Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Entity Registrant Name | Tenaris SA |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-31518 |
Entity Central Index Key | 0001190723 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Incorporation, State or Country Code | N4 |
Entity Address, Address Line One | 26, Boulevard Royal – 4th Floor |
Entity Address, Postal Zip Code | L-2449 |
Entity Address, City or Town | Luxembourg |
Entity Address, Country | LU |
Entity Common Stock, Shares Outstanding (in shares) | 1,180,536,830 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers |
Auditor Firm ID | 1328 |
Auditor Location | Luxembourg |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Javier Cayzac |
Entity Address, Address Line One | 26, Boulevard Royal – 4th Floor |
Entity Address, Postal Zip Code | L-2449 |
Entity Address, City or Town | Luxembourg |
Entity Address, Country | LU |
City Area Code | (352) |
Local Phone Number | 26 47 89 78 |
American Depositary Shares (“ADSs”) | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | ts |
Security Exchange Name | NYSE |
Ordinary shares [member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares, par value $1.00 per share |
Trading Symbol | ts |
Security Exchange Name | NYSE |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Continuing operations | ||||
Net sales | $ 11,762,526 | $ 6,521,207 | $ 5,146,734 | |
Cost of sales | (7,087,739) | (4,611,602) | (4,087,317) | |
Gross profit | 4,674,787 | 1,909,605 | 1,059,417 | |
Selling, general and administrative expenses | (1,634,575) | (1,206,569) | (1,119,227) | |
Impairment charge | (76,725) | (57,075) | (622,402) | |
Other operating income | 104,497 | 68,245 | 33,393 | |
Other operating expenses | (104,709) | (6,697) | (14,252) | |
Operating income (loss) | 2,963,275 | 707,509 | (663,071) | |
Finance income | [1] | 80,020 | 38,048 | 18,387 |
Finance cost | (45,940) | (23,677) | (27,014) | |
Other financial results | (40,120) | 8,295 | (56,368) | |
Income (loss) before equity in earnings of non-consolidated companies and income tax | 2,957,235 | 730,175 | (728,066) | |
Equity in earnings of non-consolidated companies | 208,702 | 512,591 | 108,799 | |
Income (loss) before income tax | 3,165,937 | 1,242,766 | (619,267) | |
Income tax | (617,236) | (189,448) | (23,150) | |
Income (loss) for the year | 2,548,701 | 1,053,318 | (642,417) | |
Attributable to: | ||||
Shareholders' equity | 2,553,280 | 1,100,191 | (634,418) | |
Non-controlling interests | (4,579) | (46,873) | (7,999) | |
(Loss) income for the year | $ 2,548,701 | $ 1,053,318 | $ (642,417) | |
Earnings per share attributable to shareholders' equity during the year: | ||||
Weighted average number of ordinary shares (thousands) (in shares) | 1,180,537 | 1,180,537 | 1,180,537 | |
Basic and diluted earnings (losses) per share (U.S. dollars per share) | $ 2.16 | $ 0.93 | $ (0.54) | |
Basic and diluted earnings (losses) per ADS (U.S. dollars per ADS) | [2] | $ 4.33 | $ 1.86 | $ (1.07) |
[1] Finance Income: In 2022 2021 2020 33 3.3 6.5 In 2022 10.5 In 2021 18 6 Each ADS equals two shares. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
Income (loss) for the year | $ 2,548,701 | $ 1,053,318 | $ (642,417) | |
Items that may be subsequently reclassified to profit or loss: | ||||
Currency translation adjustment | (23,710) | (81,953) | 31,172 | |
Reclassification of currency translation adjustment reserve | (71,252) | [1],[2] | ||
Change in value of cash flow hedges and instruments at fair value | (5,186) | (1,178) | (9,832) | |
Income tax relating to components of other comprehensive income | (1,511) | 2,376 | ||
- Currency translation adjustment | 7,336 | (11,085) | (31,977) | |
- Changes in the fair value of derivatives held as cash flow hedges and others | 1,435 | 13 | 792 | |
Total other comprehensive income that will be reclassified to profit or loss, net of tax | (91,377) | (95,714) | (7,469) | |
Items that will not be reclassified to profit or loss: | ||||
Remeasurements of post-employment benefit obligations | 13,577 | 14,648 | (4,971) | |
Income tax on items that will not be reclassified | (2,673) | (5,137) | 770 | |
Remeasurements of post-employment benefit obligations of non-consolidated companies | 3,588 | 3,829 | 634 | |
Total other comprehensive income that will not be reclassified to profit or loss, net of tax | 14,492 | 13,340 | (3,567) | |
Other comprehensive (loss) for the year | (76,885) | (82,374) | (11,036) | |
Total comprehensive income (loss) for the year | 2,471,816 | 970,944 | (653,453) | |
Attributable to: | ||||
Shareholders' equity | 2,476,373 | 1,016,434 | (643,435) | |
Non-controlling interests | (4,557) | (45,490) | (10,018) | |
Total comprehensive income (loss) for the year | $ 2,471,816 | $ 970,944 | $ (653,453) | |
[1] During 2022 “Other Information - A greement to terminate NKKTubes joint venture ” . Related to NKKTubes ’ cease of operations. For more information see note 35 “Other Relevant Information – A greement to t erminate NKKTubes joint venture ” . |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Property, plant and equipment, net | $ 5,556,263 | $ 5,824,801 |
Intangible assets, net | 1,332,508 | 1,372,176 |
Right-of-use assets, net | 111,741 | 108,738 |
Investments in non-consolidated companies | 1,540,646 | 1,383,774 |
Other investments | 119,902 | 320,254 |
Derivative financial instruments | 7,080 | |
Deferred tax assets | 208,870 | 245,547 |
Receivables, net | 211,720 | 205,888 |
Non-current assets | 9,081,650 | 9,468,258 |
Current assets | ||
Inventories, net | 3,986,929 | 2,672,593 |
Receivables and prepayments, net | 183,811 | 96,276 |
Current tax assets | 243,136 | 193,021 |
Trade receivables, net | 2,493,940 | 1,299,072 |
Derivative financial instruments | 30,805 | 4,235 |
Other investments | 438,448 | 397,849 |
Cash and cash equivalents | 1,091,527 | 318,127 |
Current assets | 8,468,596 | 4,981,173 |
Total assets | 17,550,246 | 14,449,431 |
EQUITY | ||
Shareholders' equity | 13,905,709 | 11,960,578 |
Non-controlling interests | 128,728 | 145,124 |
Total equity | 14,034,437 | 12,105,702 |
Non-current liabilities | ||
Borrowings | 46,433 | 111,432 |
Lease liabilities | 83,616 | 82,694 |
Deferred tax liabilities | 269,069 | 274,721 |
Other liabilities | 230,142 | 231,681 |
Provisions | 98,126 | 83,556 |
Non-current liabilities | 727,386 | 784,084 |
Current liabilities | ||
Borrowings | 682,329 | 219,501 |
Lease liabilities | 28,561 | 34,591 |
Derivative financial instruments | 7,127 | 11,328 |
Current tax liabilities | 376,240 | 143,486 |
Other liabilities | 260,614 | 203,725 |
Provisions | 11,185 | 9,322 |
Customer advances | 242,910 | 92,436 |
Trade payables | 1,179,457 | 845,256 |
Current liabilities | 2,788,423 | 1,559,645 |
Total liabilities | 3,515,809 | 2,343,729 |
Total equity and liabilities | $ 17,550,246 | $ 14,449,431 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total | Share Capital | Legal Reserves | Share Premium | Currency Translation Adjustment | Other Reserves | Retained Earnings | Non-controlling interests | |||||
Balance at Dec. 31, 2019 | $ 12,186,372 | $ 11,988,958 | $ 1,180,537 | [1] | $ 118,054 | $ 609,733 | $ (957,246) | $ (336,902) | [2] | $ 11,374,782 | $ 197,414 | |||
Income (loss) for the year | (642,417) | (634,418) | (634,418) | (7,999) | ||||||||||
Currency translation adjustment | 31,172 | 30,849 | 30,849 | 323 | ||||||||||
Reclassification of currency translation adjustment reserve | ||||||||||||||
Remeasurements of post-employment benefit obligations, net of taxes | (4,201) | (4,236) | (4,664) | [2] | 428 | 35 | ||||||||
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes | (7,456) | (5,079) | (5,079) | [2] | (2,377) | |||||||||
From other comprehensive income of non-consolidated companies | (30,551) | (30,551) | (31,977) | 1,426 | [2] | |||||||||
Other comprehensive (loss) for the year | (11,036) | (9,017) | (1,128) | (8,317) | [2] | 428 | (2,019) | |||||||
Total comprehensive income (loss) for the year | (653,453) | (643,435) | (1,128) | (8,317) | [2] | (633,990) | (10,018) | |||||||
Acquisition and other changes in non-controlling interests | [3] | 1,492 | 2 | 2 | [2] | 1,490 | ||||||||
Dividends paid in cash | (87,938) | (82,637) | (82,637) | (5,301) | ||||||||||
Balance at Dec. 31, 2020 | 11,446,473 | 11,262,888 | 1,180,537 | [1],[4] | 118,054 | 609,733 | (958,374) | (345,217) | [2],[5] | 10,658,155 | 183,585 | |||
Income (loss) for the year | 1,053,318 | 1,100,191 | 1,100,191 | (46,873) | ||||||||||
Currency translation adjustment | (81,953) | (81,674) | (81,674) | (279) | ||||||||||
Reclassification of currency translation adjustment reserve | ||||||||||||||
Remeasurements of post-employment benefit obligations, net of taxes | 9,511 | 9,798 | 9,813 | [5] | (15) | (287) | ||||||||
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes | (2,689) | (4,638) | (4,638) | [5] | 1,949 | |||||||||
From other comprehensive income of non-consolidated companies | (7,243) | (7,243) | (11,085) | 3,842 | [5] | |||||||||
Other comprehensive (loss) for the year | (82,374) | (83,757) | (92,759) | 9,017 | [5] | (15) | 1,383 | |||||||
Total comprehensive income (loss) for the year | 970,944 | 1,016,434 | (92,759) | 9,017 | [5] | 1,100,176 | (45,490) | |||||||
Acquisition and other changes in non-controlling interests | [6] | 10,384 | 10,384 | |||||||||||
Dividends paid in cash | (322,099) | (318,744) | (318,744) | (3,355) | ||||||||||
Balance at Dec. 31, 2021 | 12,105,702 | 11,960,578 | 1,180,537 | [4],[7] | 118,054 | 609,733 | (1,051,133) | (336,200) | [5],[8] | 11,439,587 | [9] | 145,124 | ||
Income (loss) for the year | 2,548,701 | 2,553,280 | 2,553,280 | [9] | (4,579) | |||||||||
Currency translation adjustment | (23,710) | (23,632) | (23,632) | (78) | ||||||||||
Reclassification of currency translation adjustment reserve | [11] | (71,252) | [10] | (71,252) | (71,252) | |||||||||
Remeasurements of post-employment benefit obligations, net of taxes | 10,904 | 10,532 | 10,519 | [8] | 13 | [9] | 372 | |||||||
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes | (5,186) | (4,914) | (4,914) | [8] | (272) | |||||||||
From other comprehensive income of non-consolidated companies | 12,359 | 12,359 | 7,336 | 5,023 | [8] | |||||||||
Other comprehensive (loss) for the year | (76,885) | (76,907) | (87,548) | 10,628 | [8] | 13 | [9] | 22 | ||||||
Total comprehensive income (loss) for the year | 2,471,816 | 2,476,373 | (87,548) | 10,628 | [8] | 2,553,293 | [9] | (4,557) | ||||||
Acquisition and other changes in non-controlling interests | (1,407) | (1,407) | ||||||||||||
Dividends paid in cash | (541,674) | (531,242) | (531,242) | [9] | (10,432) | |||||||||
Balance at Dec. 31, 2022 | $ 14,034,437 | $ 13,905,709 | $ 1,180,537 | [7] | $ 118,054 | $ 609,733 | $ (1,138,681) | $ (325,572) | [8] | $ 13,461,638 | [9] | $ 128,728 | ||
[1] The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of $ 1.00 per share. As of December 31, 2021 and 2020 there were 1,180,536,830 shares issued. All issued shares are fully paid. Other reserves include mainly the result of transactions with non-controlling interests that do not result in a loss of control, the of post-employment benefit obligations, the changes in value of cash flow hedges and the changes in financial instruments measured at fair value through other comprehensive income. The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of $ 1.00 per share. As of December 31, 2022 there were 1,180,536,830 shares issued. All issued shares are fully paid. Other reserves include mainly the result of transactions with non-controlling interests that do not result in a loss of control, the of post-employment benefit obligations, the changes in value of cash flow hedges and the changes in financial instruments measured at fair value through other comprehensive income. The restrictions on the distribution of profits and payment of dividends according to Luxembourg Law are disclosed in note 26 (iii) to these Consolidated Financial Statements. During 2022 “Other Information - A greement to terminate NKKTubes joint venture ” . Related to NKKTubes ’ cease of operations. For more information see note 35 “Other Relevant Information – A greement to t erminate NKKTubes joint venture ” . |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||
Authorized share capital (in shares) | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 |
Nominal value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Shares issued (in shares) | 1,180,536,830 | 1,180,536,830 | 1,180,536,830 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities | ||||
Income (loss) for the year | $ 2,548,701 | $ 1,053,318 | $ (642,417) | |
Adjustments for: | ||||
Depreciation and amortization | 607,723 | 594,721 | 678,806 | |
Impairment charge | 76,725 | 57,075 | 622,402 | |
Income tax accruals less payments | 257,651 | 35,602 | (117,214) | |
Equity in earnings of non-consolidated companies | (208,702) | (512,591) | (108,799) | |
Interest accruals less payments, net | 1,480 | (11,363) | (538) | |
Changes in provisions | 16,433 | 7,381 | (13,175) | |
Reclassification of currency translation adjustment reserve | [1] | (71,252) | ||
Result of sale of subsidiaries | (6,768) | |||
Changes in working capital | [2],[3] | (2,131,245) | (1,071,464) | 1,055,289 |
Currency translation adjustment and others | 69,703 | (26,836) | 46,029 | |
Net cash provided by operating activities | 1,167,217 | 119,075 | 1,520,383 | |
Cash flows from investing activities | ||||
Capital expenditures | (378,446) | (239,518) | (193,322) | |
Changes in advance to suppliers of property, plant and equipment | (18,901) | (5,075) | (1,031) | |
Proceeds from sale of subsidiaries, net of cash | 24,332 | |||
Acquisition of subsidiaries, net of cash acquired | (4,082) | (1,025,367) | ||
Investment in companies under cost method | (692) | |||
Proceeds from disposal of property, plant and equipment and intangible assets | 48,458 | 22,735 | 14,394 | |
Dividends received from non-consolidated companies | 66,162 | 75,929 | 278 | |
Changes in investments in securities | 123,254 | 390,186 | (887,216) | |
Net cash (used in) provided by investing activities | (163,555) | 267,897 | (2,092,264) | |
Cash flows from financing activities | ||||
Dividends paid | (531,242) | (318,744) | (82,637) | |
Dividends paid to non-controlling interest in subsidiaries | (10,432) | (3,355) | (5,301) | |
Changes in non-controlling interests | (1,407) | 2 | ||
Payments of lease liabilities | (52,396) | (48,473) | (48,553) | |
Proceeds from borrowings | 1,511,503 | 843,668 | 658,156 | |
Repayments of borrowings | (1,094,370) | (1,121,053) | (896,986) | |
Net cash used in financing activities | (178,344) | (647,957) | (375,319) | |
Increase (decrease) in cash and cash equivalents | 825,318 | (260,985) | (947,200) | |
Movement in cash and cash equivalents | ||||
At the beginning of the year | 318,067 | 584,583 | 1,554,275 | |
Effect of exchange rate changes | (51,952) | (5,531) | (22,492) | |
Increase (decrease) in cash and cash equivalents | 825,318 | (260,985) | (947,200) | |
At December 31, | 1,091,433 | 318,067 | 584,583 | |
Cash and cash equivalents | ||||
Cash and bank deposits | 1,091,527 | 318,127 | 584,681 | |
Bank overdrafts | (94) | (60) | (98) | |
Cash and cash equivalents | $ 1,091,433 | $ 318,067 | $ 584,583 | |
[1]Related to NKKTubes’ cease of operations. For more information see note 35 – A greement to t erminate NKKTubes joint venture ” . Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar for an amount of $ 4.2 million for 2022 , $ 25.6 million for 2021 and $ 3.8 million for 2020 . Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar. |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENT OF CASH FLOWS | |||
Currency translation adjustment, working capital | $ 4.2 | $ 25.6 | $ 3.8 |
I. General Information
I. General Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of General Information About Financial Statements [Abstract] | |
I. GENERAL INFORMATION | I. GENERAL INFORMATION Tenaris S.A. (the “Company”) was established as a public limited liability company ( s oci é té a nonyme The Company’s shares trade on the Italian Stock Exchange and the Mexican Stock Exchange; and the Company’s American Depositary Securities (“ADS”) trade on the New York Stock Exchange. These Consolidated Financial Statements were approved for issuance by the Company’s Board of Directors on February 15, 2023. |
II. Accounting Policies
II. Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Summary of Significant Accounting Policies [Abstract] | |
II. Accounting Policies | II . A CCOUNTING POLICIES The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. A Basis of presentation The Consolidated Financial Statements of Tenaris have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and in accordance with IFRS as adopted by the European Union, under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative instruments) and plan assets at fair value. The Consolidated Financial Statements are, unless otherwise noted, presented in thousands of U.S. dollars (“$”). Whenever necessary, certain comparative amounts have been reclassified to conform to changes in presentation in the current year. The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make certain accounting estimates and assumptions that might affect among others, the reported amounts of assets, liabilities, contingent liabilities, revenues and expenses. Actual results may differ from these estimates. The main areas involving significant estimates or judgements are: impairment of goodwill and long-lived assets (notes II.H), impairment in investments in associates (note II.B); income taxes (note II.O); obsolescence of inventory (note II.J); contingencies (note II.Q); allowance for trade receivables (note II.K); post-employment and other long-term benefits (note II.P); business combinations (notes II.B); useful lives of property, plant and equipment and other long-lived assets (notes II.E, II.F, II.H); fair value estimation of certain financial instruments (notes III.B, IV.34) and property title ownership restriction (note IV.27). During the year there were no material changes in the significant accounting estimates and judgements. (1) Accounting pronouncements applicable as from J anuary 1, 20 2 2 Accounting pronouncements that became effective during 2022 have no material effect on the Company’s financial condition or results of operations. (2) New ac counting pronouncements not applicable as of December 3 1, 202 2 Certain new ly published accounting standards, amendments to accounting standards and interpretations are not mandatory for December 31, 202 2 reporting periods and have not been early adopted by the Company. These standards, amendments or interpretations are not expected to have a material impact in the current or future reporting periods and on foreseeable future transactions B Group accounting (1) Subsidiaries and transactions with non-controlling interests Subsidiaries are all entities over which Tenaris has control. Tenaris controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is exercised by the Company and are no longer consolidated from the date control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by Tenaris. The cost of an acquisition is measured as the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are generally measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is measured either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. The excess of the aggregate of the consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the Consolidated Income Statement. Contingent consideration is classified either as equity or as a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. Transactions with non-controlling interests that do not result in a loss of control are accounted as transactions with equity owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. When the Company ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Material intercompany transactions, balances and unrealized gains (losses) on transactions between Tenaris subsidiaries have been eliminated in consolidation. However, since the functional currency of some subsidiaries is its respective local currency, some financial gains (losses) arising from intercompany transactions are generated. These are included in the Consolidated Income Statement under Other f inancial results (2) Non-consolidated companies Non-consolidated companies are all entities in which Tenaris has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in non-consolidated companies (associates and joint ventures) are accounted for by the equity method of accounting and are initially recognized at cost (as defined by IAS 28, “Investments in Associates and Joint Ventures”). The Company’s investment in non-consolidated companies includes goodwill identified in acquisition, net of any accumulated impairment loss. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Tenaris’s share of the post-acquisition profits or losses of the investee in profit or loss, and Tenaris’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. If material, unrealized results on transactions between Tenaris and its non-consolidated companies are eliminated to the extent of Tenaris’s interest in the non-consolidated companies. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the asset transferred. Financial statements of non-consolidated companies are adjusted where necessary to ensure consistency with IFRS. The Company’s pro-rata share of earnings in non-consolidated companies is recorded in the Consolidated Income Statement under Equity in earnings of non-consolidated companies . The Company’s pro-rata share of changes in other comprehensive income is recognized in the Consolidated Statement of Comprehensive Income. a) Ternium At December 31, 2022, Tenaris held 11.46% of Ternium S.A. (“Ternium”) common stock. The following factors and circumstances evidence that Tenaris has significant influence over Ternium: Both the Company and Ternium are under the indirect common control of San Faustin S.A. (“San Faustin”); Four out of nine members of Ternium’s Board of Directors (including Ternium’s Chairman) are also members of the Company’s Board of Directors; Under the shareholders’ agreement by and between the Company and Techint Holdings S.àr.l, a wholly owned subsidiary of San Faustin and Ternium’s main shareholder, dated January 9, 2006, Techint Holdings S.àr.l, is required to take actions within its power to cause (a) one of the members of Ternium’s Board of Directors to be nominated by the Company and (b) any director nominated by the Company to be removed from Ternium’s Board of Directors only pursuant to previous written instructions of the Company. b) Usiminas At December 31, 2022, Tenaris held, through its Brazilian subsidiary Confab Industrial S.A. (“Confab”), 36.5 million ordinary shares and 1.3 million preferred shares of Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas (“Usiminas”), representing 5.19% of its shares with voting rights and 3.07% of its total share capital. Confab’s acquisition of the Usiminas shares was part of a larger transaction performed on January 16, 2012, pursuant to which Tenaris’s affiliate Ternium (through certain of its subsidiaries) and Confab acquired a large block of Usiminas ordinary shares and joined Usiminas’ existing control group. Subsequently, in 2016, Ternium and Confab subscribed to additional ordinary shares and to preferred shares. At December 31, 2022, the Usiminas control group held, in the aggregate, 483.6 million ordinary shares bound to the Usiminas shareholders’ agreement, representing approximately 68.6% of Usiminas’ voting capital. The Usiminas control group, which is bound by a long-term shareholders’ agreement that governs the rights and obligations of Usiminas’ control group members, is currently composed of three sub-groups: the T/T Group, comprising Confab and certain Ternium entities; the NSC Group, comprising Nippon Steel Corporation (“NSC”), Metal One Corporation and Mitsubishi Corporation; and Usiminas’ pension fund Previdência Usiminas. The T/T Group holds approximately 47.1% of the total shares held by the control group (39.5% corresponding to the Ternium entities and the other 7.6% corresponding to Confab); the NSC Group holds approximately 45.9% of the total shares held by the control group; and Previdência Usiminas holds the remaining 7%. The corporate governance rules reflected in the Usiminas shareholders agreement include, among others, an alternation mechanism for the nomination of each of the Chief Executive Officer (“CEO”) and the Chairman of the Board of Directors of Usiminas, as well as a mechanism for the nomination of other members of Usiminas’ executive board. The Usiminas shareholders agreement also provides for an exit mechanism consisting of a buy-and-sell procedure (exercisable at any time after November 16, 2022, and applicable with respect to shares held by NSC and the T/T Group), which would allow either Ternium or NSC to purchase all or a majority of the Usiminas shares held by the other shareholder. Confab and the Ternium entities party to the Usiminas shareholders agreement have a separate shareholders agreement governing their respective rights and obligations as members of the T/T Group. Such separate agreement includes, among others, provisions granting Confab certain rights relating to the T/T Group’s nomination of Usiminas’ officers and directors under the Usiminas shareholders agreement. Those circumstances evidence that Tenaris has significant influence over Usiminas. c) Techgen Techgen S.A. de C.V. (“Techgen”), which operates an electric power plant in Mexico, is a joint venture company owned 48% by Ternium, 30% by Tecpetrol International S.A. (“Tecpetrol”) and 22% by Tenaris. The Company, Ternium and Tecpetrol are parties to a shareholders’ agreement relating to the governance of Techgen and are under the indirect common control of San Faustin. Based on the facts stated above, the Company has determined that it has significant influence over this entity. d) Global Pipe Company Global Pipe Company (“GPC”) is a Saudi-German joint venture, established in 2010 and located in Jubail, Saudi Arabia, which manufactures LSAW pipes. Tenaris, through its subsidiary Saudi Steel Pipe Company (“SSPC”), currently owns 35% of the share capital of GPC. In accordance with GPC’s bylaws, SSPC’s 35% equity interest entitles SSPC to appoint four of the eleven members of the Board of Directors of GPC. In addition, SSPC has the ability to block any shareholder resolution. Based on the facts stated above, the Company has determined that it has significant influence over this entity. Tenaris carries its investments in non-consolidated companies under the equity method, with no additional goodwill or intangible assets recognized. Tenaris reviews investments in non-consolidated companies for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. For more information see note 13 to these Consolidated Financial Statements. C Segment information The Company is organized in one major business segment, Tubes, which is also the reportable operating segment. All other business activities and operating segments that are not required to be separately reported, are disclosed in the Other segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products and related services mainly for the oil and gas industry, particularly oil country tubular goods (“OCTG”) used in drilling operations, and for other industrial applications with production processes that consist in the transformation of steel into tubular products. Business activities included in this segment are mainly dependent on the oil and gas industry worldwide, as this industry is a major consumer of steel pipe products, particularly OCTG used in drilling activities. Demand for steel pipe products from the oil and gas industry has historically been volatile and depends primarily upon the number of oil and natural gas wells being drilled, completed and reworked, and the depth and drilling conditions of these wells. Sales are generally made to end users, with exports being done through a centrally managed global distribution network and domestic sales are made through local subsidiaries. The Other segment includes all business activities related to Tenaris’s Chief Operating Decision Maker (“CODM”) holds monthly meetings with senior management, in which operating and financial performance information is reviewed. This information differs from IFRS principally as follows: The use of direct cost methodology to calculate the inventories, while under IFRS it is at full cost, including absorption of production overheads and depreciations; The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost, mainly on a FIFO basis; Any currency translation adjustment reclassification, when applicable, for companies that under IFRS had a different functional currency than the U.S. dollar; Other timing differences, if any. Tenaris presents its geographical information in five areas: North America, South America, Europe, Middle East and Africa and Asia Pacific. For purposes of reporting geographical information, net sales are allocated to geographical areas based on the customer’s location; allocation of assets, capital expenditures and associated depreciations and amortizations are based on the geographical location of the assets. D Foreign c urrency t ranslation (1) Functional and presentation currency IAS 21 (revised), “The effects of changes in foreign exchange rates” defines the functional currency as the currency of the primary economic environment in which an entity operates. The functional and presentation currency of the Company is the U.S. dollar. The U.S. dollar is the currency that best reflects the economic substance of the underlying events and circumstances relevant to Tenaris’s global operations. Starting January 1, 2023, the Company changed the functional currency of its Brazilian subsidiaries, from the Brazilian Real to the U.S. dollar. This decision is a result of a significant increase of its Brazilian Subsidiaries’ participation in the OCTG and line pipe international markets, a trend which started in recent years and has been strengthened in 2022, an increased level of integration of the local operations within Tenaris’s international commercial and supply chain system, as well as the fact that the main purchase agreement contracts and the long term sales agreement contracts with major international and local oil companies are both indexed to the U.S. dollar. Local steel prices are also being affected by the U.S. dollar / Brazilian Real fluctuations. As a result of this change, except for the Italian subsidiaries whose functional currency is the Euro, Tenaris determined that the functional currency of its other subsidiaries is the U.S. dollar, based on the following principal considerations: Sales are mainly negotiated, denominated and settled in U.S. dollars. If priced in a currency other than the U.S. dollar, the sales price may consider exposure to fluctuation in the exchange rate against the U.S. dollar; Prices of their critical raw materials and inputs are priced and / or settled in U.S. dollars; Transaction and operational environment and the cash flow of these operations have the U.S. dollar as reference currency; Significant level of integration of the local operations within Tenaris’s international global distribution network; Net financial assets and liabilities are mainly received and maintained in U.S. dollars; The exchange rate of certain legal currencies has long-been affected by recurring and severe economic crises. (2) Transactions in currencies other than the functional currency Transactions in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the date of the transactions or valuati on where items are re-measured. At the end of each reporting period: (i) monetary items denominated in currencies other than the functional currency are translated using the closing rates; (ii) non-monetary items that are measured in terms of historical cost in a currency other than the functional currency are translated using the exchange rates prevailing at the date of the transactions; and (iii) non-monetary items that are measured at fair value in a currency other than the functional currency are translated using the exchange rates prevailing at the date when the fair value was determined. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in currencies other than the functional currency are recorded as gains and losses from foreign exchange and included in Other financial results in the Consolidated Income Statement, except when deferred in equity as qualifying cash flow hedges and qu alifying net investment hedges. (3) Translation of financial information in currencies other than the functional currency Results of operations for subsidiaries whose functional currencies are not the U.S. dollar are translated into U.S. dollars at the average exchange rates for each quarter of the year. Financial statement positions are translated at the year-end exchange rates. Translation differences are recognized in a separate component of equity as currency translation adjustments. In the case of a sale or other disposal of any of such subsidiaries, any accumulated translation difference would be recognized in the Consolidated Income Statement as a gain or loss from the sale following IAS 21. Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. E Property, plant and equipment Property, plant and equipment are recognized at historical acquisition or construction cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Property, plant and equipment acquired through acquisitions accounted for as business combinations have been valued initially at the fair market value of the assets acquired. Major overhaul and rebuilding expenditures are capitalized as property, plant and equipment only when it is probable that future economic benefits associated with the item will flow to the Company and the investment enhances the condition of assets beyond its original condition. The carrying amount of the replaced part is derecognized. Maintenance expenses on manufacturing properties are recorded as cost of products sold in the year in which they are incurred. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Borrowing costs that are attributable to the acquisition or construction of certain capital assets are capitalized as part of the cost of the asset, in accordance with IAS 23 (revised), “Borrowing Costs”. Assets for which borrowing costs are capitalized are those that require a substantial period of time to prepare for their intended use. The depreciation method is reviewed at each year end. Depreciation is calculated using the straight-line method to depreciate the cost of each asset to its residual value over its estimated useful life, as follows: Land No Depreciation Buildings and improvements 30-50 years Plant and production equipment 10-40 years Vehicles, furniture and fixtures, and other equipment 4-10 years The assets’ residual values and useful lives of significant plant and production equipment are reviewed and adjusted, if appropriate, at each year-end date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Management’s re-estimation of assets useful lives, performed in accordance with IAS 16, “Property, Plant and Equipment”, resulted in additional depreciation expenses of approximately $39 million for 2022, of $45 million for 2020 and did not materially affect depreciation expenses for 2021. Tenaris depreciates each significant part of an item of property, plant and equipment for its different production facilities that (i) can be properly identified as an independent component with a cost that is significant in relation to the total cost of the item, and (ii) has a useful operating life that is different from another significant part of that same item of property, plant and equipment. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of assets and are recognized under Other operating income Other operating expenses F Intangible assets (1) Goodwill Goodwill represents the excess of the acquisition cost over the fair value of Tenaris’s share of net identifiable assets acquired as part of business combinations determined mainly by independent valuations. Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Goodwill is included in the Consolidated Statement of Financial Position under Intangible assets, net. For the purpose of impairment testing, g oodwill is allocated to a cash generating unit (“ CGU ”) or group of CGUs that are expected to benefit from the business combination which generated the goodwill being tested. (2) Information systems projects Costs associated with maintaining computer software programs are generally recognized as an expense as incurred. However, costs directly related to the development, acquisition and implementation of information systems are recognized as intangible assets if it is probable that they have economic benefits exceeding one year and comply with the recognition criteria of IAS 38, “Intangible Assets”. Information systems projects recognized as assets are amortized using the straight-line method over their useful lives, generally not exceeding a period of 3 years. Amortization charges are mainly classified as Selling, general and administrative expenses Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not materially affect amortization expenses for 2022 and 2021 and resulted in additional amortization expenses of $11.1 million for 2020. (3) Licenses, patents, trademarks and proprietary technology Licenses, patents, trademarks, and proprietary technology acquired in a business combination are initially recognized at fair value at the acquisition date. Licenses, patents, proprietary technology and those trademarks that have a finite useful life are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost over their estimated useful lives, which are in the range between 3 and 10 years. Amortization charges are mainly classified as Cost of Sales The balance of acquired trademarks that have indefinite useful lives according to external appraisal amounts to $86.7 million at December 31, 2022, 2021 and 2020, and are included in Hydril CGU. Main factors considered in the determination of the indefinite useful lives include the years that they have been in service and their recognition among customers in the industry. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not materially affect amortization expenses for 2022, 2021 and 2020. (4) Research and development Research expenditures as well as Cost of sales Cost of sales Capitalized costs were not material for the years 2022, 2021 and 2020. (5) Customer relationship s In accordance with IFRS 3, "Business Combinations" and IAS 38, Tenaris has recognized the value of customer relationships separately from goodwill attributable to the acquisition of Maverick Tube Corporation (“Maverick”) and Hydril Company (“Hydril”) groups, as well as the more recent acquisi tion s of SSPC and Ipsco Tubulars Inc. (“IPSCO”) . Customer relationships acquired in a business combination are recognized at fair value at the acquisition date, have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight line method over the initial expected useful li v e s which were approximately 14 years for Maverick, 10 y ears for Hydril , 9 years for SSP C and 3 year s for IPSCO . In 2022 the Company has reviewed the useful life of SSPC’s customer relationships and decided to reduce it from 5 years to 3 years, consequently a higher amortization charge of approximately $4.1 million was recorded in the Consolidated Income Statement under Selling, general and administrative expenses for the year ended December 31, 2022. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not affect amortization expenses for 2021 and 2020. As o f December 31, 20 2 2 the net book value of SSP C ’s customer relationship amounts to $ 41.5 million , with a residual useful life of 3 years , w hile IPSCO’s, Maverick’s and Hydril’s customer relationships are fully amortized. G Right-of-use assets and lease liabilities Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the lease term on a straight-line basis. Lease liabilities include the net present value of i) fixed payments, less any lease incentives receivable, ii) variable lease payments that are based on an index or a rate, iii) amounts expected to be payable by the lessee under residual value guarantees, iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and v) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received and any initial direct costs incurred by the lessee. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or early termination, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Payments associated with short-term leases, variable leases and leases of low value assets are recognized on a straight-line basis as expenses in profit or loss. Short-term leases are leases with a lease term of 12 months or less. H Impairment of non-financial assets Long-lived assets including identifiable intangible assets are reviewed for impairment at the lowest level for which there are separately identifiable cash flows (CGU). Most of the Company’s principal subsidiaries that constitute a CGU have a single main production facility and, accordingly, each of such subsidiaries represents the lowest level of asset aggregation that generates largely independent cash inflows. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets with indefinite useful lives, including goodwill, are subject to at least an annual impairment test, or are tested more frequently if events or circumstances indicate that the carrying amount value may be impaired. In some circumstances where there have not been significant changes to CGU assets and liabilities as well as external and internal events which could materially alter the recoverable amount of the CGU, the most recent detailed calculation of recoverable amount made in a preceding period may be used in the impairment test for that CGU in the current period. In assessing whether there is any indication that a CGU may be impaired, external and internal sources of information are analyzed. Material facts and circumstances specifically considered in the analysis usually include the discount rate used in Tenaris’s cash flow projections and the business condition in terms of competitive, economic and regulatory factors, such as the cost of raw materials, oil and gas prices, and the evolution of the rig count. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher between the asset’s value in use and fair value less costs of disposal. Any impairment loss is allocated to reduce the carrying amount of the assets of the CGU in the following order: (a) first, to reduce the carrying amount of any goodwill allocated to the CGU; and (b) then, to the other assets of the unit (group of units) pro-rata on the basis of the carrying amount of each asset in the unit (group of units), considering not to reduce the carrying amount of the asset below the highest of its fair value less cost of disposal, its value in use or zero. Value in use is calculated by discounting the estimated cash flows over a five year five-year For purposes of calculating the fair value less costs of disposal, Tenaris uses the estimated value of future cash flows that a market participant could generate from the corresponding CGU. Management judgment is required to esti |
III. Financial Risk Management
III. Financial Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
