Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Cover page. | |
Entity Registrant Name | Tenaris SA |
Entity Central Index Key | 0001190723 |
Trading Symbol | ts |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding (in shares) | 1,180,536,830 |
Entity Shell Company | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Title of 12(b) Security | Ordinary Shares, par value $1.00 per share |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Continuing operations | ||||
Net sales | $ 5,146,734 | $ 7,294,055 | $ 7,658,588 | |
Cost of sales | (4,087,317) | (5,107,495) | (5,279,300) | |
Gross profit | 1,059,417 | 2,186,560 | 2,379,288 | |
Selling, general and administrative expenses | (1,119,227) | (1,365,974) | (1,509,976) | |
Impairment charge | (622,402) | |||
Other operating income | 33,393 | 23,004 | 15,059 | |
Other operating expenses | (14,252) | (11,199) | (12,558) | |
Operating (loss) income | (663,071) | 832,391 | 871,813 | |
Finance income | 18,387 | 47,997 | 39,856 | |
Finance cost | (27,014) | (43,381) | (36,942) | |
Other financial results | (56,368) | 14,667 | 34,386 | |
(Loss) income before equity in earnings of non-consolidated companies and income tax | (728,066) | 851,674 | 909,113 | |
Equity in earnings of non-consolidated companies | 108,799 | 82,036 | 193,994 | |
(Loss) income before income tax | (619,267) | 933,710 | 1,103,107 | |
Income tax | (23,150) | (202,452) | (229,207) | |
(Loss) income for the year | (642,417) | 731,258 | 873,900 | |
Attributable to: | ||||
Owners of the parent | (634,418) | 742,686 | 876,063 | |
Non-controlling interests | (7,999) | (11,428) | (2,163) | |
(Loss) income for the year | $ (642,417) | $ 731,258 | $ 873,900 | |
Earnings per share attributable to the owners of the parent during the year: | ||||
Weighted average number of ordinary shares (thousands) (in shares) | 1,180,537 | 1,180,537 | 1,180,537 | |
Continuing operations | ||||
Basic and diluted earnings (losses) per share (in dollars per share) | $ (0.54) | $ 0.63 | $ 0.74 | |
Basic and diluted earnings per ADS (U.S. dollars per ADS) (in dollars per share) | [1] | $ (1.07) | $ 1.26 | $ 1.48 |
[1] | Each ADS equals two shares. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
(Loss) income for the year | $ (642,417) | $ 731,258 | $ 873,900 | |
Items that may be subsequently reclassified to profit or loss: | ||||
Currency translation adjustment | 31,172 | (27,294) | (96,916) | |
Change in value of cash flow hedges and instruments at fair value | (9,832) | 3,039 | (6,701) | |
Income tax relating to components of other comprehensive income | 2,376 | (707) | 34 | |
- Currency translation adjustment | [1] | (31,977) | (10,781) | 1,848 |
- Changes in the fair value of derivatives held as cash flow hedges and others | 792 | 812 | (132) | |
Total other comprehensive income that will be reclassified to profit or loss, net of tax | (7,469) | (34,931) | (101,867) | |
Items that will not be reclassified to profit or loss: | ||||
Remeasurements of post employment benefit obligations | (4,971) | (9,272) | 7,963 | |
Income tax on items that will not be reclassified | 770 | 1,545 | (1,932) | |
Remeasurements of post employment benefit obligations of non-consolidated companies | 634 | (9,878) | (3,855) | |
Total other comprehensive income that will not be reclassified to profit or loss, net of tax | (3,567) | (17,605) | 2,176 | |
Other comprehensive (loss) for the year, net of tax | (11,036) | (52,536) | (99,691) | |
Total comprehensive (loss) income for the year | (653,453) | 678,722 | 774,209 | |
Attributable to: | ||||
Owners of the parent | (643,435) | 690,095 | 776,713 | |
Non-controlling interests | (10,018) | (11,373) | (2,504) | |
Total comprehensive (loss) income for the year | $ (653,453) | $ 678,722 | $ 774,209 | |
[1] | For 2018 and 2019 Tenaris recognized its share over the effects on the adoption of IAS 29, “Financial Reporting in Hyperinflationary Economies” by Ternium in other comprehensive income as a currency translation adjustment. In 2020 Ternium changed the functional currency of its Argentine subsidiary to U.S. dollar and IAS 29 is no longer applicable. |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Property, plant and equipment, net | $ 6,193,181 | $ 6,090,017 |
Intangible assets, net | 1,429,056 | 1,561,559 |
Right-of-use assets, net | 241,953 | 233,126 |
Investments in non-consolidated companies | 957,352 | 879,965 |
Other investments | 247,082 | 24,934 |
Deferred tax assets | 205,590 | 225,680 |
Receivables, net | 154,303 | 157,103 |
Non-current assets | 9,428,517 | 9,172,384 |
Current assets | ||
Inventories, net | 1,636,673 | 2,265,880 |
Receivables and prepayments, net | 77,849 | 104,575 |
Current tax assets | 136,384 | 167,388 |
Trade receivables, net | 968,148 | 1,348,160 |
Derivative financial instruments | 11,449 | 19,929 |
Other investments | 872,488 | 210,376 |
Cash and cash equivalents | 584,681 | 1,554,299 |
Current assets | 4,287,672 | 5,670,607 |
Total assets | 13,716,189 | 14,842,991 |
EQUITY | ||
Capital and reserves attributable to owners of the parent | 11,262,888 | 11,988,958 |
Non-controlling interests | 183,585 | 197,414 |
Total equity | 11,446,473 | 12,186,372 |
Non-current liabilities | ||
Borrowings | 315,739 | 40,880 |
Lease liabilities | 213,848 | 192,318 |
Deferred tax liabilities | 254,801 | 336,982 |
Other liabilities | 245,635 | 251,383 |
Provisions | 73,218 | 54,599 |
Non-current liabilities | 1,103,241 | 876,162 |
Current liabilities | ||
Borrowings | 303,268 | 781,272 |
Lease liabilities | 43,495 | 37,849 |
Derivative financial instruments | 3,217 | 1,814 |
Current tax liabilities | 90,593 | 127,625 |
Other liabilities | 202,826 | 176,264 |
Provisions | 12,279 | 17,017 |
Customer advances | 48,692 | 82,729 |
Trade payables | 462,105 | 555,887 |
Current liabilities | 1,166,475 | 1,780,457 |
Total liabilities | 2,269,716 | 2,656,619 |
Total equity and liabilities | $ 13,716,189 | $ 14,842,991 |
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 (Previously stated) at Dec. 31, 2017 | $ 11,580,970 | $ 11,482,185 | $ 1,180,537 | [1] | $ 118,054 | $ 609,733 | $ (824,423) | $ (320,569) | [2] | $ 10,718,853 | $ 98,785 | ||
Balance (Changes in accounting policies (Section II AP)) at Dec. 31, 2017 | 8,018 | 8,006 | 2,786 | [2] | 5,220 | 12 | |||||||
Balance at Dec. 31, 2017 | 11,588,988 | 11,490,191 | 1,180,537 | [1] | 118,054 | 609,733 | (824,423) | (317,783) | [2] | 10,724,073 | 98,797 | ||
Income (loss) for the year | 873,900 | 876,063 | 876,063 | (2,163) | |||||||||
Currency translation adjustment | (96,916) | (96,673) | (96,673) | (243) | |||||||||
Remeasurements of post employment benefit obligations, net of taxes | 6,031 | 6,135 | 6,135 | [2] | (104) | ||||||||
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes | (6,667) | (6,673) | (6,673) | [2] | 6 | ||||||||
From other comprehensive income of non-consolidated companies | (2,139) | (2,139) | 1,848 | (3,987) | [2] | ||||||||
Other comprehensive (loss) income for the year | (99,691) | (99,350) | (94,825) | (4,525) | [2] | (341) | |||||||
Total comprehensive (loss) income for the year | 774,209 | 776,713 | (94,825) | (4,525) | [2] | 876,063 | (2,504) | ||||||
Acquisition and other changes in non-controlling interests | [3] | (24) | (2) | (2) | [2] | (22) | |||||||
Dividends paid in cash | (487,681) | (484,020) | (484,020) | (3,661) | |||||||||
Balance at Dec. 31, 2018 | 11,875,492 | 11,782,882 | 1,180,537 | [1] | 118,054 | 609,733 | (919,248) | (322,310) | [2] | 11,116,116 | 92,610 | ||
Income (loss) for the year | 731,258 | 742,686 | 742,686 | (11,428) | |||||||||
Currency translation adjustment | (27,294) | (27,217) | (27,217) | (77) | |||||||||
Remeasurements of post employment benefit obligations, net of taxes | (7,727) | (7,132) | (7,132) | [2] | (595) | ||||||||
Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes | 2,332 | 1,605 | 1,605 | [2] | 727 | ||||||||
From other comprehensive income of non-consolidated companies | (19,847) | (19,847) | (10,781) | (9,066) | [2] | ||||||||
Other comprehensive (loss) income for the year | (52,536) | (52,591) | (37,998) | (14,593) | [2] | 55 | |||||||
Total comprehensive (loss) income for the year | 678,722 | 690,095 | (37,998) | (14,593) | [2] | 742,686 | (11,373) | ||||||
Acquisition and other changes in non-controlling interests | [3] | 117,985 | 1 | 1 | [2] | 117,984 | |||||||
Dividends paid in cash | (485,827) | (484,020) | (484,020) | (1,807) | |||||||||
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) | [4] | (7,999) | ||||||||
Currency translation adjustment | 31,172 | 30,849 | 30,849 | 323 | |||||||||
Remeasurements of post employment benefit obligations, net of taxes | (4,201) | (4,236) | (4,664) | [5] | 428 | [4] | 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) | [5] | (2,377) | ||||||||
From other comprehensive income of non-consolidated companies | (30,551) | (30,551) | (31,977) | 1,426 | [5] | ||||||||
Other comprehensive (loss) income for the year | (11,036) | (9,017) | (1,128) | (8,317) | [5] | 428 | [4] | (2,019) | |||||
Total comprehensive (loss) income for the year | (653,453) | (643,435) | (1,128) | (8,317) | [5] | (633,990) | [4] | (10,018) | |||||
Acquisition and other changes in non-controlling interests | [6] | 1,492 | 2 | 2 | [5] | 1,490 | |||||||
Dividends paid in cash | (87,938) | (82,637) | (82,637) | [4] | (5,301) | ||||||||
Balance at Dec. 31, 2020 | $ 11,446,473 | $ 11,262,888 | $ 1,180,537 | [7] | $ 118,054 | $ 609,733 | $ (958,374) | $ (345,217) | [5] | $ 10,658,155 | [4] | $ 183,585 | |
[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, 2019 and 2018 there were 1,180,536,830 shares issued. All issued shares are fully paid. | ||||||||||||
[2] | Other reserves include mainly the result of transactions with non-controlling interests that do not result in a loss of control, the remeasurement of post-employment benefit obligations and the changes in value of cash flow hedges and in available for sale financial instruments. | ||||||||||||
[3] | Mainly related to Saudi Steel Pipe Company (“SSPC”) acquisition. See note 32. | ||||||||||||
[4] | The restrictions to the distribution of profits and payment of dividends according to Luxembourg Law are disclosed in note 26 (iii). | ||||||||||||
[5] | Other reserves include mainly the result of transactions with non-controlling interests that do not result in a loss of control, the remeasurement 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. | ||||||||||||
[6] | Mainly related to the agreement for the construction of Tenaris Baogang Baotou Steel Pipes Ltd. See note 34. | ||||||||||||
[7] | 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, 2020 there were 1,180,536,830 shares issued. All issued shares are fully paid. |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
(Loss) income for the year | $ (642,417) | $ 731,258 | $ 873,900 |
Adjustments for: | |||
Depreciation and amortization | 678,806 | 539,521 | 664,357 |
Impairment charge | 622,402 | ||
Income tax accruals less payments | (117,214) | (193,417) | 58,494 |
Equity in earnings of non-consolidated companies | (108,799) | (82,036) | (193,994) |
Interest accruals less payments, net | (538) | (4,381) | 6,151 |
Changes in provisions | (13,175) | 2,739 | (8,396) |
Changes in working capital | 1,059,135 | 523,109 | (737,952) |
Currency translation adjustment and others | 42,183 | 11,146 | (51,758) |
Net cash provided by operating activities | 1,520,383 | 1,527,939 | 610,802 |
Cash flows from investing activities | |||
Capital expenditures | (193,322) | (350,174) | (349,473) |
Changes in advance to suppliers of property, plant and equipment | (1,031) | 3,820 | 4,851 |
Acquisition of subsidiaries, net of cash acquired | (1,025,367) | (132,845) | |
Investment in companies under cost method | (2,933) | ||
Additions to associated companies | (19,610) | ||
Loan to non-consolidated companies | (14,740) | ||
Repayment of loan by non-consolidated companies | 40,470 | 9,370 | |
Proceeds from disposal of property, plant and equipment and intangible assets | 14,394 | 2,091 | 6,010 |
Dividends received from non-consolidated companies | 278 | 28,974 | 25,722 |
Changes in investments in securities | (887,216) | 389,815 | 717,368 |
Net cash (used in) provided by investing activities | (2,092,264) | (40,392) | 399,108 |
Cash flows from financing activities | |||
Dividends paid | (82,637) | (484,020) | (484,020) |
Dividends paid to non-controlling interest in subsidiaries | (5,301) | (1,872) | (3,498) |
Changes in non-controlling interests | 2 | 1 | (24) |
Payments of lease liabilities | (48,553) | (41,530) | |
Proceeds from borrowings | 658,156 | 1,332,716 | 1,019,302 |
Repayments of borrowings | (896,986) | (1,159,053) | (1,432,202) |
Net cash used in financing activities | (375,319) | (353,758) | (900,442) |
(Decrease) increase in cash and cash equivalents | (947,200) | 1,133,789 | 109,468 |
Movement in cash and cash equivalents | |||
At the beginning of the year | 1,554,275 | 426,717 | 330,090 |
Effect of exchange rate changes | (22,492) | (6,231) | (12,841) |
(Decrease) increase in cash and cash equivalents | (947,200) | 1,133,789 | 109,468 |
At December 31, | 584,583 | 1,554,275 | 426,717 |
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 1,554,275 | $ 426,717 | $ 426,717 |
I. General Information
I. General Information | 12 Months Ended |
Dec. 31, 2020 | |
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 ) under the laws of the Grand-Duchy of Luxembourg on December 17, 2001. The Company holds, either directly or indirectly, controlling interests in various subsidiaries in the steel pipe manufacturing and distribution businesses. References in these Consolidated Financial Statements to “Tenaris” refer to the Company and its consolidated subsidiaries. A list of the principal Company’s subsidiaries is included in n ote 3 1 to these Consolidated Financial Statements. The Company’s shares trade on the Italian Stock Exchange and the Mexican Stock Exchange; 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 24 , 202 1 . |
II. Accounting Policies
II. Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Summary of Significant Accounting Policies [Abstract] | |
II. Accounting Policies | II . Accounting 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, c ertain 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 assets and liabilities, revenues and expenses. Actual results may differ from these estimates. The main areas involving significant estimates or judgements are: i mpairment of goodwill and long-lived assets (not e II. H ); i ncome t axes (note II. O ); obsolescence of inventory (note II.J ); loss contingencies (note II. Q ); allowance for trade receivables (note II.K) ; d efined be nefit obligations (note II. P ); business combinations (notes II.B, I V . 3 2 seful lives of property, plant and equipment and other long-lived assets (notes II.E, II.F , II. H ) ; property title ownership restriction (note 37 During the period there were no material changes in the significant accounting estimates. Management has reviewed the Company’s exposure to the effects of the oil and gas crisis and the COVID- 19 twelve in long-lived assets. Refer to n otes 5 3 9 for further information on impairment of assets and the impact of the oil and gas crisis and the COVID- 19 ( 1 Accounting pronouncements applicable as from J anuary 1 20 20 and relevant for Tenaris IFRS 16 19 The Company chose not to adopt the optional amendment to IFRS 16 19 . An assessment was conducted and the Company concluded that the impact was not material. Other accounting pronouncements t hat became effective during 20 20 have no material effect on the Company’s financial condition or results of operations. 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 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 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 I ncome S tatement. Contingent consideration is classified either as equity or a s 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 acquire e is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. T ransactions 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 i t s respective local currency, some financial gains (losses) arising from intercompany transactions are generated. These are included in the C onsolidated I ncome S tatement 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 50 Investments in non- consolidated companies (associated and joint ventures ) are accounted for by the equity method of accounting and are initially recognized at cost. 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, u nrealized results on transactions between Tenaris and its non-consolidated companies are eliminated to the extent of Tenaris’s interest in the non-consolidated companies . Unreali z ed losses are also eliminated unless the transaction provides evidence of an impairment indicator of the asset transferred. Financial s tatements of non-consolidated companies have been adjusted where necessary to ensure consistency with IFRS . ( 2 Non-consolidated companies (Cont.) 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. Ternium At December 31, 20 20 , Tenaris h e ld 11.46 % of Ternium S.A (“ Ternium ”) ’s common stock . The following factors and circumstances evidence that Tenaris has significant influence (as defined by IAS 28 associates companies and Joint Ventures ”) over Ternium , and as a result the Company’s investment in Ternium has been accounted for under the equity method: Both the Company and Ternium are under the indirect com mon control of San Faustin S.A. (“San Faustin”) ; Four eight members of Ternium’s Board of D irectors (including Ternium’s C hairman) are also members of t he Company’s Board of D irectors ; Under the shareholders ’ agreement by and between the Company and Techint Holdings S.à r.l, a wholly owned subsidiary of San Faustin and Ternium’s main shareholder, dated January 9, 2006, Techint Holdings S.à . r.l, is required to take actions within its power to cause (a) one Board of D irectors to be nominated by the Company and (b) any director nominated by the Company to be only removed from Ternium’s Board of D irectors pursuant to previous written instructions of the Company . Usiminas At December 31, 2020, Tenaris he ld, through its Brazilian subsidiary Confab Industrial S.A. (“Confab”), 36.5 1.3 5.19 % of its shares with voting rights and 3.07 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 At December 31, 202 0 ld, in the aggregate, 483.6 68.6 three One 47.1 39.5 7.6 45.9 7 The corporate governance rules reflected in the Usiminas shareholders agreement include, among others, an alternation mechanism for the nomination of each of the C hief E xecutive O fficer (“CEO”) and the C hairman 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, and consequently, Tenaris accounts for its investment in Usiminas under the equity method (as defined by IAS 28 Techgen Techgen S.A. de C.V. (“Techgen”) , which operates an electric power plant in Mexico, is a joint venture company owned 48 30 (“Tecpetrol”) and 22 nce of Techgen. T he Company, Ternium and Tecpetrol are under the indirect com mon control of San Faustin ; consequently , Tenaris account s it s interest in Techgen under the equity method (as defined by IAS 28 Global Pipe Company Global Pipe Company (“GPC”) is a Saudi-German joint venture, established in 2010 , Saudi Arabia , which manufactures LSAW pipes. Tenaris, through its subsidiary Saudi Steel Pipe Company (“SSPC”), currently owns 35 SSPC is entitled to choose one five . In addition, SSPC has the ability to block any shareholder resolution . Based on the facts stated above, the Company has determined that it has signifi cant influence over this entity and accounts for its investment in GPC under the equity method (as defined by IAS 28 Tenaris carries its investment s in non consolidated companies under the equity method, with no 2020 2019 and 2018 no See n ote 1 3 . C Segment information The Company is organized in one 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. Corporate general and administrative expenses have been allocated to the Tubes segment. Others include s all other business activities and operating segments that are not required to be separately reported, including the production and selling of sucker rods, industrial equipment, coiled tubing , utility conduits for buildings , heat exchangers, energy and raw materials that exceed internal requirements. Tenaris’s Chief Operating Decision Maker ( “ C O DM ” ) holds monthly meetings with senior management, in which operating and financial performance information is reviewed, including financial information that 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 depreciation s ; The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost ; Other timing differences, if any. T enaris presents its geographical information in five North America, South America, Europe, Middle East and Afri ca 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 depreciation s and amortization s 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 curren c y of the Company is the U.S. dollar . The U.S. d ollar is the currency that best reflects the economic substance of the underlying events and circumstances relevant to Tenaris’s global operations. Except f or the Brazilian and Italian subsidiaries whose functional currenci es are their local currencies, Tenaris determined that the functional currency of its other subsidiaries is the U.S. dollar, based on the following principal considerations : S ales are mainly negotiated, denominated and settled in U.S. dollar s . If priced in a currency other than the U.S. dollar, the sales price may consider exposure to fluctuation in the exchange rate versus the U.S. dollar; P rices 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 ha ve the U.S . dollar as reference currency; S ignificant level of integration of the l ocal operations within Tenaris’s international global distribution network ; N et 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 seve re economic crise s. ( 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 subsidiar i es whose functional currencies are not the U.S. d ollar are translated into U.S. dollars at the average exchange rates for each quarter of the year . Financial s tatement position s 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 dispos al of any of such subsidiaries , any accumulated translation difference would be recognized in income as a gain or loss f rom the sale. 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 . H istorical cost includes expenditure that is directly attributable to the acquisition of the items . Property , p lant and e quipment acquired through acquisitions accounted for as business combination s 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 . M aintenance expenses on manufacturing properties are recorded as cost of products sold in the year in which they are incurred. Cost may also include transfers fro m 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 (R) , “Borrowing Cost s ” . A ssets for which borrowing costs are capitalized are those that require a substantial period of time to prepare for their intended use. The d epreciation 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 Plant and production equipment 10 40 Vehicles, furniture and fixtures, and other equipment 4 10 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 asset s useful lives , performed in accordance with IAS 16 , “Property , Plant and E quipment” , resulted in additional depreciation expenses for 2020 45 million and did not materially affect depreciation expense s for 201 9 and 201 8 . T enaris 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 or Other operating expenses in the Consolidated Income Statement. 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 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 mainly classified as Selling, general and administrative expenses in the Consolidated I ncome S tatement. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38 resulted in additional amortization expenses for 2020 11.1 and did not materially affect amortization expenses for 2019 2018 ( 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, and does not exceed a period of 10 Amortization charges are mainly classified as Selling, general and administrative expenses in the Consolidated Income Statement. The balance of acquired t rademarks that have indefinite useful lives according to external appraisal amo unt s to $ 86.7 m at December 31, 20 20 , 201 9 and 201 8 , 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 no t materially affect amortization expenses for 20 20 , 201 9 and 201 8 . ( 4 Research and development Research expenditures as well as development costs that do not fulfill the criteria for capitalization are recorded as Cost of sales in the Consolidated Income Statement as incurred. Research and development expenditures included in Cost of sales for the years 20 20 201 9 and 201 8 totaled $ 41.8 million, $ 61.1 million and $ 63.4 million, respectively. Capitalized costs were not material for the years 20 20 , 201 9 and 201 8 . ( 5 Customer relationship s In accordance with IFRS 3 38 Tube Corporation (“Maverick”) and Hydril Company (“Hydril”) groups, as well as the more recent acquisi tion s of S audi S teel P ipes (“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 life of approximately 14 10 ears for Hydril , 9 SSP C and 3 year s for IPSCO . In 2018 2 zero 109 Selling, general and administrative expenses for the year ended December 31, 2018. As o f December 31, 20 20 the net book value of IPSCO’s customer relationship amounts to $ 51.3 with 2 years, SSP C ’s customer relationship amounts to $ 63.8 mill 7 years , w hile Maverick’s and Hydril’s customer relationships are fully amortized. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38 amortization expenses for 2020 2019 . 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 wit h 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. Payments associated with short-term leases and leases of low-value assets are recognize d on a straight-line basis as expenses in profit or loss. Short-term leases are leases with a lease term of 12 r less. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not 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). 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 more frequently if events or circumstances indicate that the carrying amount value may be impaired. 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 and economic factors, such as the cost of raw materials, oil and gas prices, capital expenditure programs for Tenaris’s customers 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 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 I Other i nvestments O ther investments consist primarily of investments in financial instruments and time deposits with a maturity of more than three at the date of purchase . Certain non-derivative financ ial assets that the Company held not for trading have been categorized as financial assets “at fair value through other comprehensive income ” (“FV OCI ” ) . 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 C onsolidated S tatement of C omprehensive Income and transferred to the C onsolidated I ncome S tatement when the financial asset is sold. Exchange gains and losses and impairments related to the financial assets are immediately recognized in the C onsolidated I ncome S tatement. F V OCI instruments with maturities greater than 12 re included in non-current assets . O ther 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 in the Consolidated Income Statement. Purchases and sales of financial investments are recognized as of the ir 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 Sectio n III Financial Risk Management . 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 a llocation 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. G oods in transit as of year- end are valued base |
III. Financial Risk Management
III. Financial Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
