FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

As of May 2, 2019

TENARIS, S.A.

(Translation of Registrant's name into English)

TENARIS, S.A.

29, Avenue de la Porte-Neuve 3rd floor

L-2227 Luxembourg

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

Form 20-F _Ö_ Form 40-F ___

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No _Ö_

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__.

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains Tenaris’s Press Release announcing 2019 First Quarter Results.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 2, 2019.

Tenaris, S.A.

By: /s/ Cecilia Bilesio

Cecilia Bilesio

Corporate Secretary

 

Giovanni Sardagna

Tenaris

1-888-300-5432

www.tenaris.com

Tenaris Announces 2019 First Quarter Results

The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Net cash / debt and Free Cash Flow. See exhibit I for more details on these alternative performance measures.

Luxembourg, May 2, 2019. - Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN) (“Tenaris”) today announced its results for the quarter ended March 31, 2019 in comparison with its results for the quarter ended March 31, 2018.

Summary of 2019 First Quarter Results

(Comparison with fourth and first quarter of 2018)

	1Q 2019			4Q 2018					1Q 2018
Net sales ($ million)		1,872			2,105		(11	%)		1,866		0	%
Operating income ($ million)		259			179		45	%		212		22	%
Net income ($ million)		243			225		8	%		235		3	%
Shareholders’ net income ($ million)		243			226		8	%		235		3	%
Earnings per ADS ($)		0.41			0.38		8	%		0.40		3	%
Earnings per share ($)		0.21			0.19		8	%		0.20		3	%
EBITDA* ($ million)		390			426		(8	%)		354		10	%
EBITDA margin (% of net sales)		20.9	%		20.2	%				19.0	%

In the first quarter of 2019, sales declined 11% quarter-on-quarter, reflecting no deliveries of offshore line pipe for East Mediterranean gas projects concluded in the previous quarter and the slowdown in the US and Canadian markets. Operating income, which benefited from a $15 million recovery of tariffs paid on the import of steel bars into the United States to feed our Bay City mill, was 22% higher year-on-year on similar revenues, while net income for the quarter amounted to 13% of sales.

 

During the quarter, our working capital declined by $199 million, reflecting mostly a reduction in receivables and inventories. With operating cash flow of $548 million and capital expenditures of $86 million, our free cash flow amounted to $462 million (25% of revenues) and after paying $141 million for our investment in Saudi Steel Pipe (SSP), consolidating $74 million of SSP’s net debt and collecting $40 million from Techgen´s credits, our net cash position increased by $281 million to reach $766 million at the end of the quarter.

Market Background and Outlook

In the USA, there has been a limited slowdown in drilling activity in the year to date following the oil price downturn in the fourth quarter of last year and a more disciplined approach to capital expenditure by shale operators. In Canada, the slowdown has been more pronounced with a lack of pipeline takeaway capacity and government-mandated production cuts. Although oil prices have recovered in the year to date, capital discipline by shale operators is likely to persist through the year, which may limit any increase in drilling activity.

In Latin America, the recovery in drilling activity in Mexico may be tempered by financial constraints, while, in the rest of the region, drilling activity is expected to remain relatively stable, with shale drilling activity in Argentina switching from gas to oil.

In the eastern Hemisphere, drilling activity is expected to continue its gradual recovery with a focus on gas developments.

Following a solid performance in the first quarter, we expect to consolidate our sales around this level in the next quarter and hold margins at a similar level to last year. With a stable level of sales, and limited capital investment requirements, we should continue to generate a strong free cash flow during the year.

 

Analysis of 2019 First Quarter Results

Tubes Sales volume (thousand metric tons)	1Q 2019		4Q 2018				1Q 2018
Seamless		640		700	(9	%)		651	(2	%)
Welded		184		247	(26	%)		285	(35	%)
Total		824		947	(13	%)		936	(12	%)

Tubes	1Q 2019			4Q 2018					1Q 2018
(Net sales - $ million)
North America		893			967		(8	%)		807		11	%
South America		330			356		(7	%)		285		16	%
Europe		158			148		7	%		153		4	%
Middle East & Africa		301			436		(31	%)		456		(34	%)
Asia Pacific		81			77		5	%		66		23	%
Total net sales ($ million)		1,763			1,984		(11	%)		1,766		0	%
Operating income ($ million)		238			154		55	%		194		23	%
Operating margin (% of sales)		13.5	%		7.7	%				11.0	%

Net sales of tubular products and services decreased 11% sequentially and were flat year on year. Sequentially a 13% decrease in volumes was partially offset by a 2% increase in average selling price resulting from a better product mix (higher proportion of seamless pipes). In North America sales decreased 8% sequentially, due to lower sales in the US onshore, reflecting activity reductions by our Rig Direct^® customers. In South America sales declined 7% sequentially, reflecting lower sales of OCTG in Argentina. In Europe sales increased 7% thanks to higher sales of offshore line pipe products. In the Middle East and Africa sales decreased 31% sequentially, after the end of deliveries of line pipe products for the Zohr project in the East Mediterranean, while they were partially offset by $40 million sales from SSP. In Asia Pacific sales increased 5% thanks to an increase in sales of OCTG products to LNG projects in Australia.