III. FINANCIAL RISK MANAGEMENT | iii . Financial risk management The multinational nature of Tenaris’s operations and customer base exposes the Company to a variety of risks, mainly related to market risks (including the effects of changes in foreign currency exchange rates and interest rates), credit risk and capital market risk. In order to manage the volatility related to these exposures, management evaluates exposures on a consolidated basis, taking advantage of exposure netting. The Company or its subsidiaries may then enter into various derivative transactions in order to prevent potential adverse impacts on Tenaris’s financial performance. Such derivative transactions are executed in accordance with internal policies and hedging practices. A. Financial r isk f actors (i) Capital Risk Management Tenaris seeks to maintain a low debt to total equity ratio considering the industry and the markets where it operates. The year-end ratio of debt to total equity (where “debt” comprises financial borrowings and “total equity” is the sum of financial borrowings and equity) is 0.05 as of December 31, 2022 and 0.03 as of December 31, 2021. The Company does not have to comply with regulatory capital adequacy requirements. (ii) Foreign exchange risk Tenaris manufactures and sells its products in a number of countries throughout the world and consequently is exposed to foreign exchange rate risk. Since the Company’s functional currency is the U.S. dollar the purpose of Tenaris’s foreign currency hedging program is mainly to reduce the risk caused by changes in the exchange rates of other currencies against the U.S. dollar. Tenaris’s exposure to currency fluctuations is reviewed on a periodic and consolidated basis. A number of derivative transactions are performed in order to achieve an efficient coverage in the absence of operative or natural hedges. Almost all of these transactions are forward exchange rates contracts. See note 25 to these Consolidated Financial Statements. Tenaris does not enter into derivative financial instruments for trading or other speculative purposes, other than non-material investments in structured products. In the case of subsidiaries with functional currencies other than the U.S. dollar, the results of hedging activities, reported in accordance with IFRS, may not reflect entirely the management’s assessment of its foreign exchange risk hedging program. Intercompany balances between Tenaris’s subsidiaries may generate financial gains (losses) to the extent that functional currencies differ. The value of Tenaris’s financial assets and liabilities is subject to changes arising from the variation of foreign currency exchange rates. The following table provides a breakdown of Tenaris’s main financial assets and liabilities (including foreign exchange derivative contracts) which impact the Company’s profit and loss as of December 31, 2022 and 2021. All amounts Long / (Short) in thousands of U.S. dollars As of December 31, Currency Exposure / Functional currency 2022 2021 Argentine Peso / U.S. dollar (126,739 ) (95,073 ) Euro / U.S. dollar (42,458 ) 12,462 Saudi Arabian Riyal / U.S. dollar (74,183 ) (77,853 ) U.S. dollar / Brazilian Real (94,856 ) (32,738 ) The main relevant exposures correspond to: Argentine Peso / U.S. dollar As of December 31, 2022 and 2021 1 2021 Euro / U.S. dollar As of December 31, 2022 consisting primarily of Euro-denominated intercompany liabilities at certain subsidiaries whose functional currency is the U.S. dollar and 2021 1 2021 Saudi Arabian Riyal / U. S. dollar As of December 31, 2022 and 2021 U.S. dollar / Brazilian Real As of December 31, 2022 and 2021 1 2021 Considering the balances held as of December 31, 2022 on financial assets and liabilities exposed to foreign exchange rate fluctuations, Tenaris estimates that the impact of a simultaneous 1% appreciation / depreciation movement in the levels of foreign currencies exchange rates relative to the U.S. dollar, would be a pre-tax gain / loss of $4 million (including a loss / gain of $0.2 million due to foreign exchange derivative contracts), which would be partially offset by changes to Tenaris’s net equity position of $0.9 million. For balances held as of December 31, 2021, a simultaneous 1% favorable / unfavorable movement in the foreign currencies exchange rates relative to the U.S. dollar, would have generated a pre-tax gain / loss of $3.1 million (including a loss / gain of $0.5 million due to foreign exchange derivative contracts), which would have been partially offset by changes to Tenaris’s net equity position of $0.2 million. (iii) Interest rate risk Tenaris is subject to interest rate risk on its investment portfolio and its debt. The Company uses a mix of variable and fixed rate debt in combination with its investment portfolio strategy. The Company may choose to enter into foreign exchange derivative contracts and / or interest rate swaps to mitigate the exposure to changes in the interest rates. The following table summarizes the proportions of variable-rate and fixed-rate debt as of each year end. As of December 31, 2022 2021 In thousands of U.S. dollars % In thousands of U.S. dollars % Fixed rate (*) 497,889 68 % 187,036 57 % Variable rate 230,873 32 % 143,897 43 % Total 728,762 330,933 (*) Out of the $ 497.9 million fixed rate borrowings, $ 479 million are short-term. The Company estimates that, if market interest rates applicable to Tenaris’s borrowings had been 100 basis points higher, then the additional pre-tax loss would have been $5.3 million in 2022 and $5.2 million in 2021. (iv) Credit risk Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. The Company also actively monitors the creditworthiness of its treasury, derivative and insurance counterparties in order to minimize its credit risk. There is no significant concentration of credit risk from customers. No single customer comprised more than 10% of Tenaris’s net sales in 2022, 2021 and 2020. Tenaris’s credit policies related to sales of products and services are designed to identify customers with acceptable credit history and to allow Tenaris to require the use of credit insurance, letters of credit and other instruments designed to minimize credit risks whenever deemed necessary. Tenaris maintains allowances for impairment for potential credit losses. See section II.K. As of December 31, 2022 and 2021 trade receivables amounted to $2,493.9 million and $1,299.1 million respectively. Trade receivables have guarantees under credit insurance of $231.2 million and $175.8 million, letter of credit and other bank guarantees of $34.7 million and $17.8 million as of December 31, 2022 and 2021 respectively, and other guarantees of $2.2 million as of December 31, 2021. As of December 31, 2022 and 2021, overdue trade receivables amounted to $544.9 million and $209.6 million, respectively. As of December 31, 2022 and 2021, overdue guaranteed trade receivables amounted to $28.1 million and $10.6 million; and the allowance for doubtful accounts amounted to $45.5 million and $47.1 million respectively. Both the allowance for doubtful accounts and the existing guarantees are sufficient to cover doubtful trade receivables. (v) Counterparty risk Tenaris has investment guidelines with specific parameters to limit issuer risk on marketable securities. Counterparties for derivatives and cash transactions are limited to high credit quality financial institutions, normally investment grade. Approximately 80 % of Tenaris’s liquid financial assets correspond ed to Investment Grade-rated instruments as of December 31, 20 2 2 , in comparison with approximately 77 % as of December 31, 20 2 1 . ( v i ) Liquidity risk Tenaris financing strategy aims to maintain adequate financial resources and access to additional liquidity. During 2022, Tenaris has counted on cash flows from operations as well as additional bank financing to fund its transactions. Management maintains sufficient cash and marketable securities to finance normal operations and believes that Tenaris also has appropriate access to market for short-term working capital needs. Liquid financial assets as a whole (comprising cash and cash equivalents and other investments) were 9% and 7% of total assets at the end of 2022 and 2021, respectively. Tenaris has a conservative approach to the management of its liquidity, which consists of i) cash and cash equivalents (cash in banks, liquidity funds and investments with a maturity of less than three months at the date of purchase), and ii) other investments (fixed income securities, time deposits, and fund investments). Tenaris holds primarily investments in money market funds and variable or fixed-rate securities from investment grade issuers. As of December 31, 2022 and 2021 Tenaris held $5 million and $6 million in direct exposure to financial instruments issued by European sovereign counterparties respectively. Tenaris holds its investments primarily in U.S. dollars. As of December 31, 202 2 and 20 2 1 , U.S. dollar denominated liquid assets plus investments denominated in other currencies hedged to the U.S. dollar represented approximately 87 % of total liquid financial assets. (vii) Commodity price risk In the ordinary course of its operations, Tenaris purchases commodities and raw materials that are subject to price volatility caused by supply conditions, political and economic variables and other factors. As a consequence, Tenaris is exposed to risk resulting from fluctuations in the prices of these commodities and raw materials. Tenaris fixes the prices of such raw materials and commodities for short-term periods, typically not in excess of one year, and i n general hedging for these risks is performed on a limited basis. B. Category of financial instruments and classification w ithin th e fair value h ierarchy As mentioned in note II.A, the Company classifies its financial instruments in the following measurement categories: amortized cost, fair value through other comprehensive income and fair value through profit and loss. For financial instruments that are measured in the statement of financial position at fair value, IFRS 13, “Fair value measurement” requires a disclosure of fair value measurements by level according to the following fair value measurement hierarchy: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). The following tables present the financial instruments by category and levels as of December 31, 2022 and 2021. Carrying amount Measurement Categories At Fair Value December 31, 2022 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 1,091,527 668,668 - 422,859 422,859 - - Other investments 438,448 196,152 182,988 59,308 242,296 - - Fixed income (time-deposit, zero coupon bonds, commercial papers) 196,152 196,152 - - - - - Certificates of deposits 36,167 36,167 - - - - - Commercial papers 19,785 19,785 - - - - - Other notes 140,200 140,200 - - - - - Bonds and other fixed income 211,953 - 182,988 28,965 211,953 - - Non-U.S. government securities 108,310 - 79,345 28,965 108,310 - - Corporates securities 103,643 - 103,643 103,643 - - Mutual Fund 30,343 - - 30,343 30,343 - - Derivative financial instruments 30,805 - - 30,805 - 30,805 - Other Investments Non-current 119,902 - 113,574 6,328 113,574 - 6,328 Bonds and other fixed income 113,574 - 113,574 - 113,574 - - Other investments 6,328 - - 6,328 - - 6,328 Trade receivables 2,493,940 2,493,940 - - - - - Receivables C and NC (*) 395,531 105,397 48,659 - - - 48,659 Other receivables 154,056 105,397 48,659 - - - 48,659 Other receivables (non-financial) 241,475 - - - - - - Total 3,464,157 345,221 519,300 778,729 30,805 54,987 Liabilities Borrowings C and NC 728,762 728,762 - - - - - Trade payables 1,179,457 1,179,457 - - - - - Lease Liabilities C and NC 112,177 112,177 - - - - - Derivative financial instruments 7,127 - - 7,127 - 7,127 - Total 2,020,396 - 7,127 - 7,127 - (*) Includes balances related to interest in Venezuelan companies. See note 34 Carrying amount Measurement Categories At Fair Value December 31, 2021 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 318,127 212,430 - 105,697 105,697 - - Other investments 397,849 239,742 158,107 - 158,107 - - Fixed income (time-deposit, zero coupon bonds, commercial papers) 239,742 239,742 - - - - - Certificates of deposits 94,414 94,414 - - - - - Commercial papers 30,062 30,062 - - - - - Other notes 115,266 115,266 - - - - - Bonds and other fixed income 158,107 - 158,107 - 158,107 - - Non-U.S. government securities 10,660 - 10,660 - 10,660 - - Corporates securities 147,447 - 147,447 - 147,447 - - Derivative financial instruments 11,315 - - 11,315 - 11,315 - Other Investments Non-current 320,254 - 312,619 7,635 312,619 - 7,635 Bonds and other fixed income 312,619 - 312,619 - 312,619 - - Other investments 7,635 - - 7,635 - - 7,635 Trade receivables 1,299,072 1,299,072 - - - - - Receivables C and NC (*) 302,164 85,220 48,659 - - - 48,659 Other receivables 133,879 85,220 48,659 - - - 48,659 Other receivables (non-financial) 168,285 - - - - - - Total 1,836,464 519,385 124,647 576,423 11,315 56,294 Liabilities Borrowings C and NC 330,933 330,933 - - - - - Trade payables 845,256 845,256 - - - - - Lease Liabilities C and NC 117,285 117,285 - - - - - Derivative financial instruments 11,328 - - 11,328 - 11,328 - Total 1,293,474 - 11,328 - 11,328 - (*) Includes balances related to interest in Venezuelan companies. See note 34 There were no transfers between levels during the year. The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by Tenaris is the current bid price. These instruments are included in Level 1 and comprise primarily corporate and sovereign debt securities. The fair value of financial instruments that are not traded in an active market (such as certain debt securities, certificates of deposits with original maturity of more than three months, forward and interest rate derivative instruments) is determined by using valuation techniques which maximize the use of observable market data when available and rely as little as possible on entity specific estimates. If all significant inputs required to value an instrument are observable, the instrument is included in Level 2. Tenaris values its assets and liabilities included in this level using bid prices, interest rate curves, broker quotations, current exchange rates, forward rates and implied volatilities obtained from market contributors as of the valuation date. If one or more of the significant inputs are not based on observable market data, the instruments are included in Level 3. Tenaris values its assets and liabilities in this level using observable market inputs and management assumptions which reflect the Company’s best estimate on how market participants would price the asset or liability at measurement date. Main balances in this level include net receivables related to the Company interest in the Venezuelan Companies for a total amount of approximately $48.7 million, which reflects the best estimation of the fair value calculated using the probability of occurrence of weighted scenarios applied to the potential transaction value resulting from the awards purchase agreement mentioned in note 34 to these Consolidated Financial Statements. The following table presents the changes in Level 3 assets: Year ended December 31, 2022 2021 At the beginning of the year 56,294 56,319 (Decrease) / increase (1,126 ) 219 Currency translation adjustment and others (181 ) (244 ) At the end of the year 54,987 56,294 C . Fair value estimation Financial assets or liabilities classified at fair value through profit or loss are measured under the framework established by the IASB accounting guidance for fair value measurements and disclosures. The fair values of quoted investments are generally based on current bid prices. If the market for a financial asset is not active or no market is available, fair values are established using standard valuation techniques. The fair value of all outstanding derivatives is determined using specific pricing models that include inputs that are observable in the market or can be derived from or corroborated by observable data. The fair value of forward foreign exchange contracts is calculated as the net present value of the estimated future cash flows in each currency, based on observable yield curves, converted into U.S. dollars at the spot rate of the valuation date. Borrowings are classified under other financial liabilities and measured at their amortized cost. Tenaris estimates that the fair value of its main financial liabilities is approximately 99.2% and 99.6% of its carrying amount (including interests accrued) in 2022 and 2021 respectively. Fair values were calculated using standard valuation techniques for floating rate instruments and comparable market rates for discounting cash flows. The carrying amount of investments valuated at amortized cost approximates its fair value. D. Accounting for derivative financial instruments and hedging activities Derivative financial instruments are initially recognized in the statement of financial position at fair value through profit and loss on each date a derivative contract is entered into and are subsequently remeasured at fair value. Specific tools are used for calculation of each instrument’s fair value and these tools are tested for consistency on a monthly basis. Market rates are used for all pricing operations. These include exchange rates, deposit rates and other discount rates matching the nature of each underlying risk. As a general rule, Tenaris recognizes the full amount related to the change in fair value of derivative financial instruments in Financial Results Tenaris designates certain derivatives as hedges of particular risks associated with recognized assets or liabilities or highly probable forecast transactions. These transactions are classified as cash flow hedges. The effective portion of the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity. Amounts accumulated in equity are then recognized in the income statement in the same period as the offsetting losses and gains on the hedged item. The gain or loss relating to the ineffective portion is recognized immediately in the income statement. The fair value of Tenaris’s derivative financial instruments (assets or liabilities) continues to be reflected in the statement of financial position. For transactions designated and qualifying for hedge accounting, Tenaris documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. Tenaris also documents its assessment on an ongoing basis, of whether the hedging instruments are highly effective in offsetting changes in the fair value or cash flow of hedged items. At December 31, 2022 and 2021, the effective portion of designated cash flow hedges which is included in Other Reserves $13.1 The fair values of various derivative instruments used for hedging purposes and the movements of the hedging reserve included within Other Reserves |
Note 1 - Segment Information
Note 1 - Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Note 1 - Segment Information | 1 Segment information As mentioned in section II.C, the Segment Information is disclosed as follows: Reportable operating segments (All amounts in millions of U.S. dollars) Year ended December 31, 2022 Tubes Other Total Management view - operating income 2,772 75 2,847 Difference in cost of sales 44 Differences in depreciation and amortization 2 Differences in selling, general and administrative expenses (4 ) Differences in other operating income (expenses), net 74 IFRS - operating income 2,963 Financial income (expense), net (6 ) Income before equity in earnings of non-consolidated companies and income tax 2,957 Equity in earnings of non-consolidated companies 209 Income before income tax 3,166 IFRS - Net Sales 11,133 630 11,763 Depreciation and amortization 588 20 608 Year ended December 31, 2021 Tubes Other Total Management view - operating income 178 65 243 Difference in cost of sales 473 Differences in depreciation and amortization (1 ) Differences in other operating income (expenses), net (8 ) IFRS - operating income 708 Financial income (expense), net 23 Income before equity in earnings of non-consolidated companies and income tax 731 Equity in earnings of non-consolidated companies 513 Income before income tax 1,243 IFRS - Net Sales 5,994 528 6,521 Depreciation and amortization 575 20 595 Year ended December 31, 2020 Tubes Other Total Management view - operating (loss) (277 ) (50 ) (327 ) Difference in cost of sales (134 ) Differences in depreciation and amortization - Differences in selling, general and administrative expenses (2 ) Differences in other operating income (expenses), net (200 ) IFRS - operating (loss) (663 ) Financial income (expense), net (65 ) (Loss) before equity in earnings of non-consolidated companies and income tax (728 ) Equity in earnings of non-consolidated companies 109 (Loss) before income tax (619 ) IFRS - Net Sales 4,844 303 5,147 Depreciation and amortization 661 18 679 Transactions between segments, which were eliminated in consolidation, are mainly related to sales of scrap, energy, surplus raw materials and others from the Other segment to the Tubes segment for $77.9 million, $45.6 million and $16.9 million in 2022, 2021 and 2020, respectively. There are no material differences between IFRS and management view in total revenues and by reportable segments. The differences between operating income under IFRS view and the management view are mainly related to the cost of goods sold, reflecting the effect of raw materials prices increases on the valuation of the replacement cost considered for management view compared to IFRS cost calculated at historical cost on a FIFO basis, and other minor timing differences. The main difference in Other operating income (expenses) Other operating income (expenses) In addition to the amounts reconciled above, the main differences in net income arise from the impact of functional currencies on financial result, deferred income taxes as well as the result of investment in non-consolidated companies. Geographical information North America South America Europe Middle East & Africa Asia Pacific Unallocated (*) Total Year ended December 31, 2022 Net sales 6,902,787 2,550,402 1,000,833 1,031,106 277,398 - 11,762,526 Total assets 9,018,386 3,896,403 2,071,624 739,579 283,608 1,540,646 17,550,246 Trade receivables 1,371,717 583,223 202,753 249,637 86,610 - 2,493,940 Property, plant and equipment, net 3,548,844 1,031,423 706,539 189,701 79,756 - 5,556,263 Capital expenditures 118,644 176,448 62,143 2,813 18,398 - 378,446 Depreciation and amortization 348,550 125,324 76,631 37,612 19,606 - 607,723 Year ended December 31, 2021 Net sales 3,360,345 1,311,279 742,463 857,120 250,000 - 6,521,207 Total assets 7,992,946 2,399,448 1,727,573 581,204 364,486 1,383,774 14,449,431 Trade receivables 652,483 234,800 180,515 146,125 85,149 - 1,299,072 Property, plant and equipment, net 3,805,912 984,413 742,461 221,859 70,156 - 5,824,801 Capital expenditures 106,118 63,723 43,344 6,689 19,644 - 239,518 Depreciation and amortization 307,116 125,781 89,667 41,528 30,629 - 594,721 Year ended December 31, 2020 Net sales 2,179,949 776,235 642,793 1,227,532 320,225 - 5,146,734 Total assets 8,071,574 1,868,458 1,461,738 804,559 552,508 957,352 13,716,189 Trade receivables 411,692 115,972 139,427 210,194 90,863 - 968,148 Property, plant and equipment, net 3,971,101 1,050,619 823,057 242,939 105,465 - 6,193,181 Capital expenditures 71,531 63,111 39,691 10,452 8,537 - 193,322 Depreciation and amortization 408,546 106,827 84,518 44,259 34,656 - 678,806 (*) For 2022, 2021 and 2020 includes Investment s in non-consolidated companies There are no revenues from external customers attributable to the Company’s country of incorporation (Luxembourg). The principal countries from which the Company derives its revenues are USA (42%), Argentina (13%), Mexico ( 10 Revenue is mainly recognized at a point in time to direct customers, when control has been transferred and there is no unfulfilled performance obligation that could affect the acceptance of the product by the customer. Revenues related to governmental institutions represent approximately 22%, 23% and 24% in 2022, 2021 and 2020 respectively. Tubes segment revenues by market: (All amounts in millions of U.S. dollars) Revenues Tubes 2022 2021 2020 Oil & Gas 9,543 4,895 4,022 Oil & Gas processing plants 738 459 407 Industrial, Power and Others 852 640 415 Total 11,133 5,994 4,844 At December 31, 2022, 2021 and 2020, the Company recognized contract liabilities related to customer advances in the amount of $242.9 million, $92.4 million and $48.7 million, respectively. Each of these amounts are reclassified to revenues during the subsequent years. In these periods, no significant adjustments in revenues were performed related to previously satisfied performance obligations. |
Note 2 - Cost of Sales
Note 2 - Cost of Sales | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cost of Sales [Abstract] | |
Note 2 - Cost of Sales | 2 Cost of sales Year ended December 31, 2022 2021 2020 Inventories at the beginning of the year 2,672,593 1,636,673 2,265,880 Increase in inventory due to business combinations - - 199,589 Decrease in inventory due to sale of subsidiaries - (10,662 ) - Plus: Charges of the year Raw materials, energy, consumables and other 5,772,031 3,841,551 1,545,688 Services and fees 293,490 208,472 154,976 Labor cost (*) 1,160,085 824,071 757,359 Depreciation of property, plant and equipment 465,849 448,843 503,725 Amortization of intangible assets 11,754 7,645 8,121 Depreciation of right-of-use assets 33,244 35,910 40,127 Maintenance expenses 267,294 129,350 107,764 Allowance for obsolescence 24,901 23,296 35,809 Taxes 194,736 40,887 45,162 Other 178,691 98,159 59,790 8,402,075 5,647,522 3,458,110 Less: Inventories at the end of the year (3,986,929 ) (2,672,593 ) (1,636,673 ) 7,087,739 4,611,602 4,087,317 (*) For the year ended December 202 2 , 202 1 and 20 20 , labor cost includes approximately $ 17.8 million, $ 12.8 million and $ 81.3 million respectively of severance indemnities related to the adjustment of the workforce to market conditions. |
Note 3 - Selling, General and A
Note 3 - Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Selling, general and administrative expense [abstract] | |
Note 3 - Selling, General and Administrative Expenses | 3 Selling, general and administrative expenses Year ended December 31, 2022 2021 2020 Services and fees 148,331 115,303 115,883 Labor cost (*) 518,500 426,414 444,436 Depreciation of property, plant and equipment 21,883 22,924 26,814 Amortization of intangible assets 59,018 63,874 82,355 Depreciation of right-of-use assets 15,975 15,525 17,664 Commissions, freight and other selling expenses 641,812 415,895 310,815 Provisions for contingencies 20,606 24,998 11,957 Allowances for doubtful accounts (223 ) (4,297 ) 4,644 Taxes 121,410 78,800 63,234 Other 87,263 47,133 41,425 1,634,575 1,206,569 1,119,227 (*) For the year ended December 2022, 2021 2020 11.2 15.8 61.2 |
Note 4 - Labor Costs - Labor Co
Note 4 - Labor Costs - Labor Costs (Included in Cost of Sales and in Selling, General and Administrative Expenses) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of labor costs [abstract] | |
4. Labor costs (included in Cost of sales and in Selling, general and administrative expenses) | 4 Labor costs (included in Cost of sales and in Selling, general and administrative expenses) Year ended December 31, 2022 2021 2020 Wages, salaries and social security costs 1,594,200 1,170,562 1,036,211 Severance indemnities 29,070 28,625 142,458 Defined contribution plans 13,256 12,608 12,442 Pension benefits - defined benefit plans 16,320 13,353 11,097 Employee retention and long-term incentive program 25,739 25,337 (413 ) 1,678,585 1,250,485 1,201,795 The following table shows the geographical distribution of the employees: 2022 2021 2020 Argentina 6,444 5,169 4,376 Mexico 5,919 5,474 4,501 USA 3,509 2,684 1,596 Italy 2,136 2,011 2,039 Romania 1,847 1,725 1,552 Brazil 1,460 1,817 1,360 Colombia 1,183 1,009 746 Canada 944 758 561 Indonesia 495 506 521 Japan 11 379 399 Other 1,344 1,244 1,377 25,292 22,776 19,028 |
Note 5 - Impairment charge
Note 5 - Impairment charge | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Note 5 - Impairment charge | 5 Impairment charge Tenaris’s main source of revenue is the sale of products and services to the oil and gas industry, and the level of such sales is sensitive to international oil and gas prices and their impact on drilling activities. The Company conducts regular assessments of the carrying values of its assets. The recoverable value i s based on the value in use. The main key assumptions used in estimating the value in use are discount ra te, growth rate and competitive, economic and regulatory factors applied to determine cash flow projections, such as oil and gas prices, average number of active oil and gas drilling rigs (rig count) and raw material costs. In December 2022, the C ompany conducted impairment tests, and also reviewed and impaired the values of certain idle assets in its subsidiaries. For purposes of assessing key assumptions, to estimate discounted future cash flows, the Company uses external sources of information and management judgment based on past experience and expectations . Management has determined the value of each of the key assumptions as follows: - Discount rate: based on the applicable weighted average cost of capital (“WACC”), which is considered to be a good indicator of capital cost, taking into account the industry, country and size of the business. For each CGU where assets are allocated, a specific WACC was determined. In 202 2 , the main discount rates used were in a range between 13.4 % and 20.2 %. - Growth rate: considers mainly the inflation impact on prices and costs, the long-term evolution of the oil and gas industry, the higher demand to offset depletion- of existing fields and the Company’s expected market penetration. In 202 2 , a nominal growth rate of 2% was considered. - Oil and gas prices: based on industry analysts’ reports and management’s expectations of market development . - Rig count: based on information published by Baker Hughes and management’s expectations. - Raw material costs: based on industry analysts’ reports and management’s expectations. In December 2022, in the presence of impairment indicator s, the C ompany conducted impairment tests and reviewed the values of certain idle assets in its subsidiaries. The aforementioned analysis resulted in impairment charge s of $ 76.7 million , allocated in $ 63.1 million to the Tubes segment and $13.6 million to the Other s egment . In December, 2021, as a result of the expected termination of the NKKTubes joint venture , which represented an im pairment indicator for its assets, an impairment test was conducted, resulting in a charge of $57 million that totally reduced the carrying amounts of p roperty, plant and equipment and intangible assets. The total amount was allocated to the Tubes segment. Remaining carrying amounts a fter the recognition of impairment charges amounted to $53 million mainly related to working capital . For the year 2020 a charge of approximately $622 million, impacting the carrying value of goodwill of the CGUs OCTG-USA, IPSCO and Coiled Tubing for $225 million, $357 million and $4 million respectively, and the carrying value of property, plant and equipment of the CGU Rods-USA for $36 million was recorded. Out of the total amount, $582 million were allocated to the Tubes segment. |
Note 6 - Other Operating Income
Note 6 - Other Operating Income and Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other operating income expense [abstract] | |
Note 6 - Other Operating Income and Expenses | 6 Other operating income and expenses Year ended December 31, 2022 2021 2020 Other operating income Net income from other sales 28,161 10,694 9,891 Net rents 5,084 5,314 5,501 Reclassification of currency translation adjustment reserve (*) 71,252 - - Tax recovery in Brazilian subsidiaries (**) - 35,568 8,164 Other (***) - 16,290 9,837 Recovery on allowance for doubtful receivables - 379 - 104,497 68,245 33,393 Other operating expenses Contributions to welfare projects and non-profit organizations 13,668 6,697 12,989 Securities Exchange Commission investigation settlement (****) 78,100 - - Allowance for doubtful receivables 346 - 1,263 Other 12,595 - - 104,709 6,697 14,252 (*) During 2022 35 – A greement to terminate NKKTubes joint venture ” . (**) On May 13, 2021, the Brazilian Supreme Court issued a final judgment which confirmed that the methodology for calculating PIS and COFINS (Federal Social Contributions on Gross Revenues) tax claims to which taxpayers are entitled to, should exclude from its base the total output of ICMS, calculated on a gross basis. This decision led to a recognition of approximately $ 53 36 17 12 (***) On November 1, 2021 the Company transferred 100 24.3 6.8 (****) For more information see note 26 Contingencies - Petrobras-related proceedings and claims |
Note 7 - Financial Results
Note 7 - Financial Results | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Financial Results [Abstract] | |
Note 7 - Financial Results | 7 Financial results Year ended December 31, 2022 2021 2020 Interest Income 86,112 38,048 21,625 Net result on changes in FV of financial assets at FVPL (6,092 ) - - Impairment result on financial assets at FVTOCI - - (3,238 ) Finance Income (*) 80,020 38,048 18,387 Finance cost (45,940 ) (23,677 ) (27,014 ) Net foreign exchange transactions results (**) 15,654 17,287 (74,422 ) Foreign exchange derivatives contracts results (***) (25,666 ) (7,966 ) 19,644 Other (****) (30,108 ) (1,026 ) (1,590 ) Other financial results (40,120 ) 8,295 (56,368 ) Net financial results (6,040 ) 22,666 (64,995 ) (*) Finance Income: In 2022 2021 2020 33 3.3 6.5 In 2022 10.5 In 2021 18 6 (**) Net foreign exchange transactions results: In 2022 In 2021 In 2020 (***) Foreign exchange derivatives contracts results: In 2022 In 2021 In 2020 (****) Other: In 2022 29.8 28 |
Note 8 - Income Tax
Note 8 - Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Note 8 - Income Tax | 8 Income t ax Year ended December 31, 2022 2021 2020 Current tax (589,706 ) (215,467 ) (121,048 ) Deferred tax (27,530 ) 26,019 97,898 Tax charge (617,236 ) (189,448 ) (23,150 ) The tax on Tenaris’s income before tax differs from the theoretical amount that would arise using the tax rate in each country as follows : Year ended December 31, 2022 2021 2020 Income (loss) before income tax 3,165,937 1,242,766 (619,267 ) Less impairment charges (non-deductible) - 57,075 622,402 Income before income tax without impairment charges 3,165,937 1,299,841 3,135 Tax calculated at the tax rate in each country (705,727 ) (209,765 ) 21,052 Effect of currency translation on tax base (187,186 ) (76,043 ) (72,936 ) Changes in the tax rates (3,422 ) (29,881) (958 ) Utilization of previously unrecognized tax losses 29,560 966 98 Tax revaluation, withholding tax and others 249,539 125,275 29,594 Tax charges (617,236 ) (189,448 ) (23,150 ) Effect of currency translation on tax base, Tenaris applies the liability method to recognize deferred income tax on temporary differences between the tax bases of assets / liabilities and their carrying amounts in the financial statements. By application of this method, Tenaris recognizes gains and losses on deferred income tax due to the effect of the change in the value on the tax bases in subsidiaries (mainly Argentina and Mexico), which have a functional currency different than their local currency. These gains and losses are required by IFRS even though the revalued / devalued tax bases of the relevant assets will not result in any deduction / obligation for tax purposes in future periods. Changes in the tax rates includes mainly the effect of the increase in the corporate income tax rate in Argentina from 25% to 35% for fiscal years starting January 1, 2021. Tax revaluation, withholding tax and others, includes a net tax income of $250 million, $113 million and $61 million for 202 2 , 202 1 and 20 20 respectively related to the tax revaluation regimes in Argentina and Mexico. It also includes a charge of $21 million, $23 million and $10 million for 202 2 , 202 1 and 20 20 respectively related to withholding taxes for intra-group international operations. |
Note 9 - Dividends Distribution
Note 9 - Dividends Distribution | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Dividends Distribution [Abstract] | |
Note 9 - Dividends Distribution | 9 Dividends distribution On November 3, 202 2 , the Company’s Board of Directors approved the payment of an interim dividend of $0.17 per share ($0.34 per ADS), or approximately $ 201 million, pa id on November 23 , 202 2 , with an ex-dividend date of November 21 , 202 2 . On May 3, 2022, the Company’s Shareholders approved an annual dividend in the amount of $0.41 per share ($0.82 per ADS). The amount approved included the interim dividend previously paid in November 24, 2021 in the amount of $0.13 per share ($0.26 per ADS). The balance, amounting to $0.28 per share ($0.56 per ADS), was paid on May 25, 2022, for an amount of approximately $331 million. In the aggregate, the interim dividend paid in November 2021 and the balance paid in May 2022 amounted to approximately $484 million. On May 3, 2021, the Company’s Shareholders approved an annual dividend in the amount of $0.21 per share ($0.42 per ADS). The amount approved included the interim dividend previously paid in November 25, 2020 in the amount of $0.07 per share ($0.14 per ADS). The balance, amounting to $0.14 per share ($0.28 per ADS), was paid on May 26, 2021, for an amount of approximately $165 million. In the aggregate, the interim dividend paid in November 2020 and the balance paid in May 2021 amounted to approximately $248 million. |
Note 10 - Property, Plant and E
Note 10 - Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Note 10 - Property, Plant and Equipment, Net | 10 Property, plant and equipment, net Year ended December 31, 2022 Land and civil buildings Industrial buildings, plant and production equipment Vehicles, furniture and fixtures Work in progress Spare parts and equipment Total Cost Values at the beginning of the year 830,104 13,064,541 420,930 147,429 59,522 14,522,526 Currency translation adjustment (1,601 ) (71,347 ) (1,838 ) 376 (174 ) (74,584 ) Increase due to business combinations (*) - - - 187 - 187 Additions - 2,271 734 334,912 8,150 346,067 Transfers / Reclassifications 9,829 184,915 16,221 (227,153 ) - (16,188 ) Disposals / Consumptions (22,569 ) (322,886 ) (33,562 ) (3,372 ) (11,972 ) (394,361 ) Values at the end of the year 815,763 12,857,494 402,485 252,379 55,526 14,383,647 Depreciation and impairment Accumulated at the beginning of the year 139,941 8,199,724 353,639 - 4,421 8,697,725 Currency translation adjustment (289 ) (51,283 ) (1,756 ) - 130 (53,198 ) Depreciation charge 13,577 432,648 21,022 - 20,485 487,732 Impairment charge (See note 5) - 75,722 321 - - 76,043 Transfers / Reclassifications (2 ) (21,506 ) (215 ) - - (21,723 ) Disposals / Consumptions (955 ) (321,334 ) (32,485 ) - (4,421 ) (359,195 ) Accumulated at the end of the year 152,272 8,313,971 340,526 - 20,615 8,827,384 At December 31, 2022 663,491 4,543,523 61,959 252,379 34,911 5,556,263 (*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. Year ended December 31, 2021 Land and civil buildings Industrial buildings, plant and production equipment Vehicles, furniture and fixtures Work in progress Spare parts and equipment Total Cost Values at the beginning of the year 839,584 13,079,545 414,757 102,226 61,893 14,498,005 Currency translation adjustment (5,084 ) (138,839 ) (5,042 ) (365 ) (569 ) (149,899 ) Additions 8 15,238 1,171 192,470 4,830 213,717 Transfers / Reclassifications 2,448 148,037 17,688 (146,752 ) - 21,421 Decrease due to sale of subsidiaries (*) (200 ) (4,310 ) (62 ) - - (4,572 ) Disposals / Consumptions (6,652 ) (35,130 ) (7,582 ) (150 ) (6,632 ) (56,146 ) Values at the end of the year 830,104 13,064,541 420,930 147,429 59,522 14,522,526 Depreciation and impairment Accumulated at the beginning of the year 132,458 7,830,120 342,246 - - 8,304,824 Currency translation adjustment (1,292 ) (97,236 ) (4,621 ) - - (103,149 ) Depreciation charge 9,736 440,316 21,715 - - 471,767 Impairment charge (See note 5) - 51,470 780 - 4,421 56,671 Decrease due to sale of subsidiaries (*) - ( 567 ) ( 53 ) - - ( 620 ) Disposals / Consumptions (961 ) (24,379 ) (6,428 ) - - (31,768 ) Accumulated at the end of the year 139,941 8,199,724 353,639 - 4,421 8,697,725 At December 31, 2021 690,163 4,864,817 67,291 147,429 55,101 5,824,801 (*) See note 27 for a description of certain restricted assets with a carrying value of $56.2 million held in Saudi Arabia by the Company’s subsidiary SSPC, in which Tenaris holds a 47.79%. Property, plant and equipment include capitalized interests for net amounts at December 31, 2022 and 2021 of $30.4 million and $32 million, respectively. There were no new interests capitalized during 2022 and 2021. Government grants recognized as a reduction of property, plant and equipment were immaterial for the years 2022 and 2021. The carrying amounts of assets pledged as security for current and non-current borrowings were immaterial for the years 2022 and 2021. |
Note 11 - Intangible Assets, Ne
Note 11 - Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Note 11 - Intangible Assets, Net | 11 Intangible assets, net Year ended December 31, 2022 Information system projects Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 650,155 547,527 2,468,638 2,211,151 5,877,471 Currency translation adjustment (2,626 ) - 1,088 - (1,538 ) Increase due to business combinations (**) - 4,019 - - 4,019 Additions 31,427 952 - - 32,379 Transfers / Reclassifications (5,535 ) - - - (5,535 ) Disposals (***) (58,947 ) (1,507 ) - (449,109 ) (509,563 ) Values at the end of the year 614,474 550,991 2,469,726 1,762,042 5,397,233 Amortization and impairment Accumulated at the beginning of the year 599,307 391,223 1,383,994 2,130,771 4,505,295 Currency translation adjustment (2,496 ) - - - (2,496 ) Amortization charge 23,218 8,701 - 38,853 70,772 Impairment charge (See note 5) 2 - 680 - 682 Disposals (***) (58,912 ) (1,507 ) - (449,109 ) (509,528 ) Accumulated at the end of the year 561,119 398,417 1,384,674 1,720,515 4,064,725 At December 31, 2022 53,355 152,574 1,085,052 41,527 1,332,508 (*) Includes Proprietary Technology. (**) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. (***) Mainly related to fully depreciated assets following the deconsolidation of a Canadian subsidiary of the Company. Year ended December 31, 2021 Information system projects Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 637,352 550,500 2,469,962 2,211,151 5,868,965 Currency translation adjustment (6,466 ) (151 ) (1,324 ) - (7,941 ) Additions 22,830 2,971 - - 25,801 Transfers / Reclassifications (2,902 ) (4,637 ) - - (7,539 ) Disposals (659 ) (1,156 ) - - (1,815 ) Values at the end of the year 650,155 547,527 2,468,638 2,211,151 5,877,471 Amortization and impairment Accumulated at the beginning of the year 577,359 382,531 1,383,994 2,096,025 4,439,909 Currency translation adjustment (6,014 ) - - - (6,014 ) Amortization charge 28,072 8,701 - 34,746 71,519 Impairment charge (See note 5) 404 - - - 404 Disposals (514 ) (9 ) - - (523 ) Accumulated at the end of the year 599,307 391,223 1,383,994 2,130,771 4,505,295 At December 31, 2021 50,848 156,304 1,084,644 80,380 1,372,176 (*) Includes Proprietary Technology. The geographical allocation of goodwill for the year ended December 31, 2022 was $ million for North America, $ million for South America, $ million for Middle East & Africa and $ million for Europe. The carrying amount of goodwill allocated by CGU, as of December 31, 2022, was as follows: (all amounts in millions of U.S. dollars) Tubes Segment CGU Hydril Acquisition Other Total Tamsa (Hydril and other) 346 19 365 Siderca (Hydril and other) 265 93 358 Hydril 309 - 309 Other - 53 53 Total 920 165 1,085 |
Note 12 - Right-of-use Assets,
Note 12 - Right-of-use Assets, Net and Lease Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Note 12 - Right-of-use Assets, Net and Lease Liabilities | 12 Right-of-use assets, net and lease liabilities Right of use assets evolution Year ended December 31, 2022 Land and Civil Buildings Industrial Buildings, Plant and Production Equipment Vehicles, furniture and fixtures Others Total Cost Opening net book amount 46,082 131,816 20,256 - 198,154 Currency translation adjustment 52 (414 ) (417 ) - (779 ) Additions 15,872 31,778 7,674 1,182 56,506 Transfers / Reclassifications (5,166 ) (1,317 ) 6,483 - - Disposals (13,270 ) (36,186 ) (3,705 ) - (53,161 ) At December 31, 2022 43,570 125,677 30,291 1,182 200,720 Depreciation Accumulated at the beginning of the year 24,005 54,727 10,684 - 89,416 Currency translation adjustment (9 ) (139 ) (251 ) - (399 ) Depreciation charge 8,965 32,767 7,277 210 49,219 Transfers / Reclassifications (3,974 ) 1,431 2,543 - - Disposals (10,054 ) (35,992 ) (3,211 ) - (49,257 ) Accumulated at the end of the year 18,933 52,794 17,042 210 88,979 At December 31, 2022 24,637 72,883 13,249 972 111,741 Year ended December 31, 2021 Land and Civil Buildings Industrial Buildings, Plant and Production Equipment Vehicles, furniture and fixtures Total Cost Opening net book amount 41,932 273,358 18,615 333,905 Currency translation adjustment (187 ) (592 ) (560 ) (1,339 ) Additions 6,010 10,127 6,189 22,326 Transfers / Reclassifications - (274 ) 277 3 Disposals (*) (1,673 ) (150,803 ) (4,265 ) (156,741 ) At December 31, 2021 46,082 131,816 20,256 198,154 Depreciation Accumulated at the beginning of the year 15,142 67,993 8,817 91,952 Currency translation adjustment (37 ) (177 ) (260 ) (474 ) Depreciation charge 9,882 35,964 5,589 51,435 Transfers / Reclassifications - 96 (93) 3 Disposals (*) (982 ) (49,149 ) (3,369 ) (53,500 ) Accumulated at the end of the year 24,005 54,727 10,684 89,416 At December 31, 2021 22,077 77,089 9,572 108,738 (*) Includes net disposals of $ 96.6 million related to NKKTubes lease agreement re-measurement due to joint venture termination. Depreciation of right-of-use assets is mainly included in Tubes segment. Lease liability evolution Year ended December 31, 2022 2021 Opening net book amount 117,285 257,343 Translation differences (3,922 ) (11,350 ) Additions 56,459 22,261 Cancellations (*) (5,207 ) (103,329 ) Repayments (**) (55,874 ) (50,998 ) Interest accrued 3,436 3,358 At December 31, 112,177 117,285 (*) For 2021 95.8 (**) For 2022 52.4 3.5 2021 48.5 2.5 As of December 2022, the amount of remaining payments with maturity less than 1 year, between 2 and 5 years and more than 5 years is approximately 25.5%, 47.5% and 27%, respectively. As of December 2021, the amount of remaining payments with maturity less than 1 year, between 2 and 5 years and more than 5 years was approximately 29.5%, 33.6% and 36.9%, respectively. Expenses related to short-term leases, leases of low value assets and variable leases (included in cost of sales and selling, general and administrative expense s |
Note 13 - Investments in Non-co
Note 13 - Investments in Non-consolidated Companies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of unconsolidated structured entities [abstract] | |
Note 13 - Investments in Non-consolidated Companies | 13 Investments in non-consolidated companies Year ended December 31, 2022 2021 At the beginning of the year 1,383,774 957,352 Translation differences 7,336 (11,085 ) Equity in earnings of non-consolidated companies 242,743 512,591 Impairment loss in non-consolidated companies (*) (34,041 ) - Dividends and distributions declared (**) (64,189 ) (78,926 ) Increase in equity reserves and others 5,023 3,842 At the end of the year 1,540,646 1,383,774 ( *) Includes an impairment of $ 19.1 PAO Severstal (“Severstal”) . For more information see note 3 6 . (**) Related to Ternium and Usiminas . During 202 2 and 20 2 1 $ 66.2 million and $ 75.9 million respectively were collected . The principal non-consolidated companies are: % ownership at December 31, Book value at December 31, Company Country of incorporation 2022 2021 2022 2021 a) Ternium (*) Luxembourg 11.46% 11.46% 1,363,607 1,210,206 b) Usiminas (**) Brazil 3.07% 3.07% 109,534 103,106 c) Techgen Mexico 22.00% 22.00% 41,506 29,397 d) Global Pipe Company Saudi Arabia 35.00% 35.00% 23,022 21,523 Others 2,977 19,542 1,540,646 1,383,774 (*) Including treasury shares. (**) At December 31, 20 2 2 and 20 2 1 the voting rights were 5.19 % . a) Ternium Ternium is a steel producer with production facilities in Mexico, Brazil, Argentina, Colombia, the Southern Un ited States and Central America and is one of Tenaris’s main suppliers of round steel bars and flat steel products for its pipes business. At December 31, 20 2 2 , the closing price of Ternium’s ADSs as quoted on the New York Stock Exchange was $ 30.56 per ADS, giving Tenaris’s ownership stake a ma rket value of approximately $ 702 million . A t December 31, 20 2 2 , the carrying value of Tenaris’s ownership stake in Ternium, based on Ternium’s IFRS Financial S ta tements, was approximately $ 1,363.6 million. The Company reviews its participation in Ternium whenever events or circumstances indicate that the asset’s carrying amount may not be recoverable . As of December 31, 202 2 , the Company concluded that the carrying amount does not exceed the recoverable value of the investment. Summarized selected financial information of Ternium, including the aggregated amounts of assets, liabilities, revenues and profit or loss is as follows: Ternium 2022 2021 Non-current assets 8,647,510 8,491,363 Current assets 8,844,038 8,606,544 Total assets 17,491,548 17,097,907 Non-current liabilities 1,506,325 1,649,105 Current liabilities 2,216,832 3,213,764 Total liabilities 3,723,157 4,862,869 Total equity 13,768,391 12,235,038 Non-controlling interests 1,922,434 1,700,019 Revenues 16,414,466 16,090,744 Gross profit 3,927,184 6,195,674 Net income for the year attributable to owners of the parent 1,767,516 3,825,068 b) Usiminas Usiminas is a Brazilian producer of high quality flat steel products used in the energy, automotive and other industries. As of December 31, 20 2 2 , the closing price of the Usiminas’ ordinary and preferred shares, as quoted on the B3 - Brasil Bolsa Balcão S.A , was BRL 7.41 ($ 1.42 ) and BRL 7.16 ($ 1.37 ), respectively, giving Tenaris’s ownership stake a market value of approximately $ 53.6 million . As of that date, the carrying value of Tenaris’s ownership stake in Usiminas was approximately $ 109.5 million. For the year ended December 31, 2022, t he Company conducted an impairment test and - mainly due to the lower expectations of steel demand and market steel prices, together with a worsened global macroeconomic situation that derived in the increase in discount rates - wrote down its investment in Usiminas by $19.1 million. The value-in-use was used to determine the recoverable value. Value-in-use was calculated discounting the estimated cash flows over a five five s not identified any instances that could give rise to an additional material impairment charge over its investment in Usiminas. Summarized selected financial information of Usiminas, including the aggregated amounts of assets, liabilities, revenues and profit or loss is as follows: Usiminas 2022 2021 Non-current assets 3,764,453 3,491,103 Current assets 3,901,844 3,583,814 Total assets 7,666,297 7,074,917 Non-current liabilities 1,671,249 1,575,321 Current liabilities 1,033,524 1,134,663 Total liabilities 2,704,773 2,709,984 Total equity 4,961,524 4,364,933 Non-controlling interests 523,741 467,551 Revenues 6,296,964 6,269,569 Gross profit 1,110,439 2,101,336 Net income for the year attributable to owners of the parent 319,979 1,687,682 c) Techgen Techgen is a Mexican company that operates a natural gas-fired combined cycle electric power plant in the Pesquería area of the State of Nuevo León, Mexico, with a power capacity of 900 megawatts. As of December 31, 202 2 , Tenaris held 22% of Techgen’s share capital, and its affiliates, Ternium and Tecpetrol (both controlled by San Faustin), held 48% and 30% respectively. As of December 31, 202 2 , the carrying value of Tenaris’s ownership stake in Techgen was approximately $ 41.5 million. Techgen entered into certain transportation capacity agreements, equipment and other services related to the equipment, and an agreement for the purchase of clean energy certificates. As of December 31, 202 2 , Tenaris’s exposure under these agreements amounted to $ 42.5 million , $ 0.9 million and $ 17.2 million respectively. Techgen’s sponsors granted certain subordinated loans to Techgen. As of December 31, 202 2 , the aggregate outstanding principal amount under these subordinated loans was $ 264.2 million, of which $ 58.1 million correspond to Tenaris’s contribution. On February 13, 2019, Techgen entered into a $640 million syndicated loan agreement with several banks to refinance an existing loan, resulting in the release of certain corporate guarantees previously issued by Techgen’s shareholders to secure the replaced facility. The existing syndicated loan agreement is “non-recourse” on the sponsors. Techgen’s obligations thereunder are guaranteed by a Mexican security trust (covering shares, assets, accounts and contract rights), account pledges and certain direct agreements –customary for these type of transactions–. The commercial terms and conditions governing the purchase by the Company’s Mexican subsidiary, Tamsa, of 22 % of the energy generated by Techgen remain substantially unchanged. Under the loan agreement, Techgen is committed to maintain a debt service reserve account covering debt service becoming due during two consecutive quarters; such account is funded by stand-by letters of credit issued for the account of Techgen’s sponsors in proportion to their respective participations in Techgen. Accordingly, the Company applied for stand-by letters of credit covering 22% of the debt service coverage ratio, which as of December 31, 202 2 , amounted to $ 10.3 million. d) GPC GPC is a Saudi-German joint venture, established in 2010 and located in Jubail, Saudi Arabia, which manufactures LSAW pipes. Tenaris, through its subsidiary SSPC, currently owns 35% of the share capital of GPC. As of December 31, 2022 , the carrying value of Tenaris’s ownership stake in GPC was approximately $ 23 million. SSPC and the other three owners of GPC have issued corporate guarantees to secure repayment of loan agreements entered into by GPC, with the Saudi Investment Development Fund, the Saudi British Bank, the National Commercial Bank and Banque Saudi Fransi to finance GPC’s capital expenditures and working capital. As of December 31, 202 2 , SSPC’s exposure under the guarantees amounted to $ 84 million. In December 2022, EEW, a German company that owns another 35% interest in GPC, expressed its intention to sell its entire interest in GPC for a cash amount of $9.9 million and a release of EEW’s corporate guarantees with respect to GPC’s debt. SSPC and another shareholder that owns a 20% interest in GPC exercised their respective rights of first refusal. Each such acquisition is subject to customary conditions, including competition clearance and bank consents. If both acquisitions are cons ummated, SSPC will acquire a 22.3 % additional int erest in GPC (thus totaling a 57.3% interest ) and will assume a portion of EEW’s corporate guarantees (so that SSPC’s exposure under the g uarantees will increase to $137.5 million based on debt amounts as of December 31, 2022). |
Note 14 - Receivables - Non Cur
Note 14 - Receivables - Non Current | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other non-current receivables [abstract] | |
Note 14 - Receivables - Non Current | 14 Receivables – non current Year ended December 31, 2022 2021 Employee advances and loans 11,908 8,117 Tax credits (*) 27,333 53,210 Receivables from related parties 67,921 61,841 Legal deposits 9,394 9,041 Advances to suppliers and other advances 28,779 9,878 Receivable Venezuelan subsidiaries 48,659 48,659 Others 17,726 15,142 211,720 205,888 (*) As of December 31, 2022 and 2021 respectively, included approximately $8 million and $36 million related to PIS and COFINS (Federal Social Contributions on Gross Revenues) tax recovery on Brazilian subsidiaries. |
Note 15 - Inventories, Net
Note 15 - Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Note 15 - Inventories, Net | 15 Inventories , net Year ended December 31, 2022 2021 Finished goods 1,592,706 1,113,011 Goods in process 936,555 707,665 Raw materials 606,977 358,552 Supplies 542,636 485,815 Goods in transit 530,721 253,324 4,209,595 2,918,367 Allowance for obsolescence, see note 24 (i) (222,666 ) (245,774 ) 3,986,929 2,672,593 |
Note 16 - Receivables and Prepa
Note 16 - Receivables and Prepayments, Net | 12 Months Ended |
Dec. 31, 2022 | |
Current prepayments and current accrued income [abstract] | |
Note 16 - Receivables and Prepayments, Net | 16 Receivables and prepayments , net Year ended December 31, 2022 2021 Prepaid expenses and other receivables 47,419 38,080 Government entities 18,121 2,363 Employee advances and loans 10,701 5,974 Advances to suppliers and other advances 41,549 17,225 Government tax refunds on exports 8,898 8,419 Receivables from related parties 19,184 5,919 Others 41,418 21,502 187,290 99,482 Allowance for other doubtful accounts, see note 24 (i) (3,479 ) (3,206 ) 183,811 96,276 |
Note 17 - Current Tax Assets an
Note 17 - Current Tax Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Current Tax Receivables and Payables [Abstract] | |
Note 17 - Current Tax Assets and Liabilities | 17 Current tax assets and liabilities Year ended December 31, Current tax assets 2022 2021 Income tax assets 24,812 16,394 V.A.T. credits 218,009 176,202 Other prepaid taxes 315 425 243,136 193,021 Year ended December 31, Current tax liabilities 2022 2021 Income tax liabilities 280,469 73,352 V.A.T. liabilities 17,228 12,955 Other taxes 78,543 57,179 376,240 143,486 |