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 expose s the C ompany 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 , tak ing advantage of exposure netting. T he 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 Risk Factors (i) Capital Risk Management Tenar is seeks to maintain a low debt to total equity ratio considering the industry and the mark ets 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 , 20 20 and 0.06 as of December 31, 20 1 9 . 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 fo rward exchange rates contracts. S ee n ote 2 5 . 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. I ntercompany 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 s ubject 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, 20 20 and 201 9 . All amounts Long / (Short) in thousands of U.S. dollars As of December 31, Currency Exposure / Functional currency 2020 2019 Argentine Peso / U.S. dollar ( 39,561 ) ( 95,811 ) Euro / U.S. dollar ( 291,362 ) ( 103,518 ) Saudi Arabian Riyal / U.S. dollar ( 125,789 ) ( 107,582 ) The main relevant exposures correspond to: Argentine Peso / U.S. dollar As of December 31, 20 20 and 201 9 consisting primarily of Argentine Peso-denominated financial, trade, social and fiscal payables at certain Argentine subsidiaries whose functional currency is the U.S. dollar. A change of 1 0.4 million and $ 1.0 million as of December 31, 20 20 and 201 9 respectively. (ii) Foreign exchange risk (Cont.) Euro / U.S. dollar As of December 31, 20 20 and 201 9 , consisting primarily of Euro-denominated intercompany liabilities at certain subsidiaries whose functional currency is the U.S. dollar. A change of 1 2.9 million and $ 1.0 million as of December 31, 20 20 and 201 9 , respectively, which would have been to a large extent offset by changes in currency translation adjustment included in Tenaris’s net equity position. Saudi Arabian Riyal / U. S. d ollar As of December 31, 20 20 2019 consisting primarily of Saudi Arabian Riyal-denominated financial and trade payables . The Saudi Arabian Riyal is tied to the dollar. Considering the balances held as of December 31, 20 20 on financial assets and liabilities exposed to foreign exchange rate fluctuations, Tenaris estimates that the impact of a simultaneous 1 d be a pre-tax gain / loss of $ 5.1 million (including a loss / gain of $ 1.0 million due to foreign exchange derivative contracts), which would be partially offset by changes to Tenaris’s net equity position of $ 2.3 million . For balances held as of December 31, 201 9 , a simultaneous 1 4.6 million (including a loss / gain of $ 4.9 m foreign exchange derivative contracts), which would have been partially offset by changes to Tenaris’s net equity position of $ 0.6 million. The Company entered into foreign exchange derivative contracts to mitigate the exposure to fluctuations in exchange rates. (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. T he 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, 2020 2019 Amount in thousands of U.S. dollars % Amount in thousands of U.S. dollars % Fixed rate (*) 237,320 38 768,002 93 Variable rate 381,687 62 54,150 7 Total 619,007 822,152 (*) Out of the $ 23 7 m illion fixed rate borrowings, $ 197 m illion are short-term. The Company estimates that , if market interest rates applicable to Tenaris’s borrowings had been 100 , then the additional pre-tax loss would have been $ 7.1 million in 20 20 and $ 7.7 million in 201 9 . (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 20 20 , 201 9 and 201 8 . (iv) Credit risk (Cont.) 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, 2020 and 201 9 trade receivables amount ed to $ 968.1 million and $ 1,348.2 million respectively. Trade receivables have guarantees under credit insurance of $ 134.9 million and $ 178.7 million, letter of credit and other bank guarantees of $ 47.8 million and $ 55.2 million, and other guarantees of $ 8.8 million and $ 0.6 million as of December 31, 20 20 and 201 9 respectively. As of December 31, 20 20 and 201 9 , overdue trade receivables amounted to $ 195.9 million and $ 242.7 million, respectively. As of December 31, 20 20 and 201 9 , overdue guaranteed trade receivables amounted to $ 20.7 million and $ 28.7 million ; and the allowance for doubtful accounts amounted to $ 53.7 million and $ 48.8 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 88 % of Tenaris’s liquid financial assets correspond ed to Investment Grade-rated instruments as of December 31, 20 20 , in comparison with approximately 96 % as of December 31, 201 9 . ( v i ) Liquidity risk Tenaris financing strategy a i m s to maintain adequate financial resources and access to additional liquidity. During 20 20 , 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 12 % of total asset s at the end of 20 20 and 201 9 . 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 at the date of purchase), and ii) o ther i nvestments (fixed income securities, time d eposits, 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, 20 20 and 201 9 , Tenaris does not have direct exposure to financial instruments issued by European sovereign counterparties . Tenaris holds its investments primarily in U.S. dollars. As of December 31, 2020 and 2019 ly 95 % (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 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 othe r 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 Level 2 1 Level 3 The following tables present the financial instruments by category and levels as of December 31, 20 20 and 201 9 . (all amounts in thousands of U.S. dollars) Ca rrying Amount Measurement Categories At Fair Value December 31, 2020 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 584,681 486,498 - 98,183 98,183 - - Other investments 872,488 763,697 108,791 - 108,791 - - Fixed income (time-deposit, zero 763,697 763,697 - - - - - U.S. Sovereign Bills 97,982 97,982 - - - - - Non - U.S. Sovereign Bills 14,586 14,586 - - - - - Certificates of deposits 222,132 222,132 - - - - - Commercial papers 268,737 268,737 - - - - - Other notes 160,260 160,260 - - - - - Bonds and other fixed income 108,791 - 108,791 - 108,791 - - Non - U.S. government securities 20,219 - 20,219 - 20,219 - - Corporates securities 88,572 - 88,572 - 88,572 - Derivative financial instruments 11,449 - - 11,449 - 11,449 - Other Investments Non-current 247,082 - 239,422 7,660 239,422 - 7,660 Bonds and other fixed income 239,422 - 239,422 - 239,422 - - Other investments 7,660 - - 7,660 - - 7,660 Trade receivables 968,148 968,148 - - - - - Receivables C and NC (*) 232,152 90,330 48,659 - - 48,659 Other receivables 138,989 90,330 48,659 - - - 48,659 Other receivables (non-financial) 93,163 - - - - - - Total 2,308,673 396,872 117,292 446,396 11,449 56,319 Liabilities Borrowings C and NC 619,007 619,007 - - - - - Trade payables 462,105 462,105 - - - - - Finance Lease Liabilities C and NC 257,343 257,343 - - - - - Derivative financial instruments 3,217 - - 3,217 - 3,217 - Total 1,338,455 - 3,217 - 3,217 - (*) Includes balances related to interest in our Venezuelan companies . S ee n ote 3 8 . (all amounts in thousands of U.S. dollars) Carrying amount Measurement Categories At Fair Value December 31, 2019 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 1,554,299 387,602 - 1,166,697 1,166,697 - - Other investments 210,376 65,874 144,502 - 134,990 9,512 - Fixed income (time-deposit, zero 65,874 65,874 - - - - - Certificates of deposits 20,637 20,637 - - - - - Commercial papers 4,993 4,993 - - - - - Other notes 40,244 40,244 - - - - - Bonds and other fixed income 144,502 - 144,502 - 134,990 9,512 - U.S. government securities 10,211 - 10,211 - 10,211 - - Non - U.S. government securities 28,637 - 28,637 - 19,125 9,512 - Corporates securities 105,654 - 105,654 - 105,654 - - Derivative financial instruments 19,929 - - 19,929 - 19,929 - Other Investments Non-current 24,934 - 18,012 6,922 18,012 - 6,922 Bonds and other fixed income 18,012 - 18,012 - 18,012 - - Other investments 6,922 - - 6,922 - - 6,922 Trade receivables 1,348,160 1,348,160 - - - - - Receivables C and NC (*) 261,678 93,239 48,659 - - - 48,659 Other receivables 141,898 93,239 48,659 - - - 48,659 Other receivables (non-financial) 119,780 - - - - - - Total 1,894,875 211,173 1,193,548 1,319,699 29,441 55,581 Liabilities Borrowings C and NC 822,152 822,152 - - - - - Trade payables 555,887 555,887 - - - - - Finance Lease Liabilities C and NC 230,167 230,167 - - - - - Derivative financial instruments 1,814 - - 1,814 - 1,814 - Total 1,608,206 - 1,814 - 1,814 - (*) Includes balances related to interest in our Venezuelan companies . S ee n ote 3 8 . T here were no transfers between l evel s 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 L evel 1 il y 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 , f orward and i nterest r ate derivative in s truments) is determined by using valuation techniques which maximiz e 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 L evel 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 are not based on observable market data, the instruments are included in L evel 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 included in this level correspond to the Company interest in Venezuelan companies . S ee n ote 3 8 . The following table presents the changes in L evel 3 : Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 55,581 52,985 (Decrease) / Addition ( 3,604 ) 2,933 Increase due to business combinations 3,915 - Currency translation adjustment and others 427 ( 337 ) At the end of the year 56,319 55,581 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 speci fic 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 100.0 % of its carrying amount ( inc luding interests accrued ) in 20 20 and 2019 . Fair values were calculated using standard valuation techniques for floating rate instruments and comparable market rates for discounting flows. The carrying amount of investments valuated at amortized cos t 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 in the Consolidated Income Statement. Tenaris designates certain derivatives and non derivative financial liabilities (leasing liabilities denominated in Japanese Yen) 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. Similarly the effective portion of the foreign exchange result on the designated leasing liability 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. The lease liability will be recognized on the balance sheet at each period end at the exchange rate as of the end of each month. The full fair value of a hedging derivati ve and the leasing liability is classified as a current or non-current asset or liability according to its expiry date. 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 undertak ing various hedge transactions. Tenaris also documents its assessment on an ongoing basis, of whether the hedging instrument are highly effective in offsetting changes in the fair value or cash flow of hedged items. At December 31, 20 20 and 201 9 , the effective portion of designated cash flow hedges which is included in Other Reserves in equity amount ed to $ 4.8 million debit and $ 2.6 million credit respectively . S ee n ote 2 5 . The fair values of various derivative instruments used for hedging purposes and the movements of the hedging reserve included within Other Reserves in equity are disclosed in n ote 2 5 . |
Note 1 - Segment Information
Note 1 - Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Note 1 - Segment Information | 1 Segment information As mentioned in sectio n II. C , the S egment I nformation is disclosed as follow s : Reportable operating segments (All amounts in millions of U.S. dollars ) Year ended December 31, 2020 Tubes Other Total IFRS - Net Sales 4,844 303 5,147 Management view - operating (loss) ( 277 ) ( 50 ) ( 327 ) Differences in cost of sales ( 138 ) 4 ( 134 ) Differences in depreciation and amortization 1 ( 1 ) - Differences in selling, general and administrative expenses ( 2 ) - ( 2 ) Differences in other operating income (expenses), net ( 200 ) - ( 200 ) IFRS - operating (loss) ( 616 ) ( 47 ) ( 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 ) Capital expenditures 189 4 193 Depreciation and amortization 661 18 679 Year ended December 31, 2019 Tubes Other Total IFRS - Net Sales 6,870 424 7,294 Management view - operating income 857 73 930 Differences in cost of sales ( 105 ) 3 ( 102 Differences in depreciation and amortization ( 1 ) - ( 1 ) Differences in selling, general and administrative expenses ( 1 ) 1 - Differences in other operating income (expenses), net 6 - 6 IFRS - operating income 756 77 833 Financial income (expense), net 19 Income before equity in earnings of non-consolidated companies and income tax 852 Equity in earnings of non-consolidated companies 82 Income before income tax 934 Capital expenditures 338 12 350 Depreciation and amortization 523 17 540 Year ended December 31, 2018 Tubes Other Total IFRS - Net Sales 7,233 426 7,659 Management view - operating income 702 81 783 Differences in cost of sales 112 7 119 Differences in depreciation and amortization ( 34 ) - ( 34 ) Differences in selling, general and administrative expenses ( 2 ) 6 4 IFRS - operating income 778 94 872 Financial income (expense), net 37 Income before equity in earnings of non-consolidated companies and income tax 909 Equity in earnings of non-consolidated companies 194 Income before income tax 1,103 Capital expenditures 346 3 349 Depreciation and amortization 645 19 664 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 $ 16.9 , $ 36.2 and $ 52.4 million in 20 20 , 201 9 and 201 8 , respectively. There are no material differences between IFRS and management view in total revenues and by reportable segments. The main differences between operating income under IFRS view and the management view are mainly related to the cost of goods sold and other tim ing differences. See Section II. C - Segment Information. The main difference in Other operating income (expenses), net is attributable to the impairment of the goodwill, which residual value in the management view differs from IFRS. In addition to the amounts reconciled above, t he 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 (all amounts in thousands of U.S. dollars) North America South America Europe Middle East & Africa Asia Pacific Unallocated (*) Total 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 Year ended December 31, 2019 Net sales 3,429,911 1,391,288 738,880 1,382,172 351,804 - 7,294,055 Total assets 7,885,120 2,227,044 2,282,775 958,424 609,663 879,965 14,842,991 Trade receivables 612,809 176,173 149,321 319,406 90,451 - 1,348,160 Property, plant and equipment, net 3,771,570 1,129,260 816,721 254,858 117,608 - 6,090,017 Capital expenditures 169,390 113,999 55,169 4,578 7,038 - 350,174 Depreciation and amortization 276,046 105,308 82,400 42,520 33,247 - 539,521 Year ended December 31, 2018 Net sales 3,611,509 1,462,044 724,733 1,559,988 300,314 - 7,658,588 Total assets 7,971,311 2,489,522 1,913,589 588,746 482,563 805,568 14,251,299 Trade receivables 791,190 280,801 215,202 383,358 66,815 - 1,737,366 Property, plant and equipment, net 3,859,060 1,133,113 848,178 94,040 129,517 - 6,063,908 Capital expenditures 196,220 68,603 77,467 2,047 5,136 - 349,473 Depreciation and amortization 441,705 108,558 82,769 10,389 20,936 - 664,357 (*) For 2020 2019 2018 Investment s in non-consolidated companies . See n ote 13 There are no revenues from external customers attributable to the Company’s country of incorporation (Luxembourg). The principal countries from which the C ompany derives its revenues are USA ( 26 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 represents approximately 24 % , 21 15 2020 2019 2018 Tubes segment revenues by market: Revenues Tubes (in millions of U.S. dollars) 2020 2019 2018 Oil and Gas 4,073 5,757 6,042 Hydrocarbon Processing and Power Generation 371 534 602 Industrial and Other 400 579 589 Total 4,844 6,870 7,233 At December 31, 20 20 , 201 9 and 201 8 , the Company recognized contract liabilities related to customer advances in the amount of $ 48.7 , $ 82.7 and $ 62.7 million, respectively. These amounts related to years 2019 2018 were reclassified to revenues during the subsequent year. In these periods, no significant adjustment in revenues were performed related to performance obligations previously satisfied. |
Note 2 - Cost of Sales
Note 2 - Cost of Sales | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Cost of Sales [Abstract] | |
Note 2 - Cost of Sales | 2 Cost of sales Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Inventories at the beginning of the year 2,265,880 2,524,341 2,368,304 Increase in inventory due to business combinations 199,589 52,966 - Plus: Charges of the year Raw materials, energy, consumables and other 1,545,688 2,709,629 3,400,396 Services and fees 154,976 222,415 275,130 Labor cost (*) 757,359 870,261 855,040 Depreciation of property, plant and equipment 503,725 428,791 432,497 Amortization of intangible assets 8,121 5,948 8,220 Depreciation of right-of-use assets 40,127 28,727 - Maintenance expenses 107,764 284,758 185,782 Allowance for obsolescence 35,809 29,138 25,457 Taxes 45,162 100,738 133,308 Other 59,790 115,663 119,507 3,458,110 4,849,034 5,435,337 Less: Inventories at the end of the year ( 1,636,673 ) ( 2,265,880 ) ( 2,524,341 ) 4,087,317 5,107,495 5,279,300 (*) For the year ended December 2020, 2019 and 2018, labor cost includes approxima tely $ 81.3 million, $ 17.2 m 15.0 |
Note 3 - Selling, General and A
Note 3 - Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expense [abstract] | |
Note 3 - Selling, General and Administrative Expenses | 3 Selling, general and administrative expense s Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Services and fees 115,883 153,773 128,090 Labor cost (*) 444,436 481,854 470,928 Depreciation of property, plant and equipment 26,814 18,524 16,968 Amortization of intangible assets 82,355 41,967 206,672 Depreciation of right-of-use assets 17,664 15,564 - Commissions, freight and other selling expenses 310,815 441,442 491,555 Provisions for contingencies 11,957 28,565 23,498 Allowances for doubtful accounts 4,644 ( 16,256 1,751 Taxes 63,234 110,876 71,110 Other 41,425 89,665 99,404 1,119,227 1,365,974 1,509,976 (*) For the year ended December 2020, 2019 and 2018, labor cost includes app roximately $ 61.2 million, $ 7.4 million and $ 10.2 |
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, 2020 | |
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) | 4 Labor costs (included in Cost of sales and in Selling, general and administrative expenses) Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Wages, salaries and social security costs 1,036,211 1,274,474 1,250,783 Severance indemnities 142,458 24,637 25,225 Defined contribution plans 12,442 12,663 13,217 Pension benefits - defined benefit plans 11,097 18,207 15,390 Employee retention and long term incentive program ( 413 ) 22,134 21,353 1,201,795 1,352,115 1,325,968 The following table shows the geographical distribution of the employees : Country 2020 2019 2018 Mexico 4,501 5,370 5,595 Argentina 4,376 5,405 5,427 Italy 2,039 2,144 2,155 USA 1,596 2,255 2,382 Romania 1,552 1,815 1,852 Brazil 1,360 1,360 1,287 Colombia 746 1,040 1,082 Canada 561 772 1,030 Indonesia 521 616 554 Japan 399 400 399 Other 1,377 2,023 1,204 19,028 23,200 22,967 |
Note 5 - Impairment charge
Note 5 - Impairment charge | 12 Months Ended |
Dec. 31, 2020 | |
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. A decline during the first months of 2020 in oil prices and futures resulted in reductions in Tenaris customers` investments. Drilling activity and demand of products and services, particularly in North America, also declined . Selling prices of products in North America were also affected by low levels of consumption caused by the spread of COVID- 19 these effects, refer to n ote 3 9 . The Company conducts regular assessments of the carrying values of its assets. The value-in-use was used to determine the recoverable value. Value-in-use is calculated by discounting the estimated cash flows over a five For the subsequent years beyond the five 2 taking into account among others, mainly the historical inflation rate. The main key assumptions used in estimating the value in use are discount rate, growth rate and competitive and economic 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. 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. 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 taking into account the industry, country and size of the business. In 2020 8.0 % and 13.6 %. - Growth rate: considers mainly the inflation impact on prices and costs, the long-term average growth rate for the oil and gas industry, the higher demand to offset depletion of existing fields and the Company’s expected market penetration. In 2020 2 % was considered. - Oil and gas prices: based on industry analysts’ reports and management’s expectations of market development respectively. - 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 March, 2020, as a result of the deterioration of business conditions and in light of the presence of impairment indicators for its assets in the United States, the Company decided to write down the goodwill and other long lived assets recording an impairment charge of approximately $ 622 CGUs OCTG- USA, IPSCO and Coiled Tubing for $ 225 357 4 respectively, and the carrying value of fixed assets of the CGU Rods - USA for $ 36 582 No impairment charges were recorded for the years 2019 2018 (all amounts i n millions of U.S. dollars) Assets before Impairment Assets after OCTG - USA 544 225 319 IPSCO 1,169 357 812 Coiled Tubing 108 4 104 Rods - USA 73 36 37 The main factors that could result in additional impairment charges in future periods would be an increase in the discount rate or a decrease in growth rate used in the Company’s cash flow projections, a deterioration of the business, competitive and economic factors, such as a decrease in oil and gas prices, and the evolution of the rig count. A n increase of 1 1 5 (all amounts in millions + 100 - 1 - 5 OCTG - USA ( 60 ( 43 ( 16 IPSCO ( 117 ( 77 ( 41 Coiled Tubing ( 12 ( 6 ( 5 Rods - USA ( 5 ( 3 ( 2 |
Note 6 - Other operating income
Note 6 - Other operating income and expenses | 12 Months Ended |
Dec. 31, 2020 | |
Note 5 - Other Operating Income and Expenses | |
Note 6 - Other Operating Income and Expenses | 6 Other operating income and expenses Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Other operating income Net income from other sales 9,891 8,651 3,604 Net rents 5,501 5,089 4,909 Other 18,001 8,025 6,546 Recovery on allowance for doubtful receivables - 1,239 - 33,393 23,004 15,059 Other operating expenses Contributions to welfare projects and non-profit organizations 12,989 11,199 11,379 Allowance for doubtful receivables 1,263 - 1,179 14,252 11,199 12,558 |
Note 7 - Financial Results
Note 7 - Financial Results | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Financial Results [Abstract] | |
Note 7 - Financial Results | 7 Financial results (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 Interest Income 21,625 48,061 42,244 Net result on changes in FV of financial assets at FVPL - ( 64 ) ( 2,388 ) Impairment result on financial assets at FVTOCI ( 3,238 ) - - Finance income (*) 18,387 47,997 39,856 Finance cost ( 27,014 ) ( 43,381 ) ( 36,942 ) Net foreign exchange transactions results (**) ( 74,422 ) 27,868 28,845 Foreign exchange derivatives contracts results (***) 19,644 ( 11,616 ) 6,576 Other ( 1,590 ) ( 1,585 ) ( 1,035 ) Other financial results ( 56,368 ) 14,667 34,386 Net financial results ( 64,995 ) 19,283 37,300 (*) Finance Income : In 2020 2019 2018 $ 6.5 , $ 7.6 3.6 ed to instruments carried at FV PL, respectively. (**) Net foreign exchange transactions results: In 2020 includes the negative impact from Euro appreciation against the U.S. dollar on Euro denominated intercompany liabilities in subsidiaries with functional currency U.S. d ollar, largely offset by the currency translation adjustment reserve from our Italian subsidiary, together with the negative impact from Brazilian Real depreciation against the U.S. dollar on U.S. dollar denominated intercompany liabilities in subsidiaries with functional currency Brazilian Real, largely offset by the currency translation adjustment reser ve from our Brazilian subsidiaries . Also includes the negative result from the Mexican peso depreciation against the U.S. dol l ar on p eso denominated trade, social, fiscal and financial positions at Mexican subsidiaries with functional currency U.S. dollar. In 2019 mainly includes the result from the Argentine peso depreciation against the U.S. dollar on p eso denominated financial, trade, social and fiscal payables and receivables at Argentine subsidiaries with functional currency U.S. dollar. In 2018 mainly includes the result from the Argentine peso depreciation against the U.S. dollar on p eso denominated financial, trade, social and fiscal payables and receivables at Argentine subsidiaries with functional currency U.S. dollar, together with the positive impact from Euro depreciation against the U.S. dollar on Euro denominated intercompany liabilities in subsidiaries with functional currency U.S. d ollar, largely offset by the currency translation adjustment reserve from our Italian subsidiary. (***) Foreign exchange derivatives contracts results : In 2020 les in Mexican peso, Brazilian re al and Canadian dollar and net payables in Euro. In 2019 In 2018 |
Note 8 - Income Tax
Note 8 - Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Note 8 - Income Tax | 8 Income t ax Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Current tax ( 121,048 ) ( 299,692 ) ( 343,104 ) Deferred tax 97,898 97,240 113,897 Tax charge ( 23,150 ) ( 202,452 ) ( 229,207 ) 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, (all amounts in thousands of U.S. dollars) 2020 2019 2018 (Loss) Income before income tax ( 619,267 ) 933,710 1,103,107 Less Impairment charges (non deductible) 622,402 - - Income before income tax without impairment charges 3,135 933,710 1,103,107 Tax calculated at the tax rate in each country 21,052 ( 186,752 ) ( 207,422 ) Effect of currency translation on tax base ( 72,936 ) ( 53,296 ) ( 77,552 ) Changes in the tax rates ( 958 ) 13 ( 1,824 ) Utilization of previously unrecognized tax losses 98 547 - Tax revaluation, withholding tax and others 29,594 37,036 57,591 Tax charges ( 23,150 ) ( 202,452 ) ( 229,207 ) Effect of currency translation on tax base, Tenaris applies the liability method to recognize deferred income tax on temporary differences between the tax base s 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 cha nge in the value on the tax base s 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 base s of the relevant assets will not result in any deduction / obligation for tax purposes in future periods . Tax revaluation, withholding tax and others, includes a net tax income of $ 61 million , $ 66 million and $ 65 2020 2019 and 2018 regime s in Argentina and Mexico. I t also includes a charge of $ 10 $ 34 million and $ 26 2020 2019 2018 - group international operations. |
Note 9 - Dividends Distribution
Note 9 - Dividends Distribution | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Dividends Distribution [Abstract] | |
Note 9 - Dividends Distribution | 9 D ividends distribution On November 4, 2020, the Company’s Board of Directors approved the payment of an interim dividend of $ 0.07 0.14 ly $ 82.6 On June 2, 2020, the Company’s Shareholders approved that, as a consequence of liquidity preservation initiatives, no further dividends be distributed in respect of fiscal year 2019 153 On May 6, 2019, the Company’s Shareholders approved an annual dividend in the amount of $ 0.41 0.82 erim dividend previously paid on November 21, 2018 in the amount of $ 0.13 0.26 0.28 0.56 484 On May 2, 2018, the Company’s Shareholders approved an annual dividend in the amount of $ 0.41 0.82 erim dividend previously paid on November 22, 2017 in the amount of $ 0.13 0.26 0.28 0.56 amounted to approximately $ 484 million. |
Note 10 - Property, Plant and E
Note 10 - Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Note 10 - Property, Plant and Equipment, Net | 10 Property, plant and equipment, net (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 Land and Industrial Vehicles, Work in Spare and Total Cost Values at the beginning of the year 799,139 12,468,813 399,724 108,308 60,602 13,836,586 Currency translation adjustment ( 545 72,650 443 ( 2,095 ( 162 70,291 Increase due to business combinations (*) 39,622 440,366 7,195 16,255 - 503,438 Additions 1,451 1,524 620 157,315 6,845 167,755 Transfers / Reclassifications 5,881 157,473 15,586 ( 176,589 - 2,351 Disposals / Consumptions ( 5,964 ( 61,281 ( 8,811 ( 968 ( 5,392 ( 82,416 Values at the end of the year 839,584 13,079,545 414,757 102,226 61,893 14,498,005 Depreciation and impairment Accumulated at the beginning of the year 121,468 7,302,135 322,966 - - 7,746,569 Currency translation adjustment ( 288 56,560 405 - - 56,677 Depreciation charge 11,368 492,973 26,198 - - 530,539 Impairment charge (See note 5 - 36,000 - - - 36,000 Transfers / Reclassifications ( 1 349 ( 475 - - ( 127 Disposals / Consumptions ( 89 ( 57,897 ( 6,848 - - ( 64,834 Accumulated at the end of the year 132,458 7,830,120 342,246 - - 8,304,824 At December 31, 2020 707,126 5,249,425 72,511 102,226 61,893 6,193,181 (all amounts in thousands of U.S. dollars) Year ended December 31, 2019 Land and Industrial Vehicles, Work in Spare and Total Cost Values at the beginning of the year 732,578 12,121,569 377,260 127,378 63,197 13,421,982 Currency translation adjustment ( 1,611 ( 38,961 ( 1,615 ( 864 ( 256 ( 43,307 Increase due to business combinations (**) 59,468 115,908 1,733 1,630 - 178,739 Additions 16 1,178 1,107 299,412 12,202 313,915 Transfers / Reclassifications 8,723 296,272 28,349 ( 317,128 ( 11,984 4,232 Disposals / Consumptions ( 35 ( 27,153 ( 7,110 ( 2,120 ( 2,557 ( 38,975 Values at the end of the year 799,139 12,468,813 399,724 108,308 60,602 13,836,586 Depreciation and impairment Accumulated at the beginning of the year 110,914 6,936,900 310,260 - - 7,358,074 Currency translation adjustment ( 420 ( 24,973 ( 1,485 - - ( 26,878 Depreciation charge 11,409 415,826 20,080 - - 447,315 Transfers / Reclassifications ( 362 ( 38 - - - ( 400 Disposals / Consumptions ( 73 ( 25,580 ( 5,889 - - ( 31,542 Accumulated at the end of the year 121,468 7,302,135 322,966 - - 7,746,569 At December 31, 2019 677,671 5,166,678 76,758 108,308 60,602 6,090,017 (*) Related to IPSCO acquisition. See note 32 (**) Related to SSPC acquisition. See note 32 Property, plant and equipment include capitalized interest s for net amount s at December 31, 20 20 and 201 9 of $ 33.6 million and $ 35.4 million , respectively . The re were no interest capitalized during 20 20 and 201 9 . The carrying amounts of assets pledged as security for current and non-current borrowings are immaterial for the years 2020 2019 |
Note 11 - Intangible Assets, Ne
Note 11 - Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Note 11 - Intangible Assets, Net | 11 Intangible assets, net (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 Information Licenses, patents and Goodwill Customer Total Cost Values at the beginning of the year 604,870 463,742 2,117,837 2,140,051 5,326,500 Currency translation adjustment 1,108 220 ( 5,058 ) - ( 3,730 ) Increase due to business combinations (**) 11,563 87,000 357,183 71,100 526,846 Additions 24,965 602 - - 25,567 Transfers / Reclassifications ( 1,393 ) - - - ( 1,393 ) Disposals ( 3,761 ) ( 1,064 ) - - ( 4,825 ) Values at the end of the year 637,352 550,500 2,469,962 2,211,151 5,868,965 Amortization and impairment Accumulated at the beginning of the year 536,337 373,772 797,592 2,057,240 3,764,941 Currency translation adjustment 890 ( 1 ) - - 889 Amortization charge 42,931 8,760 - 38,785 90,476 Impairment charge (See note 5 - - 586,402 - 586,402 Transfers / Reclassifications 931 - - - 931 Disposals ( 3,730 ) - - - ( 3,730 ) Accumulated at the end of the year 577,359 382,531 1,383,994 2,096,025 4,439,909 At December 31, 2020 59,993 167,969 1,085,968 115,126 1,429,056 (all amounts in thousands of U.S. dollars) Year ended December 31, 2019 Information Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 580,622 464,571 2,085,936 2,058,859 5,189,988 Currency translation adjustment ( 1,917 ) ( 70 ) ( 968 ) - ( 2,955 ) Increase due to business combinations (***) 405 - 32,869 81,192 114,466 Additions 35,487 772 - - 36,259 Transfers / Reclassifications ( 4,665 ) - - - ( 4,665 ) Disposals ( 5,062 ) ( 1,531 ) - - ( 6,593 ) Values at the end of the year 604,870 463,742 2,117,837 2,140,051 5,326,500 Amortization and impairment Accumulated at the beginning of the year 513,984 373,466 797,592 2,038,981 3,724,023 Currency translation adjustment ( 1,734 ) - - - ( 1,734 ) Amortization charge 28,937 719 - 18,259 47,915 Disposals ( 4,850 ) ( 413 ) - - ( 5,263 ) Accumulated at the end of the year 536,337 373,772 797,592 2,057,240 3,764,941 At December 31, 2019 68,533 89,970 1,320,245 82,811 1,561,559 (*) Includes Proprietary Technology. (**) Related to IPSCO acquisition. See note 32. (***) Related to SSPC acquisition. See note 32. The geographical allocation of goodwill for the year ended December 31, 20 20 was $ 939.2 million for North America , $ 111.1 million for South America , $ 33.7 million for Middle East & Africa and $ 2.0 . The carrying amount of goodwill allocated by CGU, as of December 31, 20 20 , was as follows: (all amounts in millions of U.S. dollars) Tubes Segment CGU Hydril Other Total Tamsa (Hydril and other) 346 19 365 Siderca (Hydril and other) 265 93 358 Hydril 309 - 309 Other - 54 54 Total 920 166 1,086 |
Note 12 - Right-of-use Assets,