Operating income from tubular products and services amounted to $238 million in the first quarter of 2019, compared to $154 million in the previous quarter and $194 million in the first quarter of 2018. In the previous quarter operating income was negatively affected by $109 million charge to amortization of customer relationships. Still after correcting for the one off effect in the previous quarter, the operating margin improved based on a better product mix(reflecting a mix of products with higher participation of seamless products) and a reduction in selling expenses.

Others	1Q 2019			4Q 2018					1Q 2018
Net sales ($ million)		109			121		(10	%)		100		9	%
Operating income ($ million)		21			25		(17	%)		19		11	%
Operating income (% of sales)		19.1	%		20.7	%				18.7	%

Net sales of other products and services decreased 10% sequentially but increased 9% year on year. The sequential decrease in sales is mainly related to lower sales of sucker rods and coiled tubing.

Selling, general and administrative expenses, or SG&A, amounted to $345 million, or 18.5% of net sales, in the first quarter of 2019, compared to $487 million, 23.1% in the previous quarter and $350 million, 18.7% in the first quarter of 2018. In the previous quarter SG&A was negatively affected by $109 million charge to amortization of customer relationships. In addition to the one off charge, selling expenses declined reflecting lower volumes.

 

Financial results amounted to a gain of $24 million in the first quarter of 2019, compared to a loss of $6 million in the previous quarter and a loss of $8 million in the first quarter of 2018. The gain of the quarter corresponds mainly to an FX gain of $26 million, $21 million related to the Argentine peso devaluation on a net short position in local currency at Argentine subsidiaries which functional currency is the U.S. dollar.

Equity in earnings of non-consolidated companies generated a gain of $29 million in the first quarter of 2019, compared to a gain of $51 million in the previous quarter and a gain of $46 million in the first quarter of 2018. These results are mainly derived from our equity investment in Ternium (NYSE:TX) and Usiminas (BSP:USIM).

Income tax charge amounted to $70 million in the first quarter of 2019 or 22% of income before income tax, including $8 million net charges, related to foreign exchange variations, mainly in Argentina and Mexico.

Cash Flow and Liquidity

Net cash provided by operations during the first quarter of 2019 was $548 million, compared with $239 million in the previous quarter and a use of cash of $30 million in the first quarter of 2018. Working capital decreased by $199 million, reflecting, in part, the reduction in sales as well as a decrease in inventories.

Capital expenditures amounted to $86 million for the first quarter of 2019, compared to $76 million in the previous quarter and $92 million in the first quarter of 2018.

Free cash flow of the quarter amounted to $462 million (25% of revenues), compared to $163 million in the previous quarter and a negative free cash flow of $122 million in the first quarter of 2018.

After paying $141 million for our investment in SSP, consolidating $74 million of SSP’s net debt at the end of the quarter and collecting $40 million from Techgen´s credits, our net cash position amounted to $766 million, compared to $485 million at the beginning of the year.

Conference call

Tenaris will hold a conference call to discuss the above reported results, on May 3, 2019, at 09:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions. To access the conference call dial in +1 866 789 1656 within North America or +1 630 489.1502 Internationally. The access number is “1691768”. Please dial in 10 minutes before the scheduled start time. The conference call will be also available by webcast at www.tenaris.com/investors.

A replay of the conference call will be available on our webpage http://ir.tenaris.com/ or by phone from 12.00 pm ET on May 3, through 11.59 pm on May 11, 2019. To access the replay by phone, please dial 855 859 2056 or 404 537 3406 and enter passcode “1691768” when prompted.

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

 

Consolidated Condensed Interim Income Statement

(all amounts in thousands of U.S. dollars)	Three-month period ended March 31,
	2019			2018
Continuing operations	Unaudited
Net sales		1,871,759			1,866,235
Cost of sales		(1,271,799	)		(1,305,506	)
Gross profit		599,960			560,729
Selling, general and administrative expenses		(345,366	)		(349,634	)
Other operating income (expense), net		4,422			1,102
Operating income		259,016			212,197
Finance Income		10,461			9,373
Finance Cost		(6,982	)		(10,174	)
Other financial results		20,915			(7,066	)
Income before equity in earnings of non-consolidated companies and income tax		283,410			204,330
Equity in earnings of non-consolidated companies		29,135			46,026
Income before income tax		312,545			250,356
Income tax		(69,956	)		(15,122	)
Income for the period		242,589			235,234
Attributable to:
Owners of the parent		242,879			234,983
Non-controlling interests		(290	)		251
		242,589			235,234

 