Note 18 - Trade Receivables, Ne
Note 18 - Trade Receivables, Net | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Note 18 - Trade Receivables, Net | 18 Trade receivables, net Year ended December 31, 2022 2021 Current accounts 2,479,035 1,313,934 Receivables from related parties 60,400 32,258 2,539,435 1,346,192 Allowance for doubtful accounts, see note 24 (i) (45,495 ) (47,120 ) 2,493,940 1,299,072 The following table sets forth details of the aging of trade receivables: At December 31, 2022 Trade Receivables Not Due Past due 1 - 180 days > 180 days Guaranteed 265,898 237,784 27,431 683 Not guaranteed 2,273,537 1,756,707 465,423 51,407 Guaranteed and not guaranteed 2,539,435 1,994,491 492,854 52,090 Expected loss rate 0.06 % 0.03 % 0.18 % 0.77 % Allowances for doubtful accounts (1,657 ) (654 ) (920 ) (83 ) Nominative allowances for doubtful accounts (43,838 ) - (1,541 ) (42,297 ) Net Value 2,493,940 1,993,837 490,393 9,710 At December 31, 2021 Trade Receivables Not Due Past due 1 - 180 days > 180 days Guaranteed 195,848 185,238 9,894 716 Not guaranteed 1,150,344 951,356 148,412 50,576 Guaranteed and not guaranteed 1,346,192 1,136,594 158,306 51,292 Expected loss rate 0.06 % 0.04 % 0.20 % 0.84 % Allowances for doubtful accounts (833 ) (401 ) (367 ) (65 ) Nominative allowances for doubtful accounts (46,287 ) - (1,391 ) (44,896 ) Net Value 1,299,072 1,136,193 156,548 6,331 Trade receivables are mainly denominated in U.S. dollars. |
Note 19 - Cash and Cash Equival
Note 19 - Cash and Cash Equivalents and Other Investments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash and Cash Equivalents and Other Investments [Abstract] | |
Note 19 - Cash and Cash Equivalents and Other Investments | 19 Cash and cash equivalents and o ther investments Year ended December 31, 2022 2021 Cash and cash equivalents Cash at banks 149,424 167,455 Liquidity funds 422,859 105,697 Short-term investments 519,244 44,975 1,091,527 318,127 Other investments - current Fixed income (time-deposit, zero coupon bonds, commercial papers) 196,152 239,742 Bonds and other fixed income 211,953 158,107 Fund investments 30,343 - 438,448 397,849 Other investments - non-current Bonds and other fixed income 113,574 312,619 Others 6,328 7,635 119,902 320,254 |
Note 20 - Borrowings
Note 20 - Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Note 20 - Borrowings | 20 Borrowings Year ended December 31, 2022 2021 Non-current Bank borrowings 46,433 111,452 Costs of issue of debt - (20 ) 46,433 111,432 Current Bank borrowings 682,255 219,566 Bank overdrafts 94 60 Costs of issue of debt (20) (125 ) 682,329 219,501 Total Borrowings 728,762 330,933 The maturity of borrowings is as follows: 1 year or less 1 - 2 years 2 – 3 years Over 3 years Total At December 31, 2022 Borrowings 682,329 41,933 3,000 1,500 728,762 Total borrowings 682,329 41,933 3,000 1,500 728,762 Interest to be accrued (*) 26,153 821 64 8 27,046 Total 708,482 42,754 3,064 1,508 755,808 (*) Includes the effect of hedge accounting. 1 year or less 1 - 2 years 2 – 3 years Over 3 years Total At December 31, 2021 Borrowings 219,501 107,438 3,994 - 330,933 Total borrowings 219,501 107,438 3,994 - 330,933 Interest to be accrued (*) 2,465 560 13 - 3,038 Total 221,966 107,998 4,007 - 333,971 (*) Includes the effect of hedge accounting . Significant borrowings include: In millions of U.S. dollars Disbursement date Borrower Type Final maturity Outstanding 2022 Tamsa Bilateral 2023 100 2022 Maverick Bilateral 2023 100 2022 Tubos del Caribe Bilateral 2023 90 2020 Tamsa Bilateral 2023 80 2022 Siderca Bilateral 2023 55 As of December 31, 20 2 2 , Tenaris wa s in compliance with all of its covenants. The weighted average interest rates before tax shown below were calculated using the rates set for each instrument in its corresponding currency as of December 31, 20 2 2 and 20 2 1 , considering hedge accounting where applicable . 2022 2021 Total borrowings 9.45% 2.09% Breakdown of long-term borrowings by currency and rate is as follows: Non-current borrowings Year ended December 31, Currency Interest rates 2022 2021 USD Variable 20,000 99,587 SAR Fixed 18,933 11,845 SAR Variable 7,500 - Total non-current borrowings 46,433 111,432 Breakdown of short-term borrowings by currency and rate is as follows: Current borrowings Year ended December 31, Currency Interest rates 2022 2021 USD Variable 200,350 17,015 USD Fixed 206,336 - EUR Variable - 1,273 EUR Fixed 26,829 1,706 MXN Fixed 141,802 141,861 ARS Fixed 74,025 8,947 SAR Variable 3,023 26,022 SAR Fixed 29,964 22,677 Total current borrowings 682,329 219,501 Borrowing s evolution Year ended December 31, 2022 Non current Current At the beginning of the year 111,432 219,501 Translation differences (18 ) (28,705 ) Proceeds and repayments, net 49,948 371,500 Interests accrued less payments 158 4,774 Reclassifications (115,087 ) 115,087 Increase due to business combinations (*) - 138 Overdrafts variation - 34 At the end of the year 46,433 682,329 (*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. |
Note 21 - Deferred tax assets a
Note 21 - Deferred tax assets and liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Note 21 - Deferred tax assets and liabilities | 21 Deferred tax assets and liabilities Deferred income taxes are calculated in full on temporary differences under the liability method using the tax rate of each country. The evolution of deferred tax assets and liabilities during the year is as follows: Deferred tax liabilities Fixed assets Inventories Intangible assets and other Total At the beginning of the year 669,830 27,508 104,346 801,684 Translation differences (64 ) 15 600 551 Charged to other comprehensive income - - 1,719 1,719 Income statement (credit) / charge (94,099 ) 16,009 7,877 (70,213 ) At December 31, 2022 575,667 43,532 114,542 733,741 Fixed assets Inventories Intangible assets and other Total At the beginning of the year 702,415 15,255 125,793 843,463 Translation differences (461 ) - (2,059 ) (2,520 ) Decrease due to sale of subsidiaries (*) (637 ) - - (637 ) Charged to other comprehensive income - - 4,061 4,061 Income statement (credit) / charge (31,487 ) 12,253 (23,449 ) (42,683 ) At December 31, 2021 669,830 27,508 104,346 801,684 Deferred tax assets Provisions and allowances Inventories Tax losses Other Total At the beginning of the year (25,083 ) (85,037 ) (485,763 ) (176,627 ) (772,510 ) Translation differences (345 ) 114 747 (245) 271 Charged to other comprehensive income - - - 954 954 Income statement charge / (credit) (389 ) (95,229 ) 174,427 18,934 97,743 At December 31, 2022 (25,817 ) (180,152 ) (310,589 ) (156,984 ) (673,542 ) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year (21,208 ) (85,937 ) (480,149 ) (206,958 ) (794,252 ) Translation differences 506 606 80 1,195 2,387 Decrease due to sale of subsidiaries (*) - 93 - 11 104 Charged to other comprehensive income - - - 2,587 2,587 Income statement charge / (credit) (4,381 ) 201 (5,694) 26,538 16,664 At December 31, 2021 (25,083 ) (85,037 ) (485,763 ) (176,627 ) (772,510 ) (*) Related to Geneva sale. See note 6 Deferred tax assets related to taxable losses of Tenaris subsidiaries are recognized to the extent it is considered probable that future taxable profits will be available , against which such losses can be utilized in the foreseeable future. This amount includes $ 300 million related to U . S . subsidiaries mainly due to the recognition of accelera ted fiscal depreciations, as well as the amounts related to the acquisition of IPSCO in 2020 . The remaining balance mainly corresponds to Tenaris’s Saudi Arabian subsidiar ies. These subsidiaries have incurred in fiscal losses in the past one or two years . Tenaris has concluded that these deferred tax assets will be recoverable based on t he business plans and budgets. Approximately 100% of the recognized tax losses have an expiration date in more than 5 years or do not expire. As of December 31, 20 2 2 , the net unrecognized deferred tax assets amount ed to $ million. U nrecognized tax credits with expiration dates in less than 1 year, between 2 and 5 years and more than 5 years or without expiration date are approximately 8 %, 4 % and 88 % respectively. The estimated recovery analysis of deferred tax assets and settlement of deferred tax liabilities, which takes into consideration m anagement assumptions and estimates, is as follows: Year ended December 31, 2022 2021 Deferred tax assets to be recovered after 12 months (171,717 ) (611,552 ) Deferred tax liabilities to be settled after 12 months 688,124 782,128 Deferred income tax assets and liabilities are offset when (1) there is a legally enforceable right to set - off current tax assets against current tax liabilities and (2) when the deferred income taxes relate to the same fiscal authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis . The following amounts, determined after appropriate set - off, are shown in the C onsolidated S tatement of F inancial P osition : Year ended December 31, 2022 2021 Deferred tax assets (208,870 ) (245,547 ) Deferred tax liabilities 269,069 274,721 60,199 29,174 The movement i n the net deferred income tax liability account is as follows: Year ended December 31, 2022 2021 At the beginning of the year 29,174 49,211 Translation differences 822 (133 ) Decrease due to sale of subsidiaries - (533 ) Charged to other comprehensive income 2,673 6,648 Income statement charge / (credit) 27,530 (26,019 ) At the end of the year 60,199 29,174 |
Note 22 - Other Liabilities
Note 22 - Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Other Liabilities [Abstract] | |
Note 22 - Other Liabilities | 22 Other liabilities (i) Other liabilities – Non current Year ended December 31, 2022 2021 Post-employment benefits 108,936 111,904 Other long-term benefits 71,446 71,345 Miscellaneous 49,760 48,432 230,142 231,681 Post-employment benefits Year ended December 31, 2022 2021 Unfunded 103,822 103,841 Funded 5,114 8,063 108,936 111,904 Unfunded Year ended December 31, 2022 2021 Values at the beginning of the year 103,841 115,774 Current service cost 6,810 5,728 Interest cost 7,610 5,997 Curtailments and settlements (64 ) (422 ) Remeasurements (*) ( 4,228 ) 3,174 Translation differences (5,657 ) (3,716 ) Benefits paid from the plan (5,111 ) (13,539 ) Reclassified to current liabilities (461 ) (8,884 ) Other 1,082 (271) At the end of the year 103,822 103,841 (*) For 2022 a gain of $0.1 million is attributable to demographic assumptions and a gain of $4.1 million to financial assumptions. For 2021 0.7 2.5 . The actuarial assumptions for the most relevant plans were as follows: Year ended December 31, 2022 2021 Discount rate 4% - 7% 1% - 7% Rate of compensation increase 2% - 3% 0% - 3% As o f December 31, 20 2 2 , an increase / (decrease) of 1% in the discount rate assumption of the main plans would have generated a (decrease) / increase on the defined benefit obligation of $ 5.2 million and $ 5.9 million respectively, and an increase / (decrease) of 1% in the rate of compensation assumption of the main plans would have generated an increase / (decrease) impact on the defined benefit obligation of $ 3.2 million and $ 2.9 million respectivel y. The above sensitivity analyse s are based on a change in discount rate and rate of compensation while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated . Funded The amounts recognized in the statement of financial position for the current annual period and the previous annual period are as follows: Year ended December 31, 2022 2021 Present value of funded obligations 116,617 159,528 Fair value of plan assets (126,842 ) (160,504 ) Asset (*) ( 10,225 ) ( 976 ) (*) In 2022 2021 The movement in the present value of funded obligations is as follows: Year ended December 31, 2022 2021 At the beginning of the year 159,528 176,309 Translation differences (6,635 ) 356 Current service cost 154 222 Interest cost 4,293 4,190 Remeasurements (*) (30,349 ) (7,019 ) Benefits paid (10,374 ) (14,530 ) At the end of the year 116,617 159,528 (*) For 2022 For 2021 0.4 6.6 The movement in the fair value of plan assets is as follows: Year ended December 31, 2022 2021 At the beginning of the year (160,504 ) (157,335 ) Translation differences 6,639 (250 ) Return on plan assets (4,319 ) (3,793 ) Remeasurements 20,987 (10,817 ) Contributions paid to the plan (435 ) (3,338 ) Benefits paid from the plan 10,374 14,530 Other 416 499 At the end of the year (126,842 ) (160,504 ) The major categories of plan assets as a percentage of total plan assets are as follows: Year ended December 31, 2022 2021 Equity instruments 28.8% 49.2% Debt instruments 67.2% 46.7% Others 4.0% 4.1% The actuarial assumptions for the most relevant plans were as follows: Year ended December 31, 2022 2021 Discount rate 3% - 5% 2% - 3% Rate of compensation increase 0% - 3% 0% - 3% The expected return on plan assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected return on plan assets is determined based on long-term, prospective rates of return as of the end of the reporting period. As of December 31, 2022, an increase / (decrease) of 1% in the discount rate assumption of the main plans would have generated a (decrease) / increase on the defined benefit obligation of $10.3 million and $11.9 million respectively, and an increase / (decrease) of 1% in the compensation rate assumption of the main plans would have generated an increase / (decrease) on the defined benefit obligation of $0.7 million and $0.7 million respectively. The above sensitivity analyses are based on a change in discount rate and rate of compensation while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. There are no expected employer contributions for the year 2023. The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to the previous period. (ii) Other liabilities – C urrent Year ended December 31, 2022 2021 Payroll and social security payable 224,630 174,794 Miscellaneous 35,984 28,931 260,614 203,725 |
Note 23 - Non-current allowance
Note 23 - Non-current allowances and provisions | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Non-current allowances and provisions [Abstract] | |
Note 23 - Non-current allowances and provisions | 23 Non-current allowances and provisions Liabilities Year ended December 31, 2022 2021 Values at the beginning of the year 83,556 73,218 Translation differences 357 (2,476 ) Additional allowance 11,102 13,896 Reclassifications 2,229 4,014 Used and other movements 882 (5,096 ) Values at the end of the year 98,126 83,556 |
Note 24 - Current allowances an
Note 24 - Current allowances and provisions | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Current allowances and provisions [Abstract] | |
Note 24 - Current allowances and provisions | 24 Current allowances and provisions (i) Deducted from assets Year ended December 31, 2022 Allowance for doubtful accounts - Trade receivables Allowance for other doubtful accounts - Other receivables Allowance for inventory obsolescence Values at the beginning of the year (47,120 ) (3,206 ) (245,774 ) Translation differences (12 ) 68 (405 ) (Additional) / reversal allowances 223 (346 ) (24,901 ) Used 1,414 5 48,414 At December 31, 2022 (45,495 ) (3,479 ) (222,666 ) Year ended December 31, 2021 Allowance for doubtful accounts - Trade receivables Allowance for other doubtful accounts - Other receivables Allowance for inventory obsolescence Values at the beginning of the year (53,676 ) (3,917 ) (263,635 ) Translation differences 111 227 1,877 Decrease due to sale of subsidiaries (*) 2 10 405 (Additional) / reversal allowances 4,297 379 (23,296 ) Used 2,146 95 38,875 At December 31, 2021 (47,120 ) (3,206 ) (245,774 ) (*) Rel ated to Geneva sale. See note 6 (ii) Liabilities Year ended December 31, 2022 Sales risks Other claims and contingencies (*) Total Values at the beginning of the year 1,468 7,854 9,322 Translation differences (160 ) (97 ) (257 ) Additional provisions 5,315 4,189 9,504 Reclassifications - (2,229 ) (2,229 ) Used (3,437 ) (1,718 ) (5,155 ) At December 31, 2022 3,186 7,999 11,185 Year ended December 31, 2021 Sales risks Other claims and contingencies (*) Total Values at the beginning of the year 1,795 10,484 12,279 Translation differences (3 ) (736 ) (739 ) Additional provisions 3,506 7,596 11,102 Reclassifications - (4,014 ) (4,014 ) Used (3,830 ) (5,476 ) (9,306 ) At December 31, 2021 1,468 7,854 9,322 (*) Other claims and contingencies mainly include lawsuits and other legal proceedings, including employee, tax and environmental-related claims. |
Note 25 - Derivative Financial
Note 25 - Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Note 25 - Derivative Financial Instruments | 25 Derivative financial instruments Net fair values of derivative financial instruments The net fair values of derivative financial instruments , in accordance with IFRS 13 , a re: Year ended December 31, 2022 2021 Derivatives hedging borrowings and investments 6,480 2,472 Other derivatives 24,325 8,843 Contracts with positive fair values 30,805 11,315 Derivatives hedging borrowings and investments - (147) Other derivatives (7,127 ) (11,181 ) Contracts with negative fair values (7,127 ) (11,328 ) Total 23,678 (13 ) Foreign e xchange and commodities derivative contracts and hedge accounting Te naris applies hedge accounting to certain cash flow hedges of highly probable forecast transactions. Purchase currency Sell currency Term Fair Value Hedge Accounting Reserve 2022 2021 2022 2021 MXN USD 2023 6,571 1,444 (67 ) (93 ) USD MXN 2023 - (838 ) - - EUR USD 2023 1,866 (7,670 ) (2,786 ) (7,430 ) USD EUR 2023 20,783 9,092 23,935 8,258 JPY USD 2023 - (269 ) - 557 USD BRL 2023 (2,490 ) (1,030 ) - - USD KWD 2023 (129 ) - - - USD CAD 2023 404 (246 ) - - USD GBP 2023 (11 ) (55 ) - - USD CNY 2023 (242 ) (130 ) - - BRL USD 2023 223 (238 ) - - Others 2023 63 (40 ) 3 - Total 27,038 20 21,085 1,292 Purchase Commodity Term Fair Value Hedge Accounting Reserve 2022 2021 2022 2021 Houston Ship Channel Gas 2023 (814 ) (33 ) (814 ) (33 ) LME Scrap 2023 29 - (3,148 ) - Iron Ore 2023 12 - (1,274 ) - Electric Energy 2023 (519 ) - (519 ) - TTF Gas 2023 (2,068 ) - (2,207 ) - Total (3,360 ) (33 ) (7,963 ) (33 ) F ollowing is a summary of the hedge reserve evolution: (all amounts in thousands of U.S. dollars) Equity Reserve Dec-2020 Movements 2021 Equity Reserve Dec-2021 Movements 2022 Equity Reserve Dec-2022 Foreign Exchange & Commodities (4,771 ) 6,030 1,259 11,863 13,122 Total Cash flow Hedge (4,771 ) 6,030 1,259 11,863 13,122 Tenaris estimates that t he cash flow he dge reserve corresponding to derivatives instruments at December 31, 20 2 2 will be recycled to the Consolida ted Income Statement during 202 3 . For informa tion on hedge accounting reserve, see s ection III.D to these Consolidated Financial Statements . |
Note 26 - Contingencies, Commit
Note 26 - Contingencies, Commitments and Restrictions On the Distribution of Profits | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Contingencies, Commitments and Restrictions on Distribution of Profits [Abstract] | |
Note 26 - Contingencies, Commitments and Restrictions On the Distribution of Profits | 26 Contingencies, commitments and restrictions o n the distribution of profits (i) Contingencies Tenaris is from time to time subject to various claims, lawsuits and other legal proceedings, including customer, employee, tax and environmental-related claims, in which third parties are seeking payment for alleged damages, reimbursement for losses, or indemnity. Management with the assistance of legal counsel periodically reviews the status of each significant matter and assesses potential financial exposure. Some of these claims, lawsuits and other legal proceedings involve highly complex issues, and often these issues are subject to substantial uncertainties and, therefore, the probability of loss and an estimation of damages are difficult to ascertain. Accordingly, with respect to a large portion of such claims, lawsuits and other legal proceedings, the Company is unable to make a reliable estimate of the expected financial effect that will result from ultimate resolution of the proceeding. In those cases, the Company has not accrued a provision for the potential outcome of these cases. If a potential loss from a claim, lawsuit or other proceeding is considered probable and the amount can be reasonably estimated, a provision is recorded. Accruals for loss contingencies reflect a reasonable estimate of the losses to be incurred based on information available to management as of the date of preparation of the financial statements and take into consideration litigation and settlement strategies. In a limited number of ongoing cases, the Company was able to make a reliable estimate of the expected loss or range of probable loss and, depending on the likelihood of occurrence, in some of such cases has accrued a provision for such loss but believes that publication of this information on a case-by-case basis would seriously prejudice the Tenaris’s position in the ongoing legal proceedings or in any related settlement discussions. Accordingly, in these cases, the Company has disclosed information with respect to the nature of the contingency but has not disclosed its estimate of the range of potential loss. The Company believes that the aggregate provisions recorded for potential losses in these Consolidated Financial Statements are adequate based upon currently available information. However, if management’s estimates prove incorrect, current reserves could be inadequate and the Company could incur a charge to earnings which could have a material adverse effect on its results of operations, financial condition, net worth and cash flows. Below is a summary description of Tenaris’s material legal proceedings which are outstanding as of the date of these Consolidated Financial Statements. In addition, the Company is subject to other legal proceedings, none of which is believed to be material. CSN claims relating to the January 2012 acquisition of Usiminas Confab, a Brazilian subsidiary of the Company, is one of the defendants in a lawsuit filed in Brazil by Companhia Siderúrgica Nacional (“CSN”) and various entities affiliated with CSN against Confab and several Ternium subsidiaries that acquired a participation in Usiminas’ control group in January 2012. The CSN lawsuit alleges that, under applicable Brazilian laws and rules, the acquirers were required to launch a tag-along tender offer to all non-controlling holders of Usiminas’ ordinary shares for a price per share equal to 80% of the price per share paid in such acquisition, or BRL28.8, and seeks an order to compel the acquirers to launch an offer at that price plus interest. If so ordered, the offer would need to be made to 182,609,851 ordinary shares of Usiminas not belonging to Usiminas’ control group, and Confab would have a 17.9% share in that offer. On September 23, 2013, the first instance court dismissed the CSN lawsuit, and on February 8, 2017, the court of appeals maintained the understanding of the first instance court. On August 18, 2017, CSN filed an appeal to the Superior Court of Justice seeking the review and reversal of the decision issued by the Court of Appeals. On March 5, 2018, the court of appeals ruled that CSN’s appeal did not meet the requirements for submission to the Superior Court of Justice and rejected the appeal. On May 8, 2018, CSN appealed against such ruling and on January 22, 2019, the court of appeals rejected it and ordered that the case be submitted to the Superior Court of Justice. On September 10, 2019, the Superior Court of Justice declared CSN’s appeal admissible. On March 7, 2023, the Superior Court of Justice, by majority vote, rejected CSN’s appeal. Plaintiffs may still appeal against the Superior Court of Justice’s decision. At this time, the Company cannot predict whether CSN will appeal against the decision and, if appealed, the ultimate resolution of the matter. The Company continues to believe that all of CSN’s claims and allegations are groundless and without merit, as confirmed by several opinions of Brazilian legal counsel, two decisions issued by the Brazilian securities regulator (“CVM”) in February 2012 and December 2016, the first and second instance court decisions and the March 2023 decision of the Superior Court of Justice referred to above. Veracel celulose accident litigation On September 21, 2007, an accident occurred in the premises of Veracel Celulose S.A. (“Veracel”) in connection with a rupture in one of the tanks used in an evaporation system manufactured by Confab. The Veracel accident allegedly resulted in material damages to Veracel. Itaú Seguros S.A. (“Itaú”), Veracel’s insurer at the time of the Veracel accident and then replaced by Chubb Seguros Brasil S/A (“Chubb”), initiated a lawsuit against Confab seeking reimbursement of damages paid to Veracel in connection with the Veracel accident. Veracel initiated a second lawsuit against Confab seeking reimbursement of the amount paid as insurance deductible with respect to the Veracel accident and other amounts not covered by insurance. Itaú and Veracel claimed that the Veracel accident was caused by failures and defects attributable to the evaporation system manufactured by Confab. Confab believes that the Veracel accident was caused by the improper handling by Veracel’s personnel of the equipment supplied by Confab in violation of Confab’s instructions. The two lawsuits were consolidated and are considered by the 6th Civil Court of São Caetano do Sul. However, each lawsuit will be adjudicated separately. On September 28, 2018, Confab and Chubb entered into a settlement agreement pursuant to which on October 9, 2018, Confab paid an amount of approximately $3.5 million to Chubb, without assuming any liability for the accident or the claim. On October 10, 2018, Confab was notified that the court had issued rulings for both lawsuits. Both decisions were unfavorable to Confab: With respect to Chubb’s claim, the court subsequently homologated the above-mentioned settlement and, accordingly, the claim was finalized. With respect to Veracel’s claim, Confab was ordered to pay the insurance deductible and other concepts not covered by insurance, currently estimated to amount to BRL 91.9 million (approximately $ 17.4 million) including interest, fees and expenses. Both parties filed motions for clarification against the court’s decision, which were partially granted. Although the contract between Confab and Veracel expressly provided that Confab would not be liable for damages arising from lost profits, the court award would appear to include BRL 78.8 million (approximately $ 15.10 million) of damages arising therefrom. Confab has additional defense arguments in respect of a claim for lost profits. On December 18, 2018, Confab filed an appeal against the first instance court decision, and on April 30, 2019, Veracel filed its response to the appeal. In June 2022, the court resolved that it lacked jurisdiction to decide on the appeal , which was re-allocat ed to another court. The parties are currently waiting for the trial of the appeal to be scheduled. At this stage the Company cannot predict the outcome of the claim or the amount or range of loss in case of an unfavorable outcome. Petrobras-related proceedings and claims The Company is aware that Brazilian, Italian and Swiss authorities investigated whether certain payments were made prior to 2014 from accounts of entities presumably associated with affiliates of the Company to accounts allegedly linked to individuals related to Petróleo Brasileiro S.A. (“Petrobras”) and whether any such payments were intended to benefit the Company’s Brazilian subsidiary Confab. Upon learning of the investigation, the Audit Committee of the Company's Board of Directors engaged external counsel in connection with the Company’s review of these matters. In addition, the Company voluntarily notified the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) in October 2016. The Company conducted, with the assistance of external counsel, an internal investigation and found no evidence corroborating any involvement by the Company or its directors, officers or employees in respect of improper payments. An internal investigation commissioned by Petrobras also found no evidence that Confab obtained any unfair commercial benefit or advantage from Petrobras in return for payments, including improperly obtained contracts. On June 2, 2022, the Company resolved the investigation by the SEC, and the DOJ informed that it had closed its parallel inquiry without taking action. Under the settlement with the SEC, the Company neither admits nor denies the SEC’s findings and on June 24, 2022, paid $53.1 million in disgorgement and prejudgment interest and $25 million for a civil penalty to conclude the matter. In July 2019, the Company learned that the public prosecutors’ office of Milan, Italy, had completed a preliminary investigation into the same alleged payments and had included in the investigation, among other persons, the Company’s Chairman and Chief Executive Officer, two other board members, Gianfelice Rocca and Roberto Bonatti, and the Company’s controlling shareholder, San Faustin. The Company is not a party to the proceedings. On March 22, 2022, upon completion of the evidentiary phase of the trial, the acting prosecutor requested the first-instance court in Milan in charge of the case to impose sanctions on the Company's Chairman and Chief Executive Officer, on the other two board members, and on San Faustin. The Company’s outside counsel in Italy advised the Company that neither the case file nor the prosecutor’s request contain or identify any evidence of involvement in, or knowledge of, the alleged wrongdoing by any of the three directors. On May 26, 2022, the first-instance court dismissed the case brought by the public prosecutor against the defendants for lack of jurisdiction and stated that the criminal proceeding should not have been initiated. On October 7, 2022, the public prosecutor filed an appeal against the first-instance court’s decision. In June 2020, the Brazilian public prosecutors’ office requested the indictment of several individuals, including three executives or former executives of Confab and a former agent of Confab, charging them with the alleged crimes of corruption in relation to contracts executed between 2007 and 2010, and money laundering in relation to payments between 2009 and 2013. These criminal proceedings are underway. Neither the Company nor Confab is a party to these criminal proceedings. In addition, Petrobras and the Brazilian public prosecutors filed civil claims for damages against, among others, Confab and the Confab executives named in the criminal proceedings referred to above. Confab became aware of these civil claims in September 2022. As of December 31 , 2022, the aggregate amount of these claims was estimated at BRL 284.2 million (or approximately $ 54.5 million). The plaintiffs also seek that Confab be prohibited from contracting with, or receiving benefits or exemptions from, the Brazilian state for an unspecified term. Confab believes these claims do not address either the defense arguments or the evidence available to the plaintiffs in Brazil and presented in other jurisdictions and is vigorously contesting them. At this stage, the Company cannot predict the outcome of these civil proceedings. Putative class actions Following the Company’s November 27, 2018, announcement that its Chairman and CEO Paolo Rocca had been included in an Argentine court investigation known as the Notebooks Case (a decision subsequently reversed by a higher court), two putative class action complaints were filed in the U.S. District Court for the Eastern District of New York. On April 29, 2019, the court consolidated the complaints into a single case, captioned “In re Tenaris S.A. Securities Litigation”, and appointed lead plaintiffs and lead counsel. On July 19, 2019, the lead plaintiffs filed an amended complaint purportedly on behalf of purchasers of Tenaris securities during the putative class period of May 1, 2014, through December 5, 2018. The individual defendants named in the complaint are Tenaris’s Chairman and CEO and Tenaris’s former CFO. The complaint alleges that during the class period, the Company and the individual defendants inflated the Tenaris share price by failing to disclose that the nationalization proceeds received by Ternium (in which the Company held an 11.46% stake) when Sidor was expropriated by Venezuela were received or expedited as a result of allegedly improper payments made to Argentine officials. The complaint does not specify the damages that plaintiff is seeking. On October 9, 2020, the court granted in part and denied in part the defendants’ motions to dismiss. The court partially granted and partially denied the motion to dismiss the claims against the Company and its Chairman and CEO. In addition, the court granted the motions to dismiss as to all claims against San Faustin, Techint, and Tenaris’s former CFO. On November 11, 2022, the parties filed a joint notice of settlement announcing a settlement in principle of all claims in the action, subject to finalizing the settlement agreements and court approval. The parties’ agreement in principle provides that, in exchange for dismissal of the action and customary releases from class members and with no admission of liability by Tenaris or Mr. Rocca, Tenaris will pay to the class $9.5 million (inclusive of legal fees to lead plaintiff’s counsel). On March 10, 2023, the lead plaintiffs filed a motion for preliminary approval of the class settlement. Administrative proceeding concerning Brazilian tax credits Confab is a party to an administrative proceeding concerning the recognition and transfer of tax credits for an amount allegedly exceeding the amount that Confab would have been entitled to recognize and / or transfer. The proceeding resulted in the imposition of a fine against Confab representing approximately 75% of the allegedly undue credits, which was appealed by Confab. On January 21, 2019, Confab was notified of an administrative decision denying Confab’s appeal, thereby upholding the tax determination and the fine against Confab. On January 28, 2019, Confab challenged such administrative decision and is currently awaiting a resolution. In case of an unfavorable resolution, Confab may appeal before the courts. The estimated amount of this claim is BRL 59.2 million (approximately $ 11.3 million). At this stage, the Company cannot predict the outcome of this claim. U.S. patent infringement litigation Tenaris Coiled Tubes, LLC (“TCT”), a U.S. subsidiary of the Company, was sued in 2017 by its competitor Global Tubing, alleging defamatory conduct by TCT and seeking a declaration that certain Global Tubing products do not infringe patents held by TCT. TCT counterclaimed that certain Global Tubing products did infringe patents held by TCT, and Global Tubing has since sought to invalidate such patents. On December 13, 2019, Global Tubing filed an amended complaint (including the Company as defendant), alleging, among other things, that TCT and the Company had misled the patent office. On March 20, 2023, the judge granted summary judgment in favor of Global Tubing, concluding that the patents at issue are unenforceable due to inequitable conduct during the patent prosecution process. TCT and the Company are analyzing whether to appeal this judgment. Although it is not possible to predict the final outcome of this matter, the Company believes that any potential losses arising from this case will not be material. U.S. Antidumping Duty and Countervailing Duty Investigations On October 27, 2021, the U.S. Department of Commerce (“DOC”) announced the initiation of antidumping duty investigations of oil country tubular goods (“OCTG”) from Argentina, Mexico, and Russia and countervailing duty investigations of OCTG from Russia and South Korea. The investigations were initiated on the basis of a petition by U.S. Steel Tubular Products, Inc., a small number of other U.S. domestic welded OCTG producers, and a steelworkers’ union. On November 22, 2021, the International Trade Commission (“ITC”) made a preliminary determination of injury, allowing the investigations to proceed. Subsequently, the DOC issued affirmative preliminary and final antidumping determinations with respect to imports from Argentina, Mexico and Russia, and final affirmative countervailing duty determinations with respect to imports from Russia and from some Korean exporters. On October 27, 2022, the ITC determined that the imports under investigation caused injury to the U.S. OCTG industry, bringing the investigation phase to a conclusion. Tenaris and other parties have appealed the agency determinations from the investigation to the Court of International Trade. As a result of the investigation, and unless overturned on appeal, Tenaris is required to pay antidumping duty deposits (at a rate of 78.30% for imports from Argentina and 44.93% for imports from Mexico) until such time the imports are reviewed by the DOC to determine whether final duties are necessary for the specific period under review. Tenaris has been paying such deposits since May 11, 2022, reflecting the amount of such deposits in its costs. The deposit rates may be reset periodically based on the results of the review process. It is possible that, through the periodic review process, the deposits may be either returned to Tenaris in whole o r in part, or may be increased. (ii) Commitments and guarantees Set forth is a description of the Tenaris’s main outstanding commitments: Certain subsidiaries of the Company entered into a contract with Praxair S.A. for the service of oxygen and nitrogen supply. As of Dec ember 3 1 , 2022, the aggregate amount to take or pay the committed volumes for an original 14-year term totaled approximately $ 36.4 million. A subsidiary of the Company entered into a 25-year contract (effective as of December 1, 2016, through December 1, 2041) with Techgen for the supply of 197 MW (which represents 22% of Techgen’s capacity). Monthly payments are determined on the basis of capacity charges, operation costs, back-up power charges, and transmission charges. As of the seventh contract year (as long as Techgen’s existing or replacing bank facility has been repaid in full), the Company’s subsidiary has the right to suspend or early terminate the contract if the rate payable under the agreement is higher than the rate charged by the Comisión Federal de Electricidad (“CFE”) or its successors. The Company’s subsidiary may instruct Techgen to sell to any affiliate, to CFE, or to any other third party all or any part of unused contracted energy under the agreement and the Company’s subsidiary will benefit from the proceeds of such sale. A U.S. subsidiary of the Company is a party to a contract with Nucor Steel Memphis Inc. under which it is committed to purchase on a monthly basis a specified minimum volume of steel bars, at prices subject to quarterly adjustments. The contract became effective upon delivery of the first purchase order, which occurred in April 2021, and will remain in force for a 3-year term. As of Dec ember 3 1 , 2022, the estimated aggregate contract amount calculated at current prices, is approximately $ 85.8 million. The contract gives the subsidiary of the Company the right to temporarily reduce the quantities to be purchased thereunder to 75% of the agreed-upon minimum volume in cases of material adverse changes in prevailing economic or market conditions. In connection with the closing of the acquisition of IPSCO, a U.S. subsidiary of the Company entered into a 6-year master distribution agreement (the “MDA”) with PAO TMK (“TMK”) whereby, since January 2, 2020, Tenaris is the exclusive distributor of TMK’s OCTG and line pipe products in United States and Canada. At the end of the MDA’s 6-year term, TMK will have the option to extend the duration of its term for an additional 12-month period. Under the MDA, the Company is required to purchase specified minimum volumes of TMK-manufactured OCTG and line pipe products, based on the aggregate market demand for the relevant product category in the United States in the relevant year. In February 2022, however, the Company and TMK agreed that there shall be no minimum yearly purchase requirement for the OCTG product category for the year ending December 31, 2022, and there shall be no minimum yearly purchase requirement for TMK line pipe products under the MDA neither for the contract year ending December 31, 2022, nor for any subsequent contract year unti l expiration of the MDA’s term. A subsidiary of the Company entered into a contract with the supplier Voestalpine Grobblech GmbH from which it committed to purchase carbon steel for a remaining amount of approximately $ 30.2 million to use for manufacturing pipes related to the NFXP-QatarGas project. Certain subsidiaries of the Company entered into agreements with Vestas Group for the supply of materials and services related to the construction of a wind farm in Argentina. As of Dec ember 3 1 , 2022, the remaining amount related to this commitment was $ 47.7 million. Certain subsidiaries of the Company entered into a one one Dec ember 3 1 , 2022, the aggregate commitment totaled approximately $ 6.3 million. Certain subsidiaries of the Company entered into a contract with Usiminas from which they committed to purchase steel coils for a total amount of approximately $ 183.6 million to use for manufacturing welded pipes for the construction of the Presidente Nestor Kirchner Gas Pipeline (“GPNK”) in Argentina. A subsidiary of the Company entered into a contract with the supplier JFE Steel Corporation for the purchase tubular material, including 13 Chrome alloy products following the closure of NKK Tubes. For more information see n ote 35 “ Other Information – A greement to terminate NKKTubes joint venture ” . In addition, Tenaris (i) applied for stand-by letters of credit as well as corporate guarantees covering certain obligations of Techgen as described i n note 13 (c) , (ii) issued corporate guarantees securing certain obligations of GPC, as described in note 13 (d) and (iii) issued performance guarantees mainly related to long - term commercial contracts with several customers and parent companies for approximately $ 3.6 billion as of December 31, 202 2 . (iii) Restrictions on the distribution of profits and payment of dividends In accordance with Luxembourg Law, the Company is required to transfer a minimum of 5% of its net profit for each financial year to a legal reserve until such reserve equals 10% of the issued share capital. As of December 31, 202 2 , this reserve is fully allocated and additional allocations to the reserve are not required under Luxembourg law. Dividends may not be paid out of the legal reserve. The Company may pay dividends to the extent, among other conditions, that it has distributable retained earnings calculated in accordance with Luxembourg law and regulations. |
Note 27 - Cancellation of title
Note 27 - Cancellation of title deed in Saudi Steel Pipe Company | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cancellation of title Deed in Affiliates [Abstract] | |
Note 27 - Cancellation of title deed in Saudi Steel Pipe Company | 27 Cancellation of title deed in Saudi Steel Pipe Company In early 2021, the Company learned through the Saudi Ministry of Justice’s online portal that the electronic title deeds to certain land plots of its Saudi Arabian subsidiary SSPC had become inactive due to cancellation by court order. The affected land plots, with a total surface of 811,284 square meters, are located in Dammam, Saudi Arabia, and were purchased from a private entity on February 2010, pursuant to a written purchase agreement duly executed by SSPC in full compliance with the laws of the Kingdom of Saudi Arabia. The purchase of the land occurred before Tenaris’s acquisition of a 47.79% interest in SSPC in 2019. The affected plots are not part of the production facility of SSPC, have been partially used as a warehouse, and have a carrying value on Tenaris’s financial statements of $56.2 million. As of the date hereof, neither the cancellation nor the court order have been notified to SSPC or otherwise been made public by the authorities, and the legal basis for the court order is unknown. On May 4, 2021, SSPC filed a petition with an ad-hoc newly-created special committee at the Saudi Ministry of Justice, seeking to have its title deeds reinstated. The proceeding is still ongoing and, at this time, it is not possible to predict the outcome of this matter. |
Note 28 - Foreign exchange con
Note 28 - Foreign exchange control measures in Argentina | 12 Months Ended |
Dec. 31, 2022 | |
Foreign exchange rates [abstract] | |
Note 28 - Foreign exchange control measures in Argentina | 28 Foreign e xchan ge c ontrol measures in Argentina Beginning in September 2019, the Argentine government has imposed and continues to impose significant restrictions on foreign exchange transactions. Restrictions have tightened significantly over time. The main currently applicable measures are described below: Foreign currency proceeds derived from exports of goods must be sold into the Argentine foreign exchange market and converted into Argentine pesos within 60 days (if made to related parties) or 180 days (if made to unrelated parties) from shipment date, or, if collected earlier, within five days of collection. Foreign currency proceeds from exports of services must be sold into the Argentine foreign exchange market and converted into Argentine pesos within five business days of collection. Access to the Argentine foreign exchange market to pay for imports of services rendered by related parties (including royalties) is generally subject to Argentine Central Bank approval. Effective October 17, 2022, the Argentine Central Bank put in place a new regulation on import of services rendered by non-related parties, pursuant to which the Argentine Central Bank may clear or not the payment of import of services and, if cleared, may determine a payment term equal or different to that being requested. There are no rules on the conditions upon which the Argentine Central Bank may clear or determine alternative payment terms. Effective November 1, 2022, this new regulation replaced previous rules. Access to the Argentine foreign exchange market to pay for imports of goods is subject to several restrictions. For example, advance payments or at sight cannot be made, and companies cannot access the official foreign exchange market if they hold cash or investments in excess of $100 thousand. Earlier this year, the Argentine government imposed additional limits to the amount of import payments that could be made by any single company per month or per year; companies that exceed such limits were required to obtain import financing of at least 180 days from the date of nationalization of the goods, except to the extent the goods qualify under a very limited number of exceptions, such as the import of capital goods and certain raw materials. Effective October 17, 2022, the Argentine government implemented a new system, known as the SIRA system, pursuant to which the Argentine government may clear or not the payment of imports and, if cleared, may determine a payment term equal or different to that being requested. There are no objective conditions upon which the Argentine government may clear the payment of imports or determine alternative payment terms under the SIRA system. The exceptions for the import of capital goods and certain raw materials, including many of those used by the Company’s Argentine subsidiaries, still exist under the SIRA system. Negotiations with the Argentine authorities to raise the foregoing limits and/or expand the list of exceptions to obtain access to foreign currency to pay for import of goods (including raw materials to manufacture goods in Argentina) are ongoing. Access to the Argentine foreign exchange market to pay debt service (principal and interest) for financial debts with related parties requires prior Argentine Central Bank approval, unless the loan proceeds are sold in the Argentine foreign exchange market and converted into Argentine pesos after October 2, 2020, and such debts carry an average life of no less than 2 years. Debts with foreign creditors larger than $2 million maturing on or before December 31, 2023, need to be refinanced in at least 60% of outstanding principal and for a minimum period of 2 years. Access to the Argentine foreign exchange market to make dividend payments requires prior Argentine Central Bank approval. When required, Argentine Central Bank approvals are rarely, if ever, granted. Tenaris’s financial position in Argentine peso as of December 31, 2022, amounted to a net short exposure of approximately $127 million. As of December 31, 2022, the total equity of Argentine subsidiaries represented approximately 10.6% of Tenaris’s total equity and the sales performed by Argentine subsidiaries during the year ended on December 31, 2022, amounted approximately to 20% of Tenaris’s total sales. Assets and liabilities denominated in Argentine peso as of December 31, 2022, have been valued at the prevailing official exchange rates. Management continues to monitor closely the evolution of the main variables affecting its business, identifying the potential impact thereof on its financial and economic situation and determining the appropriate course of action in each case. The Company’s Consolidated Financial Statements should be read taking into account these circumstances. This context of volatility and uncertainty remains in place as of the issue date of these Consolidated Financial Statements. If restrictions to access the official foreign exchange market continue to be maintained, or are further tightened, our Argentine subsidiaries could be restricted from making payment of imports for key steelmaking inputs (which would adversely affect their operations), or would need to resort to alternative, more expensive arrangements (which would adversely affect their results of operations). On August 19, 2022, the Board of Directors of Siderca S.A.I.C., an Argentine subsidiary of the Company, approved the distribution of a dividend in kind of approximately ARS7,394 million paid in Argentine sovereign bonds, which in the Argentine market had a valuation of approximately $54.4 million. Considering that, as a result of the foreign exchange restrictions described above, the value of such bonds in the international market was approximately $24.6 million, the Company recorded a loss of approximately $29.8 million in Other Financial Results. |
Note 29 - Cash Flow Disclosures