Note 12 - Right-of-use Assets, Net and Lease Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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 (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 Land and Civil Industrial Vehicles, furniture Total Cost Opening net book amount 36,137 225,389 14,194 275,720 Currency translation adjustment ( 839 ) 746 530 437 Increase due to business combinations (*) 3,461 13,730 7,556 24,747 Additions 11,534 42,573 5,034 59,141 Transfers / Reclassifications 439 ( 458 ) 136 117 Disposals ( 8,800 ) ( 8,622 ) ( 8,835 ) ( 26,257 ) At December 31, 2020 41,932 273,358 18,615 333,905 Depreciation Accumulated at the beginning of the year 8,330 30,581 3,683 42,594 Currency translation adjustment ( 92 ) 145 190 243 Depreciation charge 13,200 37,671 6,920 57,791 Transfers / Reclassifications ( 2,876 ) 1,702 1,291 117 Disposals ( 3,420 ) ( 2,106 ) ( 3,267 ) ( 8,793 ) Accumulated at the end of the year 15,142 67,993 8,817 91,952 At December 31, 2020 26,790 205,365 9,798 241,953 (all amounts in thousands of U.S. dollars) Year ended December 31, 2019 Land and Civil Industrial Buildings, Plant and Production Equipment Vehicles, furniture Total Cost Opening net book amount 27,713 202,352 8,335 238,400 Currency translation adjustment ( 88 ) 6 8 ( 74 ) Increase due to business combinations (**) 229 2,038 - 2,267 Additions 9,292 24,985 7,165 41,442 Transfers / Reclassifications - 496 ( 496 ) - Disposals ( 1,009 ) ( 4,488 ) ( 818 ) ( 6,315 ) At December 31, 2019 36,137 225,389 14,194 275,720 Depreciation Accumulated at the beginning of the year - - - - Currency translation adjustment ( 3 ) 3 8 8 Depreciation charge 8,514 31,869 3,908 44,291 Transfers / Reclassifications - ( 62 ) 62 - Disposals ( 181 ) ( 1,229 ) ( 295 ) ( 1,705 ) Accumulated at the end of the year 8,330 30,581 3,683 42,594 At December 31, 2019 27,807 194,808 10,511 233,126 (*) Related to IPSCO acquisition. See note 32. (**) Related to SSPC acquisition. Depreciation of right-of-use assets is mainly included in Tubes segment. The initial cost of right-of-use assets consists of the initial lease liability plus lease payments made in 2018 y $ 4 mi Lease liability evolution Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Opening net book amount 230,167 234,149 Increase due to business combinations 26,046 2,267 Translation differences 7,656 2,690 Additions 58,536 36,957 Cancellations ( 17,529 ) ( 4,688 ) Repayments (*) ( 51,666 ) ( 43,974 ) Interest accrued 4,133 2,766 At December 31, 257,343 230,167 (*) Repayments include capital and interest. The amount of remaining payments with maturity less than 1 2 5 5 16.9 %, 40.5 % an d 42.6 % of the total remaining payments, respectively. Expense s relat ed to short-term leases and low value leases (included in cost of sales and selling, general and administrative expense s ) for the year 2020 amounted to $ 1.7 million and $ 3.2 million respectively and for the year 2019 15.1 1.3 . Expenses relat ed to variable leases (included in cost of sales and selling, general and administrative expenses ) were not material for the years 2020 2019 |
Note 13 - Investments in Non-co
Note 13 - Investments in Non-consolidated Companies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of unconsolidated structured entities [abstract] | |
Note 13 - Investments in Non-consolidated Companies | 13 Investments in non-consolidated companies Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 879,965 805,568 Translation differences ( 31,977 ) ( 10,781 ) Equity in earnings of non-consolidated companies 108,799 82,036 Increase due to business combinations - 20,635 Dividends and distributions declared (*) ( 861 ) ( 28,037 ) Additions - 19,610 Increase / (decrease) in equity reserves and others 1,426 ( 9,066 ) At the end of the year 957,352 879,965 (* ) Related to Ternium and Usiminas . During 2020 2019 0.3 $ 29.0 million respectively were collected . The principal non-consolidated companies are: % ownership at December 31, Value at December 31, Company Country of incorporation 2020 2019 2020 2019 a) Ternium (*) Luxembourg 11.46 11.46 830,028 751,105 b) Usiminas (**) Brazil 3.07 3.07 65,144 74,593 c) Techgen Mexico 22.00 22.00 19,536 9,888 d) Global Pipe Company Saudi Arabia 35.00 35.00 23,421 22,550 Others - - - 19,223 21,829 957,352 879,965 (*) Including treasury shares. (**) At December 31, 20 20 and 201 9 the voting rights were 5.19 % . a) Ternium Ternium , is a steel producer with production facilities in Mexico, Argentina, Brazil, Colombia, Un ited States and Guatemala and is one Tenaris’s main suppliers of round steel bars and flat steel products for its pipes business. At December 31, 20 20 , the closing price of Ternium’s ADSs as quoted on the New York Stock Exchange w as $ 29.08 per ADS, giving Tenaris’s ownership stake a ma rket value of approximately $ 668 million . A t December 31, 20 20 , the carrying value of Tenaris’s ownership stake in Ternium, based on Ternium’s IFRS Financial S ta tements, was approximately $ 830 million. As of December 31, 2020 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: (all amounts in thousands of U.S. dollars) Ternium 2020 2019 Non-current assets 8,289,460 8,757,320 Current assets 4,566,775 4,178,213 Total assets 12,856,235 12,935,533 Non-current liabilities 2,559,485 3,452,535 Current liabilities 1,853,597 1,768,125 Total liabilities 4,413,082 5,220,660 Equity 8,443,153 7,714,873 Revenues 8,735,435 10,192,818 Gross profit 1,635,512 1,740,378 Net income for the year attributable to owners of the parent 778,468 564,269 Total comprehensive income for the year, net of tax, attributable to owners of the parent 666,667 445,473 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 20 , the closing price of the Usiminas’ ordinary and preferred shares, as quoted on the B 3 - Brasil Bolsa Balcão S.A , was BRL 15.69 ($ 3.02 ) and BRL 14.61 ($ 2.81 ), respectively, giving Tenaris’s ownership stake a market value of approximately $ 113.8 million. As of that date, the carrying value of Tenaris’s ownership stake in Usiminas was approximately $ 65.1 million. Summarized selected financial information of Usiminas, including the aggregated amounts of assets, liabilities, revenues and profit or loss is as follows: (all amounts in thousands of U.S. dollars) Usiminas 2020 2019 Non-current assets 3,487,317 4,335,662 Current assets 2,276,368 2,198,449 Total assets 5,763,685 6,534,111 Non-current liabilities 1,661,605 1,955,395 Current liabilities 861,912 716,930 Total liabilities 2,523,517 2,672,325 Equity 3,240,168 3,861,786 Revenues 3,132,949 3,790,206 Gross profit 624,199 478,141 Net income for the year attributable to owners of the parent 106,361 52,779 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, and started producing energy on December 1, 2016, with a power capacity of 900 22 48 30 As of December 31, 2020, the carrying value of Tenaris’s ownership stake in Techgen was approximately $ 19.5 million. Techgen entered into certain tra nsportation capacity agreements, a contract for the purchase of power generation equipment and other services related to the equipment , and an agreement for the purchase of clean energy certificates . As of December 31, 20 20 , Tenaris’s exposure under these agreements amounted to $ 48.8 million , $ 0.9 million and $ 17.6 million respectively . During 2019 ortion corresponding to Tenaris amounted to $ 40.5 million. As of December 31, 20 20 , the aggregate outstanding principal amount under these subordinated loans was $ 58.1 million. Techgen is a party to a $ 640 . 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 purc hase of 22 Techgen , by the Company’s Mexican subsidiary, Tamsa, remain substantially unchanged. Under the loan agreement, Techgen is committed to maintain a debt service reserve account covering debt service becoming due during two Accordingly, the Company and its Swiss subsidiary, Tenaris Investments Switzerland AG, applied for stand-by letters of credit covering 22 9.8 d) GPC GPC is a Saudi-German joint venture, established in 2010 , Saudi Arabia , which manufactures LSAW pipes. Tenaris, through its subsidiary SSPC, currently owns 35 23.4 million. SSPC and the other three 131.5 million. |
Note 14 - Receivables - Non Cur
Note 14 - Receivables - Non Current | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other non-current receivables [abstract] | |
Note 14 - Receivables - Non Current | 14 Receivables – non current Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Employee advances and loans 4,563 6,008 Tax credits 18,046 20,065 Receivables from related parties 62,790 59,999 Legal deposits 8,600 12,378 Advances to suppliers and other advances 4,803 3,772 Receivable Venezuelan subsidiaries 48,659 48,659 Others 6,842 6,222 154,303 157,103 |
Note 15 - Inventories, Net
Note 15 - Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Classes of current inventories [abstract] | |
Note 15 - Inventories, Net | 15 Inventories , net Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Finished goods 691,922 968,329 Goods in process 417,097 612,888 Raw materials 143,558 221,954 Supplies 488,802 486,411 Goods in transit 158,929 194,015 1,900,308 2,483,597 Allowance for obsolescence, see note 24 ( 263,635 ) ( 217,717 ) 1,636,673 2,265,880 |
Note 16 - Receivables and Prepa
Note 16 - Receivables and Prepayments, Net | 12 Months Ended |
Dec. 31, 2020 | |
Current prepayments and current accrued income [abstract] | |
Note 16 - Receivables and Prepayments, Net | 16 Receivables and prepayments , net Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Prepaid expenses and other receivables 26,457 30,579 Government entities 3,075 1,867 Employee advances and loans 4,672 8,189 Advances to suppliers and other advances 14,661 17,180 Government tax refunds on exports 2,723 670 Receivables from related parties 16,217 19,837 Miscellaneous 13,961 31,145 81,766 109,467 Allowance for other doubtful accounts, see note 24 ( 3,917 ) ( 4,892 ) 77,849 104,575 |
Note 17 - Current Tax Assets an
Note 17 - Current Tax Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Current Tax Receivables and Payables [Abstract] | |
Note 17 - Current Tax Assets and Liabilities | 17 Current tax assets and liabilities (all amounts in thousands of U.S. dollars) Year ended December 31, Current tax assets 2020 2019 V.A.T. credits 106,293 112,161 Prepaid taxes 30,091 55,227 136,384 167,388 Year ended December 31, Current tax liabilities 2020 2019 Income tax liabilities 27,616 64,994 V.A.T. liabilities 9,933 9,953 Other taxes 53,044 52,678 90,593 127,625 |
Note 18 - Trade Receivables, Ne
Note 18 - Trade Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
Note 18 - Trade Receivables, Net | 18 Trade receivables, net Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Current accounts 1,017,663 1,387,494 Receivables from related parties 4,161 9,448 1,021,824 1,396,942 Allowance for doubtful accounts, see note 24 ( 53,676 ) ( 48,782 ) 968,148 1,348,160 The following table sets forth details of the aging of trade receivables: (all amounts in thousands of U.S. dollars) Trade Receivables Not Due Past due 1 180 > 180 At December 31, 2020 Guaranteed 191,514 170,796 18,778 1,940 Not guaranteed 830,310 655,132 116,802 58,376 Guaranteed and not guaranteed 1,021,824 825,928 135,580 60,316 Expected loss rate 0.07 % 0.04 % 0.23 % 0.72 % Allowances for doubtful accounts ( 721 ) ( 321 ) ( 331 ) ( 69 ) Nominative allowances for doubtful accounts ( 52,955 ) ( 718 ) ( 1,011 ) ( 51,226 ) Net Value 968,148 824,889 134,238 9,021 (all amounts in thousands of U.S. dollars) Trade Receivables Not Due Past due 1 180 > 180 At December 31, 2019 Guaranteed 234,427 205,764 26,899 1,764 Not guaranteed 1,162,515 948,449 157,960 56,106 Guaranteed and not guaranteed 1,396,942 1,154,213 184,859 57,870 Expected loss rate 0.09 % 0.04 % 0.24 % 0.57 % Allowances for doubtful accounts ( 1,294 ) ( 529 ) ( 455 ) ( 310 ) Nominative allowances for doubtful accounts ( 47,488 ) - ( 1,922 ) ( 45,566 ) Net Value 1,348,160 1,153,684 182,482 11,994 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, 2020 | |
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, (all amounts in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents Cash at banks 117,807 118,314 Liquidity funds 98,183 1,166,697 Short – term investments 368,691 269,288 584,681 1,554,299 Other investments - current Fixed income (time-deposit, zero 763,697 65,874 Bonds and other fixed income 108,791 144,502 872,488 210,376 Other investments - Non-current Bonds and other fixed income 239,422 18,012 Others 7,660 6,922 247,082 24,934 |
Note 20 - Borrowings
Note 20 - Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Note 20 - Borrowings | 20 Borrowings Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Non-current Bank borrowings 315,884 40,896 Costs of issue of debt ( 145 ) ( 16 ) 315,739 40,880 Current Bank borrowings 303,170 781,258 Bank overdrafts 98 24 Costs of issue of debt - ( 10 ) 303,268 781,272 Total Borrowings 619,007 822,152 The maturity of borrowings is as follows: (all amounts in thousands of U.S. dollars) 1 1 2 2 3 3 4 4 5 Over 5 years Total At December 31, 2020 Borrowings 303,268 104,147 207,595 3,997 - - 619,007 Total borrowings 303,268 104,147 207,595 3,997 - - 619,007 Interest to be accrued (*) 9,829 5,068 1,014 22 - - 15,933 Total 313,097 109,215 208,609 4,019 - - 634,940 1 1 2 2 3 3 4 4 5 Over 5 Total At December 31, 2019 Borrowings 781,272 17,307 23,573 - - - 822,152 Total borrowings 781,272 17,307 23,573 - - - 822,152 Interest to be accrued (*) 11,370 1,045 117 - - - 12,532 Total 792,642 18,352 23,690 - - - 834,684 (*) Includes the effect of hedge accounting. Significant borrowings include: In million of U.S. dollars Disbursement date Borrower Type Original & Outstanding Final maturity 2020 Maverick Bilateral 50 2021 2020 Maverick Bilateral 75 2022 2020 Tamsa Bilateral 60 2023 2020 Tamsa Bilateral 80 2023 2020 Tamsa Bilateral 60 2023 2020 SSPC Multiple Banks 81 2021 2024 As of December 31, 20 20 , 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 20 and 201 9 , considering hedge accounting where applicable . 2020 2019 Total borrowings 2.51 % 3.18 % Breakdown of long-term borrowings by currency and rate is as follows: Non-current borrowings (all amounts in thousands of U.S. dollars) Year ended December 31, Currency Interest rates 2020 2019 USD Variable 274,600 - USD Fixed 17,936 18,370 SAR Fixed 20,902 16,106 EUR Fixed 1,828 5,108 EUR Variable 473 1,296 Total non-current borrowings 315,739 40,880 Breakdown of short-term borrowings by currency and rate is as follows: Current borrowings (all amounts in thousands of U.S. dollars) Year ended December 31, Currency Interest rates 2020 2019 USD Variable 67,823 17,092 USD Fixed 2,322 274,799 EUR Variable 1,015 80 EUR Fixed 3,886 3,772 MXN Fixed 147,997 424,964 ARS Fixed 3,699 86 SAR Variable 37,776 35,666 SAR Fixed 38,750 24,797 Others Variable - 16 Total current borrowings 303,268 781,272 Borrowing s evolution Year ended December 31, 2020 (all amounts in thousands of U.S. dollars) Non current Current At the beginning of the year 40,880 781,272 Translation differences 266 ( 487 ) Proceeds and repayments, net 234,455 ( 478,913 ) Interests accrued less payments 426 ( 12,016 ) Reclassifications ( 12,940 ) 12,940 Increase due to business combinations 52,652 398 Overdrafts variation - 74 At the end of the year 315,739 303,268 |
Note 21 - Deferred Income Tax
Note 21 - Deferred Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Note 21 - Deferred Income Tax | 21 Deferred income tax 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 are as follows: Deferred tax liabilities (all amounts in thousands of U.S. dollars) Fixed assets Inventories Intangible and Other Total At the beginning of the year 651,339 19,396 118,062 788,797 Translation differences 1,644 - 253 1,897 Increase due to business combinations 89,306 - 43,397 132,703 Charged to other comprehensive income - - ( 1,194 ) ( 1,194 ) Income statement (credit) ( 39,874 ) ( 4,141 ) ( 34,725 ) ( 78,740 ) At December 31, 2020 702,415 15,255 125,793 843,463 (all amounts in thousands of U.S. dollars) Fixed assets Inventories Intangible and Other Total At the beginning of the year 710,995 25,048 46,532 782,575 Translation differences ( 347 ) - ( 4 ) ( 351 ) Increase due to business combinations 5,621 - 11,209 16,830 Charged to other comprehensive income - - 423 423 Income statement charge / (credit) ( 64,930 ) ( 5,652 ) 59,902 ( 10,680 ) At December 31, 2019 651,339 19,396 118,062 788,797 Deferred tax assets (all amounts in thousands of U.S. dollars) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year ( 19,653 ) ( 93,404 ) ( 382,832 ) ( 181,606 ) ( 677,495 ) Translation differences 1,804 513 1,996 644 4,957 Increase due to business combinations ( 7,452 ) ( 24,580 ) ( 33,598 ) ( 34,974 ) ( 100,604 ) Charged to other comprehensive income - - - ( 1,952 ) ( 1,952 ) Income statement charge / (credit) 4,093 31,534 ( 65,715 ) 10,930 ( 19,158 ) At December 31, 2020 ( 21,208 ) ( 85,937 ) ( 480,149 ) ( 206,958 ) ( 794,252 ) (all amounts in thousands of U.S. dollars) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year ( 16,116 ) ( 86,585 ) ( 396,257 ) ( 86,184 ) ( 585,142 ) Translation differences 362 306 497 286 1,451 Increase due to business combinations ( 1,160 ) ( 1,413 ) ( 1,172 ) ( 2,238 ) ( 5,983 ) Charged to other comprehensive income - - - ( 1,261 ) ( 1,261 ) Income statement charge / (credit) ( 2,739 ) ( 5,712 ) 14,100 ( 92,209 ) ( 86,560 ) At December 31, 2019 ( 19,653 ) ( 93,404 ) ( 382,832 ) ( 181,606 ) ( 677,495 ) In 2019 16 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 $ 438.8 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. The U . S . subsidiaries have incurred in fiscal losses in the past years . The remaining balance mainly corresponds to Tenaris’s Colombian, Japanese, Canadian and Saudi Arabian subsidiar ies. These subsidiaries have incurred in fiscal losses in the past one two . Tenaris has concluded that these deferred tax assets will be recoverable based on t he business plans and budgets. The expiration dates of the recognized tax losses in less than 1 2 5 in more than 5 approximately 0 %, 1.7 % and 98.3 % respectively. As of December 31, 20 20 , the net unrecognized deferred tax assets amount ed t o $ 173.7 m 1 2 5 5 4.6 %, 17.1 % and 78.3 % respectively. The estimated recovery analysis of deferred tax assets and deferred tax liabilities is as follows: (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Deferred tax assets to be recovered after 12 ( 640,603 ) ( 538,274 ) Deferred tax liabilities to be settled after 12 840,892 766,852 Deferred income tax assets and liabilities are offset when ( 1 - 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 : (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Deferred tax assets ( 205,590 ) ( 225,680 ) Deferred tax liabilities 254,801 336,982 49,211 111,302 The movement i n the net deferred income tax liability account is as follows: Year ended December 31, 2020 2019 At the beginning of the year 111,302 197,433 Translation differences 6,854 1,100 Increase due to business combinations 32,099 10,847 Charged to other comprehensive income ( 3,146 ) ( 838 ) Income statement (credit) ( 97,898 ) ( 97,240 ) At the end of the year 49,211 111,302 |
Note 22 - Other Liabilities
Note 22 - Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Other Liabilities [Abstract] | |
Note 22 - Other Liabilities | 22 Other liabilities (i) Other liabilities – Non current Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Post-employment benefits 136,811 144,993 Other-long term benefits 64,928 85,473 Miscellaneous 43,896 20,917 245,635 251,383 Post-employment benefits Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Unfunded 115,774 125,573 Funded 21,037 19,420 136,811 144,993 Unfunded Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Values at the beginning of the year 125,573 97,318 Current service cost 4,796 7,978 Interest cost 6,496 5,526 Curtailments and settlements ( 1,237 ) - Remeasurements (*) ( 2,230 ) 7,010 Translation differences ( 415 ) ( 1,567 ) Increase due to business combinations 1,566 15,660 Benefits paid from the plan ( 22,955 ) ( 9,328 ) Other 4,180 2,976 At the end of the year 115,774 125,573 (*) For 2020 a loss of $ 1.6 million is attributable to demographic assumption s and a gain of $ 3.8 million to financ ial assumptions. For 2019 1.3 5.7 The actuarial assumptions for the most relevant plans were as follows: Year ended December 31, 2020 2019 Discount rate 1 7 1 7 Rate of compensation increase 0 3 0 3 As o f December 31, 20 20 , an increase / (decrease) of 1 of the main plans would have generated a (decrease) / increase on the defined benefit obligation of $ 6.0 million and $ 7.2 million respectively, and an increase / (decrease) of 1 of the main plans would have generated an increase / (decrease) impact on the defined benefit obligation of $ 3.1 million and $ 2.8 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, (all amounts in thousands of U.S. dollars) 2020 2019 Present value of funded obligations 176,309 160,412 Fair value of plan assets ( 157,335 ) ( 145,160 ) Liability (*) 18,974 15,252 (*) In 2020 and 2019 , $ 2.1 million and $ 4.2 million corresponding to a plan with a surplus balance w ere reclassified within other non- current assets , respectively . The movement in the present value of funded obligations is as follows: Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 160,412 146,885 Translation differences 2,148 4,542 Current service cost 850 721 Interest cost 5,009 5,754 Remeasurements (*) 18,025 12,769 Benefits paid ( 9,266 ) ( 10,259 ) Other ( 869 ) - At the end of the year 176,309 160,412 (*) For 2020 3.7 14.3 For 2019 a loss of $ 0.4 million is attributable to demograp hic assumptions and a loss of $ 12.4 million to finan cial assumptions. The movement in the fair value of plan assets is as follows: Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year ( 145,160 ) ( 132,438 ) Translation differences ( 1,729 ) ( 4,137 ) Return on plan assets ( 4,411 ) ( 5,018 ) Remeasurements ( 10,396 ) ( 10,507 ) Contributions paid to the plan ( 5,017 ) ( 3,589 ) Benefits paid from the plan 9,266 10,259 Other 112 270 At the end of the year ( 157,335 ) ( 145,160 ) The major categories of plan assets as a percentage of total plan assets are as follows: Year ended December 31, 2020 2019 Equity instruments 49.3 % 49.0 % Debt instruments 46.8 % 47.0 % Others 3.9 % 4.0 % The actuarial assumptions for the most relevant plans were as follows: Year ended December 31, 2020 2019 Discount rate 1 3 3 4 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, 20 20 , an increase / (decrease) of 1 of the main plans would have generated a (decrease) / increase on the defined benefit obligation of $ 19.7 million and $ 24.2 million respectively, and an increase / (decrease) of 1 of the main plans would have generated an increase / (decrease) on the defined benefit obligation of $ 1.9 million and $ 1.7 million respectively . Th e 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 . The employer contributions expected to be paid for the year 202 1 amount s approximately to $ 2.8 million. The methods and types of assumptions used in p reparing the sensitivity analyse s did not change compared to the previous period. (ii) Other liabilities – current Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Payroll and social security payable 175,175 153,009 Miscellaneous 27,651 23,255 202,826 176,264 |
Note 23 - Non-current allowance
Note 23 - Non-current allowances and provisions | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 (all amounts in thousands of U.S. dollars) Values at the beginning of the year 54,599 36,089 Translation differences ( 5,739 ) ( 1,571 ) Increase due to business combinations 26,542 - Additional provisions 478 19,904 Reclassifications 557 5,641 Used ( 3,219 ) ( 5,464 ) Values at the end of the year 73,218 54,599 |
Note 24 - Current allowances an
Note 24 - Current allowances and provisions | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Allowance for doubtful Allowance for other doubtful accounts - Other receivables Allowance for (all amounts in thousands of U.S. dollars) Values at the beginning of the year ( 48,782 ) ( 4,892 ) ( 217,717 ) Translation differences ( 37 ) 801 1,560 Increase due to business combinations ( 1,930 ) - ( 76,776 ) (Additional) allowances ( 4,644 ) ( 1,263 ) ( 35,809 ) Used 1,717 1,437 65,107 At December 31, 2020 ( 53,676 ) ( 3,917 ) ( 263,635 ) Year ended December 31, 2019 Allowance for doubtful Allowance for other doubtful accounts - Other receivables Allowance for (all amounts in thousands of U.S. dollars) Values at the beginning of the year ( 66,535 ) ( 6,784 ) ( 209,796 ) Translation differences 9 88 794 Increase due to business combinations ( 1,788 ) - ( 10,761 ) (Additional) / reversals allowances 16,256 1,239 ( 29,138 ) Used 3,276 565 31,184 At December 31, 2019 ( 48,782 ) ( 4,892 ) ( 217,717 ) (ii) Liabilities Year ended December 31, 2020 Sales risks Other claims and contingencies (*) Total (all amounts in thousands of U.S. dollars) Values at the beginning of the year 5,867 11,150 17,017 Translation differences ( 5 ) ( 975 ) ( 980 ) Increase due to business combinations 116 398 514 Additional provisions 9,728 1,751 11,479 Reclassifications - ( 557 ) ( 557 ) Used ( 13,911 ) ( 1,283 ) ( 15,194 ) At December 31, 2020 1,795 10,484 12,279 Year ended December 31, 2019 Sales risks Other claims and contingencies (*) Total (all amounts in thousands of U.S. dollars) Values at the beginning of the year 6,814 17,469 24,283 Translation differences ( 28 ) ( 570 ) ( 598 ) Increase due to business combinations 505 8,000 8,505 Additional / (reversals) provisions 11,880 ( 3,219 ) 8,661 Reclassifications - ( 5,641 ) ( 5,641 ) Used ( 13,304 ) ( 4,889 ) ( 18,193 ) At December 31, 2019 5,867 11,150 17,017 (*) 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, 2020 | |
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: (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Derivatives hedging borrowings and investments 10,119 19,000 Other Derivatives 1,330 929 Contracts with positive fair values 11,449 19,929 Derivatives hedging borrowings and investments ( 2,250 ) - Other Derivatives ( 967 ) ( 1,814 ) Contracts with negative fair values ( 3,217 ) ( 1,814 ) Total 8,232 18,115 Foreign e xchange derivative contracts and hedge accounting Te naris applies hedge accounting to certain cash flow hedges of highly probable forecast transactions. The net fair values of exchange rate derivatives and those derivat iv es that were designated for hedge accounting as of December 31, 20 20 and 201 9 were as follows: (all amounts in thousands of U.S. dollars) Fair Value Hedge Accounting Reserve Purchase currency Sell currency Term 2020 2019 2020 2019 MXN USD 2021 9,838 18,999 156 404 USD MXN 2021 ( 5 ) ( 576 ) - - USD EUR 2021 ( 1,969 ) - 5 - EUR USD 2021 543 588 - - JPY USD 2021 - ( 190 ) - - USD BRL 2021 412 ( 234 ) 85 - JPY USD 2030 94 - ( 4,958 ) 2,149 USD KWD 2021 ( 246 ) 103 ( 59 ) 38 USD CAD 2021 - ( 200 ) - - USD COP 2021 - ( 345 ) - - USD CNY 2021 ( 482 ) ( 167 ) - - Others 2021 47 137 - - Total 8,232 18,115 ( 4,771 ) 2,591 F ollowing is a summary of the hedge reserve evolution: (all amounts in thousands of U.S. dollars) Equity Reserve Movements 2019 Equity Reserve Movements 2020 Equity Reserve Foreign Exchange ( 916 ) 3,507 2,591 ( 7,362 ) ( 4,771 ) Total Cash flow Hedge ( 916 ) 3,507 2,591 ( 7,362 ) ( 4,771 ) Tenaris estimates that t he cash flow he dge reserve corresponding to derivatives instruments at December 31, 20 20 will be recycled to the Consolida ted Income Statement during 202 1 . For informa tion on hedge accounting reserve, see Section III.D . |
Note 26 - Contingencies, Commit
Note 26 - Contingencies, Commitments and Restrictions On the Distribution of Profits | 12 Months Ended |
Dec. 31, 2020 | |
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 T enaris 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 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 shares Confab, a Brazilian subsidiary of the Company, is one 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 28.8 182,609,851 17.9 CSN claims relating to the January 2012 acquisition of Usiminas shares (Cont.) 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 March 6, 2017, CSN filed a motion for clarification against the decision of the Court of Appeals of São Paulo, which was rejected on July 19, 2017. 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. The Superior Court of Justice will review the case and then render a decision on the merits. The Superior Court of Justice is restricted to the analysis of alleged violations to federal laws and cannot assess matters of fact. 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 “ CVM ” ) in February 2012 and December 2016, and the first and second instance court decisions 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 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 6 . H owever, 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 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, on October 9, 2018, Confab paid an amount of approximately BRL 13.1 y $ 3.5 mi 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 69.9 million (approximately $ 13.5 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 59.9 million (approximately $ 11.5 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. 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. Ongoing investigation The Company is aware that Brazilian, Italian and Swiss authorit 2014 The Company had previously reviewed certain of these matters in connection with an investigation by the Brazilian authorities related to “Operation Lava Jato,” and did not uncover any information that corroborated allegations of involvement in these alleged payments by the Company or its subsidiaries. Furthermore, the Company became aware that a Petrobras internal investigation commission reviewed certain contracts with Confab and concluded that they had not found evidence that Petrobras had benefitted Confab or had misused applicable local content rules. 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. In July 2019, the Company learned that the public prosecutors’ office of Milan, Italy, had completed a preliminary investigation into the alleged payments and had included in the investigation, among other persons, the Company’s Chairman and Chief Executive Officer, two the Company ’s controlling shareholder, San Faustin. The Company is not a party to the proceedings. In February 2020, the Company learned that the magistrate overseeing the investigation decided to move the case to trial. The Company ’s outside counsel had previously reviewed the Italian prosecutors’ investigative file and has informed the Board that neither that file nor this magistrate’s decision sets forth evidence of involvement by any of the three In June 2020, the Company learned that the Brazilian public prosecutors’ office requested the indictment of several individuals, including three 2007 2010 2009 2013 The Company continues to respond to requests from and otherwise cooperate with the appropriate authorities. The Company has engaged in discussions with the SEC and the DOJ towards a potential resolution of the investigation. There are no assurances that the discussions with the SEC or the DOJ will result in a final resolution of the investigation or, if a resolution is achieved, the timing, scope and terms of any such resolution. At this time, the Company cannot predict the outcome of these matters or estimate the range of potential loss or extent of risk, if any, to the Company's business that may result from the resolution of these matters. 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 d an 11.46 % sta Investigation concerning alleged price overcharges in Brazil In 2018 two 9 million (approximately $ 1.7 million) to BRL 401 thousand (approximately $ 77 thousand), and further stated that because of its immateriality, the alleged overcharge should not give rise to any penalties or indemnification obligations and acknowledged that any potential penalties would be barred as a result of the applicable statute of limitations. On November 19, 2020 the Public Prosecutor’s Of fice filed an opinion supporting the TCU’s technical unit’s views. TCU’s final judgment is pending. The estimated amount of this claim is BRL 30.6 million (approximately $ 5.9 million). The Company believes, based on the advice of counsel and external consultants, that the prices charged under the Petrobras contract do not result in overprices and that it is unlikely that the ultimate resolution of this matter will result in a material obligation. 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 57.2 million (approximately $ 11 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 on 2017 m the resolution of this claim. Tax assessment from Italian tax authorities The Company’s Italian subsidiary, Dalmine, received on December 27, 2019, a tax assessment from the Italian tax authorities related to fiscal year 2014 25.7 31.6 20.7 25.5 million) in principal and EUR 5.0 6.1 2019 2015 10.5 12.9 EUR 8.1 10.0 million) in principal and EUR 2.4 2.9 2014 Product liability litigation The Company’s recently acquired U.S. subsidiary, IPSCO, or its subsidiaries, are parties to several product liability claims, which may result in damages for an aggregate amount estimated at approximately $ 17.6 million. This includes a lawsuit alleging product liability and negligent misrepresentation in which the plaintiff alleges that defects in certain casing provided by IPSCO resulted in three 15 million. Although at this time the Company cannot predict the outcome of any of these matters, the Company believes that provisions have been recorded in an amount sufficient to cover potential exposure under these claims. (ii) Commitments and guarantees Set forth is a description of the Tenaris ’s main outstanding commitments: An Argentine subsidiary of the Company entered into a contract with Transportadora de Gas del Norte S.A. for the service of natural gas transportation to its facilities. As of December 31, 2020, the aggregate commitment to take or pay the committed volumes for a n original 9 l ed approximately $ 16.8 million. Several of the Company’s subsidiaries entered into a contract with Praxair S.A. for the service of oxygen and nitrogen supply. As of December 31, 2020, the aggregate commitment to take or pay the committed volumes for a n original 14 l ed approximately $ 31 million. Several of the Company’s subsidiaries entered into a contract with Graftech for the supply of graphite electrodes. As of December 31, 2020, the aggregate commitment to take or pay the committed volumes total l ed approximately $ 10.9 A subsidiary of the Company entered into a 25 197 22 A subsidiary of the Company entered into a contract with Air Liquide Mexico, S. de R.L de C.V. for the supply of argon gas. As of December 31, 2020, the aggregate commitment total l ed approximately $ 19 Tenaris Bay City, 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 will become effective upon delivery of the first purchase order, which has not yet occurred, and will remain in force for a 3 113.4 75 In connection with the closing of the acquisition of IPSCO, a U . S . subsidiary of the Company, entered into a 6 6 12 2020 is, no 2020 6 l ed approximately $ 498.3 million. In addition, Tenaris (i) applied for stand-by letters of credit as well as corporate guarantees covering certain obligations of Techgen as described in note 1 3 (c), (ii) issued corporate guarantees securing certain obligations of GPC, as described in note 1 3 (d); and (iii) issued performance guarantees mainly related to long term commercial contracts with several customers and parent companies for approximately $ 2.5 (iii) Restrictions to the distribution of profits and payment of dividends In accordance with Luxembourg Law, the Company is required to transfer a minimum o f 5 % uals 10 % o As of December 31, 2020, 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 - Foreign exchange con
