EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets out the computation of Tenaris’s ratios of earnings to fixed charges for each of the five years ended December 31, 2009, 2008, 2007, 2006 and 2005 and for the nine month period ended September 30, 2010, calculated in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and adopted by the European Union.
Nine month ended, | Year Ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
(Thousands of U.S. dollars, except ratios) | ||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income from continuing operations before equity in earnings of associated companies and income tax | 1,077,336 | 1,661,907 | 2,894,626 | 2,716,642 | 2,743,034 | 1,820,472 | ||||||||||||||||||
Fixed charges | 72,634 | 151,173 | 247,960 | 311,937 | 105,532 | 75,763 | ||||||||||||||||||
Amortization of capitalized interest | 163 | 234 | 246 | 230 | 211 | 209 | ||||||||||||||||||
Distributed income of equity investees | 13,732 | 11,420 | 15,032 | 12,170 | — | 59,127 | ||||||||||||||||||
Other types of interest on non-third party indebtedness | 3,583 | 4,982 | 5,885 | 5,966 | 3,666 | 584 | ||||||||||||||||||
Subtotal | 1,167,448 | 1,829,716 | 3,163,749 | 3,046,945 | 2,852,443 | 1,956,155 | ||||||||||||||||||
Interest capitalized | (1,062 | ) | (975 | ) | — | — | — | — | ||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | (17,579 | ) | (19,399 | ) | (52,718 | ) | (23,538 | ) | (9,466 | ) | (21,991 | ) | ||||||||||||
Total earnings | 1,148,807 | 1,809,342 | 3,111,031 | 3,023,407 | 2,842,977 | 1,934,164 | ||||||||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense | 53,963 | 130,738 | 195,138 | 288,302 | 95,827 | 53,504 | ||||||||||||||||||
Capitalized expenses related to indebtedness | 1,062 | 975 | — | — | — | — | ||||||||||||||||||
Estimate of the interest within rental expense | 30 | 61 | 104 | 97 | 239 | 268 | ||||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 17,579 | 19,399 | 52,718 | 23,538 | 9,466 | 21,991 | ||||||||||||||||||
Total fixed charges | 72,634 | 151,173 | 247,960 | 311,937 | 105,532 | 75,763 | ||||||||||||||||||
Ratio of earnings to fixed charges | 15.8 | 12.0 | 12.5 | 9.7 | 26.9 | 25.5 |