Note 29 - Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash Flow [Abstract] | |
Note 29 - Cash Flow Disclosures | 29 Cash flow disclosures Year ended December 31, 2022 2021 2020 (i) Changes in working capital (*) Inventories (1,329,865 ) (1,085,024 ) 818,913 Receivables and prepayments and current tax assets (155,449 ) (79,912 ) 67,610 Trade receivables (1,208,278 ) (356,069 ) 414,826 Other liabilities 57,389 4,892 (36,000 ) Customer advances 151,066 44,661 (29,253 ) Trade payables 353,892 399,988 (180,807 ) (2,131,245 ) (1,071,464 ) 1,055,289 (ii) Income tax accruals less payments Tax accrued 617,236 189,448 23,150 Taxes paid (359,585 ) (153,846 ) (140,364 ) 257,651 35,602 (117,214 ) (iii) Interest accruals less payments, net Interest accrued (34,080 ) (14,371 ) 8,627 Interest received 68,335 24,567 19,613 Interest paid (32,775 ) (21,559 ) (28,778 ) 1,480 (11,363 ) (538 ) (*) Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar. |
Note 30 - Related Party Transac
Note 30 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Note 30 - Related Party Transactions | 30 Related party transactions As of December 31, 2022: ■ San Faustin owned 713,605,187 shares in the Company, representing 60.45% of the Company’s capital and voting rights. ■ San Faustin owned all of its shares in the Company through its wholly-owned subsidiary Techint Holdings S.àr.l., a Luxembourg société à responsabilité limitée (“Techint”), who is the holder of record of the above-mentioned Tenaris shares. ■ Rocca & Partners Stichting Administratiekantoor Aandelen San Faustin, a private foundation located in the Netherlands (Stichting) (“RP STAK”) held voting shares in San Faustin sufficient in number to control San Faustin. ■ No person or group of persons controls RP STAK. Based on the information most recently available to the Company, Tenaris’s directors and senior management as a group owned 0.07% of the Company’s outstanding shares. Transactions and balances disclosed as with “non-consolidated parties” are those with companies over which Tenaris exerts significant influence or joint control in accordance with IFRS, but does not have control. All other transactions and balances with related parties which are not non-consolidated parties and which are not consolidated are disclosed as “Other”. The following transactions were carried out with related parties: Year ended December 31, (i) Transactions 2022 2021 2020 (a) Sales of goods and services Sales of goods to non-consolidated parties 100,019 71,879 20,183 Sales of goods to other related parties 151,884 76,467 18,243 Sales of services to non-consolidated parties 5,407 4,161 5,829 Sales of services to other related parties 109,123 49,268 5,049 366,433 201,775 49,304 (b) Purchases of goods and services Purchases of goods to non-consolidated parties 656,877 294,929 84,485 Purchases of goods to other related parties 51,040 32,453 12,892 Purchases of services to non-consolidated parties 13,759 9,763 6,979 Purchases of services to other related parties 36,767 13,806 18,133 758,443 350,951 122,489 At December 31, (ii) Period-end balances 2022 2021 (a) Arising from sales / purchases of goods / services Receivables from non-consolidated parties 69,135 66,896 Receivables from other related parties 78,370 33,122 Payables to non-consolidated parties (142,228 ) (45,092 ) Payables to other related parties (13,283 ) (2,125 ) (8,006 ) 52,801 (b) Financial debt Finance lease liabilities from non-consolidated parties (1,650 ) (1,936 ) Finance lease liabilities from other related parties (483 ) (624 ) (2,133 ) (2,560 ) In addition to the tables above, the Company issued various guarantees in favor of Techgen and GPC; for further details, please see note 13 (c and d) and note 26 (ii) to these Consolidated Financial Statements. No other material guarantees were issued in favor of other related parties. Directors and senior management compensation During the years ended December 31, 2022, 2021 and 2020, the cash compensation of Directors and Senior managers amounted to $35.2 million, $37.7 million and $27.4 million respectively. These amounts include cash benefits paid to certain senior managers in connection with the pre-existing retirement plans. In addition, Directors and Senior managers received 437, 382 and 522 thousand units for a total amount of $5.1 million, $3.9 million and $5 million respectively in connection with the Employee retention and long-term incentive program mentioned in note II.P.3 “Employee benefits – Other long - term benefits ” |
Note 31 - Principal accountant
Note 31 - Principal accountant fees | 12 Months Ended |
Dec. 31, 2022 | |
Additional information [abstract] | |
Note 31 - Principal accountant fees | 31 Princ ipal a ccountant f ees Total fees accrued for professional services rendered by PwC Network firms to Tenaris S.A. and its subsidiaries are detailed as follows: Year ended December 31, 2022 2021 2020 Audit fees 3,966 3,804 3,781 Audit-related fees 255 220 134 Tax fees - - 102 All other fees 11 5 - Total 4,232 4,029 4,017 |
Note 32 - Principal Subsidiarie
Note 32 - Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
Note 32 - Principal Subsidiaries | 32 Principal subsidiaries The following is a list of Tenaris’s principal subsidiaries and its direct and indirect percentage of ownership of each controlled company at December 31, 2022. Company Country of Incorporation Main activity Percentage of ownership at December 31, (*) 2022 2021 2020 ALGOMA TUBES INC. Canada Manufacturing of welded and seamless steel pipes 100% 100% 100% CONFAB INDUSTRIAL S.A. and subsidiaries Brazil Manufacturing of welded steel pipes and capital goods 100% 100% 100% DALMINE S.p.A. Italy Manufacturing of seamless steel pipes 100% 100% 100% HYDRIL COMPANY and subsidiaries USA Manufacture and marketing of premium connections 100% 100% 100% IPSCO TUBULARS INC. and subsidiaries USA Manufacturing of welded and seamless steel pipes 100% 100% 100% MAVERICK TUBE CORPORATION and subsidiaries USA Manufacturing of welded and seamless steel pipes 100% 100% 100% P.T. SEAMLESS PIPE INDONESIA JAYA Indonesia Manufacturing of seamless steel products 89% 89% 89% S.C. SILCOTUB S.A. Romania Manufacturing of seamless steel pipes 100% 100% 100% SAUDI STEEL PIPE CO. Saudi Arabia Manufacturing of welded steel pipes 48% 48% 48% SIAT SOCIEDAD ANONIMA Argentina Manufacturing of welded steel pipes 100% 100% 100% SIDERCA SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL and subsidiaries (a) Argentina Manufacturing of seamless steel pipes 100% 100% 100% TALTA - TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA. Portugal Holding Company 100% 100% 100% TENARIS BAY CITY, INC. USA Manufacturing of welded and seamless steel pipes 100% 100% 100% TENARIS CONNECTIONS BV Netherlands Development, management and licensing of intellectual property 100% 100% 100% TENARIS FINANCIAL SERVICES S.A. Uruguay Financial company 100% 100% 100% TENARIS GLOBAL SERVICES (CANADA) INC. Canada Marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES (U.S.A.) CORPORATION USA Marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES (UK) LTD United Kingdom Holding company and marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES S.A. and subsidiaries (except detailed) (b) Uruguay Holding company, marketing and distribution of steel products 100% 100% 100% TENARIS INVESTMENTS (NL) B.V. and subsidiaries Netherlands Holding company 100% 100% 100% TENARIS INVESTMENTS S.àr.l. Luxembourg Holding company 100% 100% 100% TENARIS QINGDAO STEEL PIPES LTD. China Processing of premium joints, couplings and automotive components 100% 100% 100% TENARIS TUBOCARIBE LTDA. Colombia Manufacturing of welded and seamless steel pipes 100% 100% 100% TUBOS DE ACERO DE MEXICO, S.A. Mexico Manufacturing of seamless steel pipes 100% 100% 100% (*) All percentages rounded. (a) Tenaris holds 51% of . (b) Tenaris holds 98.4% of Supply Chain S.A. and 40% of Tubular Technical Services Ltd. and Pipe Coaters Nigeria Ltd., 49% of Tubular Services Limited and 60% of Steel Pipes Ltd, and until 2021 held 49% of Tubular Services Angola Lda. |
Note 33 - Business Combinations
Note 33 - Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Note 33 - Business Combinations | 33 Business combinations Acquisition of Parques Eólicos de la Buena Ventura S.A . In connection with the construction of a wind farm in Argentina, in April 2022, Tenaris acquired 100% of the shares of Parques Eólicos de la Buena Ventura S.A. for a price of $4.1 million, which was fully paid. The fair value of the acquired assets and liabilities amounted to $4.1 million, the same value of the consideration paid. Accordingly, no goodwill was recognized. Had the acquisition occurred on January 1, 2022, Tenaris’s unaudited pro forma net sales and net income from continuing operations would not have changed materially. |
Note 34 - Nationalization of Ve
Note 34 - Nationalization of Venezuelan Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Nationalization of Venezuelan subsidiaries [Abstract] | |
Note 34 - Nationalization of Venezuelan Subsidiaries | 34 Nationalization of Venezuelan subsidiaries In May 2009, within the framework of Decree Law 6058, Venezuela’s President announced the nationalization of, among other companies, the Company's majority-owned subsidiaries TAVSA - Tubos de Acero de Venezuela S.A. (“Tavsa”) and, Matesi Materiales Siderúrgicos S.A (“Matesi”), and Complejo Siderúrgico de Guayana, C.A (“Comsigua”), in which the Company has a non-controlling interest (collectively, the “Venezuelan Companies”). Tenaris and its wholly-owned subsidiary, Talta - Trading e Marketing Sociedad Unipessoal Lda (“Talta”), initiated arbitration proceedings against Venezuela before the ICSID in Washington D.C. in connection with these nationalizations and obtained favorable awards, which are final and not subject to further appeals. Matesi On January 29, 2016, the tribunal released its award on the arbitration proceeding concerning the nationalization of Matesi. The award upheld Tenaris’s and Talta’s claim that Venezuela had expropriated their investments in Matesi in violation of Venezuelan law as well as the bilateral investment treaties entered into by Venezuela with the Belgium-Luxembourg Economic Union and Portugal. The award granted compensation in the amount of $87.3 million for the breaches and ordered Venezuela to pay an additional amount of $85.5 million in pre-award interest, aggregating to a total award of $173 million (including $0.2 million of legal fees), payable in full and net of any applicable Venezuelan tax, duty or charge. The tribunal granted Venezuela a grace period of six months from the date of the award to make payment in full of the amount due without incurring post-award interest, and resolved that if no, or no full, payment is made by then, post-award interest will apply at the rate of 9% per annum compounded at six On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award in the United States. On July 17, 2020, the Court entered judgment recognizing the Matesi award. The judgment orders Venezuela to pay to Tenaris and Talta an amount of $256.4 million, including principal and post-award interest through the judgment date, and provides for post-judgment interest to accrue on this sum at the U.S. federal statutory rate. As of December 31, 2022, post-judgement interest calculated at the U.S. judgment rate amounted to approximately $0.9 million and, accordingly, the total amount owed by Venezuela under the U.S. judgment as of December 31, 2022 was $257.3 million. The U.S. judgment, however, may not be enforced in the United States to the extent prohibited by the Venezuelan sanctions regulations issued by the U.S. Treasury Department’s Office of Foreign Assets Control currently in effect. Tavsa and Comsigua On December 12, 2016, the tribunal issued its award upholding Tenaris’s and Talta’s claim that Venezuela had expropriated their investments in Tavsa and Comsigua in violation of the bilateral investment treaties entered into by Venezuela with the Belgium-Luxembourg Economic Union and Portugal. The award granted compensation in the amount of $137 million and ordered Venezuela to pay an additional amount of $76 million in pre-award interest and to reimburse Tenaris and Talta $3.3 million in legal fees and ICSID administrative costs. In addition, Venezuela was ordered to pay interest from April 30, 2008 until the day of effective payment at a rate equivalent to LIBOR + 4% per annum. As of December 31, 2022, post-award interest calculated at the award rate amounted to approximately $85.1 million and, accordingly, the total amount owed by Venezuela under the award as of December 31, 2022 was $301.4 million. On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award in the United States. On August 24, 2021, the court entered judgment in favor of Tenaris and Talta and against Venezuela in the amount of $276.9 million, with post-judgment interest accruing from the date of judgment at the federal statutory post-judgment interest rate. On November 5, 2021, the court, in response to a motion by Tenaris and Talta, amended the judgment amount to $280.7 million, with post-judgment interest continuing to accrue from August 24, 2021 at the federal statutory post-judgment interest rate. As of December 31, 2022, post-judgement interest calculated at the U.S. judgment rate amounted to approximately $0.2 million and, accordingly, the total amount owed by Venezuela under the U.S. judgment as of December 31, 2022 was $280.9 million. The U.S. judgment, however, may not be enforced in the United States to the extent prohibited by the Venezuelan sanctions regulations issued by the U.S. Treasury Department’s Office of Foreign Assets Control currently in effect. Transfer of the Awards and Judgements On January 25, 2023, Tenaris and Talta entered into an awards purchase agreement with an unaffiliated purchaser pursuant to which Tenaris and Talta agreed to sell all of their rights, title and interests in the above-referenced claims, awards and judgements, including all post-award or post-judgement interest accruing on the awards and judgements, for a purchase price of $81 million, plus a non-refundable signing payment of $1 million as reimbursement of expenses. The transfer of the awards and judgements is subject to the Office of Foreign Assets Control (“OFAC”) approval, and according to the agreement must be obtained by February 25, 2024. The uncertainty associated with the OFAC approval is factored into the fair value determination of the related receivable. See note III.B. |
Note 35 - Other relevant inform
Note 35 - Other relevant information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other relevant information [Abstract] | |
Note 35 - Other relevant information | 35 Other relevant information A greement to terminate NKKTubes joint venture Tenaris’s seamless pipe manufacturing facility in Japan, located in the Keihin steel complex owned by JFE Holdings Inc. (“JFE”), is operated by NKKTubes, a company owned 51% by Tenaris and 49% by JFE. Steel bars and other essential inputs and services for NKKTubes are supplied under a long-term agreement by JFE. On March 27, 2020, JFE informed Tenaris of its decision to permanently cease as from JFE’s fiscal year ending March 2024 the operations of its steel manufacturing facilities located at the Keihin complex. In light of that development, Tenaris and JFE engaged in discussions and ultimately determined that the project was no longer economically sustainable. Accordingly, on November 2, 2021, Tenaris and JFE agreed to terminate amicably their joint venture and liquidate NKKTubes, and on November 2, 2022, entered into a definitive wrap-up agreement. Under these agreements: a) NKKTubes’ manufacturing and production operations were closed by June 30, 2022; b) the lease agreement of the Keihin steel complex between JFE and NKKTubes was terminated as of September 30, 2022; c) all tangible fixed assets owned by NKKTubes and placed in the Keihin steel complex were either purchased by JFE or removed and disposed of; d) NKKTubes started its liquidation process on November 30, 2022; e) all agreements that allowed the operation of the joint venture will terminate progressively in accordance with NKKTubes’ operational needs until liquidation is accomplished; f) all agreements with local Japanese customers and subcontractors were terminated; g) the intangible assets belonging to NKKTubes will be allocated between the parties based on agreements still under negotiation; and h) all related dissolution and liquidation costs were allocated between the parties. In July, 2022, Tenaris and JFE entered into an agreement for the provision of tubular material, including 13 Chrome Management determined that the parties’ decision to terminate the NKKTubes joint venture constituted an impairment indicator, conducted an impairment test, and as of December 2021, recognized a charge of approximately $57 million, impacting NKKTubes’ property, plant and equipment and intangible assets. During 2022, as result of NKKTubes’ closure, the currency translation adjustment reserve belonging to the shareholders was reclassified to the income statement for an amount of $71.2 million. As of December 31, 2022, the net non-controlling interests’ reserve amounts to approximately $13.2 million. This balance will be reclassified through the Company’s results in the period when the final liquidation of NKKTubes occurs. Agreement for acquisition of Benteler Steel & Tube Manufacturing Corporation On July 7, 2022, the Company entered into a definitive agreement to acquire from Benteler North America Corporation, a Benteler Group company, 100 |
Note 36 - The Russia-Ukraine ar
Note 36 - The Russia-Ukraine armed conflict and its impact on Tenaris’s operations | 12 Months Ended |
Dec. 31, 2022 | |
Extraordinary and Unusual Items 1 [Abstract] | |
Note 36 - The Russia-Ukraine armed conflict and its impact on Tenaris’s operations | 36 The Russia-Ukraine armed conflict and its impact on Tenaris’s operations On February 24, 2022, Russia launched a military attack on Ukraine. In response, several jurisdictions, including the United States, the European Union and the United Kingdom imposed a wave of sanctions against certain Russian institutions, companies and citizens. The Russian government retaliated by ordering several economic counter measures, including restrictions on residents transferring foreign currency abroad. Tenaris has so far found alternative sources in response to the interruption in supplies from Ukraine and the impact of sanctions on supplies from Russia but may still be faced with supply delays or forced to pay higher prices to secure the raw materials, in particular energy, required for its steelmaking operations. Although it is hard to predict how energy and commodity prices will continue to behave as the conflict unfolds, higher prices and possible shortages of energy and raw materials used in Tenaris’s steelmaking operations would result in higher production costs and potential plant stoppages, affecting its profitability and results of operations. Tenaris’s sales to Russian customers were not material in the year ended December 31, 2022. All sales to Russian customers and all purchases from Russian suppliers were made in compliance with applicable regulations. There are no significant exposures or credit loss effects related to Russian counterparties, and the conflict has not created any uncertainty on the value of financial instruments. The currently ongoing events have not changed significant judgements taken into consideration when performing impairments tests, nor have they raised going concern risks. In addition, Tenaris is assessing the closure of its representative office in Moscow, which is currently not operative. In light of the armed conflict and the designation of Severstal’s controlling shareholder as person subject to EU and UK sanctions, in March 2022, Tenaris recorded an impairment in the amount of approximately $14.9 million in connection with its investment in a joint venture in Russia with Severstal. See note 13. |
Note 37 - Climate change
Note 37 - Climate change | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Climate Change [Abstract] | |
Note 37 - Climate change | 37 Climate change Tenaris carefully assesses the potential impact of climate change and energy transition on its business and on the risks to its markets and its tangible and intangible assets, and adapts its business strategy accordingly. In February 2021 Tenaris set a medium-term target to reduce its carbon emissions intensity rate by 30% by 2030, compared to a 2018 baseline, considering Scopes 1 and 2 emissions plus Scope 3 emissions related to raw materials and steel purchased from third parties. The Company aims to achieve this target by using a higher proportion of recycled steel scrap in the metallic mix and by making investments to increase energy efficiency and the use of renewable energy in its energy requirements. This medium-term target forms part of a broader objective of decarbonizing our operations and reaching carbon neutrality. At the same time, the Company is increasing its sales for low-carbon energy applications, such as hydrogen, geothermal and carbon capture and storage. These sales currently account for a relatively small proportion of overall sales but are expected to grow in the coming years. In its assessment, Tenaris also considers that the countries in which it operates and its customers are also establishing their own decarbonization strategies and objectives, and that some customers are requesting specific information from their suppliers, including Tenaris, concerning the carbon emissions and Environmental, Social and Governance (“ESG”) practices in their supply chain, and that they may adjust their supply practices in light of that information. The recoverable value assessments performed by the Company for purposes of the preparation of these financial statements reflect management’s views on energy transition and climate change and their potential medium- and long-term impact on Tenaris’s operations and its sales. In addition, the Company carefully monitors the medium- and long-term outlook scenarios published by leading industry experts on how the energy transition could affect global demand for energy and oil and gas and how this could affect the global demand for tubular products and its sales. Furthermore, estimates and assumptions used in the Company’s impairment tests over long-lived assets and goodwill, useful lives of assets, capital and research and development expenditures, inventory valuation, recovery of deferred tax assets and provisions, and contingent liabilities are based on available information and current government regulations on energy transition and climate-related matters, as well as on Tenaris’s current short-term investment plans. As of the date of these financial statements, the Company does not believe that climate-related matters should trigger any material adjustments to the conclusions of its impairment tests. |
Note 38 - Events after the repo
Note 38 - Events after the reporting period | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Note 38 - Events after the reporting period | 38 E vents after the reporting perio Annual Dividend Proposal Upon approval of the Company´s annual accounts in March 2023, the Board of Directors intends to propose, for the approval of the Annual General Shareholders' meeting to be held on May 3, 2023, the payment of an annual dividend of $0.51 per share ($1.02 per ADS), or approximately $602 million, which includes the interim dividend of $0.17 per share ($0.34 per ADS) or approximately $201 million, paid on November 23, 2022. If the annual dividend is approved by the shareholders, a dividend of $0.34 per share ($0.68 per ADS), or approximately $401 million will be paid on May 24, 2023, with an ex-dividend date of May 22, 2023. These Consolidated Financial Statements do not reflect this dividend payable. |
Note 39 - Update as of March 31
Note 39 - Update as of March 31, 2023 | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of events after reporting period and approval date [Abstract] | |
Note 39 - Update as of March 31, 2023 | 39 Update as of March 31, 2023 1 Contingencies, commitments and restrictions on the distribution of profits updates Information contained in note 26 “Contingencies, commitments ” CSN claims relating to the January 2012 acquisition of Usiminas”, “Putative class actions” “U.S. patent infringement litigation”. Tenaris to Increase its participation in Usiminas control group On March 30, 2023, the Company’s subsidiary, Confab, together with Tenaris’s affiliates Ternium Investments and Ternium Argentina, all of which compose the T/T Group within Usiminas control group, entered into a share purchase agreement to acquire from the NSC Group, pro rata to their current participations in the T/T Group, 68.7 million ordinary shares of Usiminas at a price of BRL10 (approximately $1.9) per ordinary share. Pursuant to the transaction, Tenaris would pay approximately BRL 110 million (approximately $21 million) in cash for 11 million ordinary shares, increasing its participation in the Usiminas control group to 9.8%. Upon the closing of this transaction, the T/T Group will hold an aggregate participation of 61.3% in the control group, with the NSC Group and Previdência Usiminas (Usiminas employees’ pension fund) holding 31.7% and 7.1%, respectively. The transaction is subject to approval by Brazil’s antitrust authorities and will be financed with cash on hand. The Company will continue having significant influence over Usiminas and consequently will continue accounting for its investment under the equity method. At closing, the existing Usiminas shareholders agreement will be replaced by a new shareholders agreement setting forth a new governance structure for Usiminas. The T/T Group will nominate a majority of the Usiminas board of directors, the chief executive officer and four other members of the Usiminas board of officers. Of the positions allocated to the T/T group, Tenaris will retain the right to nominate one member of the Usiminas board of directors and one members of the Usiminas board of officers. Ordinary decisions may be approved with a 55% majority of Usiminas’ control group shares. At any time after the second anniversary of the closing of the transaction, the T/T Group will have the right to buy the NSC Group’s remaining interest in the Usiminas control group (153.1 million ordinary shares) at the higher of BRL10 per share and the 40-trading day average price per share immediately prior to the date of exercising the option. In addition, the NSC Group will have the right, at any time after the closing of the transaction, to withdraw its remaining shares from the control group and sell them in the open market after giving the T/T Group the opportunity to buy them at the 40-trading day average price per share, as well as the right, at any time after the second anniversary of the closing, to sell such shares to the T/T Group at BRL10 per share. Confab will have the right to participate in each such transaction pro rata to its current participation in the T/T group. The Company will account for the transaction if and when the conditions precedent to closing are satisfied and the acquisition is completed. 1 This note was added subsequently to the approval of these Consolidated Financial Statements by the Company’s Board of Directors on February 15, 2023. |
II. Accounting Policies (Polici
II. Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Significant Accounting Policies [Abstract] | |
Description of accounting policy for basis of presentation [text block] | A Basis of presentation The Consolidated Financial Statements of Tenaris have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and in accordance with IFRS as adopted by the European Union, under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities (including derivative instruments) and plan assets at fair value. The Consolidated Financial Statements are, unless otherwise noted, presented in thousands of U.S. dollars (“$”). Whenever necessary, certain comparative amounts have been reclassified to conform to changes in presentation in the current year. The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make certain accounting estimates and assumptions that might affect among others, the reported amounts of assets, liabilities, contingent liabilities, revenues and expenses. Actual results may differ from these estimates. The main areas involving significant estimates or judgements are: impairment of goodwill and long-lived assets (notes II.H), impairment in investments in associates (note II.B); income taxes (note II.O); obsolescence of inventory (note II.J); contingencies (note II.Q); allowance for trade receivables (note II.K); post-employment and other long-term benefits (note II.P); business combinations (notes II.B); useful lives of property, plant and equipment and other long-lived assets (notes II.E, II.F, II.H); fair value estimation of certain financial instruments (notes III.B, IV.34) and property title ownership restriction (note IV.27). During the year there were no material changes in the significant accounting estimates and judgements. (1) Accounting pronouncements applicable as from J anuary 1, 20 2 2 Accounting pronouncements that became effective during 2022 have no material effect on the Company’s financial condition or results of operations. (2) New ac counting pronouncements not applicable as of December 3 1, 202 2 Certain new ly published accounting standards, amendments to accounting standards and interpretations are not mandatory for December 31, 202 2 reporting periods and have not been early adopted by the Company. These standards, amendments or interpretations are not expected to have a material impact in the current or future reporting periods and on foreseeable future transactions |
Description of accounting policy for investment in associates and joint ventures [text block] | B Group accounting (1) Subsidiaries and transactions with non-controlling interests Subsidiaries are all entities over which Tenaris has control. Tenaris controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is exercised by the Company and are no longer consolidated from the date control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by Tenaris. The cost of an acquisition is measured as the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are generally measured initially at their fair values at the acquisition date. Any non-controlling interest in the acquiree is measured either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. The excess of the aggregate of the consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the Consolidated Income Statement. Contingent consideration is classified either as equity or as a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. Transactions with non-controlling interests that do not result in a loss of control are accounted as transactions with equity owners of the Company. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. When the Company ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Material intercompany transactions, balances and unrealized gains (losses) on transactions between Tenaris subsidiaries have been eliminated in consolidation. However, since the functional currency of some subsidiaries is its respective local currency, some financial gains (losses) arising from intercompany transactions are generated. These are included in the Consolidated Income Statement under Other f inancial results (2) Non-consolidated companies Non-consolidated companies are all entities in which Tenaris has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in non-consolidated companies (associates and joint ventures) are accounted for by the equity method of accounting and are initially recognized at cost (as defined by IAS 28, “Investments in Associates and Joint Ventures”). The Company’s investment in non-consolidated companies includes goodwill identified in acquisition, net of any accumulated impairment loss. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Tenaris’s share of the post-acquisition profits or losses of the investee in profit or loss, and Tenaris’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. If material, unrealized results on transactions between Tenaris and its non-consolidated companies are eliminated to the extent of Tenaris’s interest in the non-consolidated companies. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the asset transferred. Financial statements of non-consolidated companies are adjusted where necessary to ensure consistency with IFRS. The Company’s pro-rata share of earnings in non-consolidated companies is recorded in the Consolidated Income Statement under Equity in earnings of non-consolidated companies . The Company’s pro-rata share of changes in other comprehensive income is recognized in the Consolidated Statement of Comprehensive Income. a) Ternium At December 31, 2022, Tenaris held 11.46% of Ternium S.A. (“Ternium”) common stock. The following factors and circumstances evidence that Tenaris has significant influence over Ternium: Both the Company and Ternium are under the indirect common control of San Faustin S.A. (“San Faustin”); Four out of nine members of Ternium’s Board of Directors (including Ternium’s Chairman) are also members of the Company’s Board of Directors; Under the shareholders’ agreement by and between the Company and Techint Holdings S.àr.l, a wholly owned subsidiary of San Faustin and Ternium’s main shareholder, dated January 9, 2006, Techint Holdings S.àr.l, is required to take actions within its power to cause (a) one of the members of Ternium’s Board of Directors to be nominated by the Company and (b) any director nominated by the Company to be removed from Ternium’s Board of Directors only pursuant to previous written instructions of the Company. b) Usiminas At December 31, 2022, Tenaris held, through its Brazilian subsidiary Confab Industrial S.A. (“Confab”), 36.5 million ordinary shares and 1.3 million preferred shares of Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas (“Usiminas”), representing 5.19% of its shares with voting rights and 3.07% of its total share capital. Confab’s acquisition of the Usiminas shares was part of a larger transaction performed on January 16, 2012, pursuant to which Tenaris’s affiliate Ternium (through certain of its subsidiaries) and Confab acquired a large block of Usiminas ordinary shares and joined Usiminas’ existing control group. Subsequently, in 2016, Ternium and Confab subscribed to additional ordinary shares and to preferred shares. At December 31, 2022, the Usiminas control group held, in the aggregate, 483.6 million ordinary shares bound to the Usiminas shareholders’ agreement, representing approximately 68.6% of Usiminas’ voting capital. The Usiminas control group, which is bound by a long-term shareholders’ agreement that governs the rights and obligations of Usiminas’ control group members, is currently composed of three sub-groups: the T/T Group, comprising Confab and certain Ternium entities; the NSC Group, comprising Nippon Steel Corporation (“NSC”), Metal One Corporation and Mitsubishi Corporation; and Usiminas’ pension fund Previdência Usiminas. The T/T Group holds approximately 47.1% of the total shares held by the control group (39.5% corresponding to the Ternium entities and the other 7.6% corresponding to Confab); the NSC Group holds approximately 45.9% of the total shares held by the control group; and Previdência Usiminas holds the remaining 7%. The corporate governance rules reflected in the Usiminas shareholders agreement include, among others, an alternation mechanism for the nomination of each of the Chief Executive Officer (“CEO”) and the Chairman of the Board of Directors of Usiminas, as well as a mechanism for the nomination of other members of Usiminas’ executive board. The Usiminas shareholders agreement also provides for an exit mechanism consisting of a buy-and-sell procedure (exercisable at any time after November 16, 2022, and applicable with respect to shares held by NSC and the T/T Group), which would allow either Ternium or NSC to purchase all or a majority of the Usiminas shares held by the other shareholder. Confab and the Ternium entities party to the Usiminas shareholders agreement have a separate shareholders agreement governing their respective rights and obligations as members of the T/T Group. Such separate agreement includes, among others, provisions granting Confab certain rights relating to the T/T Group’s nomination of Usiminas’ officers and directors under the Usiminas shareholders agreement. Those circumstances evidence that Tenaris has significant influence over Usiminas. c) Techgen Techgen S.A. de C.V. (“Techgen”), which operates an electric power plant in Mexico, is a joint venture company owned 48% by Ternium, 30% by Tecpetrol International S.A. (“Tecpetrol”) and 22% by Tenaris. The Company, Ternium and Tecpetrol are parties to a shareholders’ agreement relating to the governance of Techgen and are under the indirect common control of San Faustin. Based on the facts stated above, the Company has determined that it has significant influence over this entity. d) Global Pipe Company Global Pipe Company (“GPC”) is a Saudi-German joint venture, established in 2010 and located in Jubail, Saudi Arabia, which manufactures LSAW pipes. Tenaris, through its subsidiary Saudi Steel Pipe Company (“SSPC”), currently owns 35% of the share capital of GPC. In accordance with GPC’s bylaws, SSPC’s 35% equity interest entitles SSPC to appoint four of the eleven members of the Board of Directors of GPC. In addition, SSPC has the ability to block any shareholder resolution. Based on the facts stated above, the Company has determined that it has significant influence over this entity. Tenaris carries its investments in non-consolidated companies under the equity method, with no additional goodwill or intangible assets recognized. Tenaris reviews investments in non-consolidated companies for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. For more information see note 13 to these Consolidated Financial Statements. |
Description of accounting policy for segment reporting [text block] | C Segment information The Company is organized in one major business segment, Tubes, which is also the reportable operating segment. All other business activities and operating segments that are not required to be separately reported, are disclosed in the Other segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products and related services mainly for the oil and gas industry, particularly oil country tubular goods (“OCTG”) used in drilling operations, and for other industrial applications with production processes that consist in the transformation of steel into tubular products. Business activities included in this segment are mainly dependent on the oil and gas industry worldwide, as this industry is a major consumer of steel pipe products, particularly OCTG used in drilling activities. Demand for steel pipe products from the oil and gas industry has historically been volatile and depends primarily upon the number of oil and natural gas wells being drilled, completed and reworked, and the depth and drilling conditions of these wells. Sales are generally made to end users, with exports being done through a centrally managed global distribution network and domestic sales are made through local subsidiaries. The Other segment includes all business activities related to Tenaris’s Chief Operating Decision Maker (“CODM”) holds monthly meetings with senior management, in which operating and financial performance information is reviewed. This information differs from IFRS principally as follows: The use of direct cost methodology to calculate the inventories, while under IFRS it is at full cost, including absorption of production overheads and depreciations; The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost, mainly on a FIFO basis; Any currency translation adjustment reclassification, when applicable, for companies that under IFRS had a different functional currency than the U.S. dollar; Other timing differences, if any. Tenaris presents its geographical information in five areas: North America, South America, Europe, Middle East and Africa and Asia Pacific. For purposes of reporting geographical information, net sales are allocated to geographical areas based on the customer’s location; allocation of assets, capital expenditures and associated depreciations and amortizations are based on the geographical location of the assets. |
Description of accounting policy for foreign currency translation [text block] | D Foreign c urrency t ranslation (1) Functional and presentation currency IAS 21 (revised), “The effects of changes in foreign exchange rates” defines the functional currency as the currency of the primary economic environment in which an entity operates. The functional and presentation currency of the Company is the U.S. dollar. The U.S. dollar is the currency that best reflects the economic substance of the underlying events and circumstances relevant to Tenaris’s global operations. Starting January 1, 2023, the Company changed the functional currency of its Brazilian subsidiaries, from the Brazilian Real to the U.S. dollar. This decision is a result of a significant increase of its Brazilian Subsidiaries’ participation in the OCTG and line pipe international markets, a trend which started in recent years and has been strengthened in 2022, an increased level of integration of the local operations within Tenaris’s international commercial and supply chain system, as well as the fact that the main purchase agreement contracts and the long term sales agreement contracts with major international and local oil companies are both indexed to the U.S. dollar. Local steel prices are also being affected by the U.S. dollar / Brazilian Real fluctuations. As a result of this change, except for the Italian subsidiaries whose functional currency is the Euro, Tenaris determined that the functional currency of its other subsidiaries is the U.S. dollar, based on the following principal considerations: Sales are mainly negotiated, denominated and settled in U.S. dollars. If priced in a currency other than the U.S. dollar, the sales price may consider exposure to fluctuation in the exchange rate against the U.S. dollar; Prices of their critical raw materials and inputs are priced and / or settled in U.S. dollars; Transaction and operational environment and the cash flow of these operations have the U.S. dollar as reference currency; Significant level of integration of the local operations within Tenaris’s international global distribution network; Net financial assets and liabilities are mainly received and maintained in U.S. dollars; The exchange rate of certain legal currencies has long-been affected by recurring and severe economic crises. (2) Transactions in currencies other than the functional currency Transactions in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the date of the transactions or valuati on where items are re-measured. At the end of each reporting period: (i) monetary items denominated in currencies other than the functional currency are translated using the closing rates; (ii) non-monetary items that are measured in terms of historical cost in a currency other than the functional currency are translated using the exchange rates prevailing at the date of the transactions; and (iii) non-monetary items that are measured at fair value in a currency other than the functional currency are translated using the exchange rates prevailing at the date when the fair value was determined. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in currencies other than the functional currency are recorded as gains and losses from foreign exchange and included in Other financial results in the Consolidated Income Statement, except when deferred in equity as qualifying cash flow hedges and qu alifying net investment hedges. (3) Translation of financial information in currencies other than the functional currency Results of operations for subsidiaries whose functional currencies are not the U.S. dollar are translated into U.S. dollars at the average exchange rates for each quarter of the year. Financial statement positions are translated at the year-end exchange rates. Translation differences are recognized in a separate component of equity as currency translation adjustments. In the case of a sale or other disposal of any of such subsidiaries, any accumulated translation difference would be recognized in the Consolidated Income Statement as a gain or loss from the sale following IAS 21. Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. |
Description of accounting policy for property, plant and equipment [text block] | E Property, plant and equipment Property, plant and equipment are recognized at historical acquisition or construction cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Property, plant and equipment acquired through acquisitions accounted for as business combinations have been valued initially at the fair market value of the assets acquired. Major overhaul and rebuilding expenditures are capitalized as property, plant and equipment only when it is probable that future economic benefits associated with the item will flow to the Company and the investment enhances the condition of assets beyond its original condition. The carrying amount of the replaced part is derecognized. Maintenance expenses on manufacturing properties are recorded as cost of products sold in the year in which they are incurred. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Borrowing costs that are attributable to the acquisition or construction of certain capital assets are capitalized as part of the cost of the asset, in accordance with IAS 23 (revised), “Borrowing Costs”. Assets for which borrowing costs are capitalized are those that require a substantial period of time to prepare for their intended use. The depreciation method is reviewed at each year end. Depreciation is calculated using the straight-line method to depreciate the cost of each asset to its residual value over its estimated useful life, as follows: Land No Depreciation Buildings and improvements 30-50 years Plant and production equipment 10-40 years Vehicles, furniture and fixtures, and other equipment 4-10 years The assets’ residual values and useful lives of significant plant and production equipment are reviewed and adjusted, if appropriate, at each year-end date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Management’s re-estimation of assets useful lives, performed in accordance with IAS 16, “Property, Plant and Equipment”, resulted in additional depreciation expenses of approximately $39 million for 2022, of $45 million for 2020 and did not materially affect depreciation expenses for 2021. Tenaris depreciates each significant part of an item of property, plant and equipment for its different production facilities that (i) can be properly identified as an independent component with a cost that is significant in relation to the total cost of the item, and (ii) has a useful operating life that is different from another significant part of that same item of property, plant and equipment. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of assets and are recognized under Other operating income Other operating expenses |
Description of accounting policy for intangible assets and goodwill [text block] | F Intangible assets (1) Goodwill Goodwill represents the excess of the acquisition cost over the fair value of Tenaris’s share of net identifiable assets acquired as part of business combinations determined mainly by independent valuations. Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Goodwill is included in the Consolidated Statement of Financial Position under Intangible assets, net. For the purpose of impairment testing, g oodwill is allocated to a cash generating unit (“ CGU ”) or group of CGUs that are expected to benefit from the business combination which generated the goodwill being tested. (2) Information systems projects Costs associated with maintaining computer software programs are generally recognized as an expense as incurred. However, costs directly related to the development, acquisition and implementation of information systems are recognized as intangible assets if it is probable that they have economic benefits exceeding one year and comply with the recognition criteria of IAS 38, “Intangible Assets”. Information systems projects recognized as assets are amortized using the straight-line method over their useful lives, generally not exceeding a period of 3 years. Amortization charges are mainly classified as Selling, general and administrative expenses Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not materially affect amortization expenses for 2022 and 2021 and resulted in additional amortization expenses of $11.1 million for 2020. (3) Licenses, patents, trademarks and proprietary technology Licenses, patents, trademarks, and proprietary technology acquired in a business combination are initially recognized at fair value at the acquisition date. Licenses, patents, proprietary technology and those trademarks that have a finite useful life are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost over their estimated useful lives, which are in the range between 3 and 10 years. Amortization charges are mainly classified as Cost of Sales The balance of acquired trademarks that have indefinite useful lives according to external appraisal amounts to $86.7 million at December 31, 2022, 2021 and 2020, and are included in Hydril CGU. Main factors considered in the determination of the indefinite useful lives include the years that they have been in service and their recognition among customers in the industry. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not materially affect amortization expenses for 2022, 2021 and 2020. (4) Research and development Research expenditures as well as Cost of sales Cost of sales Capitalized costs were not material for the years 2022, 2021 and 2020. (5) Customer relationship s In accordance with IFRS 3, "Business Combinations" and IAS 38, Tenaris has recognized the value of customer relationships separately from goodwill attributable to the acquisition of Maverick Tube Corporation (“Maverick”) and Hydril Company (“Hydril”) groups, as well as the more recent acquisi tion s of SSPC and Ipsco Tubulars Inc. (“IPSCO”) . Customer relationships acquired in a business combination are recognized at fair value at the acquisition date, have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight line method over the initial expected useful li v e s which were approximately 14 years for Maverick, 10 y ears for Hydril , 9 years for SSP C and 3 year s for IPSCO . In 2022 the Company has reviewed the useful life of SSPC’s customer relationships and decided to reduce it from 5 years to 3 years, consequently a higher amortization charge of approximately $4.1 million was recorded in the Consolidated Income Statement under Selling, general and administrative expenses for the year ended December 31, 2022. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38, did not affect amortization expenses for 2021 and 2020. As o f December 31, 20 2 2 the net book value of SSP C ’s customer relationship amounts to $ 41.5 million , with a residual useful life of 3 years , w hile IPSCO’s, Maverick’s and Hydril’s customer relationships are fully amortized. |