Note 27 - Foreign exchange control measures in Argentina | 12 Months Ended |
Dec. 31, 2020 | |
Foreign exchange rates [abstract] | |
Note 27 - Foreign exchange control measures in Argentina | 27 Beginning in September 2019, the Argentine government has imposed and continues to impose significant restrictions on foreign exchange transactions. 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 60 180 , or within 5 days of collection, if collected earlier . Foreign currency proceeds from exports of services must be sold into the Argentine foreign exchange market and converted into Argentine pesos within 5 business days of collection. Access to the Argentine foreign exchange market to pay for imports of services rendered by related parties (including royalties) is subject to A rgentine Central Bank approval. Access to the Argentine foreign exchange market to pay for imports of goods and services provided by third parties requires the importer not to have more than $ 100,000 90 90 Access to the Argentine foreign exchange market to pay debt service (principal and interests) for financial debts with related parties requires prior Argentine Central Bank approval, unless such debts are obtained and sold into the Argentine foreign exchange market and converted into Argentine pesos after October 2, 2020 and carry an averag e life of no less than 2 Debts with foreign creditors larger than $ 1 60 2 Access to the Argentine foreign exchange market to make dividend payments generally requires prior A rgentine Central Bank approval. When required, Argentine Central Bank approvals are granted on a very restricted basis. Tenaris’s Argentine subsidiaries continue to have access to the official foreign currency markets for their foreign exchange transactions. Therefore, assets and liabilities denominated in foreign currency as of December 31, 2020, have been valued at the prev ailing official exchange rates. Tenaris’s f inancial position in Argentine p eso as of December 31, 2020, amounted to a net short exposure of approximately $ 39.6 million. As of December 31, 2020, t he total net equity of Argentine subsidiaries represented approximately 8 and the sales performed by Argentine subsidiaries during the year ended on December 31, 2020 amounted approximately to 12 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 F inancial St atements should be read taking into account these circumstances. As the context of volatility and uncertainty remains in place as of the issue date of these Consolidated Financial Statements, additional Argentine Central Bank regulations that could be imposed in the future could further restrict our Argentine subsidiary’s ability to access the official foreign exchange market. |
Note 28 - Cash Flow Disclosures
Note 28 - Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Cash Flow [Abstract] | |
Note 28 - Cash Flow Disclosures | 28 Cash flow disclosures (all amounts in thousands of U.S. dollars) Year ended December 31, (i) Changes in working capital 2020 2019 2018 Inventories 828,796 311,459 ( 176,443 ) Receivables and prepayments and current tax assets 74,877 ( 34,368 ) 30,144 Trade receivables 409,163 428,326 ( 517,579 ) Other liabilities ( 34,871 ) ( 18,295 ) ( 22,984 ) Customer advances ( 34,388 ) 16,844 5,976 Trade payables ( 184,442 ) ( 180,857 ) ( 57,066 ) 1,059,135 523,109 ( 737,952 ) (ii) Income tax accruals less payments Tax accrued 23,150 202,452 229,207 Taxes paid ( 140,364 ) ( 395,869 ) ( 170,713 ) ( 117,214 ) ( 193,417 ) 58,494 (iii) Interest accruals less payments, net Interest accrued 8,627 ( 4,616 ) ( 2,914 ) Interest received 19,613 30,890 40,613 Interest paid ( 28,778 ) ( 30,655 ) ( 31,548 ) ( 538 ) ( 4,381 ) 6,151 |
Note 29 - Related Party Transac
Note 29 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Note 29 - Related Party Transactions | 29 Related party transactions As of December 31, 2020: San Faustin owned 713,605,187 shares in the Company, represen ting 60.45 % of San Faustin owned all of its shares in the Company through its wholly-owned subsidiary Techint Holdings S.à.r.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 o wned 0.08 % 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: (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 (i) Transactions (a) Sales of goods and services Sales of goods to non-consolidated parties 20,183 20,577 23,709 Sales of goods to other related parties 18,243 69,972 131,548 Sales of services to non-consolidated parties 5,829 5,620 7,641 Sales of services to other related parties 5,049 4,386 5,647 49,304 100,555 168,545 (b) Purchases of goods and services Purchases of goods to non-consolidated parties 84,485 174,588 245,186 Purchases of goods to other related parties 12,892 51,765 106,624 Purchases of services to non-consolidated parties 6,979 9,404 9,556 Purchases of services to other related parties 18,133 54,514 46,179 122,489 290,271 407,545 (all amounts in thousands of U.S. dollars) At December 31, 2020 2019 (ii) Period-end balances (a) Arising from sales / purchases of goods / services Receivables from non-consolidated parties 78,721 78,884 Receivables from other related parties 4,447 10,400 Payables to non-consolidated parties ( 24,914 ) ( 19,100 ) Payables to other related parties ( 2,310 ) ( 7,048 ) 55,944 63,136 (b) Financial debt Finance lease liabilities from non-consolidated parties ( 2,042 ) ( 2,064 ) Finance lease liabilities from other related parties ( 810 ) - ( 2,852 ) ( 2,064 ) In addition to the tables above, the Company issued various guarantees in favor of Techgen and GPC; for further details, please see note 13 and note 26 . No other material guarantees were issued in favor of other related parties. Directors’ and senior management compensation During the years ended December 31, 2020, 2019 2018 27.4 million, $ 33.7 33.7 and Senior managers received 522 , 468 558 5.0 million, $ 4.8 5.6 ram mentioned in n ote II. P . 3 Employee benefits – Other long term benefits. |
Note 30 - Fees Paid to the Comp
Note 30 - Fees Paid to the Company's Principal Accountant | 12 Months Ended |
Dec. 31, 2020 | |
Additional information [abstract] | |
Note 30 - Fees Paid to the Company's Principal Accountant | 30 Fees paid to the Company's principal accountant Total fees accrued for professional services rendered by PwC Network firms to Tenaris S.A. and its subsidiaries are detailed as follows: (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 Audit fees 3,781 3,846 3,841 Audit-related fees 134 50 43 Tax fees 102 7 - All other fees - 1 7 Total 4,017 3,904 3,891 |
Note 31 - Principal Subsidiarie
Note 31 - Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Principal subsidiaries | |
Note 31 - Principal Subsidiaries | 31 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, 2020. Company Country of Main activity Percentage of ownership at 2020 2019 2018 ALGOMA TUBES INC. Canada Manufacturing of 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 (except detailed) (a) USA Manufacture and marketing of premium connections 100 100 100 IPSCO TUBULARS INC. and subsidiaries USA Manufacturing of welded and seamless steel pipes 100 NA NA KAZAKHSTAN PIPE THREADERS LIMITED LIABILITY PARTNERSHIP Kazakhstan Threading of premium products 100 100 100 MAVERICK TUBE CORPORATION and subsidiaries USA Manufacturing of welded steel pipes 100 100 100 NKKTUBES Japan Manufacturing of seamless steel pipes 51 51 51 P.T. SEAMLESS PIPE INDONESIA JAYA Indonesia Manufacturing of seamless steel products 89 89 89 PRUDENTIAL STEEL LTD. (b) Canada Manufacturing of welded steel pipes 100 100 100 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 NA SIAT SOCIEDAD ANONIMA Argentina Manufacturing of welded and seamless steel pipes 100 100 100 SIDERCA SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL and subsidiaries 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 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) (c) Uruguay Holding company and marketing of steel products 100 100 100 TENARIS INVESTMENTS (NL) B.V. and subsidiaries Netherlands Holding company 100 100 NA TENARIS INVESTMENTS S.àr.l. Luxembourg Holding company 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 Investments S.a.r.l. holds 100 80 (b) See note 36 ( c ) Tenaris holds 97.5 40 49 49 60 |
Note 32 - Business Combinations
Note 32 - Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about business combination [abstract] | |
Note 32 - Business Combinations | 32 Business combinations Acquisition of IPSCO Tubulars, Inc. Acquisition and price determination On January 2, 2020, Tenaris acquired 100 1,067 The parties finally determined the closing price in an amount equal to $ 1,029 38.5 This amount was collected on July 2, 2020 and this agreement implies that all disputes relating to the closing statement were resolved. IPSCO’s facilities are located mainly in the midwestern and northeastern regions of the country. IPSCO’s steel shop in Koppel, Pennsylvania, is Tenaris’s first in the United States, providing vertical integration through domestic production of a relevant part of its steel bar needs. The Ambridge, Pennsylvania, mill adds a second seamless manufacturing facility and complements Tenaris’s seamless plant in Bay City, Texas. Given the abrupt and steep decline in market demand in 2020 2021 In connection with the closing of the transaction, subsidiaries of Tenaris and TMK entered into a 6 26 . The Company has begun consolidating IPSCO’s balances and results of operations as from January 2, 2020. The acquired business contributed revenues for $ 186.7 million , mainly assigned to Tubes segment, with a minor contribution to the Company’s margin for the period starting January 2, 2020 and ending December 3 1 , 2020 Fair value of net assets acquired The application of the purchase method requires certain estimates and assumptions, mainly concerning the determination of the fair values of the acquired intangible assets and property, plant and equipment as well as the liabilities assumed at the date of the acquisition , including the timing and amounts of cash flow projections, the revenue growth rates, the customer attrition rates and the discount rate . The fair values determined at the acquisition date are based mainly on discounted cash flows and other valuation techniques. The purchase price allocation was carried out with the assistance of a third-party expert. Following IFRS 3 Dec ember 3 1 , 2020 erred tax assets. The allocation of the fair values determined for the assets and liabilities arising from the acquisition is as follows: Fair value of acquired assets and liabilities: $ million Property, Plant and Equipment 503 Intangible assets 170 Working capital 138 Cash and Cash Equivalents 4 Borrowings ( 53 ) Provisions ( 27 ) Other assets and liabilities, net ( 63 ) Net assets acquired 672 Tenaris acquired total assets and liabilities shown above, for approximately $ 1,029 357 The goodwill generated by the acquisition is mainly attributable to the synergy created following the integration between Tenaris and IPSCO, which is expected to enhance Tenaris’s position as well as its local manufacturing presence in the U.S. market, and also expand its product range and services capabilities. After the conclusion of the preliminary purchase price allocation determination and as a consequence of the unprecedented decline in oil prices and other changes in circumstances, the goodwill mentioned above was impaired , for more information see note 5 Acquisition-related costs of $ 9.7 mill 9.4 0.3 2019 2020 26 . Acquisition of Saudi Steel Pipe Company Acquisition and price determination On January 21, 2019, Tenaris acquired 47.79 SSP C , a welded steel pipes producer listed on the Saudi stock market, for a total amount of SAR 530 141 C ’s facilities are located in the Eastern Province of the Kingdom of Saudi Arabia and have a manufacturing capacity of 360,000 1980 Upon closing of the acquisition, four C ’s board of directors and a Tenaris senior executive was appointed as managing director and chief executive officer of SSP C . Such appointment was ratified at the shareholders meeting of SSP C held on May 7, 2019, where the shareholders also approved the reappointment of the Tenaris’s nominees until June 6, 2022. The Company has begun consolidating SSP C ’s balances and results of operations as from January 21, 2019. Fair value of net assets acquired The application of the purchase method requires certain estimates and assumptions specially concerning the determination of the fair values of the acquired intangible assets and property, plant and equipment as well as the liabilities assumed at the date of the acquisition. The fair values determined at the acquisition date are based mainly on discounted cash flows and other valuation techniques. The allocation of the fair values determined for the assets and liabilities arising from the acquisition is as follows: Fair value of acquired assets and liabilities: SAR million $ million Property, Plant and Equipment 671 179 Customer relationship 305 81 Investment in associated 77 21 Working capital 167 45 Cash and Cash Equivalents 32 9 Other Receivables 11 3 Borrowings ( 304 ) ( 81 ) Employees end of service benefits ( 59 ) ( 16 ) Deferred Tax Liabilities ( 47 ) ( 13 ) Net assets acquired 853 228 Tenaris acquired 47.79 109 Goodwill of approximately $ 32.9 million. Tenaris has chosen to recognize the non-controlling interest at the proportionate share of the acquiree’s net identifiable assets. The acquired busine ss contributed revenues for $ 170.6 million with a minor contribution to Tenaris’s margin for the period starting January 21, 2019 and ending December 31 , 2019 If the acquisition had occurred on January 1, 2019 The purchase price allocation has been done with the ass istance of a third party expert. |
Note 33 - Agreement to Build a
Note 33 - Agreement to Build a Welded Pipe Plant in West Siberia | 12 Months Ended |
Dec. 31, 2020 | |
Welded pipe plant in West Siberia [member] | |
Disclosure of joint ventures [line items] | |
Note 33 - Agreement to Build a Welded Pipe Plant in West Siberia | 33 Agreement to build a welded pipe plant in West Siberia In 2019 Tenaris entered into an agreement with Severstal to build a welded pipe plant to produce OCTG products in the Surgut area, West Siberia, Russian Federation. Tenaris holds a 49 51 280 300,000 During 2019 we invested $ 19.6 In March 2021, the joint venture parties put on hold the construction activities, while they assess the impact of the changes in the relevant markets and competitive environment and determine whether any adjustments or changes to the project could be necessary. |
Note 34 - Agreement to build a
Note 34 - Agreement to build a steel pipe premium connection threading plant in Baotou | 12 Months Ended |
Dec. 31, 2020 | |
Steel Pipe Premium Connection Threading Plant in Baotou [Member] | |
Disclosure of joint ventures [line items] | |
Note 34 - Agreement to build a steel pipe premium connection threading plant in Baotou | 34 Agreement to build a steel pipe premium connection threading plant in Baotou In 2020, Tenaris entered into an agreement with Tenaris 60 40 The Company began consolidating balances and results of operations in December 2020. The plant, which is estimated to require a total investment of 32.6 , and a 1 70 thousand tons. During 2020, the Company contributed 2.3 million to the project. |
Note 35 - Closure of facilities
Note 35 - Closure of facilities at JFE's Keihin steel complex | 12 Months Ended |
Dec. 31, 2020 | |
JFE [member] | NKKTUBES [member] | |
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | |
Note 35 - Closure of facilities at JFE’s Keihin steel complex | 35 Closure of facilities at JFE’s Keihin steel complex Tenaris’s seamless pipe manufacturing facility in Asia, operated by NKKTubes, is located in Kawasaki, Japan, in the Keihin steel complex owned by JFE Holdings Inc. (“JFE”). Steel bars and other essential inputs and services for NKKTubes are supplied under a long-term agreement by JFE, which retains a 49 |
Note 36 - Closure of Prudential
Note 36 - Closure of Prudential Steel LTD | 12 Months Ended |
Dec. 31, 2020 | |
Prudential Steel Limited [Member] | |
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | |
Note 36 - Closure of Prudential Steel LTD | 36 Closure of Prudential Steel L TD Tenaris’s facility of Prudential Steel L TD, located in Calgary, Alberta, has been closed down and the pipe manufacturing operations of seamless, welded and premium products in Canada will be consolidated at Algoma Tubes Inc. in Sault Ste. Marie, Ontario with an additional investment of $ 72 the industrial activities, which will be completed by November 2021, will strengthen the competitiveness and increase the domestic production capabilities for the Canadian market. |
Note 37 - Cancellation of title
Note 37 - Cancellation of title deed in Saudi Steel Pipe Company | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Cancellation of title Deed in Affiliates [Abstract] | |
Note 37 - Cancellation of title deed in Saudi Steel Pipe Company | 37 C ancellation of title deed in Saudi Steel Pipe Company T he Company has recently learned through the 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 of the land occurred before Tenaris’s acquisition of a 47.79 % 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 As of the date hereof, neither the cancellation nor the court order have been notified to SSPC or otherwise been made public, and the legal basis for the court order is unknown. SSPC is currently assessing the effects of the court order and the available alternatives to protect the land and reinstate the title deeds. At this time, it is not possible to predict the outcome of this matter. |
Note 38 - Nationalization of Ve
Note 38 - Nationalization of Venezuelan Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Nationalization of Subsidiaries [Abstract] | |
Note 38 - Nationalization of Venezuelan Subsidiaries | 38 Nationalization of Venezuelan Subsidiaries In May 2009, within the framework of Decree Law 6058 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 85.5 172.8 six 9 six ember 31 2020 , post-award intere st amounted to approximately $ 83.4 million. On March 14, 2016, Venezuela requested the rectification of the award pursuant to article 49 2 49 On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award. Tenaris and Talta effected service on Venezuela in accordance with US law, and Venezuela failed to file an answer in the proceeding. Tenaris and Talta then moved for default judgment. Venezuela subsequently appeared in the proceedings but did not oppose the entry of default judgment on the award. 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 $ 256.2 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 s tatutory rate. The judgment, however, may not be enforced in the U.S. to the extent prohibited by the Venezuelan sanctions regulations issued by the U.S. Treasury Department’s Office of Foreign Assets Control. 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 $ 137.0 million and ordered Venezuela to reimburse Tenaris and Talta $ 3.3 LIBOR 4 20 amounted to approximately $ 132.4 million. On April 11, 2017, Venezuela submitted a request for annulment of the award as well as the stay of enforcement of the award in accordance with the ICSID Convention and Arbitration Rules. On February 23, 2018, an ad hoc committee constituted to decide on Venezuela’s requests rendered its decision to lift the stay of enforcement of the award. On December 28, 2018, the ad hoc committee rejected Venezuela’s application to annul the award. On June 8, 2018, Tenaris and Talta filed an action in federal court in the District of Columbia to recognize and enforce the award. Tenaris and Talta effected service on Venezuela in accordance with US law, and Venezuela failed to file an answer in the proceeding. Tenaris and Talta then moved for default judgment. Venezuela subsequently appeared in the proceedings but did not oppose the entry of default judgment on the award. It is expected that the Tavsa award will also be converted into a judgment. The judgment, however, may not be enforced in the U.S. to the extent prohibited by the Venezuelan sanctions regulations issued by the U.S. Treasury Department’s Office of Foreign Assets Control. As of December 31, 20 20 , Tenaris or its subsidiaries have net receivables related to its interest in the Venezuelan Companies for a total amount of approximately $ 48.7 million . See n ote III.B . |
Note 39 - The COVID-19 pandemic
Note 39 - The COVID-19 pandemic and the oil & gas crisis and their impact on Tenaris's operations and financial condition | 12 Months Ended |
Dec. 31, 2020 | |
Extraordinary and Unusual Items 1 [Abstract] | |
Note 39 - The COVID-19 pandemic and the oil & gas crisis and their impact on Tenaris’s operations and financial condition | 39 The COVID- 19 A novel strain of coronavirus (“SARS-CoV- 2 2020 19 2 19 , the surfacing of new strains of the virus in several countries, and the measures taken to contain it have triggered a severe fall in global economic activity and precipitated a serious crisis in the energy sector. While the extent of the effects of COVID- 19 launched a wave of additional supply on the market triggering a collapse in oil prices below $ 30 9.7 Since then, the price of oil has been recovering and currently stands above the level of $ 5 5 per barrel, bolstered by the actions to cut production taken by OPEC+ and the recovery of oil demand, as the global economy, especially industrial production, recovers and COVID- 19 2020 100 75 80 ore recovering to around 94 19 Status of our operations Although restrictions imposed in connection with the COVID- 19 In order to safeguard the health and safety of its employees, customers and suppliers, Tenaris has taken preventive measures, including remote working for the majority of professional employees, restricting onsite access to essential operational personnel, keeping personnel levels at a minimum, implementing a special operations protocol to ensure social distancing and providing medical assistance and supplies to onsite employees. As of the date of these Consolidated Financial Statements, remote work and other work arrangements have not materially adversely affected Tenaris’s ability to conduct operations. In addition, these alternative working arrangements have not adversely affected our financial reporting systems, internal control over financial reporting or disclosure controls and procedures. Risks associated with the COVID- 19 The COVID- 19 Global oil demand may fail to recover its former level or even decrease further in the future, driving down prices even more or keeping them at very low levels, which would exert downward pressure on sales and margins of oil and gas companies, leading to further reductions and even generalized suspension of drilling activities (in the U.S. or elsewhere) and, as a result, materially adversely affecting our sales and financial position. Tenaris or its employees, contractors, suppliers, customers and other business partners may be prevented from conducting certain business activities for a prolonged or indefinite period of time. In addition, employees in some or all of our facilities, or those of our contracts, suppliers, customers or other business partners, may refuse to work due to health concerns while the COVID- 19 A continuing spread of COVID- 19 and new strains of the virus may affect the availability and price of raw materials, energy and other inputs used by Tenaris in its operations. Any such disruption or increased prices could adversely affect Tenaris’s profitability. Mitigating actions In order to mitigate the impact of expected lower sales, starting from the first quarter 2020 Tenaris implemented a worldwide rightsizing program and cost containment plan aimed at preserving its financial resources and overall liquidity position and maintaining the continuity of its operations. The se actions include d : adjusting the level of our operations and workforce around the world, including through the temporary closure of certain facilities or production lines ; introducing efficiency and productivity improvements throughout Tenaris’s industrial system; downsizing our fixed cost structure, including through pay reductions for senio r management and board members, as well as R&D expenses, for a total annual savings of approxim ately $ 230 million on a yearly basis ; reducing capital expenditures b y $ 157 millio 2019 ; reducing working capital, especially inventories, in accordance with the expected levels of activity; and increasing our focus on managing customer credit con ditions. As of the date of these Consolidated Financial Statements, the se rightsizing initiatives are largely complete and the principal objectives have been achieved ; some residual actions are still ongoing. As part of these liquidity preservation initiatives, on June 2, 2020, the Annual Shareholders Meeting approved that no further dividends be distributed in respect of fiscal year 2019 153 On November 4, 2020, the Company’s Board of Directors approved the payment of an interim dividend of $ 0.07 0.14 82.6 As of the date of these Consolidated Financial Statements, our capital and financial resources, and overall liquidity position, have not been materially affected by this new scenario. Tenaris has in place non-committed credit facilities and management believes it has adequate access to the credit markets. In addition, Tenaris has a net cash position of approximately $ 1,085 [ 1 million a s of the end of Dec ember 2020 Considering our financial position and the funds provided by operating activities, management believes that we have sufficient resources to satisfy our current working capital needs, service our debt and address short-term changes in business conditions. Considering the global situation, the Company has renegotiated and continues to renegotiate existing contractual obligations with its counterparties to adapt the commitment s to the decrease in activity. Management does not expect to disclose or incur in any material COVID- 19 mers in accordance with IFRS 9 1 Net cash / debt is calculated in the following manner: Net cash= Cash and cash equivalents + Other investments (Current and Non-Current) +/- Derivatives hedging borrowings and investments– Borrowings (Current and Non-Current). |
Note 40 - Subsequent Events
Note 40 - Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Note 40 - Subsequent Events | 40 Subsequent event Annual Dividend Proposal Upon approval of the Company´s annual accounts in March 202 1 , the Board of D irectors intends to propose, for the approval of the Annual General Shareholders' meeting to be held on May 3 2021 , the payment of an annual dividend of $ 0.21 per share ($ 0.42 per ADS), or approximatel y $ 248 mill 0.07 per share ($ 0.14 per ADS) or approximate ly $ 83 , 2020 . If the annual dividend is approved by the shareholders, a dividend of $ 0.14 per share ($ 0.28 per ADS), or approximatel y $ 165 mi 26, 2021 , with an ex-dividend date of May 24, 2021 . These Consolidated Financial Statements do not reflect this dividend payable. |
II. Accounting Policies (Polici
II. Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, c ertain 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 assets and liabilities, revenues and expenses. Actual results may differ from these estimates. The main areas involving significant estimates or judgements are: i mpairment of goodwill and long-lived assets (not e II. H ); i ncome t axes (note II. O ); obsolescence of inventory (note II.J ); loss contingencies (note II. Q ); allowance for trade receivables (note II.K) ; d efined be nefit obligations (note II. P ); business combinations (notes II.B, I V . 3 2 seful lives of property, plant and equipment and other long-lived assets (notes II.E, II.F , II. H ) ; property title ownership restriction (note 37 During the period there were no material changes in the significant accounting estimates. Management has reviewed the Company’s exposure to the effects of the oil and gas crisis and the COVID- 19 twelve in long-lived assets. Refer to n otes 5 3 9 for further information on impairment of assets and the impact of the oil and gas crisis and the COVID- 19 ( 1 Accounting pronouncements applicable as from J anuary 1 20 20 and relevant for Tenaris IFRS 16 19 The Company chose not to adopt the optional amendment to IFRS 16 19 . An assessment was conducted and the Company concluded that the impact was not material. Other accounting pronouncements t hat became effective during 20 20 have no material effect on the Company’s financial condition or results of operations. |
