Skip to main content AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa | Shale Experts
Loading...
Pm

AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa

Tenaris Sa · Aug 10, 2006 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 1
    Investor Presentation August 2006
  2. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 2
    A key player in the global energy industry Leading global supplier of oilfield equipment to the oil and gas US Billion US Million industry 75 2,800 2,400 60 Leading supplier of welded pipes 2,000 for oil and gas pipelines in…
  3. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 3
    Growth driven by oil & gas activity Revenue Gross profit 2003 2004 2005 2003 2004 2005 Seamless 2,388 3,273 5,123 856 1,198 2,407 Welded 351 348 845 76 99 289 Energy 333 418 526 17 19 13 Others 108 97 242 23 43 85 Total 3,180 4,136…
  4. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 4
    Global operations Distribution of seamless Distribution of seamless sales production (2.8 mill tons) volume (2.9 mill tons) 2005 2005 Middle East & Africa Far East & Oceania 18% 8% Europe 30% Europe Far East & Oceania 23%…
  5. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 5
    With worldwide presence Investor presentation Tenaris August 2006 6
  6. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 6
    Integrated business model Focus on sales of high value products direct to end-user customer base Global industrial system producing comprehensive range of products to a single quality standard Global R&D network Global…
  7. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 7
    Leading market position World seamless OCTG production 2005 market share Others, 7% Tenaris, 19% Japan, 8% US Steel, 8% TPCO, 9% Rest of USA, 4% V&M, 13% Rest of China, 16% TMK, 11% Rest of CIS, 5% Source: Company…
  8. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 8
    Demand for oil and gas continues to grow Projected world oil demand Projected world gas demand (Million of barrels per day) (Trillion cubic feet per year) 140 180 160 120 CAGR 1.6% CAGR 2.3% 140 100 120 80 100 80 60…
  9. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 9
    But worldwide oil production exceeds discoveries 60 Billion bbl/year 55 50 45 40 35 30 25 20 15 10 5 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Annual Discoveries Annual Production…
  10. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 10
    Drilling activity is growing faster than production International rig count US and Canada rig count (excluding US, Canada, Russia, onshore China) 1000 2000 CAGR 6.8% CAGR 7.8% 900 1800 800 1600 700 1400 600 1200 500 1000 400…
  11. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 11
    Rising reserve depletion leads to higher OCTG consumption Example of a mature basin Oil Gas 125 400 120 350 115 300 110 250 105 200 100 150 95 100 90 85 50 80 0 2002 2003 2004 2005 2002 2003 2004 2005 Production…
  12. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 12
    Reserve development to be in complex operating environments Production trend towards non-conventional sources 2003 Oil & Gas production 2010 Oil & Gas production Acid Sour 0% LNG Tight Gas Arctic 6% Tight Gas Acid Sour 3% 4% 0%…
  13. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 13
    Well complexity drives demand for premium products Land Land Offsh. Shallow Water Offshore Deep Water Shallow Well Directional Deep Well Directional Deep Well Deep Well 30 50 m 9 5/8 300 m 20 800 m 18 5/8 850 m 13 5/8…
  14. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 14
    Oil and gas E&P capex will increase Capex survey Billion US 300 Oil and gas industry has +21% 253 250 strong cash flow from high oil 209 and gas prices 200 166 150 139 Reserve replacement and increased well complexity…
  15. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 15
    Meeting rising demand for OCTG ... 2003 2004 2005 Increase 05/04 Oilfield (OCTG) 44% 46% 53% 24% Pipelines (risers, flowlines, etc) 10% 8% 9% 22% Process & Power Plant 25% 27% 20% -22% Industrial & Automotive 21% 19% 18% 6% Sales…
  16. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 16
    and for high-end products Premium connections Tenaris high-end production Chrome and CRA Thousand tons 700 45% Special, sour and high collapse 600 High end/Total 40% steel grades (RHS) 35% 500 30% Offshore risers and…
  17. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 17