Description of accounting policy for leases [text block] | G Right-of-use assets and lease liabilities Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the lease term on a straight-line basis. Lease liabilities include the net present value of i) fixed payments, less any lease incentives receivable, ii) variable lease payments that are based on an index or a rate, iii) amounts expected to be payable by the lessee under residual value guarantees, iv) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and v) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received and any initial direct costs incurred by the lessee. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or early termination, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Payments associated with short-term leases, variable leases and leases of low value assets are recognized on a straight-line basis as expenses in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
Description of accounting policy for impairment of non-financial assets [text block] | H Impairment of non-financial assets Long-lived assets including identifiable intangible assets are reviewed for impairment at the lowest level for which there are separately identifiable cash flows (CGU). Most of the Company’s principal subsidiaries that constitute a CGU have a single main production facility and, accordingly, each of such subsidiaries represents the lowest level of asset aggregation that generates largely independent cash inflows. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets with indefinite useful lives, including goodwill, are subject to at least an annual impairment test, or are tested more frequently if events or circumstances indicate that the carrying amount value may be impaired. In some circumstances where there have not been significant changes to CGU assets and liabilities as well as external and internal events which could materially alter the recoverable amount of the CGU, the most recent detailed calculation of recoverable amount made in a preceding period may be used in the impairment test for that CGU in the current period. In assessing whether there is any indication that a CGU may be impaired, external and internal sources of information are analyzed. Material facts and circumstances specifically considered in the analysis usually include the discount rate used in Tenaris’s cash flow projections and the business condition in terms of competitive, economic and regulatory factors, such as the cost of raw materials, oil and gas prices, and the evolution of the rig count. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher between the asset’s value in use and fair value less costs of disposal. Any impairment loss is allocated to reduce the carrying amount of the assets of the CGU in the following order: (a) first, to reduce the carrying amount of any goodwill allocated to the CGU; and (b) then, to the other assets of the unit (group of units) pro-rata on the basis of the carrying amount of each asset in the unit (group of units), considering not to reduce the carrying amount of the asset below the highest of its fair value less cost of disposal, its value in use or zero. Value in use is calculated by discounting the estimated cash flows over a five year five-year For purposes of calculating the fair value less costs of disposal, Tenaris uses the estimated value of future cash flows that a market participant could generate from the corresponding CGU. Management judgment is required to estimate discounted future cash flows. Actual cash flows and values could vary significantly from the forecasted future cash flows and related values derived using discounting techniques. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal at each reporting date. For more information on impairment charges see note 5 to these Consolidated Financial Statements. |
Description of accounting policy for investments other than investments accounted for using equity method [text block] | I Other i nvestments Other investments consist primarily of investments in financial instruments and time deposits with a maturity of more than three months at the date of purchase. Certain non-derivative financial assets that the Company held not for trading have been categorized as financial assets at fair value through other comprehensive income (“FVOCI”), as the business model objective is achieved by both holding financial assets in order to collect contractual cash flows and selling financial assets. They are carried at fair value and interest income from these financial assets is included in finance income using the effective interest rate method. Unrealized gains or losses are recorded as a fair value adjustment in the Consolidated Statement of Comprehensive Income and transferred to the Consolidated Income Statement when the financial asset is sold. Exchange gains and losses and impairments related to the financial assets are immediately recognized in the Consolidated Income Statement. FVOCI instruments with maturities greater than 12 months after the balance sheet date are included in non-current assets. Other investments in financial instruments and time deposits are categorized as financial assets at fair value through profit or loss (“FVPL”) because such investments are held for trading and their performance is evaluated on a fair value basis. The results of these investments are recognized in Financial Results Purchases and sales of financial investments are recognized as of their settlement date. The fair values of quoted investments are generally based on current bid prices. If the market for a financial investment is not active or the securities are not listed, Tenaris estimates the fair value by using standard valuation techniques . S ee s ectio n III Financial Risk Management . |
Description of accounting policy for measuring inventories [text block] | J Inventories Inventories are stated at the lower between cost and net realizable value. The cost of finished goods and goods in process is comprised of raw materials, direct labor, utilities, freights and other direct costs and related production overhead costs, and it excludes borrowing costs. The allocation of fixed production costs, including depreciation and amortization charges, is based on the normal level of production capacity. Inventories cost is mainly based on the FIFO method. Tenaris estimates net realizable value of inventories by grouping, where applicable, similar or related items. Net realizable value is the estimated selling price in the ordinary course of business, less any estimated costs of completion and selling expenses. Goods in transit as of year-end are valued based on the supplier’s invoice cost. Tenaris establishes an allowance for obsolete or slow-moving inventories related to finished goods, goods in process, supplies and spare parts. For slow moving or obsolete finished products, an allowance is established based on management’s analysis of product aging. An allowance for obsolete and slow-moving inventory of supplies and spare parts is established based on management's analysis of such items to be used as intended and the consideration of potential obsolescence due to technological changes, aging and consumption patterns. |
Description of accounting policy for trade and other receivables [text block] | K Trade and other receivables Trade and other receivables are recognized initially at fair value that corresponds to the amount of consideration that is unconditional unless they contain significant financing c omponents. The Company holds trade receivables with the objective to collect the contractual cash flows and therefore measu res them subsequently at amortiz ed cost using the effective interest method. Due to the short-term nature, their carrying amount is considered to be the same as their fair value . Tenaris applies the IFRS 9 “Financial Instruments” simplified approach to measure expected credit losses , which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of three years and the corresponding historical credit losses exp erienced within this period. The expected loss allowance also reflect s current and forward-looking information on macroeconomic factors affecting the ability of each custo mer to settle the receivables. |
Description of accounting policy for determining components of cash and cash equivalents [text block] | L Cash and cash equivalents Cash and cash equi valents are comprised of cash at banks, liquidity funds and short-term investments with a maturity of less than three months at the date of purchase which are readily convertible to known amounts of cash. Assets recorded in cash and cash equivalents are carried at fair market value or at historical cost which approximates fair market value. In the Consolidated Statement of Financial Position, bank overdrafts are included in Borrowings in current liabilities. For the purposes of the Consolidated Statement of C ash F low s , C ash and cash equivalents includes overdrafts . |
Description of accounting policy for issued capital [text block] | M E quity (1) Equity components The Consolidated Statement of Changes in Equity includes: The value of share capital, legal reserve, share premium and other distributable reserves calculated in accordance with Luxembourg law; The currenc (2) Share cap it al The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of $1.00 per share. Total ordinary shares issued and outstanding as of December 31, 2022, 2021 2020 (3) Dividends distribution by the Company to shareholders Dividends distributions are recorded in the Company’s financial statements when Company’s shareholders have the right to receive the payment, or when interim dividends are approved by the Board of Directors in accordance with the by-laws of the Company. Dividends may be paid by the Company to the extent that it has distributable retained earnings, calculated in accordance with Luxembourg law. See note 26 (iii) to these Consolidated Financial Statements. |
Description of accounting policy for borrowings [text block] | N Borrowings Borrowings are recognized initially at fair value net of transaction costs incurred and subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. |
Description of accounting policy for income tax [text block] | O Current and d eferred income tax The income tax expense or credit for the period is the tax payable or recoverable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Tax is recognized in the Consolidated Income Statement, except for tax items recognized in other comprehensive income or directly in equity. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the countries where the Company’s subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions when appropriate. Deferred income tax is recognized applying the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The temporary differences arise mainly from the effect of currency translation on depreciable fixed assets and inventories, depreciation on property, plant and equipment, valuation of inventories, provisions for post-employment benefits and other long-term employee benefits, fair value adjustments of assets acquired in business combinations and net operating loss carry-forwards. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the time period when the asset is realized or the liability is settled, based on tax laws that have been enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the temporary differences can be utilized. At the end of each reporting period, Tenaris reassesses unrecognized deferred tax assets. Tenaris recognizes a previously unrecognized deferred tax asset to the extent that it has become probable that future taxable income will allow the deferred tax asset to be recovered. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax basis of investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are re-measured if tax rates change. These amounts are charged or credited to the Consolidated Income Statement or to the item O ther co mprehensive income |
Description of accounting policy for employee benefits [text block] | P Employee benefits (1) Short-term obligations Liabilities for wages and salaries are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. (2) Post - employment benefits The Company has defined benefit and defined contribution plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets, if any. The defined benefit obligation is calculated annually (at year end) by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in Other comprehensive income For defined benefit funded plans, net interest income / expense is calculated based on the surplus or deficit derived by the difference between the defined benefit obligations less fair value of plan assets. For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expenses when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Tenaris sponsors funded and unfunded defined benefit pension plans in certain subsidiaries. The most significant are: An unfunded defined benefit employee retirement plan for certain senior officers. The plan is designed to provide certain benefits to those officers (additional to those contemplated under applicable labor laws) in case of termination of the employment relationship due to certain specified events, including retirement. This unfunded plan provides defined benefits based on years of service and final average salary. As of December 31, 2022 the outstanding liability for this plan amounts to $43.1 million. Employees’ service rescission indemnity: the cost of this obligation is charged to the Consolidated Income Statement over the expected service lives of employees. This provision is primarily related to the liability accrued for employees at Funded retirement benefit plan held in the U.S. for the benefit of some employees hired prior a certain date, frozen for the purposes of credited service as well as determination of final average pay for the retirement benefit calculation. Plan assets consist primarily of investments in equities and money market funds. Additionally, an unfunded post-retirement health and life plan is present that offers limited medical and life insurance benefits to the retirees, frozen to new participants. As of December 31, 2022 the outstanding liability for these plans amounts to $7.1 million. Funded retirement benefit plans held in Canada for salary and hourly employees hired prior to a certain date based on years of service and, in the case of salaried employees, final average salary. Plan assets consist primarily of investments in debt and equity instruments. Both plans were replaced for defined contribution plans. Effective June 2016 the salary plan was frozen for the purposes of credited service as well as determination of final average pay. As of December 31, 2022 the plan was (3) O ther long- term benefits During 2007, Tenaris launched an employee retention and long - term incentive program The beneficiaries of the Program are entitled to receive cash amounts based on: (i) the amount of dividend payments made by Tenaris to its shareholders and (ii) the number of units held by each beneficiary to the Program. The payment of the benefit is tied to the book value of the shares, and not to their market value. Tenaris valued this long-term incentive program as a long-term benefit plan as classified in IAS 19, “Employee Benefits”. As of December 31, 2022 and 2021, the outstanding liability corresponding to the Program amounts to $94.4 million and $84.2 million, respectively. The total value of the units granted (vested and unvested) to date under the program, considering the number of units and the book value per share as of December 31, 2022 and 2021, is $123.9 million and $99.6 million, respectively. (4) Termination benefits Termination benefits are payable when employment is terminated by Tenaris before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. Tenaris recognizes termination benefits at the earlier of the following dates: (a) when it can no longer withdraw the offer of those benefits; and (b) when the costs for a restructuring that is within the scope of IAS 37 involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. (5) Other compensation obligations Employee entitlements to annual leave, long-service leave, sick leave and other bonuses and compensations obligations are accrued as earned. Compensation to employees in the event of dismissal is charged to income in the year in which it becomes payable. |
Description of accounting policy for provisions [text block] | Q Provisions Tenaris is subject to various claims, lawsuits and other legal proceedings, including customer claims, in which a third party is seeking payment for alleged damages, reimbursement for losses or indemnity. Tenaris’s potential liability with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Management periodically reviews the status of each significant matter and assesses potential financial exposure. If, as a result of past events, a potential loss from a claim or proceeding is considered probable and the amount can be reliably estimated, a provision is recorded. Accruals for loss contingencies reflect a reasonable estimate of the losses to be incurred based on information available to management as of the date of preparation of the financial statements, and take into consideration Tenaris’s litigation and settlement strategies. These estimates are primarily constructed with the assistance of legal counsel. As the scope of liabilities become better defined, there may be changes in the estimates of future costs which could have a material adverse effect on its results of operations, financial condition and cash flows. If Tenaris expects to be reimbursed for an accrued expense, as would be the case for an expense or loss covered under an insurance contract, and reimbursement is considered virtually certain, the expected reimbursement is recognized as a receivable. This note should be read in conjunction with note 26 to these Consolidated Financial Statements. |
Description of accounting policy for trade and other payables [text block] | R Trade and other payables Trade and other payables are recognized initially at fair value, generally the nominal invoice amount and subsequently measured at amortized cost. They are presented as current liabilities unless payment is not due within twelve months after the reporting period. Due to the short-term nature their carrying amounts are considered to be the same as their fair value. |
Description of accounting policy for recognition of revenue [text block] | S Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of Tenaris’s activities. The revenue recognized by the Company is measured at the transaction price of the consideration received or receivable to which the Company is entitled to, reduced by estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized and after eliminating sales within the group. Revenue is recognized at a point in time or over time from sales when control has been transferred and there is no unfulfilled performance obligation that could affect the acceptance of the product by the customer. The control is transferred upon delivery. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred and either the customer has accepted the product in accordance with the sales contract, the acceptance provisions have lapsed or the Company has objective evidence that all criteria for acceptance have been satisfied, including all performance obligations. These conditions are determined and analyzed on a contract by contract basis to ensure that all performance obligations are fulfilled. In particular, Tenaris verifies customer acceptance of the goods, the satisfaction of delivery terms and any other applicable condition. For bill and hold transactions revenue is recognized only to the extent that (a) the reason for the bill and hold arrangement must be substantive (for example, the customer has requested the arrangement); (b) the products have been specifically identified and are ready for delivery; (c) the Company does not have the ability to use the product or to direct it to another customer; (d ) the usual payment terms apply. The Company’s contracts with customers do not provide any material variable consideration, other than discounts, rebates and right of return. Discounts and rebates are recognized based on the most likely value and rights of return are based on expected value considering past experience and contract conditions. Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are estimated based on the expected cost plus margin. There are no judgements applied by management that significantly affect the determination of timing of satisfaction of performance obligations, nor the transaction price and amounts allocated to different performance obligations. Tenaris provides services primarily related to goods sold, which represent a non-material portion of sales revenue and mainly include: Pipe Management Services : Field Services : These services are rendered in connection to the sales of goods and are attached to contracts with customers for the sale of goods. A significant portion of service revenue is recognized in the same period as the goods sold. There are no distinct uncertainties in the revenues and cash flows of the goods sold and services rendered as they are included in the same contract, have the same counterparty and are subject to the same conditions. The Company also provides hydraulic fracturing and coiled tubing services. The revenue related to these services is included in the Other segment. Revenue from providing services is recognized over time in the accounting period in which the services are rendered. The following inputs and outputs methods are applied to recognize revenue considering the nature of service: Storage services : Freights : Field services : The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, considering that the contracts do not include any significant financing component, the Company does not adjust any of the transaction prices for the time value of money. For this reason, the Company is also applying the practical expedient not to disclose details on transaction prices allocated to the remaining performance obligations as of the end of the reporting period. Tenaris only provides standard quality warranties assuring that the goods sold will function as expected or are fit for their intended purpose, with no incremental service to the customer. Accordingly, warranties do not constitute a separate performance obligation. Other revenues earned by Tenaris are recognized on the following basis: Interest income: on the effective yield basis. Dividend income from investments in other companies: when Tenaris’s right to receive payment is established. Construction contracts revenues are recognized in accordance with the stage of the project completion. |
Description of accounting policy for expenses [text block] | T Cost of sales and other selling expenses Cost of sales and other selling expenses are recognized in the Consolidated Income Statement on the accrual basis of accounting. Commissions, freights and other selling expenses, including shipping and handling costs, are recorded in S elling, general and administrative expense s |
Description of accounting policy for earnings per share [text block] | U Earnings per share Earnings per share are calculated by dividing the income attributable to the shareholders’ equity by the daily weighted average number of common shares outstanding during the year. There are no dilutive potential ordinary shares. |
Description of accounting policy for financial instruments [text block] | V F inancial instruments Non derivative financial instruments comprise investments in financial debt instruments and equity, time deposits, trade and other receivables, cash and cash equivalents, borrowings and trade and other payables. The Company classifies its financial instruments according to the following measurement categories: those to be measured subsequently at fair value (either through OCI or through profit or loss), and those to be measured at amortised cost. The classification depends on the Company’s business model for managing the financial assets and contractual terms of the cash flows. Financial assets are recognized on their settlement date. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expenses in profit or loss. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments: Amortized Cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income from these financial assets is included in finance income using the effective interest rate method. Exchange gains and losses and impairments related to the financial assets are immediately recognized in the Consolidated Income Statement. Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest. Interest income from these financial assets is included in finance income using the effective interest rate method. Unrealized gains or losses are recorded as a fair value adjustment in the Consolidated Statement of Comprehensive Income and transferred to the Consolidated Income Statement when the financial asset is sold. Fair value through profit and loss: Assets that do not meet the criteria for amortized cost or FVOCI. Changes in fair value of financial instruments at FVPL are immediately recognized in the Consolidated Income Statement. Equity instruments are subsequently measured at fair value. Accounting for derivative financial instruments and hedging activities is included within the section III, Financial Risk Management. |
II. Accounting Policies (Tables
II. Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Summary of Significant Accounting Policies [Abstract] | |
Disclosure of detailed information about the estimated useful lives of property, plant and equipment [text block] | Land No Depreciation Buildings and improvements 30-50 years Plant and production equipment 10-40 years Vehicles, furniture and fixtures, and other equipment 4-10 years |
III. Financial Risk Management
III. Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of effect of changes in foreign exchange rates [text block] | All amounts Long / (Short) in thousands of U.S. dollars As of December 31, Currency Exposure / Functional currency 2022 2021 Argentine Peso / U.S. dollar (126,739 ) (95,073 ) Euro / U.S. dollar (42,458 ) 12,462 Saudi Arabian Riyal / U.S. dollar (74,183 ) (77,853 ) U.S. dollar / Brazilian Real (94,856 ) (32,738 ) |
Disclosure of financial instruments by type of interest rate [text block] | As of December 31, 2022 2021 In thousands of U.S. dollars % In thousands of U.S. dollars % Fixed rate (*) 497,889 68 % 187,036 57 % Variable rate 230,873 32 % 143,897 43 % Total 728,762 330,933 |
Disclosure of fair value of financial instruments [text block] | Carrying amount Measurement Categories At Fair Value December 31, 2022 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 1,091,527 668,668 - 422,859 422,859 - - Other investments 438,448 196,152 182,988 59,308 242,296 - - Fixed income (time-deposit, zero coupon bonds, commercial papers) 196,152 196,152 - - - - - Certificates of deposits 36,167 36,167 - - - - - Commercial papers 19,785 19,785 - - - - - Other notes 140,200 140,200 - - - - - Bonds and other fixed income 211,953 - 182,988 28,965 211,953 - - Non-U.S. government securities 108,310 - 79,345 28,965 108,310 - - Corporates securities 103,643 - 103,643 103,643 - - Mutual Fund 30,343 - - 30,343 30,343 - - Derivative financial instruments 30,805 - - 30,805 - 30,805 - Other Investments Non-current 119,902 - 113,574 6,328 113,574 - 6,328 Bonds and other fixed income 113,574 - 113,574 - 113,574 - - Other investments 6,328 - - 6,328 - - 6,328 Trade receivables 2,493,940 2,493,940 - - - - - Receivables C and NC (*) 395,531 105,397 48,659 - - - 48,659 Other receivables 154,056 105,397 48,659 - - - 48,659 Other receivables (non-financial) 241,475 - - - - - - Total 3,464,157 345,221 519,300 778,729 30,805 54,987 Liabilities Borrowings C and NC 728,762 728,762 - - - - - Trade payables 1,179,457 1,179,457 - - - - - Lease Liabilities C and NC 112,177 112,177 - - - - - Derivative financial instruments 7,127 - - 7,127 - 7,127 - Total 2,020,396 - 7,127 - 7,127 - (*) Includes balances related to interest in Venezuelan companies. See note 34 Carrying amount Measurement Categories At Fair Value December 31, 2021 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 318,127 212,430 - 105,697 105,697 - - Other investments 397,849 239,742 158,107 - 158,107 - - Fixed income (time-deposit, zero coupon bonds, commercial papers) 239,742 239,742 - - - - - Certificates of deposits 94,414 94,414 - - - - - Commercial papers 30,062 30,062 - - - - - Other notes 115,266 115,266 - - - - - Bonds and other fixed income 158,107 - 158,107 - 158,107 - - Non-U.S. government securities 10,660 - 10,660 - 10,660 - - Corporates securities 147,447 - 147,447 - 147,447 - - Derivative financial instruments 11,315 - - 11,315 - 11,315 - Other Investments Non-current 320,254 - 312,619 7,635 312,619 - 7,635 Bonds and other fixed income 312,619 - 312,619 - 312,619 - - Other investments 7,635 - - 7,635 - - 7,635 Trade receivables 1,299,072 1,299,072 - - - - - Receivables C and NC (*) 302,164 85,220 48,659 - - - 48,659 Other receivables 133,879 85,220 48,659 - - - 48,659 Other receivables (non-financial) 168,285 - - - - - - Total 1,836,464 519,385 124,647 576,423 11,315 56,294 Liabilities Borrowings C and NC 330,933 330,933 - - - - - Trade payables 845,256 845,256 - - - - - Lease Liabilities C and NC 117,285 117,285 - - - - - Derivative financial instruments 11,328 - - 11,328 - 11,328 - Total 1,293,474 - 11,328 - 11,328 - (*) Includes balances related to interest in Venezuelan companies. See note 34 |
Disclosure of fair value measurement [text block] | Year ended December 31, 2022 2021 At the beginning of the year 56,294 56,319 (Decrease) / increase (1,126 ) 219 Currency translation adjustment and others (181 ) (244 ) At the end of the year 54,987 56,294 |
Note 1 - Segment Information (T
Note 1 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments [text block] | Year ended December 31, 2022 Tubes Other Total Management view - operating income 2,772 75 2,847 Difference in cost of sales 44 Differences in depreciation and amortization 2 Differences in selling, general and administrative expenses (4 ) Differences in other operating income (expenses), net 74 IFRS - operating income 2,963 Financial income (expense), net (6 ) Income before equity in earnings of non-consolidated companies and income tax 2,957 Equity in earnings of non-consolidated companies 209 Income before income tax 3,166 IFRS - Net Sales 11,133 630 11,763 Depreciation and amortization 588 20 608 Year ended December 31, 2021 Tubes Other Total Management view - operating income 178 65 243 Difference in cost of sales 473 Differences in depreciation and amortization (1 ) Differences in other operating income (expenses), net (8 ) IFRS - operating income 708 Financial income (expense), net 23 Income before equity in earnings of non-consolidated companies and income tax 731 Equity in earnings of non-consolidated companies 513 Income before income tax 1,243 IFRS - Net Sales 5,994 528 6,521 Depreciation and amortization 575 20 595 Year ended December 31, 2020 Tubes Other Total Management view - operating (loss) (277 ) (50 ) (327 ) Difference in cost of sales (134 ) Differences in depreciation and amortization - Differences in selling, general and administrative expenses (2 ) Differences in other operating income (expenses), net (200 ) IFRS - operating (loss) (663 ) Financial income (expense), net (65 ) (Loss) before equity in earnings of non-consolidated companies and income tax (728 ) Equity in earnings of non-consolidated companies 109 (Loss) before income tax (619 ) IFRS - Net Sales 4,844 303 5,147 Depreciation and amortization 661 18 679 |
Disclosure of geographical areas [text block] | North America South America Europe Middle East & Africa Asia Pacific Unallocated (*) Total Year ended December 31, 2022 Net sales 6,902,787 2,550,402 1,000,833 1,031,106 277,398 - 11,762,526 Total assets 9,018,386 3,896,403 2,071,624 739,579 283,608 1,540,646 17,550,246 Trade receivables 1,371,717 583,223 202,753 249,637 86,610 - 2,493,940 Property, plant and equipment, net 3,548,844 1,031,423 706,539 189,701 79,756 - 5,556,263 Capital expenditures 118,644 176,448 62,143 2,813 18,398 - 378,446 Depreciation and amortization 348,550 125,324 76,631 37,612 19,606 - 607,723 Year ended December 31, 2021 Net sales 3,360,345 1,311,279 742,463 857,120 250,000 - 6,521,207 Total assets 7,992,946 2,399,448 1,727,573 581,204 364,486 1,383,774 14,449,431 Trade receivables 652,483 234,800 180,515 146,125 85,149 - 1,299,072 Property, plant and equipment, net 3,805,912 984,413 742,461 221,859 70,156 - 5,824,801 Capital expenditures 106,118 63,723 43,344 6,689 19,644 - 239,518 Depreciation and amortization 307,116 125,781 89,667 41,528 30,629 - 594,721 Year ended December 31, 2020 Net sales 2,179,949 776,235 642,793 1,227,532 320,225 - 5,146,734 Total assets 8,071,574 1,868,458 1,461,738 804,559 552,508 957,352 13,716,189 Trade receivables 411,692 115,972 139,427 210,194 90,863 - 968,148 Property, plant and equipment, net 3,971,101 1,050,619 823,057 242,939 105,465 - 6,193,181 Capital expenditures 71,531 63,111 39,691 10,452 8,537 - 193,322 Depreciation and amortization 408,546 106,827 84,518 44,259 34,656 - 678,806 |
Segment revenues by market [text block] | Revenues Tubes 2022 2021 2020 Oil & Gas 9,543 4,895 4,022 Oil & Gas processing plants 738 459 407 Industrial, Power and Others 852 640 415 Total 11,133 5,994 4,844 |
Note 2 - Cost of Sales (Tables)
Note 2 - Cost of Sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cost of Sales [Abstract] | |
Disclosure of detailed information about cost of sales [text block] | Year ended December 31, 2022 2021 2020 Inventories at the beginning of the year 2,672,593 1,636,673 2,265,880 Increase in inventory due to business combinations - - 199,589 Decrease in inventory due to sale of subsidiaries - (10,662 ) - Plus: Charges of the year Raw materials, energy, consumables and other 5,772,031 3,841,551 1,545,688 Services and fees 293,490 208,472 154,976 Labor cost (*) 1,160,085 824,071 757,359 Depreciation of property, plant and equipment 465,849 448,843 503,725 Amortization of intangible assets 11,754 7,645 8,121 Depreciation of right-of-use assets 33,244 35,910 40,127 Maintenance expenses 267,294 129,350 107,764 Allowance for obsolescence 24,901 23,296 35,809 Taxes 194,736 40,887 45,162 Other 178,691 98,159 59,790 8,402,075 5,647,522 3,458,110 Less: Inventories at the end of the year (3,986,929 ) (2,672,593 ) (1,636,673 ) 7,087,739 4,611,602 4,087,317 (*) For the year ended December 202 2 , 202 1 and 20 20 , labor cost includes approximately $ 17.8 million, $ 12.8 million and $ 81.3 million respectively of severance indemnities related to the adjustment of the workforce to market conditions. |
Note 3 - Selling, General and_2
Note 3 - Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Selling, general and administrative expense [abstract] | |
Disclosure of detailed information about selling, general and administrative expenses [text block] | Year ended December 31, 2022 2021 2020 Services and fees 148,331 115,303 115,883 Labor cost (*) 518,500 426,414 444,436 Depreciation of property, plant and equipment 21,883 22,924 26,814 Amortization of intangible assets 59,018 63,874 82,355 Depreciation of right-of-use assets 15,975 15,525 17,664 Commissions, freight and other selling expenses 641,812 415,895 310,815 Provisions for contingencies 20,606 24,998 11,957 Allowances for doubtful accounts (223 ) (4,297 ) 4,644 Taxes 121,410 78,800 63,234 Other 87,263 47,133 41,425 1,634,575 1,206,569 1,119,227 (*) For the year ended December 2022, 2021 2020 11.2 15.8 61.2 |
Note 4 - Labor costs (included
Note 4 - Labor costs (included in Cost of sales and in Selling, general and administrative expenses) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of labor costs [abstract] | |
Disclosure of detailed information about labor costs [text block] | Year ended December 31, 2022 2021 2020 Wages, salaries and social security costs 1,594,200 1,170,562 1,036,211 Severance indemnities 29,070 28,625 142,458 Defined contribution plans 13,256 12,608 12,442 Pension benefits - defined benefit plans 16,320 13,353 11,097 Employee retention and long-term incentive program 25,739 25,337 (413 ) 1,678,585 1,250,485 1,201,795 |
Disclosure of information about employees [text block] | 2022 2021 2020 Argentina 6,444 5,169 4,376 Mexico 5,919 5,474 4,501 USA 3,509 2,684 1,596 Italy 2,136 2,011 2,039 Romania 1,847 1,725 1,552 Brazil 1,460 1,817 1,360 Colombia 1,183 1,009 746 Canada 944 758 561 Indonesia 495 506 521 Japan 11 379 399 Other 1,344 1,244 1,377 25,292 22,776 19,028 |
Note 6 - Other operating inco_2
Note 6 - Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of other operating income expense [abstract] | |
Disclosure of detailed information about other operating income and expenses [text block] | Year ended December 31, 2022 2021 2020 Other operating income Net income from other sales 28,161 10,694 9,891 Net rents 5,084 5,314 5,501 Reclassification of currency translation adjustment reserve (*) 71,252 - - Tax recovery in Brazilian subsidiaries (**) - 35,568 8,164 Other (***) - 16,290 9,837 Recovery on allowance for doubtful receivables - 379 - 104,497 68,245 33,393 Other operating expenses Contributions to welfare projects and non-profit organizations 13,668 6,697 12,989 Securities Exchange Commission investigation settlement (****) 78,100 - - Allowance for doubtful receivables 346 - 1,263 Other 12,595 - - 104,709 6,697 14,252 (*) During 2022 35 – A greement to terminate NKKTubes joint venture ” . (**) On May 13, 2021, the Brazilian Supreme Court issued a final judgment which confirmed that the methodology for calculating PIS and COFINS (Federal Social Contributions on Gross Revenues) tax claims to which taxpayers are entitled to, should exclude from its base the total output of ICMS, calculated on a gross basis. This decision led to a recognition of approximately $ 53 36 17 12 (***) On November 1, 2021 the Company transferred 100 24.3 6.8 (****) For more information see note 26 Contingencies - Petrobras-related proceedings and claims |
Note 7 - Financial Results (Tab
Note 7 - Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Financial Results [Abstract] | |
Disclosure of detailed information about financial income (cost) [text block] | Year ended December 31, 2022 2021 2020 Interest Income 86,112 38,048 21,625 Net result on changes in FV of financial assets at FVPL (6,092 ) - - Impairment result on financial assets at FVTOCI - - (3,238 ) Finance Income (*) 80,020 38,048 18,387 Finance cost (45,940 ) (23,677 ) (27,014 ) Net foreign exchange transactions results (**) 15,654 17,287 (74,422 ) Foreign exchange derivatives contracts results (***) (25,666 ) (7,966 ) 19,644 Other (****) (30,108 ) (1,026 ) (1,590 ) Other financial results (40,120 ) 8,295 (56,368 ) Net financial results (6,040 ) 22,666 (64,995 ) (*) Finance Income: In 2022 2021 2020 33 3.3 6.5 In 2022 10.5 In 2021 18 6 (**) Net foreign exchange transactions results: In 2022 In 2021 In 2020 (***) Foreign exchange derivatives contracts results: In 2022 In 2021 In 2020 (****) Other: In 2022 29.8 28 |
Note 8 - Income Tax (Tables)
Note 8 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Disclosure of detailed information about income tax expense (benefit) [text block] | Year ended December 31, 2022 2021 2020 Current tax (589,706 ) (215,467 ) (121,048 ) Deferred tax (27,530 ) 26,019 97,898 Tax charge (617,236 ) (189,448 ) (23,150 ) |
Disclosure of difference between income before tax and the theoretical amount that would arise using tax rate in each country [text block] | Year ended December 31, 2022 2021 2020 Income (loss) before income tax 3,165,937 1,242,766 (619,267 ) Less impairment charges (non-deductible) - 57,075 622,402 Income before income tax without impairment charges 3,165,937 1,299,841 3,135 Tax calculated at the tax rate in each country (705,727 ) (209,765 ) 21,052 Effect of currency translation on tax base (187,186 ) (76,043 ) (72,936 ) Changes in the tax rates (3,422 ) (29,881) (958 ) Utilization of previously unrecognized tax losses 29,560 966 98 Tax revaluation, withholding tax and others 249,539 125,275 29,594 Tax charges (617,236 ) (189,448 ) (23,150 ) |
Note 10 - Property, Plant and_2
Note 10 - Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | Year ended December 31, 2022 Land and civil buildings Industrial buildings, plant and production equipment Vehicles, furniture and fixtures Work in progress Spare parts and equipment Total Cost Values at the beginning of the year 830,104 13,064,541 420,930 147,429 59,522 14,522,526 Currency translation adjustment (1,601 ) (71,347 ) (1,838 ) 376 (174 ) (74,584 ) Increase due to business combinations (*) - - - 187 - 187 Additions - 2,271 734 334,912 8,150 346,067 Transfers / Reclassifications 9,829 184,915 16,221 (227,153 ) - (16,188 ) Disposals / Consumptions (22,569 ) (322,886 ) (33,562 ) (3,372 ) (11,972 ) (394,361 ) Values at the end of the year 815,763 12,857,494 402,485 252,379 55,526 14,383,647 Depreciation and impairment Accumulated at the beginning of the year 139,941 8,199,724 353,639 - 4,421 8,697,725 Currency translation adjustment (289 ) (51,283 ) (1,756 ) - 130 (53,198 ) Depreciation charge 13,577 432,648 21,022 - 20,485 487,732 Impairment charge (See note 5) - 75,722 321 - - 76,043 Transfers / Reclassifications (2 ) (21,506 ) (215 ) - - (21,723 ) Disposals / Consumptions (955 ) (321,334 ) (32,485 ) - (4,421 ) (359,195 ) Accumulated at the end of the year 152,272 8,313,971 340,526 - 20,615 8,827,384 At December 31, 2022 663,491 4,543,523 61,959 252,379 34,911 5,556,263 (*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. Year ended December 31, 2021 Land and civil buildings Industrial buildings, plant and production equipment Vehicles, furniture and fixtures Work in progress Spare parts and equipment Total Cost Values at the beginning of the year 839,584 13,079,545 414,757 102,226 61,893 14,498,005 Currency translation adjustment (5,084 ) (138,839 ) (5,042 ) (365 ) (569 ) (149,899 ) Additions 8 15,238 1,171 192,470 4,830 213,717 Transfers / Reclassifications 2,448 148,037 17,688 (146,752 ) - 21,421 Decrease due to sale of subsidiaries (*) (200 ) (4,310 ) (62 ) - - (4,572 ) Disposals / Consumptions (6,652 ) (35,130 ) (7,582 ) (150 ) (6,632 ) (56,146 ) Values at the end of the year 830,104 13,064,541 420,930 147,429 59,522 14,522,526 Depreciation and impairment Accumulated at the beginning of the year 132,458 7,830,120 342,246 - - 8,304,824 Currency translation adjustment (1,292 ) (97,236 ) (4,621 ) - - (103,149 ) Depreciation charge 9,736 440,316 21,715 - - 471,767 Impairment charge (See note 5) - 51,470 780 - 4,421 56,671 Decrease due to sale of subsidiaries (*) - ( 567 ) ( 53 ) - - ( 620 ) Disposals / Consumptions (961 ) (24,379 ) (6,428 ) - - (31,768 ) Accumulated at the end of the year 139,941 8,199,724 353,639 - 4,421 8,697,725 At December 31, 2021 690,163 4,864,817 67,291 147,429 55,101 5,824,801 (*) |
Note 11 - Intangible Assets, _2
Note 11 - Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [text block] | Year ended December 31, 2022 Information system projects Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 650,155 547,527 2,468,638 2,211,151 5,877,471 Currency translation adjustment (2,626 ) - 1,088 - (1,538 ) Increase due to business combinations (**) - 4,019 - - 4,019 Additions 31,427 952 - - 32,379 Transfers / Reclassifications (5,535 ) - - - (5,535 ) Disposals (***) (58,947 ) (1,507 ) - (449,109 ) (509,563 ) Values at the end of the year 614,474 550,991 2,469,726 1,762,042 5,397,233 Amortization and impairment Accumulated at the beginning of the year 599,307 391,223 1,383,994 2,130,771 4,505,295 Currency translation adjustment (2,496 ) - - - (2,496 ) Amortization charge 23,218 8,701 - 38,853 70,772 Impairment charge (See note 5) 2 - 680 - 682 Disposals (***) (58,912 ) (1,507 ) - (449,109 ) (509,528 ) Accumulated at the end of the year 561,119 398,417 1,384,674 1,720,515 4,064,725 At December 31, 2022 53,355 152,574 1,085,052 41,527 1,332,508 (*) Includes Proprietary Technology. (**) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. (***) Mainly related to fully depreciated assets following the deconsolidation of a Canadian subsidiary of the Company. Year ended December 31, 2021 Information system projects Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 637,352 550,500 2,469,962 2,211,151 5,868,965 Currency translation adjustment (6,466 ) (151 ) (1,324 ) - (7,941 ) Additions 22,830 2,971 - - 25,801 Transfers / Reclassifications (2,902 ) (4,637 ) - - (7,539 ) Disposals (659 ) (1,156 ) - - (1,815 ) Values at the end of the year 650,155 547,527 2,468,638 2,211,151 5,877,471 Amortization and impairment Accumulated at the beginning of the year 577,359 382,531 1,383,994 2,096,025 4,439,909 Currency translation adjustment (6,014 ) - - - (6,014 ) Amortization charge 28,072 8,701 - 34,746 71,519 Impairment charge (See note 5) 404 - - - 404 Disposals (514 ) (9 ) - - (523 ) Accumulated at the end of the year 599,307 391,223 1,383,994 2,130,771 4,505,295 At December 31, 2021 50,848 156,304 1,084,644 80,380 1,372,176 (*) Includes Proprietary Technology. |
Disclosure of information for cash-generating units [text block] | (all amounts in millions of U.S. dollars) Tubes Segment CGU Hydril Acquisition Other Total Tamsa (Hydril and other) 346 19 365 Siderca (Hydril and other) 265 93 358 Hydril 309 - 309 Other - 53 53 Total 920 165 1,085 |
Note 12 - Right-of-use Assets_2
Note 12 - Right-of-use Assets, Net and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Presentation of leases for lessee [abstract] | |
Disclosure of quantitative information about right-of-use assets [text block] | Year ended December 31, 2022 Land and Civil Buildings Industrial Buildings, Plant and Production Equipment Vehicles, furniture and fixtures Others Total Cost Opening net book amount 46,082 131,816 20,256 - 198,154 Currency translation adjustment 52 (414 ) (417 ) - (779 ) Additions 15,872 31,778 7,674 1,182 56,506 Transfers / Reclassifications (5,166 ) (1,317 ) 6,483 - - Disposals (13,270 ) (36,186 ) (3,705 ) - (53,161 ) At December 31, 2022 43,570 125,677 30,291 1,182 200,720 Depreciation Accumulated at the beginning of the year 24,005 54,727 10,684 - 89,416 Currency translation adjustment (9 ) (139 ) (251 ) - (399 ) Depreciation charge 8,965 32,767 7,277 210 49,219 Transfers / Reclassifications (3,974 ) 1,431 2,543 - - Disposals (10,054 ) (35,992 ) (3,211 ) - (49,257 ) Accumulated at the end of the year 18,933 52,794 17,042 210 88,979 At December 31, 2022 24,637 72,883 13,249 972 111,741 Year ended December 31, 2021 Land and Civil Buildings Industrial Buildings, Plant and Production Equipment Vehicles, furniture and fixtures Total Cost Opening net book amount 41,932 273,358 18,615 333,905 Currency translation adjustment (187 ) (592 ) (560 ) (1,339 ) Additions 6,010 10,127 6,189 22,326 Transfers / Reclassifications - (274 ) 277 3 Disposals (*) (1,673 ) (150,803 ) (4,265 ) (156,741 ) At December 31, 2021 46,082 131,816 20,256 198,154 Depreciation Accumulated at the beginning of the year 15,142 67,993 8,817 91,952 Currency translation adjustment (37 ) (177 ) (260 ) (474 ) Depreciation charge 9,882 35,964 5,589 51,435 Transfers / Reclassifications - 96 (93) 3 Disposals (*) (982 ) (49,149 ) (3,369 ) (53,500 ) Accumulated at the end of the year 24,005 54,727 10,684 89,416 At December 31, 2021 22,077 77,089 9,572 108,738 (*) Includes net disposals of $ 96.6 million related to NKKTubes lease agreement re-measurement due to joint venture termination. |
Lease liability evolution [text block] | Year ended December 31, 2022 2021 Opening net book amount 117,285 257,343 Translation differences (3,922 ) (11,350 ) Additions 56,459 22,261 Cancellations (*) (5,207 ) (103,329 ) Repayments (**) (55,874 ) (50,998 ) Interest accrued 3,436 3,358 At December 31, 112,177 117,285 (*) For 2021 95.8 (**) For 2022 52.4 3.5 2021 48.5 2.5 |
Note 13 - Investments in Non-_2
Note 13 - Investments in Non-consolidated Companies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of unconsolidated structured entities [abstract] | |
Disclosure of unconsolidated structured entities [text block] | Year ended December 31, 2022 2021 At the beginning of the year 1,383,774 957,352 Translation differences 7,336 (11,085 ) Equity in earnings of non-consolidated companies 242,743 512,591 Impairment loss in non-consolidated companies (*) (34,041 ) - Dividends and distributions declared (**) (64,189 ) (78,926 ) Increase in equity reserves and others 5,023 3,842 At the end of the year 1,540,646 1,383,774 ( *) Includes an impairment of $ 19.1 PAO Severstal (“Severstal”) . For more information see note 3 6 . (**) Related to Ternium and Usiminas . During 202 2 and 20 2 1 $ 66.2 million and $ 75.9 million respectively were collected . |
Disclosure of detailed information about principal non-consolidated companies [text block] | % ownership at December 31, Book value at December 31, Company Country of incorporation 2022 2021 2022 2021 a) Ternium (*) Luxembourg 11.46% 11.46% 1,363,607 1,210,206 b) Usiminas (**) Brazil 3.07% 3.07% 109,534 103,106 c) Techgen Mexico 22.00% 22.00% 41,506 29,397 d) Global Pipe Company Saudi Arabia 35.00% 35.00% 23,022 21,523 Others 2,977 19,542 1,540,646 1,383,774 (*) Including treasury shares. (**) At December 31, 20 2 2 and 20 2 1 the voting rights were 5.19 % . |