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 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 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 I ncome S tatement. Contingent consideration is classified either as equity or a s 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 acquire e is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. T ransactions 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 i t s respective local currency, some financial gains (losses) arising from intercompany transactions are generated. These are included in the C onsolidated I ncome S tatement 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 50 Investments in non- consolidated companies (associated and joint ventures ) are accounted for by the equity method of accounting and are initially recognized at cost. 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, u nrealized results on transactions between Tenaris and its non-consolidated companies are eliminated to the extent of Tenaris’s interest in the non-consolidated companies . Unreali z ed losses are also eliminated unless the transaction provides evidence of an impairment indicator of the asset transferred. Financial s tatements of non-consolidated companies have been adjusted where necessary to ensure consistency with IFRS . ( 2 Non-consolidated companies (Cont.) 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. Ternium At December 31, 20 20 , Tenaris h e ld 11.46 % of Ternium S.A (“ Ternium ”) ’s common stock . The following factors and circumstances evidence that Tenaris has significant influence (as defined by IAS 28 associates companies and Joint Ventures ”) over Ternium , and as a result the Company’s investment in Ternium has been accounted for under the equity method: Both the Company and Ternium are under the indirect com mon control of San Faustin S.A. (“San Faustin”) ; Four eight members of Ternium’s Board of D irectors (including Ternium’s C hairman) are also members of t he Company’s Board of D irectors ; Under the shareholders ’ agreement by and between the Company and Techint Holdings S.à r.l, a wholly owned subsidiary of San Faustin and Ternium’s main shareholder, dated January 9, 2006, Techint Holdings S.à . r.l, is required to take actions within its power to cause (a) one Board of D irectors to be nominated by the Company and (b) any director nominated by the Company to be only removed from Ternium’s Board of D irectors pursuant to previous written instructions of the Company . Usiminas At December 31, 2020, Tenaris he ld, through its Brazilian subsidiary Confab Industrial S.A. (“Confab”), 36.5 1.3 5.19 % of its shares with voting rights and 3.07 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 At December 31, 202 0 ld, in the aggregate, 483.6 68.6 three One 47.1 39.5 7.6 45.9 7 The corporate governance rules reflected in the Usiminas shareholders agreement include, among others, an alternation mechanism for the nomination of each of the C hief E xecutive O fficer (“CEO”) and the C hairman 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, and consequently, Tenaris accounts for its investment in Usiminas under the equity method (as defined by IAS 28 Techgen Techgen S.A. de C.V. (“Techgen”) , which operates an electric power plant in Mexico, is a joint venture company owned 48 30 (“Tecpetrol”) and 22 nce of Techgen. T he Company, Ternium and Tecpetrol are under the indirect com mon control of San Faustin ; consequently , Tenaris account s it s interest in Techgen under the equity method (as defined by IAS 28 Global Pipe Company Global Pipe Company (“GPC”) is a Saudi-German joint venture, established in 2010 , Saudi Arabia , which manufactures LSAW pipes. Tenaris, through its subsidiary Saudi Steel Pipe Company (“SSPC”), currently owns 35 SSPC is entitled to choose one five . In addition, SSPC has the ability to block any shareholder resolution . Based on the facts stated above, the Company has determined that it has signifi cant influence over this entity and accounts for its investment in GPC under the equity method (as defined by IAS 28 Tenaris carries its investment s in non consolidated companies under the equity method, with no 2020 2019 and 2018 no See n ote 1 3 . |
Description of accounting policy for segment reporting [text block] | C Segment information The Company is organized in one 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. Corporate general and administrative expenses have been allocated to the Tubes segment. Others include s all other business activities and operating segments that are not required to be separately reported, including the production and selling of sucker rods, industrial equipment, coiled tubing , utility conduits for buildings , heat exchangers, energy and raw materials that exceed internal requirements. Tenaris’s Chief Operating Decision Maker ( “ C O DM ” ) holds monthly meetings with senior management, in which operating and financial performance information is reviewed, including financial information that 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 depreciation s ; The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost ; Other timing differences, if any. T enaris presents its geographical information in five North America, South America, Europe, Middle East and Afri ca 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 depreciation s and amortization s 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 curren c y of the Company is the U.S. dollar . The U.S. d ollar is the currency that best reflects the economic substance of the underlying events and circumstances relevant to Tenaris’s global operations. Except f or the Brazilian and Italian subsidiaries whose functional currenci es are their local currencies, Tenaris determined that the functional currency of its other subsidiaries is the U.S. dollar, based on the following principal considerations : S ales are mainly negotiated, denominated and settled in U.S. dollar s . If priced in a currency other than the U.S. dollar, the sales price may consider exposure to fluctuation in the exchange rate versus the U.S. dollar; P rices 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 ha ve the U.S . dollar as reference currency; S ignificant level of integration of the l ocal operations within Tenaris’s international global distribution network ; N et 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 seve re economic crise s. ( 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 subsidiar i es whose functional currencies are not the U.S. d ollar are translated into U.S. dollars at the average exchange rates for each quarter of the year . Financial s tatement position s 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 dispos al of any of such subsidiaries , any accumulated translation difference would be recognized in income as a gain or loss f rom the sale. 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 . H istorical cost includes expenditure that is directly attributable to the acquisition of the items . Property , p lant and e quipment acquired through acquisitions accounted for as business combination s 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 . M aintenance expenses on manufacturing properties are recorded as cost of products sold in the year in which they are incurred. Cost may also include transfers fro m 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 (R) , “Borrowing Cost s ” . A ssets for which borrowing costs are capitalized are those that require a substantial period of time to prepare for their intended use. The d epreciation 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 Plant and production equipment 10 40 Vehicles, furniture and fixtures, and other equipment 4 10 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 asset s useful lives , performed in accordance with IAS 16 , “Property , Plant and E quipment” , resulted in additional depreciation expenses for 2020 45 million and did not materially affect depreciation expense s for 201 9 and 201 8 . T enaris 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 or Other operating expenses in the Consolidated Income Statement. |
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 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 mainly classified as Selling, general and administrative expenses in the Consolidated I ncome S tatement. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38 resulted in additional amortization expenses for 2020 11.1 and did not materially affect amortization expenses for 2019 2018 ( 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, and does not exceed a period of 10 Amortization charges are mainly classified as Selling, general and administrative expenses in the Consolidated Income Statement. The balance of acquired t rademarks that have indefinite useful lives according to external appraisal amo unt s to $ 86.7 m at December 31, 20 20 , 201 9 and 201 8 , 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 no t materially affect amortization expenses for 20 20 , 201 9 and 201 8 . ( 4 Research and development Research expenditures as well as development costs that do not fulfill the criteria for capitalization are recorded as Cost of sales in the Consolidated Income Statement as incurred. Research and development expenditures included in Cost of sales for the years 20 20 201 9 and 201 8 totaled $ 41.8 million, $ 61.1 million and $ 63.4 million, respectively. Capitalized costs were not material for the years 20 20 , 201 9 and 201 8 . ( 5 Customer relationship s In accordance with IFRS 3 38 Tube Corporation (“Maverick”) and Hydril Company (“Hydril”) groups, as well as the more recent acquisi tion s of S audi S teel P ipes (“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 life of approximately 14 10 ears for Hydril , 9 SSP C and 3 year s for IPSCO . In 2018 2 zero 109 Selling, general and administrative expenses for the year ended December 31, 2018. As o f December 31, 20 20 the net book value of IPSCO’s customer relationship amounts to $ 51.3 with 2 years, SSP C ’s customer relationship amounts to $ 63.8 mill 7 years , w hile Maverick’s and Hydril’s customer relationships are fully amortized. Management’s re-estimation of assets useful lives, performed in accordance with IAS 38 amortization expenses for 2020 2019 . |
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 wit h 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. Payments associated with short-term leases and leases of low-value assets are recognize d on a straight-line basis as expenses in profit or loss. Short-term leases are leases with a lease term of 12 r less. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not 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). |
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 more frequently if events or circumstances indicate that the carrying amount value may be impaired. 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 and economic factors, such as the cost of raw materials, oil and gas prices, capital expenditure programs for Tenaris’s customers 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 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 |
Description of accounting policy for investments other than investments accounted for using equity method [text block] | I Other i nvestments O ther investments consist primarily of investments in financial instruments and time deposits with a maturity of more than three at the date of purchase . Certain non-derivative financ ial assets that the Company held not for trading have been categorized as financial assets “at fair value through other comprehensive income ” (“FV OCI ” ) . 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 C onsolidated S tatement of C omprehensive Income and transferred to the C onsolidated I ncome S tatement when the financial asset is sold. Exchange gains and losses and impairments related to the financial assets are immediately recognized in the C onsolidated I ncome S tatement. F V OCI instruments with maturities greater than 12 re included in non-current assets . O ther 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 in the Consolidated Income Statement. Purchases and sales of financial investments are recognized as of the ir 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 Sectio 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 a llocation 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. G oods in transit as of year- end are valued based on the supplier’s invoice cost. T enaris establish es a n allowance for obsolete or slow-moving inventories related to finished goods , goods in proc ess, supplies and spare parts . For slow moving or obsolete finished product s , an allowance is established based on management’s analysis of product aging . An allowance for obsolete and slow-moving inventory of sup plies and spare parts is established based on management's analysis of such item s 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 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 C onsolidated S tatement of C hanges in E quity include s : The value of share capital, legal reserve , share premium and other distributable reserve s calculated in accordance with Luxembourg l aw; The currency translation adjustment , other reserves, retained earnings and non-controlling interest calculated in accordance with IFRS. ( 2 Share cap it al The Company has an authorized share capital of a single class of 2.5 $ 1.00 Total ordinary shares issued and outstanding as of December 31, 20 20 , 201 9 and 201 8 are 1,180,536,830 with a par value of $ 1.00 one All issued shares are fully paid. ( 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. S ee n ote 26 |
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 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 bas e s 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 pension plans and fair value adjustments of assets acquired in business combinations. Deferred tax assets are also recognized for 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 te mporary differences can be utiliz ed. At the end of each reporting period, Tenaris reassesses unrecognized deferred tax assets. T enaris 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 t ax basi s 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 for the year in the C onsolidated S tatement of Comprehensive I ncome, depending on the account to which the original amount was charged or credited. |
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 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 outflows 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 in the period in which they arise. Past-service costs are recognized immediately in the Income Statement. ( 2 Post employment benefits (Cont.) For defined benefit 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, 20 20 the outstanding liabil ity for this plan amounts to $ 36.9 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 ac crued for employees at Tenaris’s Italian subsidiary. As from January 1, 2007 as a consequence of a change in an Italian law, employees were entitled to make contributions to external funds, thus, Tenaris’s Italian subsidiary pays every year the required contribution to the funds with no further obligation. As a result, the plan changed from a defined benefit plan to a defined contribution plan effective from that date, but only limited to the contributions of 2007 As of December 31, 20 20 the outstanding liabil ity for this plan amounts to $ 17.3 million. Funded retirement benefit plan held in the US for the benefit of some employees hir ed 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 postretirement health and life plan is present that offers limited medical and life insurance benefits to the retirees, frozen to new participants . A s of December 31, 20 20 the outstanding liabil ity for these plan s amounts to $ 13.6 m 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 equities and money market funds. 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, 2020 the outstanding liability for this plan amount s to $ 10.6 millio ( 3 Other long term benefits During 2007 employee retention and long term incentive program (the “Program”) applicable to certain senior officers and employees of the Company, who will be granted a number of Units throughout the duration of the Program. The value of each of these Units is based on Tenaris’s shareholders’ equity (excluding non-cont rolling interest). Also , t he 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. Until 2017 nits were vest ed ratably over a period of four mandatorily redeemed by the Company ten seven the grant date. Since 2018 are vest ed ratably over the same period and are mandatorily redeemed by the Company seven 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, 20 20 and 201 9 , the outstanding liability corresponding to the Program amounts to $ 82.4 million and $ 99.0 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 p er share as of December 31, 20 20 and 201 9 , is $ 108.7 million and $ 119.9 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 ( 5 Other compensation obligations Employ ee 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 n ote 2 6 . |
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 amortiz ed cost. They are presented as current liabilities unl ess payment is not due within twelve months after the reporting period. Due to the short-term nature t heir carrying amount s 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 transfer red 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 ana lyzed on a contract by contract basis to ensure that all performance obligations are fulfilled . I n 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 right s of return are based o n 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 related to goods sold, which represent a non-material portion of sales revenue and mainly include: Pipe Management Services. This comprises mainly preparation of the pipes ready to be run, delivery to the customer, storage services and rig return. Field Services. Comprises field technical support and running assistance. 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. Revenue from providing services is recognized over time in the accounting period in which the services are rendered . T he following in puts and outputs methods are applied to recognize revenue considering the nature of service : Storage services , the C ompany provides storage services in owned or third-party warehouses, subject to a variable fee to be invoiced. T his fe e is determined based on the time that the customer maintains the material in the warehouse and th e amount of the material stored. In the majority of cases, to quantify the amount to be invoiced in any given month, the monthly average fee of storage per ton is multiplied by the monthly average stock stored (in tons). Freights , the Company recognized the revenue on a pro rata bases considering the units delivered and time elapsed. Field services , the revenue i s recognized considering output method s , in particular surveys of service comple tion provided by the customer. 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 considering that the contracts do not include any significant financing component, the Company does not adjust any of the transaction pric es 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 is 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 I ncome S tatement on the accrual basis of accounting. Commissions, freight s and other selling expenses , including shipping and handling costs, are recorded in S elling, general and administrative expense s in the Consolidated I ncome S tatement . |
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 owners of the parent 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, borrowing s 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 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 S tatement. Fair value through oth er 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. Fai r 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. For equity instruments, these 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, 2020 | |
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 Plant and production equipment 10 40 Vehicles, furniture and fixtures, and other equipment 4 10 |
III. Financial Risk Management
III. Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Argentine Peso / U.S. dollar ( 39,561 ) ( 95,811 ) Euro / U.S. dollar ( 291,362 ) ( 103,518 ) Saudi Arabian Riyal / U.S. dollar ( 125,789 ) ( 107,582 ) |
Disclosure of financial instruments by type of interest rate [text block] | As of December 31, 2020 2019 Amount in thousands of U.S. dollars % Amount in thousands of U.S. dollars % Fixed rate (*) 237,320 38 768,002 93 Variable rate 381,687 62 54,150 7 Total 619,007 822,152 |
Disclosure of fair value of financial instruments [text block] | Carrying amount Measurement Categories At Fair Value December 31, 2019 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 1,554,299 387,602 - 1,166,697 1,166,697 - - Other investments 210,376 65,874 144,502 - 134,990 9,512 - Fixed income (time-deposit, zero 65,874 65,874 - - - - - Certificates of deposits 20,637 20,637 - - - - - Commercial papers 4,993 4,993 - - - - - Other notes 40,244 40,244 - - - - - Bonds and other fixed income 144,502 - 144,502 - 134,990 9,512 - U.S. government securities 10,211 - 10,211 - 10,211 - - Non - U.S. government securities 28,637 - 28,637 - 19,125 9,512 - Corporates securities 105,654 - 105,654 - 105,654 - - Derivative financial instruments 19,929 - - 19,929 - 19,929 - Other Investments Non-current 24,934 - 18,012 6,922 18,012 - 6,922 Bonds and other fixed income 18,012 - 18,012 - 18,012 - - Other investments 6,922 - - 6,922 - - 6,922 Trade receivables 1,348,160 1,348,160 - - - - - Receivables C and NC (*) 261,678 93,239 48,659 - - - 48,659 Other receivables 141,898 93,239 48,659 - - - 48,659 Other receivables (non-financial) 119,780 - - - - - - Total 1,894,875 211,173 1,193,548 1,319,699 29,441 55,581 Liabilities Borrowings C and NC 822,152 822,152 - - - - - Trade payables 555,887 555,887 - - - - - Finance Lease Liabilities C and NC 230,167 230,167 - - - - - Derivative financial instruments 1,814 - - 1,814 - 1,814 - Total 1,608,206 - 1,814 - 1,814 - Ca rrying Amount Measurement Categories At Fair Value December 31, 2020 Amortized Cost FVOCI FVPL Level 1 Level 2 Level 3 Assets Cash and cash equivalents 584,681 486,498 - 98,183 98,183 - - Other investments 872,488 763,697 108,791 - 108,791 - - Fixed income (time-deposit, zero 763,697 763,697 - - - - - U.S. Sovereign Bills 97,982 97,982 - - - - - Non - U.S. Sovereign Bills 14,586 14,586 - - - - - Certificates of deposits 222,132 222,132 - - - - - Commercial papers 268,737 268,737 - - - - - Other notes 160,260 160,260 - - - - - Bonds and other fixed income 108,791 - 108,791 - 108,791 - - Non - U.S. government securities 20,219 - 20,219 - 20,219 - - Corporates securities 88,572 - 88,572 - 88,572 - Derivative financial instruments 11,449 - - 11,449 - 11,449 - Other Investments Non-current 247,082 - 239,422 7,660 239,422 - 7,660 Bonds and other fixed income 239,422 - 239,422 - 239,422 - - Other investments 7,660 - - 7,660 - - 7,660 Trade receivables 968,148 968,148 - - - - - Receivables C and NC (*) 232,152 90,330 48,659 - - 48,659 Other receivables 138,989 90,330 48,659 - - - 48,659 Other receivables (non-financial) 93,163 - - - - - - Total 2,308,673 396,872 117,292 446,396 11,449 56,319 Liabilities Borrowings C and NC 619,007 619,007 - - - - - Trade payables 462,105 462,105 - - - - - Finance Lease Liabilities C and NC 257,343 257,343 - - - - - Derivative financial instruments 3,217 - - 3,217 - 3,217 - Total 1,338,455 - 3,217 - 3,217 - |
Disclosure of fair value measurement [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 55,581 52,985 (Decrease) / Addition ( 3,604 ) 2,933 Increase due to business combinations 3,915 - Currency translation adjustment and others 427 ( 337 ) At the end of the year 56,319 55,581 |
Note 1 - Segment Information (T
Note 1 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments [text block] | Year ended December 31, 2020 Tubes Other Total IFRS - Net Sales 4,844 303 5,147 Management view - operating (loss) ( 277 ) ( 50 ) ( 327 ) Differences in cost of sales ( 138 ) 4 ( 134 ) Differences in depreciation and amortization 1 ( 1 ) - Differences in selling, general and administrative expenses ( 2 ) - ( 2 ) Differences in other operating income (expenses), net ( 200 ) - ( 200 ) IFRS - operating (loss) ( 616 ) ( 47 ) ( 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 ) Capital expenditures 189 4 193 Depreciation and amortization 661 18 679 Year ended December 31, 2019 Tubes Other Total IFRS - Net Sales 6,870 424 7,294 Management view - operating income 857 73 930 Differences in cost of sales ( 105 ) 3 ( 102 Differences in depreciation and amortization ( 1 ) - ( 1 ) Differences in selling, general and administrative expenses ( 1 ) 1 - Differences in other operating income (expenses), net 6 - 6 IFRS - operating income 756 77 833 Financial income (expense), net 19 Income before equity in earnings of non-consolidated companies and income tax 852 Equity in earnings of non-consolidated companies 82 Income before income tax 934 Capital expenditures 338 12 350 Depreciation and amortization 523 17 540 Year ended December 31, 2018 Tubes Other Total IFRS - Net Sales 7,233 426 7,659 Management view - operating income 702 81 783 Differences in cost of sales 112 7 119 Differences in depreciation and amortization ( 34 ) - ( 34 ) Differences in selling, general and administrative expenses ( 2 ) 6 4 IFRS - operating income 778 94 872 Financial income (expense), net 37 Income before equity in earnings of non-consolidated companies and income tax 909 Equity in earnings of non-consolidated companies 194 Income before income tax 1,103 Capital expenditures 346 3 349 Depreciation and amortization 645 19 664 |
Disclosure of geographical areas [text block] | (all amounts in thousands of U.S. dollars) North America South America Europe Middle East & Africa Asia Pacific Unallocated (*) Total 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 Year ended December 31, 2019 Net sales 3,429,911 1,391,288 738,880 1,382,172 351,804 - 7,294,055 Total assets 7,885,120 2,227,044 2,282,775 958,424 609,663 879,965 14,842,991 Trade receivables 612,809 176,173 149,321 319,406 90,451 - 1,348,160 Property, plant and equipment, net 3,771,570 1,129,260 816,721 254,858 117,608 - 6,090,017 Capital expenditures 169,390 113,999 55,169 4,578 7,038 - 350,174 Depreciation and amortization 276,046 105,308 82,400 42,520 33,247 - 539,521 Year ended December 31, 2018 Net sales 3,611,509 1,462,044 724,733 1,559,988 300,314 - 7,658,588 Total assets 7,971,311 2,489,522 1,913,589 588,746 482,563 805,568 14,251,299 Trade receivables 791,190 280,801 215,202 383,358 66,815 - 1,737,366 Property, plant and equipment, net 3,859,060 1,133,113 848,178 94,040 129,517 - 6,063,908 Capital expenditures 196,220 68,603 77,467 2,047 5,136 - 349,473 Depreciation and amortization 441,705 108,558 82,769 10,389 20,936 - 664,357 |
Segment revenues by market [text block] | Revenues Tubes (in millions of U.S. dollars) 2020 2019 2018 Oil and Gas 4,073 5,757 6,042 Hydrocarbon Processing and Power Generation 371 534 602 Industrial and Other 400 579 589 Total 4,844 6,870 7,233 |
Note 2 - Cost of Sales (Tables)
Note 2 - Cost of Sales (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Cost of Sales [Abstract] | |
Disclosure of detailed information about cost of sales [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Inventories at the beginning of the year 2,265,880 2,524,341 2,368,304 Increase in inventory due to business combinations 199,589 52,966 - Plus: Charges of the year Raw materials, energy, consumables and other 1,545,688 2,709,629 3,400,396 Services and fees 154,976 222,415 275,130 Labor cost (*) 757,359 870,261 855,040 Depreciation of property, plant and equipment 503,725 428,791 432,497 Amortization of intangible assets 8,121 5,948 8,220 Depreciation of right-of-use assets 40,127 28,727 - Maintenance expenses 107,764 284,758 185,782 Allowance for obsolescence 35,809 29,138 25,457 Taxes 45,162 100,738 133,308 Other 59,790 115,663 119,507 3,458,110 4,849,034 5,435,337 Less: Inventories at the end of the year ( 1,636,673 ) ( 2,265,880 ) ( 2,524,341 ) 4,087,317 5,107,495 5,279,300 |
Note 3 - Selling, General and_2
Note 3 - Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expense [abstract] | |
Disclosure of detailed information about selling, general and administrative expenses [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Services and fees 115,883 153,773 128,090 Labor cost (*) 444,436 481,854 470,928 Depreciation of property, plant and equipment 26,814 18,524 16,968 Amortization of intangible assets 82,355 41,967 206,672 Depreciation of right-of-use assets 17,664 15,564 - Commissions, freight and other selling expenses 310,815 441,442 491,555 Provisions for contingencies 11,957 28,565 23,498 Allowances for doubtful accounts 4,644 ( 16,256 1,751 Taxes 63,234 110,876 71,110 Other 41,425 89,665 99,404 1,119,227 1,365,974 1,509,976 |
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, 2020 | |
4. Labor costs (included in Cost of sales and in Selling, general and administrative expenses) | |
Disclosure of detailed information about labor costs [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Wages, salaries and social security costs 1,036,211 1,274,474 1,250,783 Severance indemnities 142,458 24,637 25,225 Defined contribution plans 12,442 12,663 13,217 Pension benefits - defined benefit plans 11,097 18,207 15,390 Employee retention and long term incentive program ( 413 ) 22,134 21,353 1,201,795 1,352,115 1,325,968 |
Disclosure of information about employees [text block] | Country 2020 2019 2018 Mexico 4,501 5,370 5,595 Argentina 4,376 5,405 5,427 Italy 2,039 2,144 2,155 USA 1,596 2,255 2,382 Romania 1,552 1,815 1,852 Brazil 1,360 1,360 1,287 Colombia 746 1,040 1,082 Canada 561 772 1,030 Indonesia 521 616 554 Japan 399 400 399 Other 1,377 2,023 1,204 19,028 23,200 22,967 |
Note 5 - Impairment charge (Tab
Note 5 - Impairment charge (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [text block] | (all amounts i n millions of U.S. dollars) Assets before Impairment Assets after OCTG - USA 544 225 319 IPSCO 1,169 357 812 Coiled Tubing 108 4 104 Rods - USA 73 36 37 |
Disclosure of Sensitivity Analysis for Additional Impairment to Changes in Key Assumptions [text block] | (all amounts in millions + 100 - 1 - 5 OCTG - USA ( 60 ( 43 ( 16 IPSCO ( 117 ( 77 ( 41 Coiled Tubing ( 12 ( 6 ( 5 Rods - USA ( 5 ( 3 ( 2 |
Note 6 - Other operating inco_2
Note 6 - Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Note 5 - Other Operating Income and Expenses | |
Disclosure of detailed information about other operating income and expenses [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Other operating income Net income from other sales 9,891 8,651 3,604 Net rents 5,501 5,089 4,909 Other 18,001 8,025 6,546 Recovery on allowance for doubtful receivables - 1,239 - 33,393 23,004 15,059 Other operating expenses Contributions to welfare projects and non-profit organizations 12,989 11,199 11,379 Allowance for doubtful receivables 1,263 - 1,179 14,252 11,199 12,558 |
Note 7 - Financial Results (Tab
Note 7 - Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Financial Results [Abstract] | |