    Seamless pipe margins growing US 2,200 1,200 2,000 USD/b bl 1,800 1,000 1,600 1,400 800 1,200 1,000 600 800 600 400 400 200 0 200 2001 2002 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06…
  18. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 18
    Driving financial performance Millions of US 2003 2004 2005 1H 2006 Net Sales 3,180 4,136 6,736 3,745 Seamless 2,376 3,273 5,124 3,078 Welded 351 348 845 245 Energy 333 418 526 284 Others 120 97 241 139 1 EBITDA 602 899 2,163 1,404…
  19. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 19
    Investing in growth and paying dividends Million US 800 700 600 500 400 300 200 100 0 2002 2003 2004 2005 Acquisitions Capex Dividends Investor presentation Tenaris August 2006 20
  20. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 20
    Investment program to expand high-end capacity New R&D facility in Mexico and expansion of existing facilities in Italy Expansion of heat treatment capacity Increase of premium connection manufacturing capacity New premium…
  21. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 21
    Liquidity of shares has increased Average daily trading Free float shares by market June 2006 Millions of US Mexico 2% ADRs 57% 240 Argentina 16% 200 160 120 Italy 25% 80 40 June 2005 Mexico 0 2% 2003 2004 2005 1H06…
  22. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 22
    Summary A leading global player in the oilfield services and equipment sector Well positioned to benefit from increased drilling activity and well complexity Integrated business model and leading market position Strong…
  23. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 23
    Investor presentation Tenaris August 2006 24
  24. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 24
    Agreement to acquire Maverick Tubes Corporation
  25. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 25
    Transaction overview Definitive merger agreement to acquire Maverick Tubes - all cash Total purchase price: US3,185 million, including net debt Value per share: US65 per share Premium to average share price over past 90 days -…
  26. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 26
    Maverick Tube A leading North American producer of welded OCTG and line pipe for use in oil and gas wells Producer of coiled tubing and umbilicals Producer of welded pipes for electrical conduits Operations in United States,…
  27. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 27
    MVK: operating results 2003 2004 2005 1H 2006 Millions of US Net Sales 806 1,287 1,785 1,027 Energy 622 954 1,462 876 Electrical Products 184 333 323 151 Operating income 52 289 257 190 EBITDA 74 315 288 210 EBITDA margin 9% 24%…
  28. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 28
    MVK: selected financial statistics 2003 2004 2005 1H 2006 Millions of US Cash & Equivalents 29 35 23 76 Net Debt 149 146 442 423 Net Debt/Total Capitalization 28% 20% 44% 38% ROE (annual) 6% 40% 30% 33% Investor presentation…
  29. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 29
    Factors driving demand growth for OCTG products Sustained growth in global demand for oil and gas Supply constraints led by accelerating depletion of mature fields, lack of discoveries of substantial new reserves and increasingly…
  30. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 30
    Reflected in North American drilling activity Rig count 2,000 1,750 455 1,500 365 341 1,250 372 1,000 263 750 1,383 1,156 1,190 500 1,030 830 250 0 2001 2002 2003 2004 2005 USA Canada Source: Spears &…
  31. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 31
    OCTG market in USA & Canada 6 5 4 2.6 2.3 3 1.8 2.1 2 1.3 2.5 1 2.0 1.6 1.5 1.1 0 2001 2002 2003 2004 2005 Seamless Welded Source: Preston Pipe, Statistics Canada and Company estimates Investor…
  32. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 32
    Strategic rationale Complementary market position Gain substantial access to United States and leading position in North American market commensurate with our global position Product offering in North America will cover a wide…
  33. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 33
    Enhanced company profile Following acquisition of Maverick Net sales of approx. US9 billion and 22,500 employees 20% market share in North American (USA and Canada) OCTG market (5 million tons in 2005) 30% of net sales in North…
  34. AUGUST 2006 INVESTOR PRESENTATION – Tenaris Sa – slide 34
    Investor presentation Tenaris August 2006 35

From the store

Browse maps, data & reports in the Shale Experts store