Disclosure of detailed information about selected financial information [text block] | Ternium 2022 2021 Non-current assets 8,647,510 8,491,363 Current assets 8,844,038 8,606,544 Total assets 17,491,548 17,097,907 Non-current liabilities 1,506,325 1,649,105 Current liabilities 2,216,832 3,213,764 Total liabilities 3,723,157 4,862,869 Total equity 13,768,391 12,235,038 Non-controlling interests 1,922,434 1,700,019 Revenues 16,414,466 16,090,744 Gross profit 3,927,184 6,195,674 Net income for the year attributable to owners of the parent 1,767,516 3,825,068 Usiminas 2022 2021 Non-current assets 3,764,453 3,491,103 Current assets 3,901,844 3,583,814 Total assets 7,666,297 7,074,917 Non-current liabilities 1,671,249 1,575,321 Current liabilities 1,033,524 1,134,663 Total liabilities 2,704,773 2,709,984 Total equity 4,961,524 4,364,933 Non-controlling interests 523,741 467,551 Revenues 6,296,964 6,269,569 Gross profit 1,110,439 2,101,336 Net income for the year attributable to owners of the parent 319,979 1,687,682 |
Note 14 - Receivables - Non C_2
Note 14 - Receivables - Non Current (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other non-current receivables [abstract] | |
Disclosure of detailed information about non-current receivables [text block] | Year ended December 31, 2022 2021 Employee advances and loans 11,908 8,117 Tax credits (*) 27,333 53,210 Receivables from related parties 67,921 61,841 Legal deposits 9,394 9,041 Advances to suppliers and other advances 28,779 9,878 Receivable Venezuelan subsidiaries 48,659 48,659 Others 17,726 15,142 211,720 205,888 (*) As of December 31, 2022 and 2021 respectively, included approximately $8 million and $36 million related to PIS and COFINS (Federal Social Contributions on Gross Revenues) tax recovery on Brazilian subsidiaries. |
Note 15 - Inventories, Net (Tab
Note 15 - Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of current inventories [abstract] | |
Disclosure of detailed information about inventories [text block] | Year ended December 31, 2022 2021 Finished goods 1,592,706 1,113,011 Goods in process 936,555 707,665 Raw materials 606,977 358,552 Supplies 542,636 485,815 Goods in transit 530,721 253,324 4,209,595 2,918,367 Allowance for obsolescence, see note 24 (i) (222,666 ) (245,774 ) 3,986,929 2,672,593 |
Note 16 - Receivables and Pre_2
Note 16 - Receivables and Prepayments, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Current prepayments and current accrued income [abstract] | |
Disclosure of detailed information about receivables and prepayments [text block] | Year ended December 31, 2022 2021 Prepaid expenses and other receivables 47,419 38,080 Government entities 18,121 2,363 Employee advances and loans 10,701 5,974 Advances to suppliers and other advances 41,549 17,225 Government tax refunds on exports 8,898 8,419 Receivables from related parties 19,184 5,919 Others 41,418 21,502 187,290 99,482 Allowance for other doubtful accounts, see note 24 (i) (3,479 ) (3,206 ) 183,811 96,276 |
Note 17 - Current Tax Assets _2
Note 17 - Current Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Current Tax Receivables and Payables [Abstract] | |
Disclosure of detailed information about current tax assets [text block] | Year ended December 31, Current tax assets 2022 2021 Income tax assets 24,812 16,394 V.A.T. credits 218,009 176,202 Other prepaid taxes 315 425 243,136 193,021 |
Disclosure of detailed information about tax liabilities [text block] | Year ended December 31, Current tax liabilities 2022 2021 Income tax liabilities 280,469 73,352 V.A.T. liabilities 17,228 12,955 Other taxes 78,543 57,179 376,240 143,486 |
Note 18 - Trade Receivables, _2
Note 18 - Trade Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information about current trade receivables [text block] | Year ended December 31, 2022 2021 Current accounts 2,479,035 1,313,934 Receivables from related parties 60,400 32,258 2,539,435 1,346,192 Allowance for doubtful accounts, see note 24 (i) (45,495 ) (47,120 ) 2,493,940 1,299,072 |
Disclosure if detailed information about the aging of trade receivables [text block] | At December 31, 2022 Trade Receivables Not Due Past due 1 - 180 days > 180 days Guaranteed 265,898 237,784 27,431 683 Not guaranteed 2,273,537 1,756,707 465,423 51,407 Guaranteed and not guaranteed 2,539,435 1,994,491 492,854 52,090 Expected loss rate 0.06 % 0.03 % 0.18 % 0.77 % Allowances for doubtful accounts (1,657 ) (654 ) (920 ) (83 ) Nominative allowances for doubtful accounts (43,838 ) - (1,541 ) (42,297 ) Net Value 2,493,940 1,993,837 490,393 9,710 At December 31, 2021 Trade Receivables Not Due Past due 1 - 180 days > 180 days Guaranteed 195,848 185,238 9,894 716 Not guaranteed 1,150,344 951,356 148,412 50,576 Guaranteed and not guaranteed 1,346,192 1,136,594 158,306 51,292 Expected loss rate 0.06 % 0.04 % 0.20 % 0.84 % Allowances for doubtful accounts (833 ) (401 ) (367 ) (65 ) Nominative allowances for doubtful accounts (46,287 ) - (1,391 ) (44,896 ) Net Value 1,299,072 1,136,193 156,548 6,331 |
Note 19 - Cash and Cash Equiv_2
Note 19 - Cash and Cash Equivalents and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash and Cash Equivalents and Other Investments [Abstract] | |
Detailed disclosure of cash and cash equivalents and other investments [text block] | Year ended December 31, 2022 2021 Cash and cash equivalents Cash at banks 149,424 167,455 Liquidity funds 422,859 105,697 Short-term investments 519,244 44,975 1,091,527 318,127 Other investments - current Fixed income (time-deposit, zero coupon bonds, commercial papers) 196,152 239,742 Bonds and other fixed income 211,953 158,107 Fund investments 30,343 - 438,448 397,849 Other investments - non-current Bonds and other fixed income 113,574 312,619 Others 6,328 7,635 119,902 320,254 |
Note 20 - Borrowings (Tables)
Note 20 - Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Disclosure of detailed information about borrowings [text block] | Year ended December 31, 2022 2021 Non-current Bank borrowings 46,433 111,452 Costs of issue of debt - (20 ) 46,433 111,432 Current Bank borrowings 682,255 219,566 Bank overdrafts 94 60 Costs of issue of debt (20) (125 ) 682,329 219,501 Total Borrowings 728,762 330,933 |
Disclosure of detailed information about the maturity of borrowings [text block] | 1 year or less 1 - 2 years 2 – 3 years Over 3 years Total At December 31, 2022 Borrowings 682,329 41,933 3,000 1,500 728,762 Total borrowings 682,329 41,933 3,000 1,500 728,762 Interest to be accrued (*) 26,153 821 64 8 27,046 Total 708,482 42,754 3,064 1,508 755,808 (*) Includes the effect of hedge accounting. 1 year or less 1 - 2 years 2 – 3 years Over 3 years Total At December 31, 2021 Borrowings 219,501 107,438 3,994 - 330,933 Total borrowings 219,501 107,438 3,994 - 330,933 Interest to be accrued (*) 2,465 560 13 - 3,038 Total 221,966 107,998 4,007 - 333,971 (*) Includes the effect of hedge accounting . |
Disclosure of detailed information about significant borrowings [text block] | In millions of U.S. dollars Disbursement date Borrower Type Final maturity Outstanding 2022 Tamsa Bilateral 2023 100 2022 Maverick Bilateral 2023 100 2022 Tubos del Caribe Bilateral 2023 90 2020 Tamsa Bilateral 2023 80 2022 Siderca Bilateral 2023 55 |
Disclosure of detailed information about weighted average interest rates of borrowings [text block] | 2022 2021 Total borrowings 9.45% 2.09% |
Disclosure of detailed information about borrowings by currency and rate [text block] | Year ended December 31, Currency Interest rates 2022 2021 USD Variable 20,000 99,587 SAR Fixed 18,933 11,845 SAR Variable 7,500 - Total non-current borrowings 46,433 111,432 Year ended December 31, Currency Interest rates 2022 2021 USD Variable 200,350 17,015 USD Fixed 206,336 - EUR Variable - 1,273 EUR Fixed 26,829 1,706 MXN Fixed 141,802 141,861 ARS Fixed 74,025 8,947 SAR Variable 3,023 26,022 SAR Fixed 29,964 22,677 Total current borrowings 682,329 219,501 |
Disclosure of borrowings evolution [text block] | Year ended December 31, 2022 Non current Current At the beginning of the year 111,432 219,501 Translation differences (18 ) (28,705 ) Proceeds and repayments, net 49,948 371,500 Interests accrued less payments 158 4,774 Reclassifications (115,087 ) 115,087 Increase due to business combinations (*) - 138 Overdrafts variation - 34 At the end of the year 46,433 682,329 (*) Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. |
Note 21 - Deferred tax assets_2
Note 21 - Deferred tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Disclosure of deferred tax assets and liabilities [text block] | Deferred tax liabilities Fixed assets Inventories Intangible assets and other Total At the beginning of the year 669,830 27,508 104,346 801,684 Translation differences (64 ) 15 600 551 Charged to other comprehensive income - - 1,719 1,719 Income statement (credit) / charge (94,099 ) 16,009 7,877 (70,213 ) At December 31, 2022 575,667 43,532 114,542 733,741 Fixed assets Inventories Intangible assets and other Total At the beginning of the year 702,415 15,255 125,793 843,463 Translation differences (461 ) - (2,059 ) (2,520 ) Decrease due to sale of subsidiaries (*) (637 ) - - (637 ) Charged to other comprehensive income - - 4,061 4,061 Income statement (credit) / charge (31,487 ) 12,253 (23,449 ) (42,683 ) At December 31, 2021 669,830 27,508 104,346 801,684 Deferred tax assets Provisions and allowances Inventories Tax losses Other Total At the beginning of the year (25,083 ) (85,037 ) (485,763 ) (176,627 ) (772,510 ) Translation differences (345 ) 114 747 (245) 271 Charged to other comprehensive income - - - 954 954 Income statement charge / (credit) (389 ) (95,229 ) 174,427 18,934 97,743 At December 31, 2022 (25,817 ) (180,152 ) (310,589 ) (156,984 ) (673,542 ) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year (21,208 ) (85,937 ) (480,149 ) (206,958 ) (794,252 ) Translation differences 506 606 80 1,195 2,387 Decrease due to sale of subsidiaries (*) - 93 - 11 104 Charged to other comprehensive income - - - 2,587 2,587 Income statement charge / (credit) (4,381 ) 201 (5,694) 26,538 16,664 At December 31, 2021 (25,083 ) (85,037 ) (485,763 ) (176,627 ) (772,510 ) (*) Related to Geneva sale. See note 6 |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | Year ended December 31, 2022 2021 Deferred tax assets to be recovered after 12 months (171,717 ) (611,552 ) Deferred tax liabilities to be settled after 12 months 688,124 782,128 |
Deferred tax [text block] | Year ended December 31, 2022 2021 Deferred tax assets (208,870 ) (245,547 ) Deferred tax liabilities 269,069 274,721 60,199 29,174 Year ended December 31, 2022 2021 At the beginning of the year 29,174 49,211 Translation differences 822 (133 ) Decrease due to sale of subsidiaries - (533 ) Charged to other comprehensive income 2,673 6,648 Income statement charge / (credit) 27,530 (26,019 ) At the end of the year 60,199 29,174 |
Note 22 - Other Liabilities (Ta
Note 22 - Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Other Liabilities [Abstract] | |
Disclosure of other non-current liabilities [text block] | Year ended December 31, 2022 2021 Post-employment benefits 108,936 111,904 Other long-term benefits 71,446 71,345 Miscellaneous 49,760 48,432 230,142 231,681 |
Disclosure of net defined benefit liability (asset) [text block] | Year ended December 31, 2022 2021 Unfunded 103,822 103,841 Funded 5,114 8,063 108,936 111,904 Year ended December 31, 2022 2021 Values at the beginning of the year 103,841 115,774 Current service cost 6,810 5,728 Interest cost 7,610 5,997 Curtailments and settlements (64 ) (422 ) Remeasurements (*) ( 4,228 ) 3,174 Translation differences (5,657 ) (3,716 ) Benefits paid from the plan (5,111 ) (13,539 ) Reclassified to current liabilities (461 ) (8,884 ) Other 1,082 (271) At the end of the year 103,822 103,841 (*) For 2022 a gain of $0.1 million is attributable to demographic assumptions and a gain of $4.1 million to financial assumptions. For 2021 0.7 2.5 . Year ended December 31, 2022 2021 Present value of funded obligations 116,617 159,528 Fair value of plan assets (126,842 ) (160,504 ) Asset (*) ( 10,225 ) ( 976 ) (*) In 2022 2021 Year ended December 31, 2022 2021 At the beginning of the year 159,528 176,309 Translation differences (6,635 ) 356 Current service cost 154 222 Interest cost 4,293 4,190 Remeasurements (*) (30,349 ) (7,019 ) Benefits paid (10,374 ) (14,530 ) At the end of the year 116,617 159,528 (*) For 2022 For 2021 0.4 6.6 |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | Year ended December 31, 2022 2021 Discount rate 4% - 7% 1% - 7% Rate of compensation increase 2% - 3% 0% - 3% Year ended December 31, 2022 2021 Discount rate 3% - 5% 2% - 3% Rate of compensation increase 0% - 3% 0% - 3% |
Disclosure of fair value of plan assets [text block] | Year ended December 31, 2022 2021 At the beginning of the year (160,504 ) (157,335 ) Translation differences 6,639 (250 ) Return on plan assets (4,319 ) (3,793 ) Remeasurements 20,987 (10,817 ) Contributions paid to the plan (435 ) (3,338 ) Benefits paid from the plan 10,374 14,530 Other 416 499 At the end of the year (126,842 ) (160,504 ) The major categories of plan assets as a percentage of total plan assets are as follows: Year ended December 31, 2022 2021 Equity instruments 28.8% 49.2% Debt instruments 67.2% 46.7% Others 4.0% 4.1% |
Disclosure of other current liabilities [text block] | Year ended December 31, 2022 2021 Payroll and social security payable 224,630 174,794 Miscellaneous 35,984 28,931 260,614 203,725 |
Note 23 - Non-current allowan_2
Note 23 - Non-current allowances and provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Non-current allowances and provisions [Abstract] | |
Disclosure of detailed information about non-current allowances and provisions from liabilities [text block] | Year ended December 31, 2022 2021 Values at the beginning of the year 83,556 73,218 Translation differences 357 (2,476 ) Additional allowance 11,102 13,896 Reclassifications 2,229 4,014 Used and other movements 882 (5,096 ) Values at the end of the year 98,126 83,556 |
Note 24 - Current allowances _2
Note 24 - Current allowances and provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Current allowances and provisions [Abstract] | |
Disclosure of detailed information about current allowances and provisions deducted from assets [text block] | Year ended December 31, 2022 Allowance for doubtful accounts - Trade receivables Allowance for other doubtful accounts - Other receivables Allowance for inventory obsolescence Values at the beginning of the year (47,120 ) (3,206 ) (245,774 ) Translation differences (12 ) 68 (405 ) (Additional) / reversal allowances 223 (346 ) (24,901 ) Used 1,414 5 48,414 At December 31, 2022 (45,495 ) (3,479 ) (222,666 ) Year ended December 31, 2021 Allowance for doubtful accounts - Trade receivables Allowance for other doubtful accounts - Other receivables Allowance for inventory obsolescence Values at the beginning of the year (53,676 ) (3,917 ) (263,635 ) Translation differences 111 227 1,877 Decrease due to sale of subsidiaries (*) 2 10 405 (Additional) / reversal allowances 4,297 379 (23,296 ) Used 2,146 95 38,875 At December 31, 2021 (47,120 ) (3,206 ) (245,774 ) (*) Rel ated to Geneva sale. See note 6 |
Disclosure of detailed information about current allowances and provisions from liabilities [text block] | Year ended December 31, 2022 Sales risks Other claims and contingencies (*) Total Values at the beginning of the year 1,468 7,854 9,322 Translation differences (160 ) (97 ) (257 ) Additional provisions 5,315 4,189 9,504 Reclassifications - (2,229 ) (2,229 ) Used (3,437 ) (1,718 ) (5,155 ) At December 31, 2022 3,186 7,999 11,185 Year ended December 31, 2021 Sales risks Other claims and contingencies (*) Total Values at the beginning of the year 1,795 10,484 12,279 Translation differences (3 ) (736 ) (739 ) Additional provisions 3,506 7,596 11,102 Reclassifications - (4,014 ) (4,014 ) Used (3,830 ) (5,476 ) (9,306 ) At December 31, 2021 1,468 7,854 9,322 (*) Other claims and contingencies mainly include lawsuits and other legal proceedings, including employee, tax and environmental-related claims. |
Note 25 - Derivative Financia_2
Note 25 - Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about derivative financial instruments [text block] | Year ended December 31, 2022 2021 Derivatives hedging borrowings and investments 6,480 2,472 Other derivatives 24,325 8,843 Contracts with positive fair values 30,805 11,315 Derivatives hedging borrowings and investments - (147) Other derivatives (7,127 ) (11,181 ) Contracts with negative fair values (7,127 ) (11,328 ) Total 23,678 (13 ) |
Disclosure of detailed information about hedged items [text block] | Purchase currency Sell currency Term Fair Value Hedge Accounting Reserve 2022 2021 2022 2021 MXN USD 2023 6,571 1,444 (67 ) (93 ) USD MXN 2023 - (838 ) - - EUR USD 2023 1,866 (7,670 ) (2,786 ) (7,430 ) USD EUR 2023 20,783 9,092 23,935 8,258 JPY USD 2023 - (269 ) - 557 USD BRL 2023 (2,490 ) (1,030 ) - - USD KWD 2023 (129 ) - - - USD CAD 2023 404 (246 ) - - USD GBP 2023 (11 ) (55 ) - - USD CNY 2023 (242 ) (130 ) - - BRL USD 2023 223 (238 ) - - Others 2023 63 (40 ) 3 - Total 27,038 20 21,085 1,292 Purchase Commodity Term Fair Value Hedge Accounting Reserve 2022 2021 2022 2021 Houston Ship Channel Gas 2023 (814 ) (33 ) (814 ) (33 ) LME Scrap 2023 29 - (3,148 ) - Iron Ore 2023 12 - (1,274 ) - Electric Energy 2023 (519 ) - (519 ) - TTF Gas 2023 (2,068 ) - (2,207 ) - Total (3,360 ) (33 ) (7,963 ) (33 ) |
Disclosure of detailed information of the hedge reserve evolution [text block] | Equity Reserve Dec-2020 Movements 2021 Equity Reserve Dec-2021 Movements 2022 Equity Reserve Dec-2022 Foreign Exchange & Commodities (4,771 ) 6,030 1,259 11,863 13,122 Total Cash flow Hedge (4,771 ) 6,030 1,259 11,863 13,122 |
Note 29 - Cash Flow Disclosur_2
Note 29 - Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash Flow [Abstract] | |
Disclosure of detailed information about cash flow disclosures [text block] | Year ended December 31, 2022 2021 2020 (i) Changes in working capital (*) Inventories (1,329,865 ) (1,085,024 ) 818,913 Receivables and prepayments and current tax assets (155,449 ) (79,912 ) 67,610 Trade receivables (1,208,278 ) (356,069 ) 414,826 Other liabilities 57,389 4,892 (36,000 ) Customer advances 151,066 44,661 (29,253 ) Trade payables 353,892 399,988 (180,807 ) (2,131,245 ) (1,071,464 ) 1,055,289 (ii) Income tax accruals less payments Tax accrued 617,236 189,448 23,150 Taxes paid (359,585 ) (153,846 ) (140,364 ) 257,651 35,602 (117,214 ) (iii) Interest accruals less payments, net Interest accrued (34,080 ) (14,371 ) 8,627 Interest received 68,335 24,567 19,613 Interest paid (32,775 ) (21,559 ) (28,778 ) 1,480 (11,363 ) (538 ) (*) Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar. |
Note 30 - Related Party Trans_2
Note 30 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of transactions between related parties [text block] | Year ended December 31, (i) Transactions 2022 2021 2020 (a) Sales of goods and services Sales of goods to non-consolidated parties 100,019 71,879 20,183 Sales of goods to other related parties 151,884 76,467 18,243 Sales of services to non-consolidated parties 5,407 4,161 5,829 Sales of services to other related parties 109,123 49,268 5,049 366,433 201,775 49,304 (b) Purchases of goods and services Purchases of goods to non-consolidated parties 656,877 294,929 84,485 Purchases of goods to other related parties 51,040 32,453 12,892 Purchases of services to non-consolidated parties 13,759 9,763 6,979 Purchases of services to other related parties 36,767 13,806 18,133 758,443 350,951 122,489 At December 31, (ii) Period-end balances 2022 2021 (a) Arising from sales / purchases of goods / services Receivables from non-consolidated parties 69,135 66,896 Receivables from other related parties 78,370 33,122 Payables to non-consolidated parties (142,228 ) (45,092 ) Payables to other related parties (13,283 ) (2,125 ) (8,006 ) 52,801 (b) Financial debt Finance lease liabilities from non-consolidated parties (1,650 ) (1,936 ) Finance lease liabilities from other related parties (483 ) (624 ) (2,133 ) (2,560 ) |
Note 31 - Principal accountan_2
Note 31 - Principal accountant fees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Auditor's remuneration [abstract] | |
Disclosure of auditors' remuneration [text block] | Year ended December 31, 2022 2021 2020 Audit fees 3,966 3,804 3,781 Audit-related fees 255 220 134 Tax fees - - 102 All other fees 11 5 - Total 4,232 4,029 4,017 |
Note 32 - Principal Subsidiar_2
Note 32 - Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
Disclosure of subsidiaries [text block] | Company Country of Incorporation Main activity Percentage of ownership at December 31, (*) 2022 2021 2020 ALGOMA TUBES INC. Canada Manufacturing of welded and seamless steel pipes 100% 100% 100% CONFAB INDUSTRIAL S.A. and subsidiaries Brazil Manufacturing of welded steel pipes and capital goods 100% 100% 100% DALMINE S.p.A. Italy Manufacturing of seamless steel pipes 100% 100% 100% HYDRIL COMPANY and subsidiaries USA Manufacture and marketing of premium connections 100% 100% 100% IPSCO TUBULARS INC. and subsidiaries USA Manufacturing of welded and seamless steel pipes 100% 100% 100% MAVERICK TUBE CORPORATION and subsidiaries USA Manufacturing of welded and seamless steel pipes 100% 100% 100% P.T. SEAMLESS PIPE INDONESIA JAYA Indonesia Manufacturing of seamless steel products 89% 89% 89% S.C. SILCOTUB S.A. Romania Manufacturing of seamless steel pipes 100% 100% 100% SAUDI STEEL PIPE CO. Saudi Arabia Manufacturing of welded steel pipes 48% 48% 48% SIAT SOCIEDAD ANONIMA Argentina Manufacturing of welded steel pipes 100% 100% 100% SIDERCA SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL and subsidiaries (a) Argentina Manufacturing of seamless steel pipes 100% 100% 100% TALTA - TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA. Portugal Holding Company 100% 100% 100% TENARIS BAY CITY, INC. USA Manufacturing of welded and seamless steel pipes 100% 100% 100% TENARIS CONNECTIONS BV Netherlands Development, management and licensing of intellectual property 100% 100% 100% TENARIS FINANCIAL SERVICES S.A. Uruguay Financial company 100% 100% 100% TENARIS GLOBAL SERVICES (CANADA) INC. Canada Marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES (U.S.A.) CORPORATION USA Marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES (UK) LTD United Kingdom Holding company and marketing of steel products 100% 100% 100% TENARIS GLOBAL SERVICES S.A. and subsidiaries (except detailed) (b) Uruguay Holding company, marketing and distribution of steel products 100% 100% 100% TENARIS INVESTMENTS (NL) B.V. and subsidiaries Netherlands Holding company 100% 100% 100% TENARIS INVESTMENTS S.àr.l. Luxembourg Holding company 100% 100% 100% TENARIS QINGDAO STEEL PIPES LTD. China Processing of premium joints, couplings and automotive components 100% 100% 100% TENARIS TUBOCARIBE LTDA. Colombia Manufacturing of welded and seamless steel pipes 100% 100% 100% TUBOS DE ACERO DE MEXICO, S.A. Mexico Manufacturing of seamless steel pipes 100% 100% 100% (*) All percentages rounded. (a) Tenaris holds 51% of . (b) Tenaris holds 98.4% of Supply Chain S.A. and 40% of Tubular Technical Services Ltd. and Pipe Coaters Nigeria Ltd., 49% of Tubular Services Limited and 60% of Steel Pipes Ltd, and until 2021 held 49% of Tubular Services Angola Lda. |
II. Accounting Policies (Detail
II. Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2017 | |
Disclosure of associates [line items] | ||||
Goodwill or intangible assets recognized in relation to investments in non consolidated companies under the equity method | $ 0 | |||
Number of major business segments | 1 | |||
Additional amortization expenses | $ 11,100 | |||
Total intangible assets and goodwill | $ 1,332,508 | $ 1,372,176 | ||
Research and development expense | 50,700 | 45,300 | 41,800 | |
Selling, general and administrative expenses, amortization of intangible assets | $ 59,018 | $ 63,874 | $ 82,355 | |
Discount rate used in current estimate of value in use | 13.50% | |||
Number of shares authorised (in shares) | shares | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 | |
Par value per share (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | |
Total number of shares issued (in shares) | shares | 1,180,536,830 | 1,180,536,830 | 1,180,536,830 | |
Number of shares outstanding at end of period (in shares) | shares | 1,180,536,830 | 1,180,536,830 | 1,180,536,830 | |
Number of votes, per share | 1 | 1 | 1 | |
Employee benefits, unit vesting period (Year) | 4 years | |||
Employee benefits, company redemption period (Year) | 7 years | 10 years | ||
Employee benefits, early redemption period (Year) | 7 years | |||
Carrying value of units granted | $ 123,900 | $ 99,600 | ||
Dilutive effect of share options on number of ordinary shares (in shares) | shares | 0 | |||
Period of lease term of short-term leases | 12 months | |||
Forecast period of cash flow projections | 5 years | |||
Nominal growth rate | 2% | |||
Maximum maturity period of fair value through other comprehensive income instruments for short-term nature | 12 months | |||
Other current Non-current benefits | $ 94,400 | 84,200 | ||
Italy | ||||
Disclosure of associates [line items] | ||||
Net defined benefit liability (asset) at end of period | 10,700 | |||
Canada | ||||
Disclosure of associates [line items] | ||||
Net defined contribution plan liability (asset) at end of period | 10,400 | |||
USA | ||||
Disclosure of associates [line items] | ||||
Net defined contribution plan liability (asset) at end of period | 7,100 | |||
Unfunded defined benefit employee retirement plan for certain senior officers [member] | ||||
Disclosure of associates [line items] | ||||
Net defined benefit liability (asset) at end of period | 43,100 | |||
Information system projects [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | 53,355 | 50,848 | ||
Licenses, patents, trademarks, and proprietary technology [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | 86,700 | |||
Customer-related intangible assets [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | $ 41,527 | $ 80,380 | ||
Customer-related intangible assets [member] | Maverick acquisition [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 14 years | |||
Customer-related intangible assets [member] | Hydrill acquisition [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 10 years | |||
Customer-related intangible assets [member] | Saudi Steel Pipe Company [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 9 years | |||
Selling, general and administrative expenses, amortization of intangible assets | $ 4,100 | |||
Finite-lived intangible asset, residual useful life (Year) | 3 years | |||
Finite-lived intangible asset, reviewed useful life (Year) | 5 years | |||
Intangible assets other than goodwill, useful life (Year) | 3 years | |||
Customer-related intangible assets [member] | Ipsco Tubulars Inc [Member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 3 years | |||
Finite-lived intangible asset, residual value | $ 41,500 | |||
Top of range [member] | ||||
Disclosure of associates [line items] | ||||
Discount rate used in current estimate of value in use | 20.20% | |||
Percentage of voting rights held in unconsolidated entities | 50% | |||
Top of range [member] | Information system projects [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 3 years | |||
Top of range [member] | Licenses, patents, trademarks, and proprietary technology [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 10 years | |||
Bottom of range [member] | ||||
Disclosure of associates [line items] | ||||
Discount rate used in current estimate of value in use | 13.40% | |||
Percentage of voting rights held in unconsolidated entities | 20% | |||
Bottom of range [member] | Licenses, patents, trademarks, and proprietary technology [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 3 years | |||
Global Pipe Company [Member] | Saudi Steel Pipe Company [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 35% | |||
Number of Board members can be appointed through the shareholders agreement | 4 | |||
Number of Board members | 11 | |||
Usiminas [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Shares bound to SHA (in shares) | shares | 483,600,000 | |||
Percent of company voting capital | 68.60% | |||
T/T Group [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Percent of company voting capital | 47.10% | |||
Ternium entitites [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Percent of company voting capital | 39.50% | |||
Confab [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Percent of company voting capital | 7.60% | |||
NSSMC [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Percent of company voting capital | 45.90% | |||
Previdencia Usiminas [member] | The new SHA [member] | ||||
Disclosure of associates [line items] | ||||
Percent of company voting capital | 7% | |||
Ternium S.A. [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 48% | |||
Tecpetrol International S.A. [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 30% | |||
Tenaris [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 22% | |||
Ternium S.A. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in associate | 11.46% | |||
Usiminas [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in associate | 3.07% | |||
Proportion of voting rights held in associate | 5.19% | |||
Forecast period of cash flow projections | 5 years | |||
Nominal growth rate | 2% | |||
Usiminas [member] | Preference shares [member] | ||||
Disclosure of associates [line items] | ||||
Number of shares subscribed to (in shares) | shares | 1,300,000 | |||
Usiminas [member] | Ordinary shares [member] | ||||
Disclosure of associates [line items] | ||||
Number of shares subscribed to (in shares) | shares | 36,500,000 |
II. Accounting Policies - Estim
II. Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additional depreciation expenses | $ 39 | $ 45 |
Buildings and improvements [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 30 years | |
Buildings and improvements [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 50 years | |
Plant and production equipment [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 10 years | |
Plant and production equipment [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 40 years | |
Vehicles, furniture and fixtures, and other equipment [member] | Bottom of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 4 years | |
Vehicles, furniture and fixtures, and other equipment [member] | Top of range [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment (Year) | 10 years |
III. Financial Risk Managemen_2
III. Financial Risk Management (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Debt to equity ratio (as a ratio) | 0.05 | 0.03 | |||
Reserve of exchange differences on translation | $ 71,252 | [1],[2] | |||
Total borrowings | 728,762 | 330,933 | |||
Loss on interest rate risk if market interest rates were higher | $ 5,300 | $ 5,200 | |||
Exposure investment-grade rated instruments (as a percent) | 80% | 77% | |||
Current trade receivables | $ 2,493,940 | $ 1,299,072 | $ 968,148 | ||
Liquid financial assets (as a percent) | 9% | 7% | |||
Financial liabilities, fair value as a percentage of carrying value (as a percent) | 99.20% | 99.60% | |||
Reserve of cash flow hedges, continuing hedges | $ 13,100 | $ 1,300 | |||
Minimum maturity period of certificates of deposits | 3 months | ||||
CTA foreign exchange risk currency exposure | $ 900 | 200 | |||
Allowance for doubtful accounts - trade receivables [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 45,500 | 47,100 | |||
Past due [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 544,900 | 209,600 | |||
Guarantees under credit insurance [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 231,200 | 175,800 | |||
Letter of credit and other bank guarantees [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 34,700 | 17,800 | |||
Other guarantees [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 2,200 | ||||
Financial guarantee contracts [member] | Past due [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 28,100 | 10,600 | |||
Fixed interest rate [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Total borrowings | [3] | 497,889 | $ 187,036 | ||
Current borrowings | $ 479,000 | ||||
Concentration risk (as a percent) | [3] | 68% | 57% | ||
Other currencies hedged to U.S. dollar [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Liquid financial assets, percentage denominated by a specific currency (as a percent) | 87% | ||||
Level 3 [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Total borrowings | |||||
Current trade receivables | |||||
Level 3 [member] | Venezuelan Companies | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Current trade receivables | 48,700 | ||||
One percent change, Argentine Peso / U.S. dollar foreign exchange risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Foreign exchange risk, currency exposure | 1,300 | 1,000 | |||
One percent change, Euro / U.S. dollar foreign exchange risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Foreign exchange risk, currency exposure | 400 | 100 | |||
One percent change, Brazilian Real / U.S. dollar foreign exchange risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Foreign exchange risk, currency exposure | $ 900 | 300 | |||
Liquidity risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Maximum maturity period of cash and cash equivalents | 3 months | ||||
Liquidity risk [member] | European sovereign counterparties [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Direct exposure to financial instruments issued by European sovereign counterparties | $ 5,000 | 6,000 | |||
Commodity price risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Maximum period of fixed price of commodities for short-term nature | 1 year | ||||
One percent change, All foreign exchange exposure vs USD dollar foreign exchange risk [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Foreign exchange risk, currency exposure | $ 4,000 | 3,100 | |||
One percent change, All foreign exchange exposure vs USD dollar foreign exchange risk [member] | Foreign exchange derivatives contracts [member] | |||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||||
Foreign exchange risk, currency exposure | $ 200 | $ 500 | |||
[1] During 2022 “Other Information - A greement to terminate NKKTubes joint venture ” . Related to NKKTubes ’ cease of operations. For more information see note 35 “Other Relevant Information – A greement to t erminate NKKTubes joint venture ” . Out of the $ 497.9 million fixed rate borrowings, $ 479 million are short-term. |
III. Financial Risk Managemen_3
III. Financial Risk Management - Financial Assets and Liabilities Which Impact Profit and Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Argentine Peso / U.S. dollar foreign exchange risk [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Currency exposure / functional currency | $ (126,739) | $ (95,073) |
Euro / U.S. dollar foreign exchange risk [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Currency exposure / functional currency | (42,458) | 12,462 |
Saudi Arabian Riyal / US Dollar exchange risk [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Currency exposure / functional currency | (74,183) | (77,853) |
U.S. dollar / Brazilian Real foreign exchange risk [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Currency exposure / functional currency | $ (94,856) | $ (32,738) |
III. Financial Risk Managemen_4
III. Financial Risk Management - Proportions of Variable-rate and Fixed-rate Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Significant borrowings as of closing date | $ 728,762 | $ 330,933 | |
Fixed interest rate [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Significant borrowings as of closing date | [1] | $ 497,889 | $ 187,036 |
Concentration risk (as a percent) | [1] | 68% | 57% |
Floating interest rate [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Significant borrowings as of closing date | $ 230,873 | $ 143,897 | |
Concentration risk (as a percent) | 32% | 43% | |
[1] Out of the $ 497.9 million fixed rate borrowings, $ 479 million are short-term. |
III. Financial Risk Managemen_5
III. Financial Risk Management - Financial Instruments and Classification Within the Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Assets | |||||
Cash and cash equivalents | $ 1,091,527 | $ 318,127 | $ 584,681 | ||
Other investments - current | 438,448 | 397,849 | |||
Derivative financial instruments | 30,805 | 11,315 | |||
Other investments - non-current | 119,902 | 320,254 | |||
Current trade receivables | 2,493,940 | 1,299,072 | 968,148 | ||
Other receivables | 395,531 | [1] | 302,164 | [2] | |
Liabilities | |||||
Borrowings C and NC | 728,762 | 330,933 | |||
Trade payables | 1,179,457 | 845,256 | |||
Lease Liabilities C and NC | 112,177 | 117,285 | 257,343 | ||
Derivative financial instruments | 7,127 | 11,328 | |||
Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | 7,127 | 11,328 | |||
Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | 30,805 | 11,315 | |||
Other receivables [member] | |||||
Assets | |||||
Other receivables | 154,056 | 133,879 | |||
Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | 241,475 | 168,285 | |||
Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | 196,152 | 239,742 | |||
Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | 36,167 | 94,414 | |||
Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | 19,785 | 30,062 | |||
Other notes [member] | |||||
Assets | |||||
Other investments - current | 140,200 | 115,266 | |||
Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | 211,953 | 158,107 | |||
Other investments - non-current | 113,574 | 312,619 | |||
Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | 108,310 | 10,660 | |||
Corporates securities [member] | |||||
Assets | |||||
Other investments - current | 103,643 | 147,447 | |||
Other investments [member] | |||||
Assets | |||||
Other investments - non-current | 6,328 | 7,635 | |||
Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | 30,343 | ||||
Level 1 of fair value hierarchy [member] | |||||
Assets | |||||
Cash and cash equivalents | 422,859 | 105,697 | |||
Other investments - current | 242,296 | 158,107 | |||
Other investments - non-current | 113,574 | 312,619 | |||
Current trade receivables | |||||
Other receivables | |||||
Total | 778,729 | 576,423 | |||
Liabilities | |||||
Borrowings C and NC | |||||
Trade payables | |||||
Lease Liabilities C and NC | |||||
Total | |||||
Level 1 of fair value hierarchy [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | |||||
Level 1 of fair value hierarchy [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | |||||
Level 1 of fair value hierarchy [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | |||||
Level 1 of fair value hierarchy [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Level 1 of fair value hierarchy [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 1 of fair value hierarchy [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 1 of fair value hierarchy [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 1 of fair value hierarchy [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 1 of fair value hierarchy [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | 211,953 | 158,107 | |||
Other investments - non-current | 113,574 | 312,619 | |||
Level 1 of fair value hierarchy [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | 108,310 | 10,660 | |||
Level 1 of fair value hierarchy [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | 103,643 | 147,447 | |||
Level 1 of fair value hierarchy [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | |||||
Level 1 of fair value hierarchy [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | 30,343 | ||||
Level 2 of fair value hierarchy [member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Other investments - current | |||||
Other investments - non-current | |||||
Current trade receivables | |||||
Other receivables | |||||
Total | 30,805 | 11,315 | |||
Liabilities | |||||
Borrowings C and NC | |||||
Trade payables | |||||
Lease Liabilities C and NC | |||||
Total | 7,127 | 11,328 | |||
Level 2 of fair value hierarchy [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | 7,127 | 11,328 | |||
Level 2 of fair value hierarchy [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | 30,805 | 11,315 | |||
Level 2 of fair value hierarchy [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | |||||
Level 2 of fair value hierarchy [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Level 2 of fair value hierarchy [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | |||||
Other investments - non-current | |||||
Level 2 of fair value hierarchy [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 2 of fair value hierarchy [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | |||||
Level 2 of fair value hierarchy [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Other investments - current | |||||
Other investments - non-current | 6,328 | 7,635 | |||
Current trade receivables | |||||
Other receivables | 48,659 | [1] | 48,659 | [2] | |
Total | 54,987 | 56,294 | $ 56,319 | ||
Liabilities | |||||
Borrowings C and NC | |||||
Trade payables | |||||
Lease Liabilities C and NC | |||||
Total | |||||
Level 3 of fair value hierarchy [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | |||||
Level 3 of fair value hierarchy [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | |||||
Level 3 of fair value hierarchy [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | 48,659 | 48,659 | |||
Level 3 of fair value hierarchy [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Level 3 of fair value hierarchy [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | |||||
Other investments - non-current | |||||
Level 3 of fair value hierarchy [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Level 3 of fair value hierarchy [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | 6,328 | 7,635 | |||
Level 3 of fair value hierarchy [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at amortised cost, category [member] | |||||
Assets | |||||
Cash and cash equivalents | 668,668 | 212,430 | |||
Other investments - current | 196,152 | 239,742 | |||
Other investments - non-current | |||||
Current trade receivables | 2,493,940 | 1,299,072 | |||
Other receivables | 105,397 | [1] | 85,220 | [2] | |
Total | 3,464,157 | 1,836,464 | |||
Liabilities | |||||
Borrowings C and NC | 728,762 | 330,933 | |||
Trade payables | 1,179,457 | 845,256 | |||
Lease Liabilities C and NC | 112,177 | 117,285 | |||
Total | 2,020,396 | 1,293,474 | |||
Financial assets at amortised cost, category [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | |||||
Financial assets at amortised cost, category [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | |||||
Financial assets at amortised cost, category [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | 105,397 | 85,220 | |||
Financial assets at amortised cost, category [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Financial assets at amortised cost, category [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | 196,152 | 239,742 | |||
Financial assets at amortised cost, category [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | 36,167 | 94,414 | |||
Financial assets at amortised cost, category [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | 19,785 | 30,062 | |||
Financial assets at amortised cost, category [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | 140,200 | 115,266 | |||
Financial assets at amortised cost, category [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | |||||
Other investments - non-current | |||||
Financial assets at amortised cost, category [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at amortised cost, category [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at amortised cost, category [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | |||||
Financial assets at amortised cost, category [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through other comprehensive income, category [member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Other investments - current | 182,988 | 158,107 | |||
Other investments - non-current | 113,574 | 312,619 | |||
Current trade receivables | |||||
Other receivables | 48,659 | [1] | 48,659 | [2] | |
Total | 345,221 | 519,385 | |||
Liabilities | |||||
Borrowings C and NC | |||||
Trade payables | |||||
Lease Liabilities C and NC | |||||
Total | |||||
Financial assets at fair value through other comprehensive income, category [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | |||||
Financial assets at fair value through other comprehensive income, category [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | |||||
Financial assets at fair value through other comprehensive income, category [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | 48,659 | 48,659 | |||
Financial assets at fair value through other comprehensive income, category [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Financial assets at fair value through other comprehensive income, category [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through other comprehensive income, category [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through other comprehensive income, category [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through other comprehensive income, category [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through other comprehensive income, category [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | 182,988 | 158,107 | |||
Other investments - non-current | 113,574 | 312,619 | |||
Financial assets at fair value through other comprehensive income, category [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | 79,345 | 10,660 | |||
Financial assets at fair value through other comprehensive income, category [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | 103,643 | 147,447 | |||
Financial assets at fair value through other comprehensive income, category [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | |||||
Financial assets at fair value through other comprehensive income, category [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | |||||
Assets | |||||
Cash and cash equivalents | 422,859 | 105,697 | |||
Other investments - current | 59,308 | ||||
Other investments - non-current | 6,328 | 7,635 | |||
Current trade receivables | |||||
Other receivables | |||||
Total | 519,300 | 124,647 | |||
Liabilities | |||||
Borrowings C and NC | |||||
Trade payables | |||||
Lease Liabilities C and NC | |||||
Total | 7,127 | 11,328 | |||
Financial assets at fair value through profit or loss, category [member] | Derivative liabilities [member] | |||||
Liabilities | |||||
Derivative financial instruments | 7,127 | 11,328 | |||
Financial assets at fair value through profit or loss, category [member] | Derivatives [member] | |||||
Assets | |||||
Derivative financial instruments | 30,805 | 11,315 | |||
Financial assets at fair value through profit or loss, category [member] | Other receivables [member] | |||||
Assets | |||||
Other receivables | |||||
Financial assets at fair value through profit or loss, category [member] | Other receivables (non-Financial) [member] | |||||
Assets | |||||
Other receivables | |||||
Financial assets at fair value through profit or loss, category [member] | Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | Certificates of Deposits [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | Commercial Papers [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | Other notes [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | Bonds and other fixed income [member] | |||||
Assets | |||||
Other investments - current | 28,965 | ||||
Other investments - non-current | |||||
Financial assets at fair value through profit or loss, category [member] | Non - U.S. government securities [member] | |||||
Assets | |||||
Other investments - current | 28,965 | ||||
Financial assets at fair value through profit or loss, category [member] | Corporates securities [member] | |||||
Assets | |||||
Other investments - current | |||||
Financial assets at fair value through profit or loss, category [member] | Other investments [member] | |||||
Assets | |||||
Other investments - non-current | 6,328 | $ 7,635 | |||
Financial assets at fair value through profit or loss, category [member] | Mutual Fund [member] | |||||
Assets | |||||
Other investments - current | $ 30,343 | ||||
[1]Includes balances related to interest in Venezuelan companies. See note 34 34 |
III. Financial Risk Managemen_6
III. Financial Risk Management - Changes in Level 3 Assets and Liabilities (Details) - Level 3 of fair value hierarchy [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [line items] | ||
At the beginning of the year | $ 56,294 | $ 56,319 |
(Decrease) / increase | (1,126) | 219 |
Currency translation adjustment and others | (181) | (244) |
At the end of the year | $ 54,987 | $ 56,294 |
Note 1 - Segment Information (D
Note 1 - Segment Information (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Profit (loss) before tax | $ 3,165,937 | $ 1,242,766 | $ (619,267) |
Contract liabilities | 242,900 | 92,400 | 48,700 |
Revenues | $ 11,762,526 | $ 6,521,207 | $ 5,146,734 |
Tenaris [member] | Government customers [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 22% | 23% | 24% |
USA | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 42% | ||
Argentina | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 13% | ||
Mexico | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 10% | ||
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Profit (loss) before tax | $ 77,900 | $ 45,600 | $ 16,900 |
Note 1 - Segment Information -
Note 1 - Segment Information - Reportable Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 11,762,526 | $ 6,521,207 | $ 5,146,734 |
Operating income (loss) | 2,963,275 | 707,509 | (663,071) |
Financial income (expense), net | (6,040) | 22,666 | (64,995) |
Income (loss) before equity in earnings of non-consolidated companies and income tax | 2,957,235 | 730,175 | (728,066) |
Equity in earnings of non-consolidated companies | 208,702 | 512,591 | 108,799 |
Income (loss) before income tax | 3,165,937 | 1,242,766 | (619,267) |
Capital expenditures | 378,446 | 239,518 | 193,322 |
Depreciation and amortization | 607,723 | 594,721 | 678,806 |
Tubes [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 11,133,000 | 5,994,000 | 4,844,000 |
Management view - operating income (loss) | 2,772,000 | 178,000 | (277,000) |
Depreciation and amortization | 588,000 | 575,000 | 661,000 |
All other segments [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 630,000 | 528,000 | 303,000 |
Management view - operating income (loss) | 75,000 | 65,000 | (50,000) |
Depreciation and amortization | 20,000 | 20,000 | 18,000 |
Reportable segments [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 11,763,000 | 6,521,000 | 5,147,000 |