Disclosure of detailed information about financial income (cost) [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 Interest Income 21,625 48,061 42,244 Net result on changes in FV of financial assets at FVPL - ( 64 ) ( 2,388 ) Impairment result on financial assets at FVTOCI ( 3,238 ) - - Finance income (*) 18,387 47,997 39,856 Finance cost ( 27,014 ) ( 43,381 ) ( 36,942 ) Net foreign exchange transactions results (**) ( 74,422 ) 27,868 28,845 Foreign exchange derivatives contracts results (***) 19,644 ( 11,616 ) 6,576 Other ( 1,590 ) ( 1,585 ) ( 1,035 ) Other financial results ( 56,368 ) 14,667 34,386 Net financial results ( 64,995 ) 19,283 37,300 |
Note 8 - Income Tax (Tables)
Note 8 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Disclosure of detailed information about income tax expense (benefit) [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 2018 Current tax ( 121,048 ) ( 299,692 ) ( 343,104 ) Deferred tax 97,898 97,240 113,897 Tax charge ( 23,150 ) ( 202,452 ) ( 229,207 ) |
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, (all amounts in thousands of U.S. dollars) 2020 2019 2018 (Loss) Income before income tax ( 619,267 ) 933,710 1,103,107 Less Impairment charges (non deductible) 622,402 - - Income before income tax without impairment charges 3,135 933,710 1,103,107 Tax calculated at the tax rate in each country 21,052 ( 186,752 ) ( 207,422 ) Effect of currency translation on tax base ( 72,936 ) ( 53,296 ) ( 77,552 ) Changes in the tax rates ( 958 ) 13 ( 1,824 ) Utilization of previously unrecognized tax losses 98 547 - Tax revaluation, withholding tax and others 29,594 37,036 57,591 Tax charges ( 23,150 ) ( 202,452 ) ( 229,207 ) |
Note 10 - Property, Plant and_2
Note 10 - Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Land and Industrial Vehicles, Work in Spare and Total Cost Values at the beginning of the year 799,139 12,468,813 399,724 108,308 60,602 13,836,586 Currency translation adjustment ( 545 72,650 443 ( 2,095 ( 162 70,291 Increase due to business combinations (*) 39,622 440,366 7,195 16,255 - 503,438 Additions 1,451 1,524 620 157,315 6,845 167,755 Transfers / Reclassifications 5,881 157,473 15,586 ( 176,589 - 2,351 Disposals / Consumptions ( 5,964 ( 61,281 ( 8,811 ( 968 ( 5,392 ( 82,416 Values at the end of the year 839,584 13,079,545 414,757 102,226 61,893 14,498,005 Depreciation and impairment Accumulated at the beginning of the year 121,468 7,302,135 322,966 - - 7,746,569 Currency translation adjustment ( 288 56,560 405 - - 56,677 Depreciation charge 11,368 492,973 26,198 - - 530,539 Impairment charge (See note 5 - 36,000 - - - 36,000 Transfers / Reclassifications ( 1 349 ( 475 - - ( 127 Disposals / Consumptions ( 89 ( 57,897 ( 6,848 - - ( 64,834 Accumulated at the end of the year 132,458 7,830,120 342,246 - - 8,304,824 At December 31, 2020 707,126 5,249,425 72,511 102,226 61,893 6,193,181 |
Note 11 - Intangible Assets, _2
Note 11 - Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [text block] | Year ended December 31, 2019 Information Licenses, patents and trademarks (*) Goodwill Customer relationships Total Cost Values at the beginning of the year 580,622 464,571 2,085,936 2,058,859 5,189,988 Currency translation adjustment ( 1,917 ) ( 70 ) ( 968 ) - ( 2,955 ) Increase due to business combinations (***) 405 - 32,869 81,192 114,466 Additions 35,487 772 - - 36,259 Transfers / Reclassifications ( 4,665 ) - - - ( 4,665 ) Disposals ( 5,062 ) ( 1,531 ) - - ( 6,593 ) Values at the end of the year 604,870 463,742 2,117,837 2,140,051 5,326,500 Amortization and impairment Accumulated at the beginning of the year 513,984 373,466 797,592 2,038,981 3,724,023 Currency translation adjustment ( 1,734 ) - - - ( 1,734 ) Amortization charge 28,937 719 - 18,259 47,915 Disposals ( 4,850 ) ( 413 ) - - ( 5,263 ) Accumulated at the end of the year 536,337 373,772 797,592 2,057,240 3,764,941 At December 31, 2019 68,533 89,970 1,320,245 82,811 1,561,559 Year ended December 31, 2020 Information Licenses, patents and Goodwill Customer Total Cost Values at the beginning of the year 604,870 463,742 2,117,837 2,140,051 5,326,500 Currency translation adjustment 1,108 220 ( 5,058 ) - ( 3,730 ) Increase due to business combinations (**) 11,563 87,000 357,183 71,100 526,846 Additions 24,965 602 - - 25,567 Transfers / Reclassifications ( 1,393 ) - - - ( 1,393 ) Disposals ( 3,761 ) ( 1,064 ) - - ( 4,825 ) Values at the end of the year 637,352 550,500 2,469,962 2,211,151 5,868,965 Amortization and impairment Accumulated at the beginning of the year 536,337 373,772 797,592 2,057,240 3,764,941 Currency translation adjustment 890 ( 1 ) - - 889 Amortization charge 42,931 8,760 - 38,785 90,476 Impairment charge (See note 5 - - 586,402 - 586,402 Transfers / Reclassifications 931 - - - 931 Disposals ( 3,730 ) - - - ( 3,730 ) Accumulated at the end of the year 577,359 382,531 1,383,994 2,096,025 4,439,909 At December 31, 2020 59,993 167,969 1,085,968 115,126 1,429,056 |
Disclosure of information for cash-generating units [text block] | (all amounts in millions of U.S. dollars) Tubes Segment CGU Hydril Other Total Tamsa (Hydril and other) 346 19 365 Siderca (Hydril and other) 265 93 358 Hydril 309 - 309 Other - 54 54 Total 920 166 1,086 |
Note 12 - Right-of-use Assets_2
Note 12 - Right-of-use Assets, Net and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
Disclosure of quantitative information about right-of-use assets [text block] | Year ended December 31, 2020 Land and Civil Industrial Vehicles, furniture Total Cost Opening net book amount 36,137 225,389 14,194 275,720 Currency translation adjustment ( 839 ) 746 530 437 Increase due to business combinations (*) 3,461 13,730 7,556 24,747 Additions 11,534 42,573 5,034 59,141 Transfers / Reclassifications 439 ( 458 ) 136 117 Disposals ( 8,800 ) ( 8,622 ) ( 8,835 ) ( 26,257 ) At December 31, 2020 41,932 273,358 18,615 333,905 Depreciation Accumulated at the beginning of the year 8,330 30,581 3,683 42,594 Currency translation adjustment ( 92 ) 145 190 243 Depreciation charge 13,200 37,671 6,920 57,791 Transfers / Reclassifications ( 2,876 ) 1,702 1,291 117 Disposals ( 3,420 ) ( 2,106 ) ( 3,267 ) ( 8,793 ) Accumulated at the end of the year 15,142 67,993 8,817 91,952 At December 31, 2020 26,790 205,365 9,798 241,953 Year ended December 31, 2019 Land and Civil Industrial Buildings, Plant and Production Equipment Vehicles, furniture Total Cost Opening net book amount 27,713 202,352 8,335 238,400 Currency translation adjustment ( 88 ) 6 8 ( 74 ) Increase due to business combinations (**) 229 2,038 - 2,267 Additions 9,292 24,985 7,165 41,442 Transfers / Reclassifications - 496 ( 496 ) - Disposals ( 1,009 ) ( 4,488 ) ( 818 ) ( 6,315 ) At December 31, 2019 36,137 225,389 14,194 275,720 Depreciation Accumulated at the beginning of the year - - - - Currency translation adjustment ( 3 ) 3 8 8 Depreciation charge 8,514 31,869 3,908 44,291 Transfers / Reclassifications - ( 62 ) 62 - Disposals ( 181 ) ( 1,229 ) ( 295 ) ( 1,705 ) Accumulated at the end of the year 8,330 30,581 3,683 42,594 At December 31, 2019 27,807 194,808 10,511 233,126 |
Lease liability evolution [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Opening net book amount 230,167 234,149 Increase due to business combinations 26,046 2,267 Translation differences 7,656 2,690 Additions 58,536 36,957 Cancellations ( 17,529 ) ( 4,688 ) Repayments (*) ( 51,666 ) ( 43,974 ) Interest accrued 4,133 2,766 At December 31, 257,343 230,167 |
Note 13 - Investments in Non-_2
Note 13 - Investments in Non-consolidated Companies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of unconsolidated structured entities [abstract] | |
Disclosure of unconsolidated structured entities [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 879,965 805,568 Translation differences ( 31,977 ) ( 10,781 ) Equity in earnings of non-consolidated companies 108,799 82,036 Increase due to business combinations - 20,635 Dividends and distributions declared (*) ( 861 ) ( 28,037 ) Additions - 19,610 Increase / (decrease) in equity reserves and others 1,426 ( 9,066 ) At the end of the year 957,352 879,965 |
Disclosure of detailed information about principal non-consolidated companies [text block] | % ownership at December 31, Value at December 31, Company Country of incorporation 2020 2019 2020 2019 a) Ternium (*) Luxembourg 11.46 11.46 830,028 751,105 b) Usiminas (**) Brazil 3.07 3.07 65,144 74,593 c) Techgen Mexico 22.00 22.00 19,536 9,888 d) Global Pipe Company Saudi Arabia 35.00 35.00 23,421 22,550 Others - - - 19,223 21,829 957,352 879,965 |
Disclosure of detailed information about selected financial information [text block] | (all amounts in thousands of U.S. dollars) Ternium 2020 2019 Non-current assets 8,289,460 8,757,320 Current assets 4,566,775 4,178,213 Total assets 12,856,235 12,935,533 Non-current liabilities 2,559,485 3,452,535 Current liabilities 1,853,597 1,768,125 Total liabilities 4,413,082 5,220,660 Equity 8,443,153 7,714,873 Revenues 8,735,435 10,192,818 Gross profit 1,635,512 1,740,378 Net income for the year attributable to owners of the parent 778,468 564,269 Total comprehensive income for the year, net of tax, attributable to owners of the parent 666,667 445,473 (all amounts in thousands of U.S. dollars) Usiminas 2020 2019 Non-current assets 3,487,317 4,335,662 Current assets 2,276,368 2,198,449 Total assets 5,763,685 6,534,111 Non-current liabilities 1,661,605 1,955,395 Current liabilities 861,912 716,930 Total liabilities 2,523,517 2,672,325 Equity 3,240,168 3,861,786 Revenues 3,132,949 3,790,206 Gross profit 624,199 478,141 Net income for the year attributable to owners of the parent 106,361 52,779 |
Note 14 - Receivables - Non C_2
Note 14 - Receivables - Non Current (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other non-current receivables [abstract] | |
Disclosure of detailed information about non-current receivables [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Employee advances and loans 4,563 6,008 Tax credits 18,046 20,065 Receivables from related parties 62,790 59,999 Legal deposits 8,600 12,378 Advances to suppliers and other advances 4,803 3,772 Receivable Venezuelan subsidiaries 48,659 48,659 Others 6,842 6,222 154,303 157,103 |
Note 15 - Inventories, Net (Tab
Note 15 - Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Classes of current inventories [abstract] | |
Disclosure of detailed information about inventories [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Finished goods 691,922 968,329 Goods in process 417,097 612,888 Raw materials 143,558 221,954 Supplies 488,802 486,411 Goods in transit 158,929 194,015 1,900,308 2,483,597 Allowance for obsolescence, see note 24 ( 263,635 ) ( 217,717 ) 1,636,673 2,265,880 |
Note 16 - Receivables and Pre_2
Note 16 - Receivables and Prepayments, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Current prepayments and current accrued income [abstract] | |
Disclosure of detailed information about receivables and prepayments [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Prepaid expenses and other receivables 26,457 30,579 Government entities 3,075 1,867 Employee advances and loans 4,672 8,189 Advances to suppliers and other advances 14,661 17,180 Government tax refunds on exports 2,723 670 Receivables from related parties 16,217 19,837 Miscellaneous 13,961 31,145 81,766 109,467 Allowance for other doubtful accounts, see note 24 ( 3,917 ) ( 4,892 ) 77,849 104,575 |
Note 17 - Current Tax Assets _2
Note 17 - Current Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 V.A.T. credits 106,293 112,161 Prepaid taxes 30,091 55,227 136,384 167,388 |
Disclosure of detailed information about tax liabilities [text block] | Year ended December 31, Current tax liabilities 2020 2019 Income tax liabilities 27,616 64,994 V.A.T. liabilities 9,933 9,953 Other taxes 53,044 52,678 90,593 127,625 |
Note 18 - Trade Receivables, _2
Note 18 - Trade Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information about current trade receivables [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Current accounts 1,017,663 1,387,494 Receivables from related parties 4,161 9,448 1,021,824 1,396,942 Allowance for doubtful accounts, see note 24 ( 53,676 ) ( 48,782 ) 968,148 1,348,160 |
Disclosure if detailed information about the aging of trade receivables [text block] | (all amounts in thousands of U.S. dollars) Trade Receivables Not Due Past due 1 180 > 180 At December 31, 2020 Guaranteed 191,514 170,796 18,778 1,940 Not guaranteed 830,310 655,132 116,802 58,376 Guaranteed and not guaranteed 1,021,824 825,928 135,580 60,316 Expected loss rate 0.07 % 0.04 % 0.23 % 0.72 % Allowances for doubtful accounts ( 721 ) ( 321 ) ( 331 ) ( 69 ) Nominative allowances for doubtful accounts ( 52,955 ) ( 718 ) ( 1,011 ) ( 51,226 ) Net Value 968,148 824,889 134,238 9,021 (all amounts in thousands of U.S. dollars) Trade Receivables Not Due Past due 1 180 > 180 At December 31, 2019 Guaranteed 234,427 205,764 26,899 1,764 Not guaranteed 1,162,515 948,449 157,960 56,106 Guaranteed and not guaranteed 1,396,942 1,154,213 184,859 57,870 Expected loss rate 0.09 % 0.04 % 0.24 % 0.57 % Allowances for doubtful accounts ( 1,294 ) ( 529 ) ( 455 ) ( 310 ) Nominative allowances for doubtful accounts ( 47,488 ) - ( 1,922 ) ( 45,566 ) Net Value 1,348,160 1,153,684 182,482 11,994 |
Note 19 - Cash and Cash Equiv_2
Note 19 - Cash and Cash Equivalents and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, (all amounts in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents Cash at banks 117,807 118,314 Liquidity funds 98,183 1,166,697 Short – term investments 368,691 269,288 584,681 1,554,299 Other investments - current Fixed income (time-deposit, zero 763,697 65,874 Bonds and other fixed income 108,791 144,502 872,488 210,376 Other investments - Non-current Bonds and other fixed income 239,422 18,012 Others 7,660 6,922 247,082 24,934 |
Note 20 - Borrowings (Tables)
Note 20 - Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Disclosure of detailed information about borrowings [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Non-current Bank borrowings 315,884 40,896 Costs of issue of debt ( 145 ) ( 16 ) 315,739 40,880 Current Bank borrowings 303,170 781,258 Bank overdrafts 98 24 Costs of issue of debt - ( 10 ) 303,268 781,272 Total Borrowings 619,007 822,152 |
Disclosure of detailed information about the maturity of borrowings [text block] | 1 1 2 2 3 3 4 4 5 Over 5 years Total At December 31, 2020 Borrowings 303,268 104,147 207,595 3,997 - - 619,007 Total borrowings 303,268 104,147 207,595 3,997 - - 619,007 Interest to be accrued (*) 9,829 5,068 1,014 22 - - 15,933 Total 313,097 109,215 208,609 4,019 - - 634,940 1 1 2 2 3 3 4 4 5 Over 5 Total At December 31, 2019 Borrowings 781,272 17,307 23,573 - - - 822,152 Total borrowings 781,272 17,307 23,573 - - - 822,152 Interest to be accrued (*) 11,370 1,045 117 - - - 12,532 Total 792,642 18,352 23,690 - - - 834,684 |
Disclosure of detailed information about significant borrowings [text block] | In million of U.S. dollars Disbursement date Borrower Type Original & Outstanding Final maturity 2020 Maverick Bilateral 50 2021 2020 Maverick Bilateral 75 2022 2020 Tamsa Bilateral 60 2023 2020 Tamsa Bilateral 80 2023 2020 Tamsa Bilateral 60 2023 2020 SSPC Multiple Banks 81 2021 2024 |
Disclosure of detailed information about weighted average interest rates of borrowings [text block] | 2020 2019 Total borrowings 2.51 % 3.18 % |
Disclosure of detailed information about borrowings by currency and rate [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, Currency Interest rates 2020 2019 USD Variable 274,600 - USD Fixed 17,936 18,370 SAR Fixed 20,902 16,106 EUR Fixed 1,828 5,108 EUR Variable 473 1,296 Total non-current borrowings 315,739 40,880 (all amounts in thousands of U.S. dollars) Year ended December 31, Currency Interest rates 2020 2019 USD Variable 67,823 17,092 USD Fixed 2,322 274,799 EUR Variable 1,015 80 EUR Fixed 3,886 3,772 MXN Fixed 147,997 424,964 ARS Fixed 3,699 86 SAR Variable 37,776 35,666 SAR Fixed 38,750 24,797 Others Variable - 16 Total current borrowings 303,268 781,272 |
Disclosure of borrowings evolution [text block] | Year ended December 31, 2020 (all amounts in thousands of U.S. dollars) Non current Current At the beginning of the year 40,880 781,272 Translation differences 266 ( 487 ) Proceeds and repayments, net 234,455 ( 478,913 ) Interests accrued less payments 426 ( 12,016 ) Reclassifications ( 12,940 ) 12,940 Increase due to business combinations 52,652 398 Overdrafts variation - 74 At the end of the year 315,739 303,268 |
Note 21 - Deferred Income Tax (
Note 21 - Deferred Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |
Disclosure of deferred tax assets and liabilities [text block] | (all amounts in thousands of U.S. dollars) Fixed assets Inventories Intangible and Other Total At the beginning of the year 651,339 19,396 118,062 788,797 Translation differences 1,644 - 253 1,897 Increase due to business combinations 89,306 - 43,397 132,703 Charged to other comprehensive income - - ( 1,194 ) ( 1,194 ) Income statement (credit) ( 39,874 ) ( 4,141 ) ( 34,725 ) ( 78,740 ) At December 31, 2020 702,415 15,255 125,793 843,463 (all amounts in thousands of U.S. dollars) Fixed assets Inventories Intangible and Other Total At the beginning of the year 710,995 25,048 46,532 782,575 Translation differences ( 347 ) - ( 4 ) ( 351 ) Increase due to business combinations 5,621 - 11,209 16,830 Charged to other comprehensive income - - 423 423 Income statement charge / (credit) ( 64,930 ) ( 5,652 ) 59,902 ( 10,680 ) At December 31, 2019 651,339 19,396 118,062 788,797 (all amounts in thousands of U.S. dollars) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year ( 19,653 ) ( 93,404 ) ( 382,832 ) ( 181,606 ) ( 677,495 ) Translation differences 1,804 513 1,996 644 4,957 Increase due to business combinations ( 7,452 ) ( 24,580 ) ( 33,598 ) ( 34,974 ) ( 100,604 ) Charged to other comprehensive income - - - ( 1,952 ) ( 1,952 ) Income statement charge / (credit) 4,093 31,534 ( 65,715 ) 10,930 ( 19,158 ) At December 31, 2020 ( 21,208 ) ( 85,937 ) ( 480,149 ) ( 206,958 ) ( 794,252 ) (all amounts in thousands of U.S. dollars) Provisions and allowances Inventories Tax losses Other Total At the beginning of the year ( 16,116 ) ( 86,585 ) ( 396,257 ) ( 86,184 ) ( 585,142 ) Translation differences 362 306 497 286 1,451 Increase due to business combinations ( 1,160 ) ( 1,413 ) ( 1,172 ) ( 2,238 ) ( 5,983 ) Charged to other comprehensive income - - - ( 1,261 ) ( 1,261 ) Income statement charge / (credit) ( 2,739 ) ( 5,712 ) 14,100 ( 92,209 ) ( 86,560 ) At December 31, 2019 ( 19,653 ) ( 93,404 ) ( 382,832 ) ( 181,606 ) ( 677,495 ) |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Deferred tax assets to be recovered after 12 ( 640,603 ) ( 538,274 ) Deferred tax liabilities to be settled after 12 840,892 766,852 |
Deferred tax [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Deferred tax assets ( 205,590 ) ( 225,680 ) Deferred tax liabilities 254,801 336,982 49,211 111,302 Year ended December 31, 2020 2019 At the beginning of the year 111,302 197,433 Translation differences 6,854 1,100 Increase due to business combinations 32,099 10,847 Charged to other comprehensive income ( 3,146 ) ( 838 ) Income statement (credit) ( 97,898 ) ( 97,240 ) At the end of the year 49,211 111,302 |
Note 22 - Other Liabilities (Ta
Note 22 - Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Other Liabilities [Abstract] | |
Disclosure of other non-current liabilities [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Post-employment benefits 136,811 144,993 Other-long term benefits 64,928 85,473 Miscellaneous 43,896 20,917 245,635 251,383 |
Disclosure of net defined benefit liability (asset) [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Unfunded 115,774 125,573 Funded 21,037 19,420 136,811 144,993 Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Values at the beginning of the year 125,573 97,318 Current service cost 4,796 7,978 Interest cost 6,496 5,526 Curtailments and settlements ( 1,237 ) - Remeasurements (*) ( 2,230 ) 7,010 Translation differences ( 415 ) ( 1,567 ) Increase due to business combinations 1,566 15,660 Benefits paid from the plan ( 22,955 ) ( 9,328 ) Other 4,180 2,976 At the end of the year 115,774 125,573 Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Present value of funded obligations 176,309 160,412 Fair value of plan assets ( 157,335 ) ( 145,160 ) Liability (*) 18,974 15,252 Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year 160,412 146,885 Translation differences 2,148 4,542 Current service cost 850 721 Interest cost 5,009 5,754 Remeasurements (*) 18,025 12,769 Benefits paid ( 9,266 ) ( 10,259 ) Other ( 869 ) - At the end of the year 176,309 160,412 |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | Year ended December 31, 2020 2019 Discount rate 1 7 1 7 Rate of compensation increase 0 3 0 3 Year ended December 31, 2020 2019 Discount rate 1 3 3 4 Rate of compensation increase 0 3 0 3 |
Disclosure of fair value of plan assets [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 At the beginning of the year ( 145,160 ) ( 132,438 ) Translation differences ( 1,729 ) ( 4,137 ) Return on plan assets ( 4,411 ) ( 5,018 ) Remeasurements ( 10,396 ) ( 10,507 ) Contributions paid to the plan ( 5,017 ) ( 3,589 ) Benefits paid from the plan 9,266 10,259 Other 112 270 At the end of the year ( 157,335 ) ( 145,160 ) Year ended December 31, 2020 2019 Equity instruments 49.3 % 49.0 % Debt instruments 46.8 % 47.0 % Others 3.9 % 4.0 % |
Disclosure of other current liabilities [text block] | Year ended December 31, (all amounts in thousands of U.S. dollars) 2020 2019 Payroll and social security payable 175,175 153,009 Miscellaneous 27,651 23,255 202,826 176,264 |
Note 23 - Non-current allowan_2
Note 23 - Non-current allowances and provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Non-current allowances and provisions [Abstract] | |
Disclosure of detailed information about non-current allowances and provisions from liabilities [text block] | Liabilities Year ended December 31, 2020 2019 (all amounts in thousands of U.S. dollars) Values at the beginning of the year 54,599 36,089 Translation differences ( 5,739 ) ( 1,571 ) Increase due to business combinations 26,542 - Additional provisions 478 19,904 Reclassifications 557 5,641 Used ( 3,219 ) ( 5,464 ) Values at the end of the year 73,218 54,599 |
Note 24 - Current allowances _2
Note 24 - Current allowances and provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Current allowances and provisions [Abstract] | |
Disclosure of detailed information about current allowances and provisions deducted from assets [text block] | (i) Deducted from assets Year ended December 31, 2020 Allowance for doubtful Allowance for other doubtful accounts - Other receivables Allowance for (all amounts in thousands of U.S. dollars) Values at the beginning of the year ( 48,782 ) ( 4,892 ) ( 217,717 ) Translation differences ( 37 ) 801 1,560 Increase due to business combinations ( 1,930 ) - ( 76,776 ) (Additional) allowances ( 4,644 ) ( 1,263 ) ( 35,809 ) Used 1,717 1,437 65,107 At December 31, 2020 ( 53,676 ) ( 3,917 ) ( 263,635 ) Year ended December 31, 2019 Allowance for doubtful Allowance for other doubtful accounts - Other receivables Allowance for (all amounts in thousands of U.S. dollars) Values at the beginning of the year ( 66,535 ) ( 6,784 ) ( 209,796 ) Translation differences 9 88 794 Increase due to business combinations ( 1,788 ) - ( 10,761 ) (Additional) / reversals allowances 16,256 1,239 ( 29,138 ) Used 3,276 565 31,184 At December 31, 2019 ( 48,782 ) ( 4,892 ) ( 217,717 ) |
Disclosure of detailed information about current allowances and provisions from liabilities [text block] | (ii) Liabilities Year ended December 31, 2020 Sales risks Other claims and contingencies (*) Total (all amounts in thousands of U.S. dollars) Values at the beginning of the year 5,867 11,150 17,017 Translation differences ( 5 ) ( 975 ) ( 980 ) Increase due to business combinations 116 398 514 Additional provisions 9,728 1,751 11,479 Reclassifications - ( 557 ) ( 557 ) Used ( 13,911 ) ( 1,283 ) ( 15,194 ) At December 31, 2020 1,795 10,484 12,279 Year ended December 31, 2019 Sales risks Other claims and contingencies (*) Total (all amounts in thousands of U.S. dollars) Values at the beginning of the year 6,814 17,469 24,283 Translation differences ( 28 ) ( 570 ) ( 598 ) Increase due to business combinations 505 8,000 8,505 Additional / (reversals) provisions 11,880 ( 3,219 ) 8,661 Reclassifications - ( 5,641 ) ( 5,641 ) Used ( 13,304 ) ( 4,889 ) ( 18,193 ) At December 31, 2019 5,867 11,150 17,017 |
Note 25 - Derivative Financia_2
Note 25 - Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about derivative financial instruments [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 Derivatives hedging borrowings and investments 10,119 19,000 Other Derivatives 1,330 929 Contracts with positive fair values 11,449 19,929 Derivatives hedging borrowings and investments ( 2,250 ) - Other Derivatives ( 967 ) ( 1,814 ) Contracts with negative fair values ( 3,217 ) ( 1,814 ) Total 8,232 18,115 |
Disclosure of detailed information about hedged items [text block] | (all amounts in thousands of U.S. dollars) Fair Value Hedge Accounting Reserve Purchase currency Sell currency Term 2020 2019 2020 2019 MXN USD 2021 9,838 18,999 156 404 USD MXN 2021 ( 5 ) ( 576 ) - - USD EUR 2021 ( 1,969 ) - 5 - EUR USD 2021 543 588 - - JPY USD 2021 - ( 190 ) - - USD BRL 2021 412 ( 234 ) 85 - JPY USD 2030 94 - ( 4,958 ) 2,149 USD KWD 2021 ( 246 ) 103 ( 59 ) 38 USD CAD 2021 - ( 200 ) - - USD COP 2021 - ( 345 ) - - USD CNY 2021 ( 482 ) ( 167 ) - - Others 2021 47 137 - - Total 8,232 18,115 ( 4,771 ) 2,591 |
Disclosure of detailed information of the hedge reserve evolution [text block] | Equity Reserve Movements 2019 Equity Reserve Movements 2020 Equity Reserve Foreign Exchange ( 916 ) 3,507 2,591 ( 7,362 ) ( 4,771 ) Total Cash flow Hedge ( 916 ) 3,507 2,591 ( 7,362 ) ( 4,771 ) |
Note 28 - Cash Flow Disclosur_2
Note 28 - Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Cash Flow [Abstract] | |
Disclosure of detailed information about cash flow disclosures [text block] | Year ended December 31, (i) Changes in working capital 2020 2019 2018 Inventories 828,796 311,459 ( 176,443 ) Receivables and prepayments and current tax assets 74,877 ( 34,368 ) 30,144 Trade receivables 409,163 428,326 ( 517,579 ) Other liabilities ( 34,871 ) ( 18,295 ) ( 22,984 ) Customer advances ( 34,388 ) 16,844 5,976 Trade payables ( 184,442 ) ( 180,857 ) ( 57,066 ) 1,059,135 523,109 ( 737,952 ) (ii) Income tax accruals less payments Tax accrued 23,150 202,452 229,207 Taxes paid ( 140,364 ) ( 395,869 ) ( 170,713 ) ( 117,214 ) ( 193,417 ) 58,494 (iii) Interest accruals less payments, net Interest accrued 8,627 ( 4,616 ) ( 2,914 ) Interest received 19,613 30,890 40,613 Interest paid ( 28,778 ) ( 30,655 ) ( 31,548 ) ( 538 ) ( 4,381 ) 6,151 |
Note 29 - Related Party Trans_2
Note 29 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of transactions between related parties [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 (i) Transactions (a) Sales of goods and services Sales of goods to non-consolidated parties 20,183 20,577 23,709 Sales of goods to other related parties 18,243 69,972 131,548 Sales of services to non-consolidated parties 5,829 5,620 7,641 Sales of services to other related parties 5,049 4,386 5,647 49,304 100,555 168,545 (b) Purchases of goods and services Purchases of goods to non-consolidated parties 84,485 174,588 245,186 Purchases of goods to other related parties 12,892 51,765 106,624 Purchases of services to non-consolidated parties 6,979 9,404 9,556 Purchases of services to other related parties 18,133 54,514 46,179 122,489 290,271 407,545 (all amounts in thousands of U.S. dollars) At December 31, 2020 2019 (ii) Period-end balances (a) Arising from sales / purchases of goods / services Receivables from non-consolidated parties 78,721 78,884 Receivables from other related parties 4,447 10,400 Payables to non-consolidated parties ( 24,914 ) ( 19,100 ) Payables to other related parties ( 2,310 ) ( 7,048 ) 55,944 63,136 (b) Financial debt Finance lease liabilities from non-consolidated parties ( 2,042 ) ( 2,064 ) Finance lease liabilities from other related parties ( 810 ) - ( 2,852 ) ( 2,064 ) |
Note 30 - Fees Paid to the Co_2
Note 30 - Fees Paid to the Company's Principal Accountant (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Auditor's remuneration [abstract] | |
Disclosure of auditors' remuneration [text block] | (all amounts in thousands of U.S. dollars) Year ended December 31, 2020 2019 2018 Audit fees 3,781 3,846 3,841 Audit-related fees 134 50 43 Tax fees 102 7 - All other fees - 1 7 Total 4,017 3,904 3,891 |
Note 32 - Business Combinatio_2
Note 32 - Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Ipsco Tubulars Inc [Member] | |
Disclosure of detailed information about business combination [line items] | |
Disclosure of detailed information about business combination [text block] | Fair value of acquired assets and liabilities: $ million Property, Plant and Equipment 503 Intangible assets 170 Working capital 138 Cash and Cash Equivalents 4 Borrowings ( 53 ) Provisions ( 27 ) Other assets and liabilities, net ( 63 ) Net assets acquired 672 |
Saudi Steel Pipe Company [member] | |
Disclosure of detailed information about business combination [line items] | |
Disclosure of detailed information about business combination [text block] | Fair value of acquired assets and liabilities: SAR million $ million Property, Plant and Equipment 671 179 Customer relationship 305 81 Investment in associated 77 21 Working capital 167 45 Cash and Cash Equivalents 32 9 Other Receivables 11 3 Borrowings ( 304 ) ( 81 ) Employees end of service benefits ( 59 ) ( 16 ) Deferred Tax Liabilities ( 47 ) ( 13 ) Net assets acquired 853 228 |
Principal Subsidiaries (Tables)
Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Principal subsidiaries | |
Principal subsidiaries | Company Country of Main activity Percentage of ownership at 2020 2019 2018 ALGOMA TUBES INC. Canada Manufacturing of 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 (except detailed) (a) USA Manufacture and marketing of premium connections 100 100 100 IPSCO TUBULARS INC. and subsidiaries USA Manufacturing of welded and seamless steel pipes 100 NA NA KAZAKHSTAN PIPE THREADERS LIMITED LIABILITY PARTNERSHIP Kazakhstan Threading of premium products 100 100 100 MAVERICK TUBE CORPORATION and subsidiaries USA Manufacturing of welded steel pipes 100 100 100 NKKTUBES Japan Manufacturing of seamless steel pipes 51 51 51 P.T. SEAMLESS PIPE INDONESIA JAYA Indonesia Manufacturing of seamless steel products 89 89 89 PRUDENTIAL STEEL LTD. (b) Canada Manufacturing of welded steel pipes 100 100 100 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 NA SIAT SOCIEDAD ANONIMA Argentina Manufacturing of welded and seamless steel pipes 100 100 100 SIDERCA SOCIEDAD ANONIMA INDUSTRIAL Y COMERCIAL and subsidiaries 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 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) (c) Uruguay Holding company and marketing of steel products 100 100 100 TENARIS INVESTMENTS (NL) B.V. and subsidiaries Netherlands Holding company 100 100 NA TENARIS INVESTMENTS S.àr.l. Luxembourg Holding company 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 |
II. Accounting Policies (Detail
II. Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | 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 | |||
Impairment loss on equity method investment in non-consolidated companies | 0 | $ 0 | $ 0 | |
Additional Amortization Expenses | 11,100 | |||
Total intangible assets and goodwill | 1,429,056 | 1,561,559 | ||
Research and development expense | 41,800 | 61,100 | 63,400 | |
Selling, general and administrative expenses, amortization of intangible assets | $ 82,355 | $ 41,967 | $ 206,672 | |
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 | |