Consolidated Condensed Interim Statement of Financial Position

(all amounts in thousands of U.S. dollars)	At March 31, 2019			At December 31, 2018
	Unaudited
ASSETS
Non-current assets
Property, plant and equipment, net		6,197,512			6,063,908
Intangible assets, net		1,576,436			1,465,965
Right-of-use assets, net		233,899			-
Investments in non-consolidated companies		851,442			805,568
Other investments		111,119			118,155
Deferred tax assets		163,231			181,606
Receivables, net		156,954	9,290,593		151,905	8,787,107
Current assets
Inventories, net		2,462,762			2,524,341
Receivables and prepayments, net		141,985			155,885
Current tax assets		117,958			121,332
Trade receivables, net		1,528,467			1,737,366
Derivative financial instruments		11,614			9,173
Other investments		432,604			487,734
Cash and cash equivalents		897,767	5,593,157		428,361	5,464,192
Total assets			14,883,750			14,251,299
EQUITY
Capital and reserves attributable to owners of the parent			12,005,132			11,782,882
Non-controlling interests			211,041			92,610
Total equity			12,216,173			11,875,492
LIABILITIES
Non-current liabilities
Borrowings		56,980			29,187
Lease liabilities		193,745			-
Deferred tax liabilities		364,938			379,039
Other liabilities		228,306			213,129
Provisions		37,511	881,480		36,089	657,444
Current liabilities
Borrowings		622,735			509,820
Lease liabilities		35,959			-
Derivative financial instruments		3,462			11,978
Current tax liabilities		238,622			250,233
Other liabilities		202,057			165,693
Provisions		29,496			24,283
Customer advances		57,234			62,683
Trade payables		596,532	1,786,097		693,673	1,718,363
Total liabilities			2,667,577			2,375,807
Total equity and liabilities			14,883,750			14,251,299

 

Consolidated Condensed Interim Statement of Cash Flows

	Three-month period ended March 31,
(all amounts in thousands of U.S. dollars)	2019			2018
Cash flows from operating activities	Unaudited
Income for the period		242,589			235,234
Adjustments for:
Depreciation and amortization		131,335			141,802
Income tax accruals less payments		9,951			(24,816	)
Equity in earnings of non-consolidated companies		(29,135	)		(46,026	)
Interest accruals less payments, net		560			620
Changes in provisions		(1,870	)		1,527
Changes in working capital		199,489			(363,552	)
Currency translation adjustment and others		(5,303	)		25,644
Net cash provided by (used in) operating activities		547,616			(29,567	)
Cash flows from investing activities
Capital expenditures		(85,686	)		(91,938	)
Changes in advance to suppliers of property, plant and equipment		501			(414	)
Acquisition of subsidiaries, net of cash acquired		(132,845	)		-
Loan to non-consolidated companies		-			(2,200	)
Repayment of loan by non-consolidated companies		40,470			1,950
Proceeds from disposal of property, plant and equipment and intangible assets		262			1,484
Changes in investments in securities		66,777			84,616
Net cash (used in) investing activities		(110,521	)		(6,502	)
Cash flows from financing activities
Changes in non-controlling interests		1			-
Payments of lease liabilities		(10,171	)		-
Proceeds from borrowings		184,396			277,711
Repayments of borrowings		(139,052	)		(248,041	)
Net cash provided by financing activities		35,174			29,670
Increase (decrease) in cash and cash equivalents		472,269			(6,399	)
Movement in cash and cash equivalents
At the beginning of the period		426,717			330,090
Effect of exchange rate changes		(1,484	)		1,050
Increase (decrease) in cash and cash equivalents		472,269			(6,399	)
At March 31,		897,502			324,741

 

Exhibit I – Alternative performance measures

EBITDA, Earnings before interest, tax, depreciation and amortization.

EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

EBITDA is calculated in the following manner:

EBITDA= Operating results + Depreciation and amortization + Impairment charges/(reversals).

(all amounts in thousands of U.S. dollars)	Three-month period ended March 31,
	2019		2018
Operating income		259,016		212,197
Depreciation and amortization		131,335		141,802
EBITDA		390,351		353,999

Net Cash / (Debt)

This is the net balance of cash and cash equivalents, other current investments and non-current investments less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

Net cash/ debt is calculated in the following manner:

Net cash= Cash and cash equivalents + Other investments (Currentand Non-Current) +/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current)

(all amounts in thousands of U.S. dollars)	At March 31,
	2019			2018
Cash and cash equivalents		897,767			328,675
Other current investments		432,604			999,576
Non-current Investments		106,945			234,739
Derivatives hedging borrowings and investments		8,184			(6,063	)
Borrowings – current and non-current		(679,715	)		(1,005,595	)
Net cash / (debt)		765,785			551,332

 

Free Cash Flow

Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

Free cash flow is calculated in the following manner:

Free cash flow= Net cash (used in) provided by operating activities – Capital expenditures.

(all amounts in thousands of U.S. dollars)	Three-month period ended March 31,
	2019			2018
Net cash provided by (used in) operating activities		547,616			(29,567	)
Capital expenditures		(85,686	)		(91,938	)
Free cash flow		461,930			(121,505	)