Management view - operating income (loss) | 2,847,000 | 243,000 | (327,000) |
Difference in cost of sales | 44,000 | 473,000 | (134,000) |
Differences in depreciation and amortization | 2,000 | (1,000) | |
Differences in selling, general and administrative expenses | (4,000) | (2,000) | |
Differences in other operating income (expenses), net | 74,000 | (8,000) | (200,000) |
Operating income (loss) | 2,963,000 | 708,000 | (663,000) |
Financial income (expense), net | (6,000) | 23,000 | (65,000) |
Income (loss) before equity in earnings of non-consolidated companies and income tax | 2,957,000 | 731,000 | (728,000) |
Equity in earnings of non-consolidated companies | 209,000 | 513,000 | 109,000 |
Income (loss) before income tax | 3,166,000 | 1,243,000 | (619,000) |
Depreciation and amortization | $ 608,000 | $ 595,000 | $ 679,000 |
Note 1 - Segment Information _2
Note 1 - Segment Information - Geographical Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of operating segments [line items] | ||||
Net sales | $ 11,762,526 | $ 6,521,207 | $ 5,146,734 | |
Total assets | 17,550,246 | 14,449,431 | 13,716,189 | |
Trade receivables | 2,493,940 | 1,299,072 | 968,148 | |
Property, plant and equipment, net | 5,556,263 | 5,824,801 | 6,193,181 | |
Capital expenditures | 378,446 | 239,518 | 193,322 | |
Depreciation and amortization | 607,723 | 594,721 | 678,806 | |
North America [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 6,902,787 | 3,360,345 | 2,179,949 | |
Total assets | 9,018,386 | 7,992,946 | 8,071,574 | |
Trade receivables | 1,371,717 | 652,483 | 411,692 | |
Property, plant and equipment, net | 3,548,844 | 3,805,912 | 3,971,101 | |
Capital expenditures | 118,644 | 106,118 | 71,531 | |
Depreciation and amortization | 348,550 | 307,116 | 408,546 | |
South America [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 2,550,402 | 1,311,279 | 776,235 | |
Total assets | 3,896,403 | 2,399,448 | 1,868,458 | |
Trade receivables | 583,223 | 234,800 | 115,972 | |
Property, plant and equipment, net | 1,031,423 | 984,413 | 1,050,619 | |
Capital expenditures | 176,448 | 63,723 | 63,111 | |
Depreciation and amortization | 125,324 | 125,781 | 106,827 | |
Europe [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 1,000,833 | 742,463 | 642,793 | |
Total assets | 2,071,624 | 1,727,573 | 1,461,738 | |
Trade receivables | 202,753 | 180,515 | 139,427 | |
Property, plant and equipment, net | 706,539 | 742,461 | 823,057 | |
Capital expenditures | 62,143 | 43,344 | 39,691 | |
Depreciation and amortization | 76,631 | 89,667 | 84,518 | |
Middle East and Africa [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 1,031,106 | 857,120 | 1,227,532 | |
Total assets | 739,579 | 581,204 | 804,559 | |
Trade receivables | 249,637 | 146,125 | 210,194 | |
Property, plant and equipment, net | 189,701 | 221,859 | 242,939 | |
Capital expenditures | 2,813 | 6,689 | 10,452 | |
Depreciation and amortization | 37,612 | 41,528 | 44,259 | |
Asia Pacific [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 277,398 | 250,000 | 320,225 | |
Total assets | 283,608 | 364,486 | 552,508 | |
Trade receivables | 86,610 | 85,149 | 90,863 | |
Property, plant and equipment, net | 79,756 | 70,156 | 105,465 | |
Capital expenditures | 18,398 | 19,644 | 8,537 | |
Depreciation and amortization | 19,606 | 30,629 | 34,656 | |
Unallocated [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | [1] | |||
Total assets | [1] | 1,540,646 | 1,383,774 | 957,352 |
Trade receivables | [1] | |||
Property, plant and equipment, net | [1] | |||
Capital expenditures | [1] | |||
Depreciation and amortization | [1] | |||
[1]For 2022, 2021 and 2020 includes Investment s in non-consolidated companies |
Note 1 - Segment Information _3
Note 1 - Segment Information - Tubes Segment Revenues By Market (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 11,762,526 | $ 6,521,207 | $ 5,146,734 |
Tubes [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 11,133,000 | 5,994,000 | 4,844,000 |
Tubes [member] | Oil and gas [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 9,543,000 | 4,895,000 | 4,022,000 |
Tubes [member] | Oil and Gas Processing Plants [Member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 738,000 | 459,000 | 407,000 |
Tubes [member] | Industrial and other [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 852,000 | $ 640,000 | $ 415,000 |
Note 2 - Cost of Sales - Compon
Note 2 - Cost of Sales - Components of Cost of Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of Cost of Sales [Abstract] | ||||
Inventories at the beginning of the year | $ 2,672,593 | $ 1,636,673 | $ 2,265,880 | |
Increase in inventory due to business combinations | 199,589 | |||
Decrease in inventory due to sale of subsidiaries | (10,662) | |||
Plus: Charges of the year | ||||
Cost of sales raw materials energy consumables and other | 5,772,031 | 3,841,551 | 1,545,688 | |
Services and fees | 293,490 | 208,472 | 154,976 | |
Labor cost | [1] | 1,160,085 | 824,071 | 757,359 |
Depreciation of property, plant and equipment | 465,849 | 448,843 | 503,725 | |
Amortization of intangible assets | 11,754 | 7,645 | 8,121 | |
Depreciation of right-of-use assets | 33,244 | 35,910 | 40,127 | |
Maintenance expenses | 267,294 | 129,350 | 107,764 | |
Allowance for obsolescence | 24,901 | 23,296 | 35,809 | |
Taxes | 194,736 | 40,887 | 45,162 | |
Other | 178,691 | 98,159 | 59,790 | |
Cost of sales including discontinued operations | 8,402,075 | 5,647,522 | 3,458,110 | |
Less: Inventories at the end of the year | (3,986,929) | (2,672,593) | (1,636,673) | |
Cost of sales | 7,087,739 | 4,611,602 | 4,087,317 | |
Cost of sales, labor cost severance charges | $ 17,800 | $ 12,800 | $ 81,300 | |
[1] For the year ended December 202 2 , 202 1 and 20 20 , labor cost includes approximately $ 17.8 million, $ 12.8 million and $ 81.3 million respectively of severance indemnities related to the adjustment of the workforce to market conditions. |
Note 3 - Selling, General and_3
Note 3 - Selling, General and Administrative Expenses - Components of Selling, General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Selling, general and administrative expense [abstract] | ||||
Services and fees | $ 148,331 | $ 115,303 | $ 115,883 | |
Labor cost | [1] | 518,500 | 426,414 | 444,436 |
Depreciation of property, plant and equipment | 21,883 | 22,924 | 26,814 | |
Amortization of intangible assets | 59,018 | 63,874 | 82,355 | |
Depreciation of right-of-use assets | 15,975 | 15,525 | 17,664 | |
Commissions, freight and other selling expenses | 641,812 | 415,895 | 310,815 | |
Provisions for contingencies | 20,606 | 24,998 | 11,957 | |
Allowances for doubtful accounts | (223) | (4,297) | 4,644 | |
Taxes | 121,410 | 78,800 | 63,234 | |
Other | 87,263 | 47,133 | 41,425 | |
Total selling, general and administrative expense | 1,634,575 | 1,206,569 | 1,119,227 | |
Selling, general and administrative expenses, labor cost severance charges | $ 11,200 | $ 15,800 | $ 61,200 | |
[1] For the year ended December 2022, 2021 2020 11.2 15.8 61.2 |
Note 4 - Labor Costs - Summary
Note 4 - Labor Costs - Summary of Labor Costs (Included in Cost of Sales and in Selling, General and Administrative Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of labor costs [abstract] | |||
Wages, salaries and social security costs | $ 1,594,200 | $ 1,170,562 | $ 1,036,211 |
Severance indemnities | 29,070 | 28,625 | 142,458 |
Defined contribution plans | 13,256 | 12,608 | 12,442 |
Pension benefits - defined benefit plans | 16,320 | 13,353 | 11,097 |
Employee retention and long-term incentive program | 25,739 | 25,337 | (413) |
Total employee benefits expense | $ 1,678,585 | $ 1,250,485 | $ 1,201,795 |
Note 4 - Labor Costs - Labor _2
Note 4 - Labor Costs - Labor Costs (Included in Cost of Sales and in Selling, General and Administrative Expenses) - Number of Employees (Details) - employee | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of geographical areas [line items] | |||
Number of employees | 25,292 | 22,776 | 19,028 |
Argentina | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 6,444 | 5,169 | 4,376 |
Mexico | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 5,919 | 5,474 | 4,501 |
USA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 3,509 | 2,684 | 1,596 |
Italy | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 2,136 | 2,011 | 2,039 |
Brazil | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,460 | 1,817 | 1,360 |
Romania | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,847 | 1,725 | 1,552 |
Colombia | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,183 | 1,009 | 746 |
Canada | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 944 | 758 | 561 |
Indonesia | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 495 | 506 | 521 |
Japan | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 11 | 379 | 399 |
Other | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,344 | 1,244 | 1,377 |
Note 5 - Impairment charge (Det
Note 5 - Impairment charge (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Discount rate used in current estimate of value in use | 13.50% | |||
Growth rate used in current estimate of value in use | 2% | |||
Impairment charge | $ 76,725 | $ 57,075 | $ 622,402 | |
Tubes [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 63,100 | 582,000 | ||
All other segments [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | $ 13,600 | |||
Bottom of range [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Discount rate used in current estimate of value in use | 13.40% | |||
Top of range [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Discount rate used in current estimate of value in use | 20.20% | |||
OCTG (USA) [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 225,000 | |||
IPSCO [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 357,000 | |||
Coiled Tubing [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 4,000 | |||
Rods USA [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | $ 36,000 | |||
NKKTUBES [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 57,000 | |||
Carrying amount after impairment | $ 53,000 | $ 53,000 | ||
NKKTUBES [member] | Tubes [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | $ 57,000 |
Note 6 - Other operating inco_3
Note 6 - Other operating income and expenses (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 01, 2021 | May 13, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about other operating income and expenses [line items] | ||||||
Tax credit from PIS and COFINS recognized in other operating income | [1] | $ 35,568 | $ 8,164 | |||
Tax credit from PIS and COFINS recognized in financial results | $ 18,000 | |||||
Geneva Structural Tubes LLC (“Geneva”) | MKK USA Inc | ||||||
Disclosure of detailed information about other operating income and expenses [line items] | ||||||
Percentage of voting equity interests divested | 100% | |||||
Aggregate selling price of subsidiary | $ 24,300 | |||||
Gain on sale of subsidiaries | $ 6,800 | |||||
Brazil | Subsidiaries | ||||||
Disclosure of detailed information about other operating income and expenses [line items] | ||||||
Tax expense (credit) from PIS and COFINS | $ 53,000 | |||||
Tax credit from PIS and COFINS recognized in other operating income | 36,000 | |||||
Tax credit from PIS and COFINS recognized in financial results | 17,000 | |||||
Tax charge related to gain from tax claims of PIS and COFINS | $ 12,000 | |||||
[1]On May 13, 2021, the Brazilian Supreme Court issued a final judgment which confirmed that the methodology for calculating PIS and COFINS (Federal Social Contributions on Gross Revenues) tax claims to which taxpayers are entitled to, should exclude from its base the total output of ICMS, calculated on a gross basis. This decision led to a recognition of approximately $ 53 36 17 12 |
Note 6 - Other operating inco_4
Note 6 - Other operating income and expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Other operating income: | ||||
Net income from other sales | $ 28,161 | $ 10,694 | $ 9,891 | |
Net rents | 5,084 | 5,314 | 5,501 | |
Reclassification of currency translation adjustment reserve | [1] | 71,252 | ||
Tax recovery in Brazilian subsidiaries | [2] | 35,568 | 8,164 | |
Other | [3] | 16,290 | 9,837 | |
Recovery on allowance for doubtful receivables | 379 | |||
Other operating income | 104,497 | 68,245 | 33,393 | |
Other operating expenses: | ||||
Contributions to welfare projects and non-profits organizations | 13,668 | 6,697 | 12,989 | |
Securities Exchange Commission investigation settlement | [4] | 78,100 | ||
Allowance for doubtful receivables | 346 | 1,263 | ||
Other | 12,595 | |||
Other operating expenses | $ 104,709 | $ 6,697 | $ 14,252 | |
[1]During 2022 35 – A greement to terminate NKKTubes joint venture ” . 53 36 17 12 100 24.3 6.8 26 Contingencies - Petrobras-related proceedings and claims |
Note 7 - Financial Results (Det
Note 7 - Financial Results (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Financial Results [Line Items] | |||
Interest related to instruments carried at FVPL | $ 33 | $ 3.3 | $ 6.5 |
Realized loss from change in fair value of financial instrument | 10.5 | ||
Non-financial interest related to PIS and COFINS taxes recovery in Brazilian subsidiaries | $ 18 | ||
Argentine sovereign bonds | |||
Disclosure of Financial Results [Line Items] | |||
Loss arising from dividend paid in kind | $ 29.8 |
Note 7 - Financial Results - Fi
Note 7 - Financial Results - Financial Income (Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of Financial Results [Abstract] | ||||
Interest Income | $ 86,112 | $ 38,048 | $ 21,625 | |
Net result on changes in FV of financial assets at FVPL | (6,092) | |||
Impairment result on financial assets at FVTOCI | (3,238) | |||
Finance Income (*) | [1] | 80,020 | 38,048 | 18,387 |
Finance cost | (45,940) | (23,677) | (27,014) | |
Net foreign exchange transactions results | [2] | 15,654 | 17,287 | (74,422) |
Foreign exchange derivatives contracts results | [3] | (25,666) | (7,966) | 19,644 |
Other | [4] | (30,108) | (1,026) | (1,590) |
Other financial results | (40,120) | 8,295 | (56,368) | |
Net financial results | $ (6,040) | $ 22,666 | $ (64,995) | |
[1] Finance Income: In 2022 2021 2020 33 3.3 6.5 In 2022 10.5 In 2021 18 6 Net foreign exchange transactions results: In 2022 In 2021 In 2020 Foreign exchange derivatives contracts results: In 2022 In 2021 In 2020 Other: In 2022 29.8 28 |
Note 8 - Income Tax (Details Te
Note 8 - Income Tax (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Charge related to withholding taxes for intra group international operations | $ 21 | $ 23 | $ 10 |
Argentina | |||
Disclosure of geographical areas [line items] | |||
Corporate income tax rate | 35% | 25% | |
Argentina and Mexico | |||
Disclosure of geographical areas [line items] | |||
Tax inflation adjustments | $ 250 | $ 113 | $ 61 |
Note 8 - Income Tax - Summary o
Note 8 - Income Tax - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of income tax [line items] | |||
Current tax | $ (589,706) | $ (215,467) | $ (121,048) |
Deferred tax | (27,530) | 26,019 | 97,898 |
Tax charge | $ (617,236) | $ (189,448) | $ (23,150) |
Note 8 - Income Tax - Summary_2
Note 8 - Income Tax - Summary of Differences Between Income Tax and Theoretical Amount Using Tax Rate in Each Country (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of income tax [line items] | |||
Income (loss) before income tax | $ 3,165,937 | $ 1,242,766 | $ (619,267) |
Less impairment charges (non-deductible) | 57,075 | 622,402 | |
Income before income tax without impairment charges | 3,165,937 | 1,299,841 | 3,135 |
Tax calculated at the tax rate in each country | (705,727) | (209,765) | 21,052 |
Effect of currency translation on tax base | (187,186) | (76,043) | (72,936) |
Changes in the tax rates | (3,422) | (29,881) | (958) |
Utilization of previously unrecognized tax losses | 29,560 | 966 | 98 |
Tax revaluation, withholding tax and others | 249,539 | 125,275 | 29,594 |
Tax charge | $ (617,236) | $ (189,448) | $ (23,150) |
Note 9 - Dividends Distributi_2
Note 9 - Dividends Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||
Nov. 23, 2022 | May 25, 2022 | May 26, 2021 | May 25, 2022 | May 26, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 03, 2022 | Nov. 24, 2021 | May 03, 2021 | Nov. 25, 2020 | |
Disclosure of Dividends Distribution [Abstract] | ||||||||||||
Payments for dividends approved | $ 201,000 | |||||||||||
Dividends recognised as distributions to owners | $ 201,000 | $ 331,000 | $ 165,000 | $ 484,000 | $ 248,000 | $ 541,674 | $ 322,099 | $ 87,938 | ||||
Dividends paid, amount per share including interim dividend (in dollars per share) | $ 0.13 | $ 0.07 | ||||||||||
Dividends payable, amount per share including interim dividend (in dollars per share) | $ 0.41 | $ 0.21 | ||||||||||
Dividends paid, amount per ADS including interim dividend (in dollars per share) | $ 0.26 | $ 0.14 | ||||||||||
Dividends payable, amount per ADS including interim dividend (in dollars per share) | $ 0.82 | $ 0.42 | ||||||||||
Dividends paid, ordinary shares per share (in dollars per share) | $ 0.17 | $ 0.28 | $ 0.14 | |||||||||
Dividends paid, per ADS (in dollars per share) | $ 0.34 | $ 0.56 | $ 0.28 |
Note 10 - Property, Plant and_3
Note 10 - Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment, capitalized interest | $ 30.4 | $ 32 | ||
Saudi Arabia | Saudi Steel Pipe Company [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Percentage of ownership interest in subsidiary | [1] | 47.79% | 48% | 48% |
Land [member] | Saudi Arabia | Saudi Steel Pipe Company [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Restricted assets | $ 56.2 | |||
[1] All percentages rounded. |
Note 10 - Property, Plant and_4
Note 10 - Property, Plant and Equipment, Net - Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | $ 5,824,801 | $ 6,193,181 |
End of the year | 5,556,263 | 5,824,801 |
Land and civil buildings [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 690,163 | |
End of the year | 663,491 | 690,163 |
Industrial buildings, plant and production equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 4,864,817 | |
End of the year | 4,543,523 | 4,864,817 |
Vehicles, furniture and fixtures [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 67,291 | |
End of the year | 61,959 | 67,291 |
Work in progress [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 147,429 | |
End of the year | 252,379 | 147,429 |
Spare parts and equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 55,101 | |
End of the year | 34,911 | 55,101 |
Gross carrying amount [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 14,522,526 | 14,498,005 |
Currency translation adjustment | (74,584) | (149,899) |
Increase due to business combinations | 187 | |
Additions | 346,067 | 213,717 |
Disposals / Consumptions | (394,361) | (56,146) |
Transfers / Reclassifications | (16,188) | 21,421 |
Decrease due to sale of subsidiaries | (4,572) | |
End of the year | 14,383,647 | 14,522,526 |
Gross carrying amount [member] | Land and civil buildings [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 830,104 | 839,584 |
Currency translation adjustment | (1,601) | (5,084) |
Increase due to business combinations | ||
Additions | 8 | |
Disposals / Consumptions | (22,569) | (6,652) |
Transfers / Reclassifications | 9,829 | 2,448 |
Decrease due to sale of subsidiaries | (200) | |
End of the year | 815,763 | 830,104 |
Gross carrying amount [member] | Industrial buildings, plant and production equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 13,064,541 | 13,079,545 |
Currency translation adjustment | (71,347) | (138,839) |
Increase due to business combinations | ||
Additions | 2,271 | 15,238 |
Disposals / Consumptions | (322,886) | (35,130) |
Transfers / Reclassifications | 184,915 | 148,037 |
Decrease due to sale of subsidiaries | (4,310) | |
End of the year | 12,857,494 | 13,064,541 |
Gross carrying amount [member] | Vehicles, furniture and fixtures [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 420,930 | 414,757 |
Currency translation adjustment | (1,838) | (5,042) |
Increase due to business combinations | ||
Additions | 734 | 1,171 |
Disposals / Consumptions | (33,562) | (7,582) |
Transfers / Reclassifications | 16,221 | 17,688 |
Decrease due to sale of subsidiaries | (62) | |
End of the year | 402,485 | 420,930 |
Gross carrying amount [member] | Work in progress [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 147,429 | 102,226 |
Currency translation adjustment | 376 | (365) |
Increase due to business combinations | 187 | |
Additions | 334,912 | 192,470 |
Disposals / Consumptions | (3,372) | (150) |
Transfers / Reclassifications | (227,153) | (146,752) |
Decrease due to sale of subsidiaries | ||
End of the year | 252,379 | 147,429 |
Gross carrying amount [member] | Spare parts and equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | 59,522 | 61,893 |
Currency translation adjustment | (174) | (569) |
Increase due to business combinations | ||
Additions | 8,150 | 4,830 |
Disposals / Consumptions | (11,972) | (6,632) |
Transfers / Reclassifications | ||
Decrease due to sale of subsidiaries | ||
End of the year | 55,526 | 59,522 |
Accumulated depreciation, amortisation and impairment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | (8,697,725) | (8,304,824) |
Currency translation adjustment | (53,198) | (103,149) |
Disposals / Consumptions | 359,195 | 31,768 |
Impairment charge (See note 5) | 76,043 | 56,671 |
Transfers / Reclassifications | (21,723) | |
Decrease due to sale of subsidiaries | 620 | |
Depreciation charge | 487,732 | 471,767 |
End of the year | (8,827,384) | (8,697,725) |
Accumulated depreciation, amortisation and impairment [member] | Land and civil buildings [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | (139,941) | (132,458) |
Currency translation adjustment | (289) | (1,292) |
Disposals / Consumptions | 955 | 961 |
Impairment charge (See note 5) | ||
Transfers / Reclassifications | (2) | |
Decrease due to sale of subsidiaries | ||
Depreciation charge | 13,577 | 9,736 |
End of the year | (152,272) | (139,941) |
Accumulated depreciation, amortisation and impairment [member] | Industrial buildings, plant and production equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | (8,199,724) | (7,830,120) |
Currency translation adjustment | (51,283) | (97,236) |
Disposals / Consumptions | 321,334 | 24,379 |
Impairment charge (See note 5) | 75,722 | 51,470 |
Transfers / Reclassifications | (21,506) | |
Decrease due to sale of subsidiaries | 567 | |
Depreciation charge | 432,648 | 440,316 |
End of the year | (8,313,971) | (8,199,724) |
Accumulated depreciation, amortisation and impairment [member] | Vehicles, furniture and fixtures [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | (353,639) | (342,246) |
Currency translation adjustment | (1,756) | (4,621) |
Disposals / Consumptions | 32,485 | 6,428 |
Impairment charge (See note 5) | 321 | 780 |
Transfers / Reclassifications | (215) | |
Decrease due to sale of subsidiaries | 53 | |
Depreciation charge | 21,022 | 21,715 |
End of the year | (340,526) | (353,639) |
Accumulated depreciation, amortisation and impairment [member] | Work in progress [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | ||
Currency translation adjustment | ||
Disposals / Consumptions | ||
Impairment charge (See note 5) | ||
Transfers / Reclassifications | ||
Decrease due to sale of subsidiaries | ||
Depreciation charge | ||
End of the year | ||
Accumulated depreciation, amortisation and impairment [member] | Spare parts and equipment [member] | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning of the year | (4,421) | |
Currency translation adjustment | 130 | |
Disposals / Consumptions | 4,421 | |
Impairment charge (See note 5) | 4,421 | |
Transfers / Reclassifications | ||
Decrease due to sale of subsidiaries | ||
Depreciation charge | 20,485 | |
End of the year | $ (20,615) | $ (4,421) |
Note 11 - Intangible Assets, _3
Note 11 - Intangible Assets, Net (Details Textual) $ in Millions | Dec. 31, 2022 USD ($) |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | $ 1,085 |
North America [Member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | 939.2 |
South America [Member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | 111 |
Middle East and Africa [member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | 33 |
Europe [Member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | $ 1.9 |
Note 11 - Intangible Assets, _4
Note 11 - Intangible Assets, Net - Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | $ 1,372,176 | |||
Values at the end of the year | 1,332,508 | $ 1,372,176 | ||
Information system projects [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 50,848 | |||
Values at the end of the year | 53,355 | 50,848 | ||
Licenses, patents and trademarks [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | [1] | 156,304 | ||
Values at the end of the year | [1] | 152,574 | 156,304 | |
Goodwill [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 1,084,644 | |||
Values at the end of the year | 1,085,052 | 1,084,644 | ||
Customer-related intangible assets [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 80,380 | |||
Values at the end of the year | 41,527 | 80,380 | ||
Gross carrying amount [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 5,877,471 | 5,868,965 | ||
Currency translation adjustment | (1,538) | (7,941) | ||
Increase due to business combinations | [2] | 4,019 | ||
Additions | 32,379 | 25,801 | ||
Transfers / Reclassifications | (5,535) | (7,539) | ||
Disposals | (509,563) | [3] | (1,815) | |
Values at the end of the year | 5,397,233 | 5,877,471 | ||
Gross carrying amount [member] | Information system projects [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 650,155 | 637,352 | ||
Currency translation adjustment | (2,626) | (6,466) | ||
Increase due to business combinations | [2] | |||
Additions | 31,427 | 22,830 | ||
Transfers / Reclassifications | (5,535) | (2,902) | ||
Disposals | (58,947) | [3] | (659) | |
Values at the end of the year | 614,474 | 650,155 | ||
Gross carrying amount [member] | Licenses, patents and trademarks [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | [1] | 547,527 | 550,500 | |
Currency translation adjustment | [1] | (151) | ||
Increase due to business combinations | [1],[2] | 4,019 | ||
Additions | [1] | 952 | 2,971 | |
Transfers / Reclassifications | [1] | (4,637) | ||
Disposals | [1] | (1,507) | [3] | (1,156) |
Values at the end of the year | [1] | 550,991 | 547,527 | |
Gross carrying amount [member] | Goodwill [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 2,468,638 | 2,469,962 | ||
Currency translation adjustment | 1,088 | (1,324) | ||
Increase due to business combinations | [2] | |||
Additions | ||||
Transfers / Reclassifications | ||||
Disposals | [3] | |||
Values at the end of the year | 2,469,726 | 2,468,638 | ||
Gross carrying amount [member] | Customer-related intangible assets [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | 2,211,151 | 2,211,151 | ||
Currency translation adjustment | ||||
Increase due to business combinations | [2] | |||
Additions | ||||
Transfers / Reclassifications | ||||
Disposals | (449,109) | [3] | ||
Values at the end of the year | 1,762,042 | 2,211,151 | ||
Accumulated depreciation, amortisation and impairment [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | (4,505,295) | (4,439,909) | ||
Currency translation adjustment | (2,496) | (6,014) | ||
Amortization charge | 70,772 | 71,519 | ||
Impairment charge | 682 | 404 | ||
Disposals | 509,528 | [3] | 523 | |
Values at the end of the year | (4,064,725) | (4,505,295) | ||
Accumulated depreciation, amortisation and impairment [member] | Information system projects [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | (599,307) | (577,359) | ||
Currency translation adjustment | (2,496) | (6,014) | ||
Amortization charge | 23,218 | 28,072 | ||
Impairment charge | 2 | 404 | ||
Disposals | 58,912 | [3] | 514 | |
Values at the end of the year | (561,119) | (599,307) | ||
Accumulated depreciation, amortisation and impairment [member] | Licenses, patents and trademarks [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | [1] | (391,223) | (382,531) | |
Currency translation adjustment | [1] | |||
Amortization charge | [1] | 8,701 | 8,701 | |
Impairment charge | [1] | |||
Disposals | [1] | 1,507 | [3] | 9 |
Values at the end of the year | [1] | (398,417) | (391,223) | |
Accumulated depreciation, amortisation and impairment [member] | Goodwill [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | (1,383,994) | (1,383,994) | ||
Currency translation adjustment | ||||
Amortization charge | ||||
Impairment charge | 680 | |||
Disposals | [3] | |||
Values at the end of the year | (1,384,674) | (1,383,994) | ||
Accumulated depreciation, amortisation and impairment [member] | Customer-related intangible assets [member] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||
Values at the beginning of the year | (2,130,771) | (2,096,025) | ||
Currency translation adjustment | ||||
Amortization charge | 38,853 | 34,746 | ||
Impairment charge | ||||
Disposals | 449,109 | [3] | ||
Values at the end of the year | $ (1,720,515) | $ (2,130,771) | ||
[1]Includes Proprietary Technology.[2] Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. |
Note 11 - Intangible Assets, _5
Note 11 - Intangible Assets, Net - Goodwill Allocated by CGU (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Disclosure of information for cash-generating units [line items] | |
Goodwill | $ 1,085 |
Tubes [member] | Tamsa (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 365 |
Tubes [member] | Siderca (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 358 |
Tubes [member] | Hydril [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 309 |
Tubes [member] | Other CGU [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 53 |
Tubes [member] | Hydrill acquisition [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 920 |
Tubes [member] | Hydrill acquisition [member] | Tamsa (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 346 |
Tubes [member] | Hydrill acquisition [member] | Siderca (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 265 |
Tubes [member] | Hydrill acquisition [member] | Hydril [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 309 |
Tubes [member] | Hydrill acquisition [member] | Other CGU [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | |
Tubes [member] | Other acquisition [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 165 |
Tubes [member] | Other acquisition [member] | Tamsa (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 19 |
Tubes [member] | Other acquisition [member] | Siderca (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 93 |
Tubes [member] | Other acquisition [member] | Hydril [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | |
Tubes [member] | Other acquisition [member] | Other CGU [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | $ 53 |
Note 12 - Right-of-use Assets_3
Note 12 - Right-of-use Assets, Net and Lease Liabilities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Cancellations of lease liabilities | [1] | $ 5,207 | $ 103,329 |
Repayments of lease liabilities | 52,400 | 48,500 | |
Interest expense on lease liabilities | 3,500 | 2,500 | |
NKKTUBES [member] | Lease agreements | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Net disposals | $ 96,600 | ||
Cancellations of lease liabilities | $ 95,800 | ||
Not later than one year [member] | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Remaining lease payments to be made, percentage | 25.50% | 29.50% | |
Later than one year and not later than five years [member] | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Remaining lease payments to be made, percentage | 47.50% | 33.60% | |
Later than five years [member] | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Remaining lease payments to be made, percentage | 27% | 36.90% | |
[1]For 2021 95.8 |
Note 12 - Right-of-use Assets_4
Note 12 - Right-of-use Assets, Net and Lease Liabilities - Evolution of Right-of-use Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | $ 108,738 | ||
Cost and Depreciation end of the year | 111,741 | $ 108,738 | |
Gross carrying amount [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 198,154 | 333,905 | |
Currency translation adjustment | (779) | (1,339) | |
Additions | 56,506 | 22,326 | |
Transfers / Reclassifications | 3 | ||
Disposals | (53,161) | (156,741) | [1] |
Cost and Depreciation end of the year | 200,720 | 198,154 | |
Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | (89,416) | (91,952) | |
Currency translation adjustment | (399) | (474) | |
Depreciation charge | 49,219 | 51,435 | |
Transfers / Reclassifications | 3 | ||
Disposals | (49,257) | (53,500) | [1] |
Cost and Depreciation end of the year | (88,979) | (89,416) | |
Land and civil buildings [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 22,077 | ||
Cost and Depreciation end of the year | 24,637 | 22,077 | |
Land and civil buildings [member] | Gross carrying amount [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 46,082 | 41,932 | |
Currency translation adjustment | 52 | (187) | |
Additions | 15,872 | 6,010 | |
Transfers / Reclassifications | (5,166) | ||
Disposals | (13,270) | (1,673) | [1] |
Cost and Depreciation end of the year | 43,570 | 46,082 | |
Land and civil buildings [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | (24,005) | (15,142) | |
Currency translation adjustment | (9) | (37) | |
Depreciation charge | 8,965 | 9,882 | |
Transfers / Reclassifications | (3,974) | ||
Disposals | (10,054) | (982) | [1] |
Cost and Depreciation end of the year | (18,933) | (24,005) | |
Industrial buildings, plant and production equipment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 77,089 | ||
Cost and Depreciation end of the year | 72,883 | 77,089 | |
Industrial buildings, plant and production equipment [member] | Gross carrying amount [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 131,816 | 273,358 | |
Currency translation adjustment | (414) | (592) | |
Additions | 31,778 | 10,127 | |
Transfers / Reclassifications | (1,317) | (274) | |
Disposals | (36,186) | (150,803) | [1] |
Cost and Depreciation end of the year | 125,677 | 131,816 | |
Industrial buildings, plant and production equipment [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | (54,727) | (67,993) | |
Currency translation adjustment | (139) | (177) | |
Depreciation charge | 32,767 | 35,964 | |
Transfers / Reclassifications | 1,431 | 96 | |
Disposals | (35,992) | (49,149) | [1] |
Cost and Depreciation end of the year | (52,794) | (54,727) | |
Vehicles, furniture and fixtures [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 9,572 | ||
Cost and Depreciation end of the year | 13,249 | 9,572 | |
Vehicles, furniture and fixtures [member] | Gross carrying amount [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | 20,256 | 18,615 | |
Currency translation adjustment | (417) | (560) | |
Additions | 7,674 | 6,189 | |
Transfers / Reclassifications | 6,483 | 277 | |
Disposals | (3,705) | (4,265) | [1] |
Cost and Depreciation end of the year | 30,291 | 20,256 | |
Vehicles, furniture and fixtures [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | (10,684) | (8,817) | |
Currency translation adjustment | (251) | (260) | |
Depreciation charge | 7,277 | 5,589 | |
Transfers / Reclassifications | 2,543 | (93) | |
Disposals | (3,211) | (3,369) | [1] |
Cost and Depreciation end of the year | (17,042) | (10,684) | |
Other assets [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation end of the year | 972 | ||
Other assets [member] | Gross carrying amount [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | |||
Currency translation adjustment | |||
Additions | 1,182 | ||
Transfers / Reclassifications | |||
Disposals | |||
Cost and Depreciation end of the year | 1,182 | ||
Other assets [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Reconciliation of changes in right of use assets [abstract] | |||
Cost and Depreciation beginning of the year | |||
Currency translation adjustment | |||
Depreciation charge | 210 | ||
Transfers / Reclassifications | |||
Disposals | |||
Cost and Depreciation end of the year | $ (210) | ||
[1] Includes net disposals of $ 96.6 million related to NKKTubes lease agreement re-measurement due to joint venture termination. |
Note 12 - Right-of-use Assets_5
Note 12 - Right-of-use Assets, Net and Lease Liabilities - Evolution of Lease Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Presentation of leases for lessee [abstract] | |||
Opening net book amount | $ 117,285 | $ 257,343 | |
Translation differences | (3,922) | (11,350) | |
Additions | 56,459 | 22,261 | |
Cancellations | [1] | (5,207) | (103,329) |
Repayments | [2] | (55,874) | (50,998) |
Interest accrued | 3,436 | 3,358 | |
Ending net book amount | $ 112,177 | $ 117,285 | |
[1]For 2021 95.8 2022 52.4 3.5 2021 48.5 2.5 |
Note 13 - Investments in Non-_3
Note 13 - Investments in Non-consolidated Companies (Details Textual) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 R$ / shares | Feb. 13, 2019 USD ($) | ||
Disclosure of unconsolidated structured entities [line items] | |||||||
Dividends received from associates, classified as investing activities | $ 66,162,000 | $ 75,929,000 | $ 278,000 | ||||
Total investments in subsidiaries, joint ventures and associates | $ 1,540,646,000 | $ 1,540,646,000 | 1,383,774,000 | $ 957,352,000 | |||
Forecast period of cash flow projections | 5 years | ||||||
Nominal growth rate | 2% | 2% | |||||
Discount rate used in current estimate of value in use | 13.50% | 13.50% | |||||
Impairment loss in non-consolidated companies | [1] | $ (34,041,000) | |||||
Dividends and distributions declared | [2] | 64,189,000 | 78,926,000 | ||||
PAO Severstal [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Impairment loss in non-consolidated companies | 14,900,000 | ||||||
Saudi Steel Pipe Company [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Corporate guarantee covering obligations | $ 137,500,000 | 137,500,000 | |||||
Techgen s.a. [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Total investments in subsidiaries, joint ventures and associates | 41,500,000 | 41,500,000 | |||||
Ternium and Usiminas [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Dividends and distributions declared | $ 66,200,000 | $ 75,900,000 | |||||
Usiminas [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of voting rights held in associate | 5.19% | ||||||
Fair value of investments in associates for which there are quoted market prices | 53,600,000 | $ 53,600,000 | |||||
Total investments in subsidiaries, joint ventures and associates | $ 109,500,000 | $ 109,500,000 | |||||
Proportion of ownership interest in associate | 3.07% | ||||||
Period over which management has projected cash flows | 5 years | ||||||
Forecast period of cash flow projections | 5 years | ||||||
Nominal growth rate | 2% | 2% | |||||
Impairment loss in non-consolidated companies | $ 19,100,000 | ||||||
Usiminas [member] | Ordinary shares [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Closing price, per share (in BRL per share) | (per share) | $ 1.42 | $ 1.42 | R$ 7.41 | ||||
Usiminas [member] | Preference shares [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Closing price, per share (in BRL per share) | (per share) | 1.37 | 1.37 | R$ 7.16 | ||||
Ternium S.A. [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Closing price, per ads (in dollars per share) | $ / shares | $ 30.56 | $ 30.56 | |||||
Fair value of investments in associates for which there are quoted market prices | $ 702,000,000 | $ 702,000,000 | |||||
Total investments in subsidiaries, joint ventures and associates | 1,363,600,000 | $ 1,363,600,000 | |||||
Proportion of ownership interest in associate | 11.46% | ||||||
Techgen s.a. [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 22% | ||||||
Exposure to transportation capacity agreements | 42,500,000 | $ 42,500,000 | |||||
Exposure to purchase and other service agreements | 900,000 | 900,000 | |||||
Exposure to the purchase of clean energy certificates | 17,200,000 | 17,200,000 | |||||
Loans and receivables | 264,200,000 | 264,200,000 | |||||
Techgen s.a. [member] | Tenaris [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Loans and receivables | $ 58,100,000 | $ 58,100,000 | |||||
Proportion of corporate guarantee covering obligations | 22% | 22% | |||||
Techgen s.a. [member] | Several banks, to refinance obligations [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Debt instruments issued | $ 640,000,000 | ||||||
Techgen s.a. [member] | Tecpetrol International S.A. [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 30% | ||||||
Techgen s.a. [member] | Tenaris SA [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Debt service coverage ratio, covered, percent | 22% | 22% | |||||
Letters of credit, covered | $ 10,300 | $ 10,300 | |||||
Techgen s.a. [member] | Ternium S.A. [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 48% | ||||||
Global Pipe Company [Member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Total investments in subsidiaries, joint ventures and associates | $ 23,000,000 | $ 23,000,000 | |||||
Proportion of ownership interest in associate | 35% | ||||||
Global Pipe Company [Member] | Saudi Steel Pipe Company [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 22.30% | ||||||
Corporate guarantee covering obligations | $ 84,000,000 | $ 84,000,000 | |||||
Proportion of ownership interest in associate after acquisitions | 57.30% | ||||||
Global Pipe Company [Member] | EEW [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 35% | ||||||
Consideration transferred, acquisition-date fair value | $ 9,900,000 | $ 9,900,000 | |||||
Global Pipe Company [Member] | Other Stakeholder [member] | |||||||
Disclosure of unconsolidated structured entities [line items] | |||||||
Proportion of ownership interest in associate | 20% | ||||||
[1] Includes an impairment of $ 19.1 PAO Severstal (“Severstal”) . For more information see note 3 6 . Related to Ternium and Usiminas . During 202 2 and 20 2 1 $ 66.2 million and $ 75.9 million respectively were collected . |
Note 13 - Investments in Non-_4
Note 13 - Investments in Non-consolidated Companies - Summary of Investments in Non-consolidated Companies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reconciliation of changes in investments in subsidiaries joint ventures and associates [abstract] | ||||
At the beginning of the year | $ 1,383,774 | $ 957,352 | ||
Translation differences | 7,336 | (11,085) | $ (31,977) | |
Equity in earnings of non-consolidated companies | 242,743 | 512,591 | ||
Impairment loss in non-consolidated companies | [1] | (34,041) | ||
Dividends and distributions declared | [2] | (64,189) | (78,926) | |
Increase in equity reserves and others | 5,023 | 3,842 | ||
At the end of the year | $ 1,540,646 | $ 1,383,774 | $ 957,352 | |
[1] Includes an impairment of $ 19.1 PAO Severstal (“Severstal”) . For more information see note 3 6 . Related to Ternium and Usiminas . During 202 2 and 20 2 1 $ 66.2 million and $ 75.9 million respectively were collected . |
Note 13 - Investments in Non-_5
Note 13 - Investments in Non-consolidated Companies - Principal Non-consolidated Companies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of unconsolidated structured entities [line items] | ||||
Value | $ 1,540,646 | $ 1,383,774 | $ 957,352 | |
Ternium S.A. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 11.46% | |||
Value | $ 1,363,600 | |||
Ternium S.A. [member] | LUXEMBOURG | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | [1] | 11.46% | 11.46% | |
Value | [1] | $ 1,363,607 | $ 1,210,206 | |
Usiminas [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 3.07% | |||
Value | $ 109,500 | |||
Usiminas [member] | Brazil | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | [2] | 3.07% | 3.07% | |
Value | [2] | $ 109,534 | $ 103,106 | |
Techgen s.a. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 22% | |||
Techgen s.a. [member] | Mexico | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 22% | 22% | ||
Value | $ 41,506 | $ 29,397 | ||
Global Pipe Company [Member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 35% | |||
Value | $ 23,000 | |||
Global Pipe Company [Member] | SAUDI ARABIA | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 35% | 35% | ||
Value | $ 23,022 | $ 21,523 | ||
Other [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Value | $ 2,977 | $ 19,542 | ||
[1] Including treasury shares. At December 31, 20 2 2 and 20 2 1 the voting rights were 5.19 % . |
Note 13 - Investments in Non-_6
Note 13 - Investments in Non-consolidated Companies - Summary of Selected Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | $ 9,081,650 | $ 9,468,258 | ||
Current assets | 8,468,596 | 4,981,173 | ||
Total assets | 17,550,246 | 14,449,431 | $ 13,716,189 | |
Non-current liabilities | 727,386 | 784,084 | ||
Current liabilities | 2,788,423 | 1,559,645 | ||
Total liabilities | 3,515,809 | 2,343,729 | ||
Total equity | 14,034,437 | 12,105,702 | 11,446,473 | $ 12,186,372 |
Non-controlling interests | 128,728 | 145,124 | ||
Revenues | 11,762,526 | 6,521,207 | 5,146,734 | |
Gross profit | 4,674,787 | 1,909,605 | 1,059,417 | |
Net income for the year attributable to owners of the parent | 2,553,280 | 1,100,191 | (634,418) | |
Total comprehensive income for the year, net of tax, attributable to owners of the parent | 2,476,373 | 1,016,434 | $ (643,435) | |
Ternium S.A. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | 8,647,510 | 8,491,363 | ||
Current assets | 8,844,038 | 8,606,544 | ||
Total assets | 17,491,548 | 17,097,907 | ||
Non-current liabilities | 1,506,325 | 1,649,105 | ||
Current liabilities | 2,216,832 | 3,213,764 | ||
Total liabilities | 3,723,157 | 4,862,869 | ||
Total equity | 13,768,391 | 12,235,038 | ||
Non-controlling interests | 1,922,434 | 1,700,019 | ||
Revenues | 16,414,466 | 16,090,744 | ||
Gross profit | 3,927,184 | 6,195,674 | ||
Net income for the year attributable to owners of the parent | 1,767,516 | 3,825,068 | ||
Usiminas [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | 3,764,453 | 3,491,103 | ||
Current assets | 3,901,844 | 3,583,814 | ||
Total assets | 7,666,297 | 7,074,917 | ||
Non-current liabilities | 1,671,249 | 1,575,321 | ||
Current liabilities | 1,033,524 | 1,134,663 | ||
Total liabilities | 2,704,773 | 2,709,984 | ||
Total equity | 4,961,524 | 4,364,933 | ||
Non-controlling interests | 523,741 | 467,551 | ||
Revenues | 6,296,964 | 6,269,569 | ||
Gross profit | 1,110,439 | 2,101,336 | ||
Net income for the year attributable to owners of the parent | $ 319,979 | $ 1,687,682 |
Note 14 - Receivables - Non C_3
Note 14 - Receivables - Non Current - Components of Receivables Non Current (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Trade and other non-current receivables [abstract] | |||
Employee advances and loans | $ 11,908 | $ 8,117 | |
Tax credits | [1] | 27,333 | 53,210 |
Receivables from related parties | 67,921 | 61,841 | |
Legal deposits | 9,394 | 9,041 | |
Advances to suppliers and other advances | 28,779 | 9,878 | |
Receivable Venezuelan subsidiaries | 48,659 | 48,659 | |
Others | 17,726 | 15,142 | |
Trade and other non-current receivables before the allowance for doubtful accounts | $ 211,720 | $ 205,888 | |
[1] As of December 31, 2022 and 2021 respectively, included approximately $8 million and $36 million related to PIS and COFINS (Federal Social Contributions on Gross Revenues) tax recovery on Brazilian subsidiaries. |
Note 14 - Receivables - Non C_4
Note 14 - Receivables - Non Current - Components of Receivables Non Current (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-current Receivables [Line Items] | |||
Tax recovery of PIS and COFINS credits | [1] | $ 27,333 | $ 53,210 |
PIS and COFINS [member] | |||
Non-current Receivables [Line Items] | |||
Tax recovery of PIS and COFINS credits | $ 8,000 | $ 36,000 | |
[1] As of December 31, 2022 and 2021 respectively, included approximately $8 million and $36 million related to PIS and COFINS (Federal Social Contributions on Gross Revenues) tax recovery on Brazilian subsidiaries. |
Note 15 - Inventories, Net - Co
Note 15 - Inventories, Net - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Classes of current inventories [abstract] | ||
Finished goods | $ 1,592,706 | $ 1,113,011 |
Goods in process | 936,555 | 707,665 |
Raw materials | 606,977 | 358,552 |
Supplies | 542,636 | 485,815 |
Goods in transit | 530,721 | 253,324 |
Inventories, Gross | 4,209,595 | 2,918,367 |
Allowance for obsolescence, see note 24 (i) | (222,666) | (245,774) |
Total current inventories | $ 3,986,929 | $ 2,672,593 |
Note 16 - Receivables and Pre_3
Note 16 - Receivables and Prepayments, Net - Summary of Receivables and Prepayments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current prepayments and current accrued income [abstract] | ||
Prepaid expenses and other receivables | $ 47,419 | $ 38,080 |
Government entities | 18,121 | 2,363 |
Employee advances and loans | 10,701 | 5,974 |
Advances to suppliers and other advances | 41,549 | 17,225 |
Government tax refunds on exports | 8,898 | 8,419 |
Receivables from related parties | 19,184 | 5,919 |
Others | 41,418 | 21,502 |
Receivables and prepayments, gross | 187,290 | 99,482 |
Allowance for other doubtful accounts, see note 24 (i) | (3,479) | (3,206) |
Current prepayments and other current assets | $ 183,811 | $ 96,276 |
Note 17 - Current Tax Assets _3
Note 17 - Current Tax Assets and Liabilities - Summary of Current Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Current Tax Receivables and Payables [Abstract] | ||
Income tax assets | $ 24,812 | $ 16,394 |
V.A.T. credits | 218,009 | 176,202 |
Other prepaid taxes | 315 | 425 |
Current tax assets, current | $ 243,136 | $ 193,021 |
Note 17 - Current Tax Assets _4
Note 17 - Current Tax Assets and Liabilities - Summary of Current Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Current Tax Receivables and Payables [Abstract] | ||
Income tax liabilities | $ 280,469 | $ 73,352 |
V.A.T. liabilities | 17,228 | 12,955 |
Other taxes | 78,543 | 57,179 |
Current tax liabilities, current | $ 376,240 | $ 143,486 |
Note 18 - Trade Receivables, _3
Note 18 - Trade Receivables, Net - Summary of Current Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [abstract] | |||
Current accounts | $ 2,479,035 | $ 1,313,934 | |
Receivables from related parties | 60,400 | 32,258 | |
Current trade receivables, gross | 2,539,435 | 1,346,192 | |
Allowance for doubtful accounts, see note 24 (i) | (45,495) | (47,120) | |
Current trade receivables | $ 2,493,940 | $ 1,299,072 | $ 968,148 |
Note 18 - Trade Receivables, _4
Note 18 - Trade Receivables, Net - Summary of the Aging of Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | $ 265,898 | $ 195,848 | |
Not guaranteed | 2,273,537 | 1,150,344 | |