Net defined benefit liability (asset) at end of period | $ 82,400 | $ 99,000 | ||
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 | $ 108,700 | 119,900 | ||
ITALY | ||||
Disclosure of associates [line items] | ||||
Net defined contribution plan liability (asset) at end of period | 17,300 | |||
UNITED STATES | ||||
Disclosure of associates [line items] | ||||
Net defined contribution plan liability (asset) at end of period | 13,600 | |||
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 | 36,900 | |||
Funded post-employment benefits [member] | ||||
Disclosure of associates [line items] | ||||
Net defined benefit liability (asset) at end of period | 176,309 | 160,412 | $ 146,885 | |
Funded post-employment benefits [member] | Canada [member] | ||||
Disclosure of associates [line items] | ||||
Net defined contribution plan liability (asset) at end of period | 10,600 | |||
Information system projects [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | 59,993 | 68,533 | ||
Licenses, patents, trademarks, and proprietary technology [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | 86,700 | 86,700 | $ 86,700 | |
Customer-related intangible assets [member] | ||||
Disclosure of associates [line items] | ||||
Total intangible assets and goodwill | $ 115,126 | $ 82,811 | ||
Customer-related intangible assets [member] | Maverick acquisition [member] | ||||
Disclosure of associates [line items] | ||||
Finite-lived intangible asset, useful life (Year) | 14 years | |||
Remaining amortisation period of intangible assets material to entity (Year) | 0 years | 2 years | ||
Selling, general and administrative expenses, amortization of intangible assets | $ 109 | |||
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 | |||
Finite-lived intangible asset, residual value | $ 63,800 | |||
Finite-lived intangible asset, residual useful life (Year) | 7 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 | $ 51,300 | |||
Finite-lived intangible asset, residual useful life (Year) | 2 years | |||
Top of range [member] | ||||
Disclosure of associates [line items] | ||||
Discount rate used in current estimate of value in use | 13.60% | |||
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 | 8.00% | |||
Global Pipe Company [Member] | ||||
Disclosure of associates [line items] | ||||
Number of Board Members | 5 | |||
Global Pipe Company [Member] | Saudi Steel Pipe Company [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 35.00% | |||
Number of Board Members Can be Appointed Through Shareholders Agreement | 1 | |||
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 | 7.00% | |||
Ternium S.A. [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 48.00% | |||
Tecpetrol International S.A. [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 30.00% | |||
Tenaris [member] | Techgen s.a. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in joint venture | 22.00% | |||
Ternium S.A. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in associate | 11.46% | |||
Usiminas [member] | CONFAB INDUSTRIAL S.A. and subsidiaries [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of voting rights held in associate | 5.19% | 5.19% | ||
Usiminas [member] | Ternium S.A. [member] | ||||
Disclosure of associates [line items] | ||||
Proportion of ownership interest in associate | 5.19% | |||
Proportion of voting rights held in associate | 3.07% | |||
Usiminas [member] | Ternium S.A. [member] | Preference shares [member] | ||||
Disclosure of associates [line items] | ||||
Number of shares subscribed to (in shares) | shares | 1,300,000 | |||
Usiminas [member] | Ternium S.A. [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) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Additional depreciation expenses | $ 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, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||||
Debt to equity ratio | 0.05 | 0.06 | ||
Reserve of exchange differences on translation | $ 2,300 | $ 600 | ||
Total borrowings | 619,007 | 822,152 | ||
Gain (loss) on interest rate risk if market interest rates were higher | $ (7,100) | $ (7,700) | ||
Concentration Risk, percentage | 88.00% | 96.00% | ||
Current trade receivables | $ 968,148 | $ 1,348,160 | $ 1,737,366 | |
Liquid financial assets, percentage | 12.00% | 12.00% | ||
Financial liabilities, fair value as a percentage of carrying value | 100.00% | 100.00% | ||
Reserve of cash flow hedges, continuing hedges | $ (4,800) | $ 2,600 | ||
UNITED STATES | ||||
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 | 95.00% | 95.00% | ||
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 | $ 53,700 | $ 48,800 | ||
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 | 195,900 | 242,700 | ||
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 | 134,900 | 178,700 | ||
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 | 47,800 | 55,200 | ||
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 | 8,800 | 600 | ||
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 | 20,700 | 28,700 | ||
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 | [1] | 237,320 | $ 768,002 | |
Current borrowings | $ 197,000 | |||
Concentration Risk, percentage | [1] | 38.00% | 93.00% | |
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] | ||||
Reserve of exchange differences on translation | $ 400 | $ 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 | 2,900 | 1,000 | ||
One percent change, Saudi Arabian Riyal / 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 | 5,100 | 4,600 | ||
One percent change, Saudi Arabian Riyal / U.S. 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 | $ 1,000 | $ 4,900 | ||
[1] | Out of the $237 million fixed rate borrowings, $197 million are short-term. |
III. Financial Risk Managemen_3
III. Financial Risk Management - Financial Assets and Liabilities Which Impact Profit and Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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 | $ (39,561) | $ (95,811) |
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 | (291,362) | (103,518) |
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 | $ (125,789) | $ (107,582) |
III. Financial Risk Managemen_4
III. Financial Risk Management - Proportions of Variable-rate and Fixed-rate Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
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 | $ 619,007 | $ 822,152 | |
Percentage | 88.00% | 96.00% | |
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] | $ 237,320 | $ 768,002 |
Percentage | [1] | 38.00% | 93.00% |
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 | $ 381,687 | $ 54,150 | |
Percentage | 62.00% | 7.00% | |
[1] | Out of the $237 million fixed rate borrowings, $197 million are short-term. |
III. Financial Risk Managemen_5
III. Financial Risk Management - Financial Instruments and Classification Within the Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Cash and cash equivalents | $ 584,681 | $ 1,554,299 | $ 428,361 |
Other investments - current | 872,488 | 210,376 | |
Derivative financial instruments | 11,449 | 19,929 | |
Other investments - non-current | 247,082 | 24,934 | |
Current trade receivables | 968,148 | 1,348,160 | 1,737,366 |
Other receivables | 232,152 | 261,678 | |
Liabilities | |||
Borrowings C and NC | 619,007 | 822,152 | |
Trade payables | 462,105 | 555,887 | |
Finance Lease Liabilities C and NC | 257,343 | 230,167 | $ 234,149 |
Derivative financial instruments | 3,217 | 1,814 | |
Derivatives [member] | |||
Assets | |||
Derivative financial instruments | 11,449 | 19,929 | |
Other receivables [member] | |||
Assets | |||
Other receivables | 138,989 | 141,898 | |
Other receivables (non-Financial) [member] | |||
Assets | |||
Other receivables | 93,163 | 119,780 | |
Fixed Income (time-deposit, zero coupon bonds, commercial papers) [member] | |||
Assets | |||
Other investments - current | 763,697 | 65,874 | |
U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | 97,982 | ||
Non - U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | 14,586 | ||
Certificates of Deposits [member] | |||
Assets | |||
Other investments - current | 222,132 | 20,637 | |
Commercial Papers [member] | |||
Assets | |||
Other investments - current | 268,737 | 4,993 | |
Other notes [member] | |||
Assets | |||
Other investments - current | 160,260 | 40,244 | |
Bonds and other fixed income [member] | |||
Assets | |||
Other investments - current | 108,791 | 144,502 | |
Other investments - non-current | 239,422 | 18,012 | |
U.S. government securities [member] | |||
Assets | |||
Other investments - current | 10,211 | ||
Non - U.S. government securities [member] | |||
Assets | |||
Other investments - current | 20,219 | 28,637 | |
Corporates securities [member] | |||
Assets | |||
Other investments - current | 88,572 | 105,654 | |
Other investments [member] | |||
Assets | |||
Other investments - non-current | 7,660 | 6,922 | |
Level 1 of fair value hierarchy [member] | |||
Assets | |||
Cash and cash equivalents | 98,183 | 1,166,697 | |
Other investments - current | 108,791 | 134,990 | |
Other investments - non-current | 239,422 | 18,012 | |
Current trade receivables | |||
Other receivables | |||
Total | 446,396 | 1,319,699 | |
Liabilities | |||
Borrowings C and NC | |||
Trade payables | |||
Finance Lease Liabilities C and NC | |||
Derivative financial instruments | |||
Total | |||
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] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | |||
Level 1 of fair value hierarchy [member] | Non - U.S. Sovereign Bills [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 | 108,791 | 134,990 | |
Other investments - non-current | 239,422 | 18,012 | |
Level 1 of fair value hierarchy [member] | U.S. government securities [member] | |||
Assets | |||
Other investments - current | 10,211 | ||
Level 1 of fair value hierarchy [member] | Non - U.S. government securities [member] | |||
Assets | |||
Other investments - current | 20,219 | 19,125 | |
Level 1 of fair value hierarchy [member] | Corporates securities [member] | |||
Assets | |||
Other investments - current | 88,572 | 105,654 | |
Level 1 of fair value hierarchy [member] | Other investments [member] | |||
Assets | |||
Other investments - non-current | |||
Level 2 of fair value hierarchy [member] | |||
Assets | |||
Cash and cash equivalents | |||
Other investments - current | 9,512 | ||
Other investments - non-current | |||
Current trade receivables | |||
Other receivables | |||
Total | 11,449 | 29,441 | |
Liabilities | |||
Borrowings C and NC | |||
Trade payables | |||
Finance Lease Liabilities C and NC | |||
Derivative financial instruments | 3,217 | 1,814 | |
Total | 3,217 | 1,814 | |
Level 2 of fair value hierarchy [member] | Derivatives [member] | |||
Assets | |||
Derivative financial instruments | 11,449 | 19,929 | |
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] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | |||
Level 2 of fair value hierarchy [member] | Non - U.S. Sovereign Bills [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 | 9,512 | ||
Other investments - non-current | |||
Level 2 of fair value hierarchy [member] | U.S. government securities [member] | |||
Assets | |||
Other investments - current | |||
Level 2 of fair value hierarchy [member] | Non - U.S. government securities [member] | |||
Assets | |||
Other investments - current | 9,512 | ||
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 3 of fair value hierarchy [member] | |||
Assets | |||
Cash and cash equivalents | |||
Other investments - current | |||
Other investments - non-current | 7,660 | 6,922 | |
Current trade receivables | |||
Other receivables | 48,659 | 48,659 | |
Total | 56,319 | 55,581 | |
Liabilities | |||
Borrowings C and NC | |||
Trade payables | |||
Finance Lease Liabilities C and NC | |||
Derivative financial instruments | |||
Total | |||
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] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | |||
Level 3 of fair value hierarchy [member] | Non - U.S. Sovereign Bills [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] | U.S. government securities [member] | |||
Assets | |||
Other investments - 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 | 7,660 | 6,922 | |
Financial assets at amortised cost, category [member] | |||
Assets | |||
Cash and cash equivalents | 486,498 | 387,602 | |
Other investments - current | 763,697 | 65,874 | |
Other investments - non-current | |||
Current trade receivables | 968,148 | 1,348,160 | |
Other receivables | 90,330 | 93,239 | |
Total | 2,308,673 | 1,894,875 | |
Liabilities | |||
Borrowings C and NC | 619,007 | 822,152 | |
Trade payables | 462,105 | 555,887 | |
Finance Lease Liabilities C and NC | 257,343 | 230,167 | |
Derivative financial instruments | |||
Total | 1,338,455 | 1,608,206 | |
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 | 90,330 | 93,239 | |
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 | 763,697 | 65,874 | |
Financial assets at amortised cost, category [member] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | 97,982 | ||
Financial assets at amortised cost, category [member] | Non - U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | 14,586 | ||
Financial assets at amortised cost, category [member] | Certificates of Deposits [member] | |||
Assets | |||
Other investments - current | 222,132 | 20,637 | |
Financial assets at amortised cost, category [member] | Commercial Papers [member] | |||
Assets | |||
Other investments - current | 268,737 | 4,993 | |
Financial assets at amortised cost, category [member] | Other notes [member] | |||
Assets | |||
Other investments - current | 160,260 | 40,244 | |
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] | U.S. government securities [member] | |||
Assets | |||
Other investments - 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 fair value through other comprehensive income, category [member] | |||
Assets | |||
Cash and cash equivalents | |||
Other investments - current | 108,791 | 144,502 | |
Other investments - non-current | 239,422 | 18,012 | |
Current trade receivables | |||
Other receivables | 48,659 | 48,659 | |
Total | 396,872 | 211,173 | |
Liabilities | |||
Borrowings C and NC | |||
Trade payables | |||
Finance Lease Liabilities C and NC | |||
Derivative financial instruments | |||
Total | |||
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] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | |||
Financial assets at fair value through other comprehensive income, category [member] | Non - U.S. Sovereign Bills [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 | 108,791 | 144,502 | |
Other investments - non-current | 239,422 | 18,012 | |
Financial assets at fair value through other comprehensive income, category [member] | U.S. government securities [member] | |||
Assets | |||
Other investments - current | 10,211 | ||
Financial assets at fair value through other comprehensive income, category [member] | Non - U.S. government securities [member] | |||
Assets | |||
Other investments - current | 20,219 | 28,637 | |
Financial assets at fair value through other comprehensive income, category [member] | Corporates securities [member] | |||
Assets | |||
Other investments - current | 88,572 | 105,654 | |
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 profit or loss, category [member] | |||
Assets | |||
Cash and cash equivalents | 98,183 | 1,166,697 | |
Other investments - current | |||
Other investments - non-current | 7,660 | 6,922 | |
Current trade receivables | |||
Other receivables | |||
Total | 117,292 | 1,193,548 | |
Liabilities | |||
Borrowings C and NC | |||
Trade payables | |||
Finance Lease Liabilities C and NC | |||
Derivative financial instruments | 3,217 | 1,814 | |
Total | 3,217 | 1,814 | |
Financial assets at fair value through profit or loss, category [member] | Derivatives [member] | |||
Assets | |||
Derivative financial instruments | 11,449 | 19,929 | |
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] | U.S. Sovereign Bills [Member] | |||
Assets | |||
Other investments - current | |||
Financial assets at fair value through profit or loss, category [member] | Non - U.S. Sovereign Bills [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 | |||
Other investments - non-current | |||
Financial assets at fair value through profit or loss, category [member] | U.S. government securities [member] | |||
Assets | |||
Other investments - current | |||
Financial assets at fair value through profit or loss, category [member] | Non - U.S. government securities [member] | |||
Assets | |||
Other investments - current | |||
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 | $ 7,660 | $ 6,922 |
III. Financial Risk Managemen_6
III. Financial Risk Management - Changes in Level 3 Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of fair value measurement of assets [line items] | ||
At the beginning of the year | $ 14,842,991 | $ 14,251,299 |
At the end of the year | 13,716,189 | 14,842,991 |
Level 3 of fair value hierarchy [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
At the beginning of the year | 55,581 | 52,985 |
(Decrease) / Addition | (3,604) | 2,933 |
Increase due to business combinations | 3,915 | |
Currency translation adjustment and others | 427 | (337) |
At the end of the year | $ 56,319 | $ 55,581 |
Note 1 - Segment Information (D
Note 1 - Segment Information (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Profit (loss) before tax | $ (619,267) | $ 933,710 | $ 1,103,107 |
Contract liabilities | $ 48,700 | $ 82,700 | $ 62,700 |
Tenaris [member] | Government customers [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 24.00% | 21.00% | 15.00% |
UNITED STATES | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue | 26.00% | ||
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Profit (loss) before tax | $ 16,900 | $ 36,200 | $ 52,400 |
Note 1 - Segment Information -
Note 1 - Segment Information - Reportable Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 5,146,734 | $ 7,294,055 | $ 7,658,588 |
Operating (loss) income | (663,071) | 832,391 | 871,813 |
Income (loss) before equity in earnings of non-consolidated companies and income tax | (728,066) | 851,674 | 909,113 |
Equity in earnings of non-consolidated companies | 108,799 | 82,036 | 193,994 |
(Loss) income before income tax | (619,267) | 933,710 | 1,103,107 |
Capital expenditures | 193,322 | 350,174 | 349,473 |
Depreciation and amortization | 678,806 | 539,521 | 664,357 |
Tubes [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 4,844,000 | 6,870,000 | 7,233,000 |
Management view - operating income (loss) | (277,000) | 857,000 | 702,000 |
Difference in cost of sales | (138,000) | (105,000) | 112,000 |
Differences in depreciation and amortization | 1,000 | (1,000) | (34,000) |
Differences in selling, general and administrative expenses | (2,000) | (1,000) | (2,000) |
Differences in other operating income (expenses), net | (200,000) | 6,000 | |
Operating (loss) income | (616,000) | 756,000 | 778,000 |
Capital expenditures | 189,000 | 338,000 | 346,000 |
Depreciation and amortization | 661,000 | 523,000 | 645,000 |
All other segments [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 303,000 | 424,000 | 426,000 |
Management view - operating income (loss) | (50,000) | 73,000 | 81,000 |
Difference in cost of sales | 4,000 | 3,000 | 7,000 |
Differences in depreciation and amortization | (1,000) | ||
Differences in selling, general and administrative expenses | 1,000 | 6,000 | |
Differences in other operating income (expenses), net | |||
Operating (loss) income | (47,000) | 77,000 | 94,000 |
Capital expenditures | 4,000 | 12,000 | 3,000 |
Depreciation and amortization | 18,000 | 17,000 | 19,000 |
Reportable segments [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 5,147,000 | 7,294,000 | 7,659,000 |
Management view - operating income (loss) | (327,000) | 930,000 | 783,000 |
Difference in cost of sales | (134,000) | (102,000) | 119,000 |
Differences in depreciation and amortization | (1,000) | (34,000) | |
Differences in selling, general and administrative expenses | (2,000) | 4,000 | |
Differences in other operating income (expenses), net | (200,000) | 6,000 | |
Operating (loss) income | (663,000) | 833,000 | 872,000 |
Financial income (expense), net | (65,000) | 19,000 | 37,000 |
Income (loss) before equity in earnings of non-consolidated companies and income tax | (728,000) | 852,000 | 909,000 |
Equity in earnings of non-consolidated companies | 109,000 | 82,000 | 194,000 |
(Loss) income before income tax | (619,000) | 934,000 | 1,103,000 |
Capital expenditures | 193,000 | 350,000 | 349,000 |
Depreciation and amortization | $ 679,000 | $ 540,000 | $ 664,000 |
Note 1 - Segment Information _2
Note 1 - Segment Information - Geographical Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of operating segments [line items] | ||||
Net sales | $ 5,146,734 | $ 7,294,055 | $ 7,658,588 | |
Total assets | 13,716,189 | 14,842,991 | 14,251,299 | |
Trade receivables | 968,148 | 1,348,160 | 1,737,366 | |
Property, plant and equipment, net | 6,193,181 | 6,090,017 | 6,063,908 | |
Capital expenditures | 193,322 | 350,174 | 349,473 | |
Depreciation and amortization | 678,806 | 539,521 | 664,357 | |
North America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 2,179,949 | 3,429,911 | 3,611,509 | |
Total assets | 8,071,574 | 7,885,120 | 7,971,311 | |
Trade receivables | 411,692 | 612,809 | 791,190 | |
Property, plant and equipment, net | 3,971,101 | 3,771,570 | 3,859,060 | |
Capital expenditures | 71,531 | 169,390 | 196,220 | |
Depreciation and amortization | 408,546 | 276,046 | 441,705 | |
South America [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 776,235 | 1,391,288 | 1,462,044 | |
Total assets | 1,868,458 | 2,227,044 | 2,489,522 | |
Trade receivables | 115,972 | 176,173 | 280,801 | |
Property, plant and equipment, net | 1,050,619 | 1,129,260 | 1,133,113 | |
Capital expenditures | 63,111 | 113,999 | 68,603 | |
Depreciation and amortization | 106,827 | 105,308 | 108,558 | |
Europe [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 642,793 | 738,880 | 724,733 | |
Total assets | 1,461,738 | 2,282,775 | 1,913,589 | |
Trade receivables | 139,427 | 149,321 | 215,202 | |
Property, plant and equipment, net | 823,057 | 816,721 | 848,178 | |
Capital expenditures | 39,691 | 55,169 | 77,467 | |
Depreciation and amortization | 84,518 | 82,400 | 82,769 | |
Middle East and Africa [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 1,227,532 | 1,382,172 | 1,559,988 | |
Total assets | 804,559 | 958,424 | 588,746 | |
Trade receivables | 210,194 | 319,406 | 383,358 | |
Property, plant and equipment, net | 242,939 | 254,858 | 94,040 | |
Capital expenditures | 10,452 | 4,578 | 2,047 | |
Depreciation and amortization | 44,259 | 42,520 | 10,389 | |
Asia Pacific [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | 320,225 | 351,804 | 300,314 | |
Total assets | 552,508 | 609,663 | 482,563 | |
Trade receivables | 90,863 | 90,451 | 66,815 | |
Property, plant and equipment, net | 105,465 | 117,608 | 129,517 | |
Capital expenditures | 8,537 | 7,038 | 5,136 | |
Depreciation and amortization | 34,656 | 33,247 | 20,936 | |
Unallocated [member] | ||||
Disclosure of operating segments [line items] | ||||
Net sales | ||||
Total assets | [1] | 957,352 | 879,965 | 805,568 |
Trade receivables | ||||
Property, plant and equipment, net | ||||
Capital expenditures | ||||
Depreciation and amortization | ||||
[1] | For 2020, 2019 and 2018 includes Investments in non-consolidated companies. See note 13. |
Note 1 - Segment Information _3
Note 1 - Segment Information - Tubes Segment Revenues By Market (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 5,146,734 | $ 7,294,055 | $ 7,658,588 |
Tubes [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 4,844,000 | 6,870,000 | 7,233,000 |
Tubes [member] | Oil and gas [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 4,073,000 | 5,757,000 | 6,042,000 |
Tubes [member] | Hydrocarbon processing and power generation [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | 371,000 | 534,000 | 602,000 |
Tubes [member] | Industrial and other [member] | |||
Disclosure of operating segments [line items] | |||
IFRS - Net Sales | $ 400,000 | $ 579,000 | $ 589,000 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Cost of Sales [Abstract] | |||
Inventories at the beginning of the year | $ 2,265,880 | $ 2,524,341 | $ 2,368,304 |
Increase in inventory due to business combinations | 199,589 | 52,966 | |
Raw materials, energy, consumables and other | 1,545,688 | 2,709,629 | 3,400,396 |
Services and fees | 154,976 | 222,415 | 275,130 |
Labor cost | 757,359 | 870,261 | 855,040 |
Depreciation of property, plant and equipment | 503,725 | 428,791 | 432,497 |
Amortization of intangible assets | 8,121 | 5,948 | 8,220 |
Depreciation of right-of-use assets | 40,127 | 28,727 | |
Maintenance expenses | 107,764 | 284,758 | 185,782 |
Allowance for obsolescence | 35,809 | 29,138 | 25,457 |
Taxes | 45,162 | 100,738 | 133,308 |
Other | 59,790 | 115,663 | 119,507 |
Cost of sales including discontinued operations | 3,458,110 | 4,849,034 | 5,435,337 |
Less: Inventories at the end of the year | (1,636,673) | (2,265,880) | (2,524,341) |
Cost of sales | 4,087,317 | 5,107,495 | 5,279,300 |
Cost of sales, labor cost severance charges | $ 81,300 | $ 17,200 | $ 15,000 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, general and administrative expense [abstract] | |||
Services and fees | $ 115,883 | $ 153,773 | $ 128,090 |
Labor cost | 444,436 | 481,854 | 470,928 |
Depreciation of property, plant and equipment | 26,814 | 18,524 | 16,968 |
Selling, general and administrative expenses, amortization of intangible assets | 82,355 | 41,967 | 206,672 |
Depreciation of right-of-use assets | 17,664 | 15,564 | |
Commissions, freight and other selling expenses | 310,815 | 441,442 | 491,555 |
Provisions for contingencies | 11,957 | 28,565 | 23,498 |
Allowances for doubtful accounts | 4,644 | (16,256) | 1,751 |
Taxes | 63,234 | 110,876 | 71,110 |
Other | 41,425 | 89,665 | 99,404 |
Total selling, general and administrative expense | 1,119,227 | 1,365,974 | 1,509,976 |
Selling, general and administrative expenses, labor cost severance charges | $ 61,200 | $ 7,400 | $ 10,200 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
4. Labor costs (included in Cost of sales and in Selling, general and administrative expenses) | |||
Wages, salaries and social security costs | $ 1,036,211 | $ 1,274,474 | $ 1,250,783 |
Severance indemnities | 142,458 | 24,637 | 25,225 |
Defined contribution plans | 12,442 | 12,663 | 13,217 |
Pension benefits - defined benefit plans | 11,097 | 18,207 | 15,390 |
Employee retention and long term incentive program | (413) | 22,134 | 21,353 |
Total employee benefits expense | $ 1,201,795 | $ 1,352,115 | $ 1,325,968 |
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) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | |||
Number of employees | 19,028 | 23,200 | 22,967 |
ARGENTINA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 4,376 | 5,405 | 5,427 |
MEXICO | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 4,501 | 5,370 | 5,595 |
UNITED STATES | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,596 | 2,255 | 2,382 |
ITALY | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 2,039 | 2,144 | 2,155 |
ROMANIA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,552 | 1,815 | 1,852 |
BRAZIL | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,360 | 1,360 | 1,287 |
COLOMBIA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 746 | 1,040 | 1,082 |
CANADA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 561 | 772 | 1,030 |
INDONESIA | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 521 | 616 | 554 |
JAPAN | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 399 | 400 | 399 |
Other geographical areas [member] | |||
Disclosure of geographical areas [line items] | |||
Number of employees | 1,377 | 2,023 | 1,204 |
Note 5 - Impairment charge (Det
Note 5 - Impairment charge (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Growth rate used in current estimate of value in use | 2.00% | |||
Impairment charge | $ 622,000 | $ 622,402 | ||
Discount rate, measurement input [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Percentage of reasonably possible increase (decrease) in key assumption resulting additional impairment | 1.00% | |||
Growth rate, measurement input [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Percentage of reasonably possible increase (decrease) in key assumption resulting additional impairment | (1.00%) | |||
Projected change rate in future cash flows, measurement input [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Percentage of reasonably possible increase (decrease) in key assumption resulting additional impairment | (5.00%) | |||
Tubes [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 582,000 | |||
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 | 13.60% | |||
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 | 8.00% | |||
OCTG (USA) [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 225,000 | $ 225,000 | ||
IPSCO [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 357,000 | 357,000 | ||
Coiled Tubing [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | 4,000 | 4,000 | ||
Rods USA [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | $ 36,000 | $ 36,000 |
Note 5 - Impairment charge - Im
Note 5 - Impairment charge - Impairment allocated by CGU (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charge | $ 622,000 | $ 622,402 | ||
OCTG (USA) [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Assets before impairment | 544,000 | |||
Impairment charge | 225,000 | 225,000 | ||
Assets after impairment | 319,000 | |||
IPSCO [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Assets before impairment | 1,169,000 | |||
Impairment charge | 357,000 | 357,000 | ||
Assets after impairment | 812,000 | |||
Coiled Tubing [member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Assets before impairment | 108,000 | |||
Impairment charge | 4,000 | 4,000 | ||
Assets after impairment | 104,000 | |||
Rods USA [Member] | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Assets before impairment | 73,000 | |||
Impairment charge | $ 36,000 | 36,000 | ||
Assets after impairment | $ 37,000 |
Note 5 - Impairment charge - Ad
Note 5 - Impairment charge - Additional impairment with the change in key assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
OCTG (USA) [member] | Discount rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | $ (60) |
OCTG (USA) [member] | Growth rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (43) |
OCTG (USA) [member] | Projected change rate in future cash flows, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (16) |
IPSCO [Member] | Discount rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (117) |
IPSCO [Member] | Growth rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (77) |
IPSCO [Member] | Projected change rate in future cash flows, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (41) |
Coiled Tubing [member] | Discount rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (12) |
Coiled Tubing [member] | Growth rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (6) |
Coiled Tubing [member] | Projected change rate in future cash flows, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (5) |
Rods USA [Member] | Discount rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (5) |
Rods USA [Member] | Growth rate, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | (3) |
Rods USA [Member] | Projected change rate in future cash flows, measurement input [member] | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Additional impairment due to reasonably possible increase (decrease) in key assumption | $ (2) |
