1,180,537				1,180,537				1,180,537
Discontinued operations:
Basic and diluted earnings per share (U.S. dollars per share)			0.00				0.04				0.02
Basic and diluted earnings per ADS (U.S. dollars per ADS)			0.00				0.07				0.03

 

Summarized cash flow information is as follows

		2017				2016				2015
Cash at the beginning			18,820				15,343				13,848
Cash at the end			206				18,820				15,343
(Decrease) Increase in cash			(18,614	)			3,477				1,495
(Used in) provided by operating activities			(3,046	)			24,535				42,701
Provided by (used in) investing activities			32				(1,058	)			(1,206	)
Used in financing activities			(15,600	)			(20,000	)			(40,000	)

 

These amounts were estimated only for disclosure purposes, as cash flows from discontinued operations were managed separately from other cash flows.

 

The following table shows the current and non-current assets and liabilities of disposal group as at and the carrying amounts of assets and liabilities as at the date of sale.

 

ASSETS		At January 19, 2017								At December 31, 2016
Non-current assets
Property, plant and equipment, net			41,438								41,470
Intangible assets, net (*)			45,894				87,332				45,894				87,364
Current assets
Inventories, net			29,349								29,819
Receivables and prepayments, net			1,157								451
Trade receivables, net			38,620								33,620
Cash and cash equivalents			206				69,332				163				64,053
Total assets of disposal group classified as held for sale							156,664								151,417
LIABILITIES
Non-current liabilities
Deferred tax liabilities			5,294								4,696
Other liabilities			-				5,294				680				5,376
Current liabilities
Current tax liabilities			65								4,100
Other liabilities			2,913								1,668
Trade payables			10,578				13,556				6,950				12,718
Total liabilities of disposal group classified as held for sale							18,850								18,094