Guaranteed and not guaranteed | $ 2,539,435 | $ 1,346,192 | |
Expected loss rate | 0.06% | 0.06% | |
Allowances for doubtful accounts | $ (1,657) | $ (833) | |
Nominative allowances for doubtful accounts | (43,838) | (46,287) | |
Net Value | 2,493,940 | 1,299,072 | $ 968,148 |
Current trade receivables, not due [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 237,784 | 185,238 | |
Not guaranteed | 1,756,707 | 951,356 | |
Guaranteed and not guaranteed | $ 1,994,491 | $ 1,136,594 | |
Expected loss rate | 0.03% | 0.04% | |
Allowances for doubtful accounts | $ (654) | $ (401) | |
Nominative allowances for doubtful accounts | |||
Net Value | 1,993,837 | 1,136,193 | |
Current trade receivables, past due, less than 180 days [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 27,431 | 9,894 | |
Not guaranteed | 465,423 | 148,412 | |
Guaranteed and not guaranteed | $ 492,854 | $ 158,306 | |
Expected loss rate | 0.18% | 0.20% | |
Allowances for doubtful accounts | $ (920) | $ (367) | |
Nominative allowances for doubtful accounts | (1,541) | (1,391) | |
Net Value | 490,393 | 156,548 | |
Current trade receivables, past due, greater than 180 days [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 683 | 716 | |
Not guaranteed | 51,407 | 50,576 | |
Guaranteed and not guaranteed | $ 52,090 | $ 51,292 | |
Expected loss rate | 0.77% | 0.84% | |
Allowances for doubtful accounts | $ (83) | $ (65) | |
Nominative allowances for doubtful accounts | (42,297) | (44,896) | |
Net Value | $ 9,710 | $ 6,331 |
Note 19 - Cash and Cash Equiv_3
Note 19 - Cash and Cash Equivalents and Other Investments - Components of Cash and Cash Equivalents and Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | |||
Cash at banks | $ 149,424 | $ 167,455 | |
Liquidity funds | 422,859 | 105,697 | |
Short-term investments | 519,244 | 44,975 | |
Total cash and cash equivalents | 1,091,527 | 318,127 | $ 584,681 |
Other investments - current | |||
Fixed income (time-deposit, zero coupon bonds, commercial papers) | 196,152 | 239,742 | |
Bonds and other fixed income | 211,953 | 158,107 | |
Fund investments | 30,343 | ||
Other investments | 438,448 | 397,849 | |
Other investments - non-current | |||
Bonds and other fixed income | 113,574 | 312,619 | |
Others | 6,328 | 7,635 | |
Other investments | $ 119,902 | $ 320,254 |
Note 20 - Borrowings - Non-curr
Note 20 - Borrowings - Non-current and Current Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Non-current costs of issue of debt | $ (20) | |
Total non-current portion of non-current borrowings | 46,433 | 111,432 |
Current costs of issue of debt | (20) | (125) |
Total current borrowings and current portion of non-current borrowings | 682,329 | 219,501 |
Total Borrowings | 728,762 | 330,933 |
Bank borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings before costs of issue of debt | 46,433 | 111,452 |
Current borrowings before costs of issue of debt | 682,255 | 219,566 |
Bank overdrafts [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings before costs of issue of debt | $ 94 | $ 60 |
Note 20 - Borrowings - Maturity
Note 20 - Borrowings - Maturity of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 728,762 | $ 330,933 | ||
Interest to be accrued (*) | 27,046 | [1] | 3,038 | [2] |
Total | 755,808 | 333,971 | ||
Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 682,329 | 219,501 | ||
Interest to be accrued (*) | 26,153 | [1] | 2,465 | [2] |
Total | 708,482 | 221,966 | ||
Later than one year and not later than two years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 41,933 | 107,438 | ||
Interest to be accrued (*) | 821 | [1] | 560 | [2] |
Total | 42,754 | 107,998 | ||
Later than two years and not later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 3,000 | 3,994 | ||
Interest to be accrued (*) | 64 | [1] | 13 | [2] |
Total | 3,064 | 4,007 | ||
Later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 1,500 | |||
Interest to be accrued (*) | 8 | [1] | [2] | |
Total | 1,508 | |||
Other borrowings [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 728,762 | 330,933 | ||
Other borrowings [member] | Not later than one year [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 682,329 | 219,501 | ||
Other borrowings [member] | Later than one year and not later than two years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 41,933 | 107,438 | ||
Other borrowings [member] | Later than two years and not later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | 3,000 | 3,994 | ||
Other borrowings [member] | Later than three years [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Total borrowings | $ 1,500 | |||
[1]Includes the effect of hedge accounting.[2] Includes the effect of hedge accounting . |
Note 20 - Borrowings - Signific
Note 20 - Borrowings - Significant Borrowings as of Closing Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | $ 728,762 | $ 330,933 |
Significant borrowings as of closing date [member] | Tamsa | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 100,000 | |
Significant borrowings one, as of closing date [member] | MAVERICK TUBE CORPORATION and subsidiaries [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 100,000 | |
Significant borrowings two, as of closing date [member] | Tubos del Caribe [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 90,000 | |
Significant borrowings three, as of closing date [member] | Tamsa | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 80,000 | |
Significant borrowings four, as of closing date [member] | SIDERCA S.A.I.C. and subsidiaries [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | $ 55,000 |
Note 20 - Borrowings - Weighted
Note 20 - Borrowings - Weighted Average Interest Rates of Borrowings (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings, weighted average interest rates | 9.45% | 2.09% |
Note 20 - Borrowings - Borrowin
Note 20 - Borrowings - Borrowings by Currency and Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 46,433 | $ 111,432 |
Borrowings | 682,329 | 219,501 |
United States of America, Dollars | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 206,336 | |
United States of America, Dollars | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 20,000 | 99,587 |
Borrowings | 200,350 | 17,015 |
Saudi Arabia, Riyals | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 18,933 | 11,845 |
Borrowings | 29,964 | 22,677 |
Saudi Arabia, Riyals | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7,500 | |
Borrowings | 3,023 | 26,022 |
Euro Member Countries, Euro | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 26,829 | 1,706 |
Euro Member Countries, Euro | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,273 | |
Mexico, Pesos | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 141,802 | 141,861 |
Argentina, Pesos | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 74,025 | $ 8,947 |
Note 20 - Borrowings - Borrow_2
Note 20 - Borrowings - Borrowings Evolution (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Borrowings [abstract] | ||
At the beginning of the year, noncurrent | $ 111,432 | |
At the beginning of the year, current | 219,501 | |
Translation differences, noncurrent | (18) | |
Translation differences, current | (28,705) | |
Proceeds and repayments, net, noncurrent | 49,948 | |
Proceeds and repayments, net, current | 371,500 | |
Interests accrued less payments, noncurrent | 158 | |
Interests accrued less payments, current | 4,774 | |
Reclassifications, noncurrent | (115,087) | |
Reclassifications, current | 115,087 | |
Increase due to business combinations, noncurrent | [1] | |
Increase due to business combinations, current | 138 | [1] |
Overdrafts variation, noncurrent | ||
Overdrafts variation, current | 34 | |
At the end of the year, noncurrent | 46,433 | |
At the end of the year, current | $ 682,329 | |
[1] Related to Parques Eólicos de la Buena Ventura S.A. acquisition, for more information see note 33 to these Consolidated Financial Statements. |
Note 21 - Deferred tax assets_3
Note 21 - Deferred tax assets and liabilities (Details Textual) $ in Millions | Dec. 31, 2022 USD ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused tax losses for which no deferred tax asset recognised | $ 120.4 |
Unused tax losses for which no deferred tax asset recognised, percent expiring in less than one year | 8% |
Unused tax losses for which no deferred tax asset recognised, percent expiring between two and five years | 4% |
Unused tax losses for which no deferred tax asset recognised, percent expiring in more than five years | 88% |
USA | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Deferred tax assets related to taxable losses of subsidiaries | $ 300 |
Note 21 - Deferred tax assets_4
Note 21 - Deferred tax assets and liabilities - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | $ 29,174 | $ 49,211 | |
Translation differences | 822 | (133) | |
Decrease due to sale of subsidiaries | (533) | ||
Charged to other comprehensive income | 2,673 | 6,648 | |
Income statement (credit) / charge | 27,530 | (26,019) | |
At the end of the year | 60,199 | 29,174 | |
Deferred tax assets, provisions and allowances [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | (25,083) | (21,208) | |
Translation differences | (345) | 506 | |
Decrease due to sale of subsidiaries | [1] | ||
Charged to other comprehensive income | |||
Income statement (credit) / charge | (389) | (4,381) | |
At the end of the year | (25,817) | (25,083) | |
Deferred tax assets, inventory [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | (85,037) | (85,937) | |
Translation differences | 114 | 606 | |
Decrease due to sale of subsidiaries | [1] | 93 | |
Charged to other comprehensive income | |||
Income statement (credit) / charge | (95,229) | 201 | |
At the end of the year | (180,152) | (85,037) | |
Deferred tax assets, tax loss [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | (485,763) | (480,149) | |
Translation differences | 747 | 80 | |
Decrease due to sale of subsidiaries | [1] | ||
Charged to other comprehensive income | |||
Income statement (credit) / charge | 174,427 | (5,694) | |
At the end of the year | (310,589) | (485,763) | |
Deferred tax assets, other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | (176,627) | (206,958) | |
Translation differences | (245) | 1,195 | |
Decrease due to sale of subsidiaries | [1] | 11 | |
Charged to other comprehensive income | 954 | 2,587 | |
Income statement (credit) / charge | 18,934 | 26,538 | |
At the end of the year | (156,984) | (176,627) | |
Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | (772,510) | (794,252) | |
Translation differences | 271 | 2,387 | |
Decrease due to sale of subsidiaries | [1] | 104 | |
Charged to other comprehensive income | 954 | 2,587 | |
Income statement (credit) / charge | 97,743 | 16,664 | |
At the end of the year | (673,542) | (772,510) | |
Deferred tax liabilities, fixed assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | 669,830 | 702,415 | |
Translation differences | (64) | (461) | |
Decrease due to sale of subsidiaries | [1] | (637) | |
Charged to other comprehensive income | |||
Income statement (credit) / charge | (94,099) | (31,487) | |
At the end of the year | 575,667 | 669,830 | |
Deferred tax liabilities, inventory [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | 27,508 | 15,255 | |
Translation differences | 15 | ||
Decrease due to sale of subsidiaries | [1] | ||
Charged to other comprehensive income | |||
Income statement (credit) / charge | 16,009 | 12,253 | |
At the end of the year | 43,532 | 27,508 | |
Deferred tax liabilities, intangible assets and other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | 104,346 | 125,793 | |
Translation differences | 600 | (2,059) | |
Decrease due to sale of subsidiaries | [1] | ||
Charged to other comprehensive income | 1,719 | 4,061 | |
Income statement (credit) / charge | 7,877 | (23,449) | |
At the end of the year | 114,542 | 104,346 | |
Deferred Tax liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
At the beginning of the year | 801,684 | 843,463 | |
Translation differences | 551 | (2,520) | |
Decrease due to sale of subsidiaries | [1] | (637) | |
Charged to other comprehensive income | 1,719 | 4,061 | |
Income statement (credit) / charge | (70,213) | (42,683) | |
At the end of the year | $ 733,741 | $ 801,684 | |
[1]Related to Geneva sale. See note 6 |
Note 21 - Deferred tax assets_5
Note 21 - Deferred tax assets and liabilities - Recovery Analysis of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets to be recovered after 12 months | $ (208,870) | $ (245,547) |
Deferred tax liabilities to be settled after 12 months | 269,069 | 274,721 |
Later than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets to be recovered after 12 months | (171,717) | (611,552) |
Deferred tax liabilities to be settled after 12 months | $ 688,124 | $ 782,128 |
Note 21 - Deferred tax assets_6
Note 21 - Deferred tax assets and liabilities - Net Deferred Tax Liabilities (Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Deferred tax assets | $ (208,870) | $ (245,547) |
Deferred tax liabilities | 269,069 | 274,721 |
Net deferred tax liability (asset) | 60,199 | 29,174 |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
At the beginning of the year | 29,174 | 49,211 |
Translation differences | 822 | (133) |
Decrease due to sale of subsidiaries | (533) | |
Charged to other comprehensive income | 2,673 | 6,648 |
Income statement charge / (credit) | 27,530 | (26,019) |
At the end of the year | $ 60,199 | $ 29,174 |
Note 22 - Other Liabilities (De
Note 22 - Other Liabilities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Overfunded Plan | $ 14,600 | $ 9,000 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 0 | |
Funded | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | 25,600 | |
Post-employment benefits | Unfunded | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | 100 | (700) |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | $ 4,100 | (2,500) |
Post-employment benefits | Unfunded | Actuarial assumption of discount rates [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 5,200 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 5,900 | |
Post-employment benefits | Unfunded | Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 3,200 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 2,900 | |
Post-employment benefits | Funded | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | $ 4,800 | 400 |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | $ 6,600 | |
Post-employment benefits | Funded | Actuarial assumption of discount rates [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ (10,300) | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 11,900 | |
Post-employment benefits | Funded | Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 700 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (700) |
Note 22 - Other Liabilities - O
Note 22 - Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Other Liabilities [Abstract] | ||
Post-employment benefits | $ 108,936 | $ 111,904 |
Other long-term benefits | 71,446 | 71,345 |
Miscellaneous | 49,760 | 48,432 |
Other non-current liabilities | $ 230,142 | $ 231,681 |
Note 22 - Other Liabilities - P
Note 22 - Other Liabilities - Post-employment Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Disclosure of defined benefit plans [line items] | |||||
Noncurrent post employment benefits | $ 108,936 | $ 111,904 | |||
Post-employment benefits | Unfunded | |||||
Disclosure of defined benefit plans [line items] | |||||
Noncurrent post employment benefits | 103,822 | 103,841 | |||
Values at the beginning of the year | 103,841 | 115,774 | |||
Current service cost | 6,810 | 5,728 | |||
Interest cost | 7,610 | 5,997 | |||
Curtailments and settlements | (64) | (422) | |||
Remeasurements | (4,228) | [1] | 3,174 | [2] | |
Translation differences | (5,657) | (3,716) | |||
Benefits paid | (5,111) | (13,539) | |||
Reclassified to current liabilities | (461) | (8,884) | |||
Other | 1,082 | (271) | |||
At the end of the year | 103,822 | 103,841 | |||
Post-employment benefits | Funded | |||||
Disclosure of defined benefit plans [line items] | |||||
Noncurrent post employment benefits | 5,114 | 8,063 | |||
Values at the beginning of the year | 159,528 | 176,309 | |||
Current service cost | 154 | 222 | |||
Interest cost | 4,293 | 4,190 | |||
Remeasurements | [3] | (30,349) | (7,019) | [4] | |
Translation differences | (6,635) | 356 | |||
Benefits paid | (10,374) | (14,530) | |||
At the end of the year | 116,617 | 159,528 | |||
Present value of funded obligations | 116,617 | 159,528 | |||
Fair value of plan assets | (126,842) | (160,504) | |||
Asset | [5] | $ (10,225) | $ (976) | ||
[1]For 2022 a gain of $0.1 million is attributable to demographic assumptions and a gain of $4.1 million to financial assumptions.[2] For 2021 0.7 2.5 . For 2022 For 2021 0.4 6.6 In 2022 2021 |
Note 22 - Other Liabilities - A
Note 22 - Other Liabilities - Actuarial Assumptions (Details) - Post-employment benefits | Dec. 31, 2022 | Dec. 31, 2021 |
Bottom of range [member] | Unfunded | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 4% | 1% |
Rate of compensation increase | 2% | 0% |
Bottom of range [member] | Funded | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3% | 2% |
Rate of compensation increase | 0% | 0% |
Top of range [member] | Unfunded | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 7% | 7% |
Rate of compensation increase | 3% | 3% |
Top of range [member] | Funded | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 5% | 3% |
Rate of compensation increase | 3% | 3% |
Note 22 - Other Liabilities -_2
Note 22 - Other Liabilities - Plan Assets (Details) - Post-employment benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Funded | ||
Disclosure of defined benefit plans [line items] | ||
Values at the beginning of the year | $ 159,528 | $ 176,309 |
Translation differences | 6,635 | (356) |
Benefits paid | (10,374) | (14,530) |
At the end of the year | $ 116,617 | $ 159,528 |
Equity instruments | 28.80% | 49.20% |
Debt instruments | 67.20% | 46.70% |
Others | 4% | 4.10% |
Fair value of funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Values at the beginning of the year | $ (160,504) | $ (157,335) |
Translation differences | 6,639 | (250) |
Return on plan assets | (4,319) | (3,793) |
Remeasurements | 20,987 | (10,817) |
Contributions paid to the plan | (435) | (3,338) |
Benefits paid | (10,374) | (14,530) |
Other | 416 | 499 |
At the end of the year | $ (126,842) | $ (160,504) |
Note 22 - Other Liabilities -_3
Note 22 - Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Other Liabilities [Abstract] | ||
Payroll and social security payable | $ 224,630 | $ 174,794 |
Miscellaneous | 35,984 | 28,931 |
Other current liabilities | $ 260,614 | $ 203,725 |
Note 23 - Non-current allowan_3
Note 23 - Non-current allowances and provisions - Liabilities (Details) - Provision for non-current liabilities [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
Values at the beginning of the year | $ 83,556 | $ 73,218 |
Translation differences | 357 | (2,476) |
Additional allowance | 11,102 | 13,896 |
Reclassifications | 2,229 | 4,014 |
Used and other movements | 882 | (5,096) |
Values at the end of the year | $ 98,126 | $ 83,556 |
Note 24 - Current allowances _3
Note 24 - Current allowances and provisions - Deducted From Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Allowance for doubtful accounts - trade receivables [member] | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Values at the beginning of the year | $ (47,120) | $ (53,676) | |
Translation differences | (12) | 111 | |
Decrease due to sale of subsidiaries | [1] | 2 | |
(Additional) / reversal allowances | 223 | 4,297 | |
Used | 1,414 | 2,146 | |
Values at the end of the year | (45,495) | (47,120) | |
Allowance for other doubtful accounts - other receivables [member] | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Values at the beginning of the year | (3,206) | (3,917) | |
Translation differences | 68 | 227 | |
Decrease due to sale of subsidiaries | [1] | 10 | |
(Additional) / reversal allowances | (346) | 379 | |
Used | 5 | 95 | |
Values at the end of the year | (3,479) | (3,206) | |
Allowance for inventory obsolescence [member] | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Values at the beginning of the year | (245,774) | (263,635) | |
Translation differences | (405) | 1,877 | |
Decrease due to sale of subsidiaries | [1] | 405 | |
(Additional) / reversal allowances | (24,901) | (23,296) | |
Used | 48,414 | 38,875 | |
Values at the end of the year | $ (222,666) | $ (245,774) | |
[1] Rel ated to Geneva sale. See note 6 |
Note 24 - Current allowances _4
Note 24 - Current allowances and provisions - Liabilities (Details) - Provision for current liabilities [member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Reconciliation of changes in other provisions [abstract] | ||||
Values at the beginning of the year | $ 9,322 | $ 12,279 | ||
Translation differences | (257) | (739) | ||
Additional provisions | 9,504 | 11,102 | ||
Reclassifications | (2,229) | (4,014) | ||
Used | (5,155) | (9,306) | ||
Values at the end of the year | 11,185 | 9,322 | ||
Sales risks [member] | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Values at the beginning of the year | 1,468 | 1,795 | ||
Translation differences | (160) | (3) | ||
Additional provisions | 5,315 | 3,506 | ||
Reclassifications | ||||
Used | (3,437) | (3,830) | ||
Values at the end of the year | 3,186 | 1,468 | ||
Miscellaneous other provisions [member] | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Values at the beginning of the year | [1] | 7,854 | 10,484 | |
Translation differences | (97) | (736) | [1] | |
Additional provisions | 4,189 | 7,596 | [1] | |
Reclassifications | (2,229) | (4,014) | [1] | |
Used | (1,718) | (5,476) | [1] | |
Values at the end of the year | $ 7,999 | $ 7,854 | [1] | |
[1] Other claims and contingencies mainly include lawsuits and other legal proceedings, including employee, tax and environmental-related claims. |
Note 25 - Derivative Financia_3
Note 25 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [abstract] | ||
Derivative financial instruments | $ 7,080 |
Note 25 - Derivative Financia_4
Note 25 - Derivative Financial Instruments - Net Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Derivatives with positive fair values | $ 30,805 | $ 11,315 |
Derivatives with negative fair values | (7,127) | (11,328) |
Total | 23,678 | (13) |
Derivatives hedging borrowings and investments [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Derivatives with positive fair values | 6,480 | 2,472 |
Derivatives with negative fair values | (147) | |
Other derivatives [member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Derivatives with positive fair values | 24,325 | 8,843 |
Derivatives with negative fair values | $ (7,127) | $ (11,181) |
Note 25 - Derivative Financia_5
Note 25 - Derivative Financial Instruments - Foreign Exchange Derivative Contracts and Hedge Accounting (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | $ 23,678 | $ (13) | |
Hedge accounting reserve | 13,100 | 1,300 | |
Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Hedge accounting reserve | 13,122 | 1,259 | $ (4,771) |
Purchase foreign exchange contract [Member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 27,038 | 20 | |
Hedge accounting reserve | 21,085 | 1,292 | |
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency MXN, sell currency USD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 6,571 | 1,444 | |
Hedge accounting reserve | (67) | (93) | |
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency MXN [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (838) | ||
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency EUR, sell currency USD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 1,866 | (7,670) | |
Hedge accounting reserve | (2,786) | (7,430) | |
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency EUR [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 20,783 | 9,092 | |
Hedge accounting reserve | 23,935 | 8,258 | |
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency JPY, sell currency USD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (269) | ||
Hedge accounting reserve | 557 | ||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency BRL [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (2,490) | (1,030) | |
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency KWD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (129) | ||
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency CAD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 404 | (246) | |
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency GPB [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (11) | (55) | |
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency USD, sell currency CNY [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (242) | (130) | |
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, purchase currency BRL, sell currency USD [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 223 | (238) | |
Hedge accounting reserve | |||
Purchase foreign exchange contract [Member] | Foreign exchange contract, Other [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 63 | (40) | |
Hedge accounting reserve | $ 3 |
Note 25 - Derivative Financia_6
Note 25 - Derivative Financial Instruments - Commodities Derivative Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | $ 23,678 | $ (13) | |
Hedge accounting reserve | 13,100 | 1,300 | |
Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Hedge accounting reserve | 13,122 | 1,259 | $ (4,771) |
Purchase Commodity [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (3,360) | (33) | |
Hedge accounting reserve | (7,963) | (33) | |
Purchase Commodity [member] | Commodities derivative contracts, Houston Ship Channel Gas [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (814) | (33) | |
Hedge accounting reserve | (814) | (33) | |
Purchase Commodity [member] | Commodities derivative contracts, LME Scrap [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 29 | ||
Hedge accounting reserve | (3,148) | ||
Purchase Commodity [member] | Commodities derivative contracts, Iron Ore [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 12 | ||
Hedge accounting reserve | (1,274) | ||
Purchase Commodity [member] | Commodities derivative contracts, Electric Energy [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (519) | ||
Hedge accounting reserve | (519) | ||
Purchase Commodity [member] | Commodities derivative contracts, TTF Gas [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (2,068) | ||
Hedge accounting reserve | $ (2,207) |
Note 25 - Derivative Financia_7
Note 25 - Derivative Financial Instruments - Hedge Reserve Evolution (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | $ 1,300 | |
Hedge accounting reserve | 13,100 | $ 1,300 |
Cash flow hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | 1,259 | (4,771) |
Movements | 11,863 | 6,030 |
Hedge accounting reserve | 13,122 | 1,259 |
Foreign Exchange & Commodities [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | 1,259 | (4,771) |
Movements | 11,863 | 6,030 |
Hedge accounting reserve | $ 13,122 | $ 1,259 |
Note 26 - Contingencies, Comm_2
Note 26 - Contingencies, Commitments and Restrictions On the Distribution of Profits (Details Textual) $ / shares in Units, $ in Thousands, R$ in Millions | 12 Months Ended | ||||||||||
Oct. 27, 2022 | Oct. 09, 2018 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | Jun. 24, 2022 USD ($) | Oct. 10, 2018 BRL (R$) | Oct. 10, 2018 USD ($) | Jan. 31, 2012 $ / shares shares | ||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Performance Guarantees Issued | $ 3,600,000 | ||||||||||
Praxair S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Term of supply contract (Year) | 14 years | ||||||||||
Purchase commitments | $ 36,400 | ||||||||||
Techgen s.a. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | 22% | ||||||||||
Proportion of power generation capacity | 22% | 22% | |||||||||
Techgen s.a. [member] | Transportadora de Gas del Norte S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Term of supply contract (Year) | 25 years | ||||||||||
Usiminas [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | 3.07% | ||||||||||
Ternium S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | 11.46% | ||||||||||
Brazil | Usiminas [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | [1] | 3.07% | 3.07% | ||||||||
Argentina | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Dumping rate imposed | 78.30% | ||||||||||
Argentina | Usiminas [member] | Presidente Nestor Kirchner Gas Pipeline [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Purchase commitments | $ 183,600 | ||||||||||
Mexico | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Dumping rate imposed | 44.93% | ||||||||||
Mexico | Techgen s.a. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | 22% | 22% | |||||||||
Luxembourg | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Percent of minimum transfer of net profit to legal reserve | 5% | ||||||||||
Percent of minimum transfer of net profit until legal reserve equals issued share capital | 10% | ||||||||||
Luxembourg | Ternium S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | [2] | 11.46% | 11.46% | ||||||||
Confab [member] | Chubb [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Payments for settlement | $ 3,500 | ||||||||||
Confab [member] | Veracel Celulose S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Settlement, amount ordered to pay, insurance deductible | R$ 91.9 | $ 17,400 | |||||||||
Settlement, amount ordered to pay, damages | R$ 78.8 | $ 15,100 | |||||||||
Legal proceedings contingent liability [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Payments for settlement | $ 9,500 | ||||||||||
Commitments and guarantees | Voestalpine Grobblech GmbH [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Purchase commitments | 30,200 | ||||||||||
Commitments and guarantees | Vestas Group [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Purchase commitments | 47,700 | ||||||||||
Commitments and guarantees | Ternium USA, Inc. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Term of supply contract (Year) | 1 year | ||||||||||
Purchase commitments | 6,300 | ||||||||||
Term of supply contract, available extension | 1 year | ||||||||||
Tax contingent liability [member] | Petroleo Brasileiro S.A. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Estimated financial effect of contingent liabilities | R$ 284.2 | 54,500 | |||||||||
Contingent liability for disgorgement and prejudgment interest [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Settlement, amount ordered to pay | $ 53,100 | ||||||||||
Contingent liability for civil penalty [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Settlement, amount ordered to pay | $ 25,000 | ||||||||||
CONFAB INDUSTRIAL S.A. and subsidiaries [member] | Companhia Siderúrgica Nacional [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Tag-along tender offer to non-controlling interests, percentage | 80% | ||||||||||
Tag-along tender offer to non-controlling interests (in BRL per share) | $ / shares | $ 28.8 | ||||||||||
Tag-along tender offer to non-controlling interests, shares (in shares) | shares | 182,609,851 | ||||||||||
Tag-along tender offer to non-controlling interests, contingent liability | 17.90% | ||||||||||
CONFAB INDUSTRIAL S.A. and subsidiaries [member] | Tax contingent liability [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Estimated financial effect of contingent liabilities | R$ 59.2 | $ 11,300 | |||||||||
Fine imposed, percentage of allegedly undue credits | 75% | 75% | |||||||||
Ternium S.A. [member] | Techgen s.a. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Proportion of ownership interest in associate | 48% | ||||||||||
IPSCO Tubulars, Inc. | Commitments and guarantees | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Term of supply contract (Year) | 6 years | ||||||||||
Term of supply contract, available extension | 12 months | ||||||||||
TENARIS BAY CITY, INC. [member] | Nucor Steel Memphis Inc. [member] | |||||||||||
Contingencies, commitments and restrictions on the distribution of profits | |||||||||||
Term of supply contract (Year) | 3 years | ||||||||||
Purchase commitments | $ 85,800 | ||||||||||
Purchase commitments percentage to be made | 75% | 75% | |||||||||
[1] At December 31, 20 2 2 and 20 2 1 the voting rights were 5.19 % . Including treasury shares. |
Note 27 - Cancellation of tit_2
Note 27 - Cancellation of title deed in Saudi Steel Pipe Company (Details) - SAUDI ARABIA - Saudi Steel Pipe Company [member] $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of geographical areas [line items] | ||||
Area of land (in square meters) | 811,284 | |||
Proportion of ownership interest in subsidiary | [1] | 47.79% | 48% | 48% |
Land plots, carrying value | $ 56.2 | |||
[1] All percentages rounded. |
Note 28 - Foreign exchange cont
Note 28 - Foreign exchange control measures in Argentina (Details Textual) $ in Thousands, $ in Millions | 12 Months Ended | |||
Aug. 19, 2022 ARS ($) | Aug. 19, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Argentine sovereign bonds [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Loss arising from dividend paid in kind | $ 29,800 | |||
Argentina | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Percentage of entity's revenue | 13% | |||
Argentina | Argentine sovereign bonds [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Distribution of dividend in kind | 54,400 | |||
Argentina | Subsidiaries [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Percentage of entity's net equity | 10.60% | |||
Percentage of entity's revenue | 20% | |||
Argentina | SIDERCA S.A.I.C. and subsidiaries [member] | Argentine sovereign bonds [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Distribution of dividend in kind | $ 7,394 | |||
Argentine Peso / U.S. dollar foreign exchange risk [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Currency exposure / functional currency | $ 126,739 | $ 95,073 | ||
Argentine Peso / U.S. dollar foreign exchange risk [member] | Argentina | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Currency exposure / functional currency | $ 127,000 | |||
International market [member] | Argentine sovereign bonds [member] | ||||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Distribution of dividend in kind | $ 24,600 |
Note 29 - Cash Flow Disclosur_3
Note 29 - Cash Flow Disclosures - Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of Cash Flow [Abstract] | ||||
Inventories | [1] | $ (1,329,865) | $ (1,085,024) | $ 818,913 |
Receivables and prepayments and current tax assets | [1] | (155,449) | (79,912) | 67,610 |
Trade receivables | [1] | (1,208,278) | (356,069) | 414,826 |
Other liabilities | [1] | 57,389 | 4,892 | (36,000) |
Customer advances | [1] | 151,066 | 44,661 | (29,253) |
Trade payables | [1] | 353,892 | 399,988 | (180,807) |
Increase (decrease) in working capital | [1],[2] | (2,131,245) | (1,071,464) | 1,055,289 |
Income tax accruals less payments | ||||
Tax accrued | 617,236 | 189,448 | 23,150 | |
Taxes paid | (359,585) | (153,846) | (140,364) | |
Adjustments for income tax expense | 257,651 | 35,602 | (117,214) | |
Interest accruals less payments, net | ||||
Interest accrued | (34,080) | (14,371) | 8,627 | |
Interest received | 68,335 | 24,567 | 19,613 | |
Interest paid | (32,775) | (21,559) | (28,778) | |
Interest income (expense) | $ 1,480 | $ (11,363) | $ (538) | |
[1] Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar. Changes in working capital do not include non-cash movements due to the variations in the exchange rates used by subsidiaries with functional currencies different from the U.S. dollar for an amount of $ 4.2 million for 2022 , $ 25.6 million for 2021 and $ 3.8 million for 2020 . |
Note 30 - Related Party Trans_3
Note 30 - Related Party Transactions (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Total number of shares issued (in shares) | 1,180,536,830 | 1,180,536,830 | 1,180,536,830 |
Key management personnel compensation, short-term employee benefits | $ 35.2 | $ 37.7 | $ 27.4 |
Key management personnel compensation, share-based payment | $ 5.1 | $ 3.9 | $ 5 |
San Faustin S.A. [member] | |||
Disclosure of transactions between related parties [line items] | |||
Total number of shares issued (in shares) | 713,605,187 | ||
Proportion of ownership interest in associate | 60.45% | ||
Key management personnel of entity or parent [member] | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in associate | 0.07% | ||
Units issued, related party transactions (in shares) | 437,000 | 382,000 | 522,000 |
Note 30 - Related Party Trans_4
Note 30 - Related Party Transactions - Transactions Carried Out With Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Revenue, related party transactions | $ 366,433 | $ 201,775 | $ 49,304 |
Purchases of goods and services, related party transactions | 758,443 | 350,951 | 122,489 |
Amounts receivable (payable), related party transactions | (8,006) | 52,801 | |
Finance lease liabilities from non-consolidated parties | (1,650) | (1,936) | |
Finance lease liabilities from other related parties | (483) | (624) | |
Financial debt related parties | (2,133) | (2,560) | |
Associates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods to related parties | 100,019 | 71,879 | 20,183 |
Sales of services to related parties | 5,407 | 4,161 | 5,829 |
Purchases of goods to related parties | 656,877 | 294,929 | 84,485 |
Purchases of services to related parties | 13,759 | 9,763 | 6,979 |
Receivables from non-consolidated parties | 69,135 | 66,896 | |
Payables to non-consolidated parties | (142,228) | (45,092) | |
Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods to related parties | 151,884 | 76,467 | 18,243 |
Sales of services to related parties | 109,123 | 49,268 | 5,049 |
Purchases of goods to related parties | 51,040 | 32,453 | 12,892 |
Purchases of services to related parties | 36,767 | 13,806 | $ 18,133 |
Receivables from non-consolidated parties | 78,370 | 33,122 | |
Payables to non-consolidated parties | $ (13,283) | $ (2,125) |
Note 31 - Principal accountan_3
Note 31 - Principal accountant fees - Fees Accrued for Professional Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Additional information [abstract] | |||
Audit fees | $ 3,966 | $ 3,804 | $ 3,781 |
Audit-related fees | 255 | 220 | 134 |
Tax fees | 102 | ||
All other fees | 11 | 5 | |
Total | $ 4,232 | $ 4,029 | $ 4,017 |
Note 32 - Principal Subsidiar_3
Note 32 - Principal Subsidiaries (Details Textual) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tenaris Supply Chain S.A. [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 98.40% | |
Tubular Technical Services and Pipe Coaters [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 40% | |
Amaja Tubular Services Limited [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 49% | |
Tubular Services Angola Lda. [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 49% | |
Tenaris Baogang Baotou Steel Pipes Ltd [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 60% | |
NKKTUBES [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interest in subsidiary | 51% |
Note 32 - Principal Subsidiar_4
Note 32 - Principal Subsidiaries - Percentage of Ownership of Each Controlled Company (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Canada | ALGOMA TUBES INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Canada | TENARIS GLOBAL SERVICES (CANADA) INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Brazil | CONFAB INDUSTRIAL S.A. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Italy | DALMINE S.p.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
USA | HYDRIL COMPANY and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
USA | IPSCO TUBULARS INC. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
USA | MAVERICK TUBE CORPORATION and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
USA | TENARIS BAY CITY, INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
USA | TENARIS GLOBAL SERVICES (U.S.A.) CORPORATION [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Indonesia | PT SEAMLESS PIPE INDONESIA JAYA [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 89% | 89% | 89% |
Romania | S.C. SILCOTUB S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
SAUDI ARABIA | Saudi Steel Pipe Company [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 47.79% | 48% | 48% |
Argentina | SIAT SOCIEDAD ANONIMA [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Argentina | SIDERCA S.A.I.C. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1],[2] | 100% | 100% | 100% |
PORTUGAL | TALTA—TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
NETHERLANDS | TENARIS CONNECTIONS BV [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
NETHERLANDS | TENARIS INVESTMENTS (NL) B.V. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
URUGUAY | TENARIS FINANCIAL SERVICES S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
URUGUAY | TENARIS GLOBAL SERVICES S.A. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1],[3] | 100% | 100% | 100% |
UNITED KINGDOM | TENARIS GLOBAL SERVICES (UK) LTD [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
LUXEMBOURG | TENARIS INVESTMENTS S.àr.l. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Colombia | TENARIS TUBOCARIBE LTDA. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
Mexico | TUBOS DE ACERO DE MEXICO S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100% | 100% | 100% |
CHINA | Tenaris Qingdao Steel Pipes Ltd [Member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | 100% | 100% | 100% | |
[1] All percentages rounded. holds 51% of . holds 98.4% of Supply Chain S.A. and 40% of Tubular Technical Services Ltd. and Pipe Coaters Nigeria Ltd., 49% of Tubular Services Limited and 60% of Steel Pipes Ltd, and until 2021 held 49% of Tubular Services Angola Lda. |
Note 33 - Business Combinatio_2
Note 33 - Business Combinations (Details Textual) - Parques Eolicos de la Buena Ventura S.A. [member] $ in Thousands | Apr. 30, 2022 USD ($) |
Disclosure of detailed information about business combination [line items] | |
Percentage of voting equity interests acquired | 100% |
Acquisition price fully paid | $ 4,100 |
Fair value of acquired assets and liabilities | 4,100 |
Goodwill recognized | $ 0 |
Note 34 - Nationalization of _2
Note 34 - Nationalization of Venezuelan Subsidiaries (Details Textual) - TALTA—TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA. [member] - VENEZUELA - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 12, 2016 | Jan. 29, 2016 | Dec. 31, 2022 | Jan. 25, 2023 | Nov. 05, 2021 | Aug. 24, 2021 | Jul. 17, 2020 | |
Awards purchase agreement [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Purchase agreement | $ 81 | ||||||
Non-refundable signing payment as reimbursement of expenses | $ 1 | ||||||
Matesi Materiales Siderúrgicos S.A [member] | ICSID in Washington D.C. [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Nationalization of subsidiaries, compensation award not including pre-award interest | $ 87.3 | ||||||
Nationalization of subsidiaries, pre-award interest | 85.5 | ||||||
Nationalization of subsidiaries, compensation award including pre-award interest and legal fees | 173 | ||||||
Nationalization of subsidiaries, reimbursement of legal fees and administrative costs | $ 0.2 | ||||||
Nationalization of subsidiaries, grace period granted from date of award to make payment | 6 months | ||||||
Nationalization of subsidiaries, post-award interest rate | 9% | ||||||
Nationalization of subsidiaries, period of post-award interest from date of award to payment in default | 6 months | ||||||
Nationalization of subsidiaries, compensation award post-award interest | $ 144.7 | ||||||
Nationalization of subsidiaries, compensation award including including principal and post-award interest | 317.7 | ||||||
Matesi Materiales Siderúrgicos S.A [member] | Federal court in District of Columbia [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Nationalization of subsidiaries, compensation award including including principal and post-award interest | $ 256.4 | ||||||
Nationalization of subsidiaries, compensation award post-judgment interest | 0.9 | ||||||
Nationalization of subsidiaries, compensation award including principal, post-award interest and post-judgment interest | 257.3 | ||||||
Tavsa and Comsigua [member] | ICSID in Washington D.C. [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Nationalization of subsidiaries, compensation award not including pre-award interest | $ 137 | ||||||
Nationalization of subsidiaries, pre-award interest | 76 | ||||||
Nationalization of subsidiaries, reimbursement of legal fees and administrative costs | $ 3.3 | ||||||
Nationalization of subsidiaries, compensation award post-award interest | 85.1 | ||||||
Nationalization of subsidiaries, compensation award including including principal and post-award interest | 301.4 | ||||||
Nationalization of subsidiaries, interest rate basis spread | LIBOR | ||||||
Nationalization of subsidiaries, basis spread on variable rate | 4% | ||||||
Tavsa and Comsigua [member] | Federal court in District of Columbia [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Nationalization of subsidiaries, compensation award including including principal and post-award interest | $ 276.9 | ||||||
Nationalization of subsidiaries, compensation award post-judgment interest | 0.2 | ||||||
Nationalization of subsidiaries, compensation award including principal, post-award interest and post-judgment interest | $ 280.9 | $ 280.7 |
Note 35 - Other relevant info_2
Note 35 - Other relevant information (Details - Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of joint ventures [line items] | |||
Impairment charge | $ 76,725 | $ 57,075 | $ 622,402 |
Non-controlling interests | $ 128,728 | 145,124 | |
NKKTUBES [member] | |||
Disclosure of joint ventures [line items] | |||
Proportion of ownership interest in joint venture | 51% | ||
Impairment charge | $ 57,000 | ||
Non-controlling interests | $ 13,200 | ||
Reclassification of currency translation adjustment reserve | $ 71,200 | ||
NKKTUBES [member] | JFE [member] | |||
Disclosure of joint ventures [line items] | |||
Proportion of ownership interest in joint venture | 49% |
Note 36 - The Russia-Ukraine _2
Note 36 - The Russia-Ukraine armed conflict and its impact on Tenaris’s operations (Details Textual) $ in Millions | 1 Months Ended |
Mar. 31, 2022 USD ($) | |
Russia | PAO Severstal [member] | |
Unusual or Infrequent Item 1 [line items] | |
Impairment loss on investment in joint venture | $ 14.9 |
Note 37 - Climate change (Detai
Note 37 - Climate change (Details Textual) - Medium term target [member] | 1 Months Ended |
Feb. 28, 2021 | |
Disclosure of climate change [line items] | |
Percentage of target for reducing carbon emissions intensity | 30% |
Period over climate-related target applies | 2030 |
Baseline from which progress for climate-related target is measured | 2018 |
Note 38 - Events after the re_2
Note 38 - Events after the reporting period (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
May 03, 2023 | Nov. 23, 2022 | May 25, 2022 | May 26, 2021 | May 25, 2022 | May 26, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 24, 2023 | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Dividends paid, ordinary shares per share (in dollars per share) | $ 0.17 | $ 0.28 | $ 0.14 | |||||||
Dividends paid, per ADS (in dollars per share) | $ 0.34 | $ 0.56 | $ 0.28 | |||||||
Dividends recognised as distributions to owners | $ 201,000 | $ 331,000 | $ 165,000 | $ 484,000 | $ 248,000 | $ 541,674 | $ 322,099 | $ 87,938 | ||
Annual Dividend Proposal [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Annual dividend proposed to be distributed (in dollars per share) | $ 0.51 | |||||||||
Annual dividend proposed to be distributed, amount per ads (in dollars per share) | $ 1.02 | |||||||||
Annual dividend proposed to be distributed | $ 602,000 | |||||||||
Dividends payable, amount per share (in dollars per share) | $ 0.34 | |||||||||
Dividends payable, amount per ads (in dollars per share) | $ 0.68 | |||||||||
Annual dividend payable | $ 401,000 |
Note 39 - Update as of March 30
Note 39 - Update as of March 30, 2022 (Details - Textuals) - Usiminas [member] R$ / shares in Units, $ / shares in Units, shares in Millions, R$ in Millions, $ in Millions | Mar. 30, 2023 BRL (R$) Number R$ / shares shares | Mar. 30, 2023 USD ($) Number $ / shares shares | Dec. 31, 2022 shares |
Ordinary shares [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares subscribed to (in shares) | 36.5 | ||
Major purchases of assets [member] | The new SHA [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Majority percentage of control group shares | 55% | ||
Major purchases of assets [member] | T/T Group [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of voting capital increased in control group | 9.80% | ||
Percentage of voting capital in control group | 61.30% | ||
Major purchases of assets [member] | T/T Group [member] | The new SHA [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of Board members can be appointed through the shareholders agreement | Number | 4 | 4 | |
Major purchases of assets [member] | NSSMC [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of voting capital in control group | 31.70% | ||
Major purchases of assets [member] | Previdencia Usiminas [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of voting capital in control group | 7.10% | ||
Major purchases of assets [member] | Tenaris [member] | The new SHA [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of Board members can be appointed through the shareholders agreement | Number | 1 | 1 | |
Major purchases of assets [member] | Ordinary shares [member] | T/T Group [member] | The new SHA [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares to be purchased under agreement | 68.7 | ||
Shares subscribed to, price per share (in BRL per share) | (per share) | R$ 10 | $ 1.9 | |
Shares subscribed to, value | R$ 110 | $ 21 | |
Number of shares subscribed to (in shares) | 11 | 11 | |
Number of shares outstanding in control group | 68.7 | ||
Thresold number of trading days immediately prior to date of exercising option | Number | 40 | ||
Major purchases of assets [member] | Ordinary shares [member] | NSSMC [member] | The new SHA [member] | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares to be purchased under agreement | 153.1 | ||
Shares subscribed to, price per share (in BRL per share) | R$ / shares | R$ 10 | ||
Number of shares outstanding in control group | 153.1 | ||
Number of trading days to calculate moving average share price | Number | 40 |