Note 6 - Other operating inco_3
Note 6 - Other operating income and expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other operating income: | |||
Net income from other sales | $ 9,891 | $ 8,651 | $ 3,604 |
Net rents | 5,501 | 5,089 | 4,909 |
Other | 18,001 | 8,025 | 6,546 |
Recovery on allowance for doubtful receivables | 1,239 | ||
Other income | 33,393 | 23,004 | 15,059 |
Other operating expenses: | |||
Contributions to welfare projects and non-profits organizations | 12,989 | 11,199 | 11,379 |
Allowance for doubtful receivables | 1,263 | 1,179 | |
Other expense | $ 14,252 | $ 11,199 | $ 12,558 |
Note 7 - Financial Results (Det
Note 7 - Financial Results (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Financial Results [Abstract] | |||
Interest income (expense) | $ 6.5 | $ 7.6 | $ 3.6 |
Note 7 - Financial Results - Fi
Note 7 - Financial Results - Financial Income (Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Financial Results [Abstract] | |||
Interest Income | $ 21,625 | $ 48,061 | $ 42,244 |
Net result on changes in FV of financial assets at FVPL | (64) | (2,388) | |
Impairment result on financial assets at FVTOCI | (3,238) | ||
Finance income | 18,387 | 47,997 | 39,856 |
Finance cost | (27,014) | (43,381) | (36,942) |
Net foreign exchange transactions results | (74,422) | 27,868 | 28,845 |
Foreign exchange derivatives contracts results | 19,644 | (11,616) | 6,576 |
Other | (1,590) | (1,585) | (1,035) |
Other financial results | (56,368) | 14,667 | 34,386 |
Net financial results | $ (64,995) | $ 19,283 | $ 37,300 |
Note 8 - Income Tax (Details Te
Note 8 - Income Tax (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||
After tax effect of expense not deductible in determining profit (loss) | $ 61 | $ 66 | $ 65 |
Charge related to withholding taxes for intra group international operations | $ 10 | $ 34 | $ 26 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Current tax | $ (121,048) | $ (299,692) | $ (343,104) |
Deferred tax | 97,898 | 97,240 | 113,897 |
Tax income (expense) | $ 23,150 | $ 202,452 | $ 229,207 |
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 | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | ||||
(Loss) income before income tax | $ (619,267) | $ 933,710 | $ 1,103,107 | |
Impairment charge | $ 622,000 | 622,402 | ||
Income before income tax without impairment charges | 3,135 | 933,710 | 1,103,107 | |
Tax calculated at the tax rate in each country | 21,052 | (186,752) | (207,422) | |
Effect of currency translation on tax base | (72,936) | (53,296) | (77,552) | |
Changes in the tax rates | (958) | 13 | (1,824) | |
Utilization of previously unrecognized tax losses | 98 | 547 | ||
Tax revaluation, withholding tax and others | 29,594 | 37,036 | 57,591 | |
Tax charge | $ 23,150 | $ 202,452 | $ 229,207 |
Note 9 - Dividends Distributi_2
Note 9 - Dividends Distribution (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Nov. 25, 2020 | Nov. 04, 2020 | Nov. 20, 2019 | May 22, 2019 | Nov. 21, 2018 | May 23, 2018 | Nov. 22, 2017 | Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 06, 2019 | May 02, 2018 |
Disclosure of Dividends Distribution [Abstract] | |||||||||||||
Dividends recognised as distributions to owners per share (in dollars per share) | $ 0.07 | ||||||||||||
Dividends payable, amount per ads (in dollars per share) | $ 0.14 | ||||||||||||
Payments for dividends approved | $ 82,600 | ||||||||||||
Dividends recognised as distributions to owners | $ 82,600 | $ 153,000 | $ 484,000 | $ 484,000 | $ 153,000 | $ 87,938 | $ 485,827 | $ 487,681 | |||||
Dividends payable, amount per share including interim dividend (in dollars per share) | $ 0.41 | $ 0.41 | |||||||||||
Dividends payable, amount per ADS including interim dividend (in dollars per share) | $ 0.82 | $ 0.82 | |||||||||||
Dividends paid, ordinary shares per share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.28 | $ 0.13 | $ 0.28 | $ 0.13 | |||||||
Dividends paid, per ADS (in dollars per share) | $ 0.14 | $ 0.56 | $ 0.26 | $ 0.56 | $ 0.26 |
Note 10 - Property, Plant and_3
Note 10 - Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Property, plant and equipment, capitalized interest | $ 33.6 | $ 35.4 |
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, 2020 | Dec. 31, 2019 | |||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | $ 6,090,017 | $ 6,063,908 | ||
End of the year | 6,193,181 | 6,090,017 | ||
Land and civil buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 677,671 | |||
End of the year | 707,126 | 677,671 | ||
Industrial buildings, plant and production equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 5,166,678 | |||
End of the year | 5,249,425 | 5,166,678 | ||
Vehicles, furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 76,758 | |||
End of the year | 72,511 | 76,758 | ||
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 108,308 | |||
End of the year | 102,226 | 108,308 | ||
Spare parts and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 60,602 | |||
End of the year | 61,893 | 60,602 | ||
Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 13,836,586 | 13,421,982 | ||
Translation differences | 70,291 | (43,307) | ||
Increase due to business combinations | 503,438 | [1] | 178,739 | [2] |
Additions | 167,755 | 313,915 | ||
Disposals / Consumptions | (82,416) | (38,975) | ||
Transfers / Reclassifications | 2,351 | 4,232 | ||
End of the year | 14,498,005 | 13,836,586 | ||
Gross carrying amount [member] | Land and civil buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 799,139 | 732,578 | ||
Translation differences | (545) | (1,611) | ||
Increase due to business combinations | 39,622 | [1] | 59,468 | [2] |
Additions | 1,451 | 16 | ||
Disposals / Consumptions | (5,964) | (35) | ||
Transfers / Reclassifications | 5,881 | 8,723 | ||
End of the year | 839,584 | 799,139 | ||
Gross carrying amount [member] | Industrial buildings, plant and production equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 12,468,813 | 12,121,569 | ||
Translation differences | 72,650 | (38,961) | ||
Increase due to business combinations | 440,366 | [1] | 115,908 | [2] |
Additions | 1,524 | 1,178 | ||
Disposals / Consumptions | (61,281) | (27,153) | ||
Transfers / Reclassifications | 157,473 | 296,272 | ||
End of the year | 13,079,545 | 12,468,813 | ||
Gross carrying amount [member] | Vehicles, furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 399,724 | 377,260 | ||
Translation differences | 443 | (1,615) | ||
Increase due to business combinations | 7,195 | [1] | 1,733 | [2] |
Additions | 620 | 1,107 | ||
Disposals / Consumptions | (8,811) | (7,110) | ||
Transfers / Reclassifications | 15,586 | 28,349 | ||
End of the year | 414,757 | 399,724 | ||
Gross carrying amount [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 108,308 | 127,378 | ||
Translation differences | (2,095) | (864) | ||
Increase due to business combinations | 16,255 | [1] | 1,630 | [2] |
Additions | 157,315 | 299,412 | ||
Disposals / Consumptions | (968) | (2,120) | ||
Transfers / Reclassifications | (176,589) | (317,128) | ||
End of the year | 102,226 | 108,308 | ||
Gross carrying amount [member] | Spare parts and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 60,602 | 63,197 | ||
Translation differences | (162) | (256) | ||
Increase due to business combinations | [1] | [2] | ||
Additions | 6,845 | 12,202 | ||
Disposals / Consumptions | (5,392) | (2,557) | ||
Transfers / Reclassifications | (11,984) | |||
End of the year | 61,893 | 60,602 | ||
Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 7,746,569 | 7,358,074 | ||
Translation differences | 56,677 | (26,878) | ||
Disposals / Consumptions | (64,834) | (31,542) | ||
Impairment charge (See note 5) | 36,000 | |||
Transfers / Reclassifications | (127) | (400) | ||
Depreciation charge | 530,539 | 447,315 | ||
End of the year | 8,304,824 | 7,746,569 | ||
Accumulated depreciation, amortisation and impairment [member] | Land and civil buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 121,468 | 110,914 | ||
Translation differences | (288) | (420) | ||
Disposals / Consumptions | (89) | (73) | ||
Impairment charge (See note 5) | ||||
Transfers / Reclassifications | (1) | (362) | ||
Depreciation charge | 11,368 | 11,409 | ||
End of the year | 132,458 | 121,468 | ||
Accumulated depreciation, amortisation and impairment [member] | Industrial buildings, plant and production equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 7,302,135 | 6,936,900 | ||
Translation differences | 56,560 | (24,973) | ||
Disposals / Consumptions | (57,897) | (25,580) | ||
Impairment charge (See note 5) | 36,000 | |||
Transfers / Reclassifications | 349 | (38) | ||
Depreciation charge | 492,973 | 415,826 | ||
End of the year | 7,830,120 | 7,302,135 | ||
Accumulated depreciation, amortisation and impairment [member] | Vehicles, furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | 322,966 | 310,260 | ||
Translation differences | 405 | (1,485) | ||
Disposals / Consumptions | (6,848) | (5,889) | ||
Impairment charge (See note 5) | ||||
Transfers / Reclassifications | (475) | |||
Depreciation charge | 26,198 | 20,080 | ||
End of the year | 342,246 | 322,966 | ||
Accumulated depreciation, amortisation and impairment [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | ||||
Translation differences | ||||
Disposals / Consumptions | ||||
Impairment charge (See note 5) | ||||
Transfers / Reclassifications | ||||
Depreciation charge | ||||
End of the year | ||||
Accumulated depreciation, amortisation and impairment [member] | Spare parts and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning of the year | ||||
Translation differences | ||||
Disposals / Consumptions | ||||
Impairment charge (See note 5) | ||||
Transfers / Reclassifications | ||||
Depreciation charge | ||||
End of the year | ||||
[1] | Related to IPSCO acquisition. See note 32. | |||
[2] | Related to SSPC acquisition. See note 32. |
Note 11 - Intangible Assets, _3
Note 11 - Intangible Assets, Net (Details Textual) $ in Millions | Dec. 31, 2020USD ($) |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | $ 1,086 |
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 | 111.1 |
Europe [member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | 2 |
Middle East and Africa [member] | |
Disclosure of reconciliation of changes in goodwill [line items] | |
Goodwill at end of period | $ 33.7 |
Note 11 - Intangible Assets, _4
Note 11 - Intangible Assets, Net - Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | $ 1,561,559 | ||||
Values at the end of the year | 1,429,056 | $ 1,561,559 | |||
Information system projects [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 68,533 | ||||
Values at the end of the year | 59,993 | 68,533 | |||
Licenses, patents and trademarks [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | [1] | 89,970 | |||
Values at the end of the year | [1] | 167,969 | 89,970 | ||
Goodwill [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 1,320,245 | ||||
Values at the end of the year | 1,085,968 | 1,320,245 | |||
Customer-related intangible assets [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 82,811 | ||||
Values at the end of the year | 115,126 | 82,811 | |||
Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 5,326,500 | 5,189,988 | |||
Currency translation adjustment | (3,730) | (2,955) | |||
Increase due to business combinations | 526,846 | [2] | 114,466 | [3] | |
Additions | 25,567 | 36,259 | |||
Transfers / Reclassifications | (1,393) | (4,665) | |||
Disposals | (4,825) | (6,593) | |||
Values at the end of the year | 5,868,965 | 5,326,500 | |||
Gross carrying amount [member] | Information system projects [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 604,870 | 580,622 | |||
Currency translation adjustment | 1,108 | (1,917) | |||
Increase due to business combinations | 11,563 | [2] | 405 | [3] | |
Additions | 24,965 | 35,487 | |||
Transfers / Reclassifications | (1,393) | (4,665) | |||
Disposals | (3,761) | (5,062) | |||
Values at the end of the year | 637,352 | 604,870 | |||
Gross carrying amount [member] | Licenses, patents and trademarks [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | [1] | 463,742 | 464,571 | ||
Currency translation adjustment | [1] | 220 | (70) | ||
Increase due to business combinations | [1] | 87,000 | [2] | [3] | |
Additions | [1] | 602 | 772 | ||
Transfers / Reclassifications | [1] | ||||
Disposals | [1] | (1,064) | (1,531) | ||
Values at the end of the year | [1] | 550,500 | 463,742 | ||
Gross carrying amount [member] | Goodwill [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 2,117,837 | 2,085,936 | |||
Currency translation adjustment | (5,058) | (968) | |||
Increase due to business combinations | 357,183 | [2] | 32,869 | [3] | |
Additions | |||||
Transfers / Reclassifications | |||||
Disposals | |||||
Values at the end of the year | 2,469,962 | 2,117,837 | |||
Gross carrying amount [member] | Customer-related intangible assets [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 2,140,051 | 2,058,859 | |||
Currency translation adjustment | |||||
Increase due to business combinations | 71,100 | [2] | 81,192 | [3] | |
Additions | |||||
Transfers / Reclassifications | |||||
Disposals | |||||
Values at the end of the year | 2,211,151 | 2,140,051 | |||
Accumulated depreciation, amortisation and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 3,764,941 | 3,724,023 | |||
Currency translation adjustment | 889 | (1,734) | |||
Impairment charge | 586,402 | ||||
Transfers / Reclassifications | 931 | ||||
Disposals | (3,730) | (5,263) | |||
Amortization charge | 90,476 | 47,915 | |||
Values at the end of the year | 4,439,909 | 3,764,941 | |||
Accumulated depreciation, amortisation and impairment [member] | Information system projects [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 536,337 | 513,984 | |||
Currency translation adjustment | 890 | (1,734) | |||
Impairment charge | |||||
Transfers / Reclassifications | 931 | ||||
Disposals | (3,730) | (4,850) | |||
Amortization charge | 42,931 | 28,937 | |||
Values at the end of the year | 577,359 | 536,337 | |||
Accumulated depreciation, amortisation and impairment [member] | Licenses, patents and trademarks [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | [1] | 373,772 | 373,466 | ||
Currency translation adjustment | [1] | (1) | |||
Impairment charge | [1] | ||||
Transfers / Reclassifications | [1] | ||||
Disposals | [1] | (413) | |||
Amortization charge | [1] | 8,760 | 719 | ||
Values at the end of the year | [1] | 382,531 | 373,772 | ||
Accumulated depreciation, amortisation and impairment [member] | Goodwill [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 797,592 | 797,592 | |||
Currency translation adjustment | |||||
Impairment charge | 586,402 | ||||
Transfers / Reclassifications | |||||
Disposals | |||||
Amortization charge | |||||
Values at the end of the year | 1,383,994 | 797,592 | |||
Accumulated depreciation, amortisation and impairment [member] | Customer-related intangible assets [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Values at the beginning of the year | 2,057,240 | 2,038,981 | |||
Currency translation adjustment | |||||
Impairment charge | |||||
Transfers / Reclassifications | |||||
Disposals | |||||
Amortization charge | 38,785 | 18,259 | |||
Values at the end of the year | $ 2,096,025 | $ 2,057,240 | |||
[1] | Includes Proprietary Technology. | ||||
[2] | Related to IPSCO acquisition. See note 32. | ||||
[3] | Related to SSPC acquisition. See note 32. |
Note 11 - Intangible Assets, _5
Note 11 - Intangible Assets, Net - Goodwill Allocated by CGU (Details) $ in Millions | Dec. 31, 2020USD ($) |
Disclosure of information for cash-generating units [line items] | |
Goodwill | $ 1,086 |
Tamsa (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 365 |
Siderca (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 358 |
Hydril [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 309 |
Other CGU [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 54 |
Tubes [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 166 |
Tubes [member] | Tamsa (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 19 |
Tubes [member] | Siderca (Hydril and other) [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 93 |
Tubes [member] | Hydril [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | |
Tubes [member] | Other CGU [member] | |
Disclosure of information for cash-generating units [line items] | |
Goodwill | 54 |
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 |
Note 12 - Right-of-use Assets_3
Note 12 - Right-of-use Assets, Net and Lease Liabilities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Leases paid in advance | $ 4 | ||
Expense relating to short-term leases for which recognition exemption has been used | $ 1.7 | $ 15.1 | |
Expense relating to leases of low-value assets for which recognition exemption has been used | $ 3.2 | $ 1.3 | |
Not later than one year [member] | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Remaining lease payments to be made, percentage | 16.90% | ||
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 | 40.50% | ||
Later than five years [member] | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Remaining lease payments to be made, percentage | 42.60% |
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, 2020 | Dec. 31, 2019 | |||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | $ 233,126 | |||
Cost and Depreciation end of the year | 241,953 | $ 233,126 | ||
Gross carrying amount [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 275,720 | 238,400 | ||
Currency translation adjustment | 437 | (74) | ||
Increase due to business combinations | 24,747 | [1] | 2,267 | [2] |
Additions | 59,141 | 41,442 | ||
Transfers / Reclassifications | 117 | |||
Disposals | (26,257) | (6,315) | ||
Cost and Depreciation end of the year | 333,905 | 275,720 | ||
Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 42,594 | |||
Currency translation adjustment | 243 | 8 | ||
Depreciation charge | 57,791 | 44,291 | ||
Transfers / Reclassifications | 117 | |||
Disposals | (8,793) | (1,705) | ||
Cost and Depreciation end of the year | 91,952 | 42,594 | ||
Land and civil buildings [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 27,807 | |||
Cost and Depreciation end of the year | 26,790 | 27,807 | ||
Land and civil buildings [member] | Gross carrying amount [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 36,137 | 27,713 | ||
Currency translation adjustment | (839) | (88) | ||
Increase due to business combinations | 3,461 | [1] | 229 | [2] |
Additions | 11,534 | 9,292 | ||
Transfers / Reclassifications | 439 | |||
Disposals | (8,800) | (1,009) | ||
Cost and Depreciation end of the year | 41,932 | 36,137 | ||
Land and civil buildings [member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 8,330 | |||
Currency translation adjustment | (92) | (3) | ||
Depreciation charge | 13,200 | 8,514 | ||
Transfers / Reclassifications | (2,876) | |||
Disposals | (3,420) | (181) | ||
Cost and Depreciation end of the year | 15,142 | 8,330 | ||
Industrial buildings, plant and production equipment [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 194,808 | |||
Cost and Depreciation end of the year | 205,365 | 194,808 | ||
Industrial buildings, plant and production equipment [member] | Gross carrying amount [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 225,389 | 202,352 | ||
Currency translation adjustment | 746 | 6 | ||
Increase due to business combinations | 13,730 | [1] | 2,038 | [2] |
Additions | 42,573 | 24,985 | ||
Transfers / Reclassifications | (458) | 496 | ||
Disposals | (8,622) | (4,488) | ||
Cost and Depreciation end of the year | 273,358 | 225,389 | ||
Industrial buildings, plant and production equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 30,581 | |||
Currency translation adjustment | 145 | 3 | ||
Depreciation charge | 37,671 | 31,869 | ||
Transfers / Reclassifications | 1,702 | (62) | ||
Disposals | (2,106) | (1,229) | ||
Cost and Depreciation end of the year | 67,993 | 30,581 | ||
Vehicles, furniture and fixtures [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 10,511 | |||
Cost and Depreciation end of the year | 9,798 | 10,511 | ||
Vehicles, furniture and fixtures [member] | Gross carrying amount [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 14,194 | 8,335 | ||
Currency translation adjustment | 530 | 8 | ||
Increase due to business combinations | 7,556 | [1] | [2] | |
Additions | 5,034 | 7,165 | ||
Transfers / Reclassifications | 136 | (496) | ||
Disposals | (8,835) | (818) | ||
Cost and Depreciation end of the year | 18,615 | 14,194 | ||
Vehicles, furniture and fixtures [member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of maturity analysis of operating lease payments [line items] | ||||
Cost and Depreciation beginning of the year | 3,683 | |||
Currency translation adjustment | 190 | 8 | ||
Depreciation charge | 6,920 | 3,908 | ||
Transfers / Reclassifications | 1,291 | 62 | ||
Disposals | (3,267) | (295) | ||
Cost and Depreciation end of the year | $ 8,817 | $ 3,683 | ||
[1] | Related to IPSCO acquisition. See note 32. | |||
[2] | Related to SSPC acquisition. |
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, 2020 | Dec. 31, 2019 | ||
Presentation of leases for lessee [abstract] | |||
Opening net book amount | $ 230,167 | $ 234,149 | |
Increase due to business combinations | 26,046 | 2,267 | |
Translation differences | 7,656 | 2,690 | |
Additions | 58,536 | 36,957 | |
Cancellations | (17,529) | (4,688) | |
Repayments | [1] | (51,666) | (43,974) |
Interest accrued | 4,133 | 2,766 | |
Ending net book amount | $ 257,343 | $ 230,167 | |
[1] | Repayments include capital and interest. |
Note 13 - Investments in Non-_3
Note 13 - Investments in Non-consolidated Companies (Details Textual) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020R$ / shares | Feb. 19, 2019USD ($) | |
Disclosure of unconsolidated structured entities [line items] | |||||
Dividends received from associates, classified as investing activities | $ 278,000 | $ 28,974,000 | $ 25,722,000 | ||
Total investments in subsidiaries, joint ventures and associates | $ 957,352,000 | 879,965,000 | $ 805,568,000 | ||
Several banks, to refinance obligations [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Debt service coverage ratio, covered, percent | 22.00% | ||||
Letters of credit, covered | $ 9,800,000 | ||||
Ternium and Usiminas [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Dividends received from associates, classified as investing activities | 300,000 | $ 29,000,000 | |||
Usiminas [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Fair value of investments in associates for which there are quoted market prices | 113,800,000 | ||||
Total investments in subsidiaries, joint ventures and associates | $ 65,100,000 | ||||
Usiminas [member] | Ordinary shares [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Closing price, per share (in BRL per share) | (per share) | $ 3.02 | R$ 15.69 | |||
Usiminas [member] | Preference shares [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Closing price, per share (in BRL per share) | (per share) | $ 2.81 | R$ 14.61 | |||
Usiminas [member] | CONFAB INDUSTRIAL S.A. and subsidiaries [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Proportion of voting rights held in associate | 5.19% | 5.19% | |||
Usiminas [member] | Ternium S.A. [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Proportion of voting rights held in associate | 3.07% | ||||
Proportion of ownership interest in associate | 5.19% | ||||
Ternium S.A. [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Closing price, per ads (in dollars per share) | $ 29.08 | ||||
Fair value of investments in associates for which there are quoted market prices | 668,000,000 | ||||
Total investments in subsidiaries, joint ventures and associates | $ 830,000,000 | ||||
Proportion of ownership interest in associate | 11.46% | ||||
Techgen s.a. [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Total investments in subsidiaries, joint ventures and associates | $ 19,500,000 | ||||
Proportion of ownership interest in associate | 22.00% | ||||
Provision for exposure to transportation capacity agreements | $ 48,800,000 | ||||
Provision for exposure to purchase and other service agreements | 900,000 | ||||
Provision for exposure to the purchase of clean energy certificates | 17,600,000 | ||||
Proceeds From (Repayments of Loans) Receivable From Related Parties | $ 40,500,000 | ||||
Loans and receivables | $ 58,100,000 | ||||
Proportion of corporate guarantee covering obligations | 22.00% | 22.00% | |||
Techgen s.a. [member] | Techgen s.a. [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Proportion of ownership interest in associate | 48.00% | ||||
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 | 30.00% | ||||
Global Pipe Company [Member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Total investments in subsidiaries, joint ventures and associates | $ 23,400,000 | ||||
Proportion of ownership interest in associate | 35.00% | ||||
Global Pipe Company [Member] | Saudi Steel Pipe Company [member] | |||||
Disclosure of unconsolidated structured entities [line items] | |||||
Corporate Guarantee Covering Obligations | $ 131,500,000 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of unconsolidated structured entities [abstract] | ||||
At the beginning of the year | $ 879,965 | $ 805,568 | ||
Translation differences | [1] | (31,977) | (10,781) | $ 1,848 |
Equity in earnings of non-consolidated companies | 108,799 | 82,036 | ||
Increase due to business combinations | 20,635 | |||
Dividends and distributions received | [2] | (861) | (28,037) | |
Additions | 19,610 | |||
Increase / (decrease) in equity reserves and others | 1,426 | (9,066) | ||
At the end of the year | $ 957,352 | $ 879,965 | $ 805,568 | |
[1] | For 2018 and 2019 Tenaris recognized its share over the effects on the adoption of IAS 29, “Financial Reporting in Hyperinflationary Economies” by Ternium in other comprehensive income as a currency translation adjustment. In 2020 Ternium changed the functional currency of its Argentine subsidiary to U.S. dollar and IAS 29 is no longer applicable. | |||
[2] | Related to Ternium and Usiminas. During 2020 and 2019 $0.3 million and $29.0 million respectively were collected. |
Note 13 - Investments in Non-_5
Note 13 - Investments in Non-consolidated Companies - Principal Non-consolidated Companies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of unconsolidated structured entities [line items] | ||||
Value | $ 957,352 | $ 879,965 | $ 805,568 | |
Ternium S.A. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 11.46% | |||
Value | $ 830,000 | |||
Ternium S.A. [member] | LUXEMBOURG | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | [1] | 11.46% | 11.46% | |
Value | [1] | $ 830,028 | $ 751,105 | |
Usiminas [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Value | $ 65,100 | |||
Usiminas [member] | BRAZIL | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | [2] | 3.07% | 3.07% | |
Value | [2] | $ 65,144 | $ 74,593 | |
Techgen s.a. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 22.00% | |||
Value | $ 19,500 | |||
Techgen s.a. [member] | MEXICO | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 22.00% | 22.00% | ||
Value | $ 19,536 | $ 9,888 | ||
Global Pipe Company [Member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 35.00% | |||
Value | $ 23,400 | |||
Global Pipe Company [Member] | SAUDI ARABIA | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | 35.00% | 35.00% | ||
Value | $ 23,421 | $ 22,550 | ||
Other [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Percentage of ownership | ||||
Value | $ 19,223 | $ 21,829 | ||
[1] | Including treasury shares. | |||
[2] | At December 31, 2020 and 2019 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | $ 9,428,517 | $ 9,172,384 | ||
Current assets | 4,287,672 | 5,670,607 | ||
Total assets | 13,716,189 | 14,842,991 | $ 14,251,299 | |
Non-current liabilities | 1,103,241 | 876,162 | ||
Current liabilities | 1,166,475 | 1,780,457 | ||
Total liabilities | 2,269,716 | 2,656,619 | ||
Equity | 11,446,473 | 12,186,372 | 11,875,492 | $ 11,588,988 |
Non-controlling interests | 183,585 | 197,414 | ||
Revenues | 5,146,734 | 7,294,055 | 7,658,588 | |
Gross profit | 1,059,417 | 2,186,560 | 2,379,288 | |
Net income for the year attributable to owners of the parent | (634,418) | 742,686 | 876,063 | |
Total comprehensive income for the year, net of tax, attributable to owners of the parent | (643,435) | 690,095 | $ 776,713 | |
Ternium S.A. [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | 8,289,460 | 8,757,320 | ||
Current assets | 4,566,775 | 4,178,213 | ||
Total assets | 12,856,235 | 12,935,533 | ||
Non-current liabilities | 2,559,485 | 3,452,535 | ||
Current liabilities | 1,853,597 | 1,768,125 | ||
Total liabilities | 4,413,082 | 5,220,660 | ||
Equity | 8,443,153 | 7,714,873 | ||
Revenues | 8,735,435 | 10,192,818 | ||
Gross profit | 1,635,512 | 1,740,378 | ||
Net income for the year attributable to owners of the parent | 778,468 | 564,269 | ||
Total comprehensive income for the year, net of tax, attributable to owners of the parent | 666,667 | 445,473 | ||
Usiminas [member] | ||||
Disclosure of unconsolidated structured entities [line items] | ||||
Non-current assets | 3,487,317 | 4,335,662 | ||
Current assets | 2,276,368 | 2,198,449 | ||
Total assets | 5,763,685 | 6,534,111 | ||
Non-current liabilities | 1,661,605 | 1,955,395 | ||
Current liabilities | 861,912 | 716,930 | ||
Total liabilities | 2,523,517 | 2,672,325 | ||
Equity | 3,240,168 | 3,861,786 | ||
Revenues | 3,132,949 | 3,790,206 | ||
Gross profit | 624,199 | 478,141 | ||
Net income for the year attributable to owners of the parent | $ 106,361 | $ 52,779 |
Note 14 - Receivables - Non C_3
Note 14 - Receivables - Non Current - Components of Receivables Non Current (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other non-current receivables [abstract] | ||
Employee advances and loans | $ 4,563 | $ 6,008 |
Tax credits | 18,046 | 20,065 |
Receivables from related parties | 62,790 | 59,999 |
Legal deposits | 8,600 | 12,378 |
Advances to suppliers and other advances | 4,803 | 3,772 |
Receivable Venezuelan subsidiaries | 48,659 | 48,659 |
Others | 6,842 | 6,222 |
Trade and other non-current receivables before the allowance for doubtful accounts | $ 154,303 | $ 157,103 |
Note 15 - Inventories, Net - Co
Note 15 - Inventories, Net - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||
Finished goods | $ 691,922 | $ 968,329 |
Goods in process | 417,097 | 612,888 |
Raw materials | 143,558 | 221,954 |
Supplies | 488,802 | 486,411 |
Goods in transit | 158,929 | 194,015 |
Inventories, Gross | 1,900,308 | 2,483,597 |
Allowance for obsolescence, see note 24 (i) | (263,635) | (217,717) |
Total current inventories | $ 1,636,673 | $ 2,265,880 |
Note 16 - Receivables and Pre_3
Note 16 - Receivables and Prepayments, Net - Summary of Receivables and Prepayments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current prepayments and current accrued income [abstract] | ||
Prepaid expenses and other receivables | $ 26,457 | $ 30,579 |
Government entities | 3,075 | 1,867 |
Employee advances and loans | 4,672 | 8,189 |
Advances to suppliers and other advances | 14,661 | 17,180 |
Government tax refunds on exports | 2,723 | 670 |
Receivables from related parties | 16,217 | 19,837 |
Miscellaneous | 13,961 | 31,145 |
Receivables and prepayments, gross | 81,766 | 109,467 |
Allowance for other doubtful accounts, see note 24 (i) | (3,917) | (4,892) |
Current prepayments and other current assets | $ 77,849 | $ 104,575 |
Note 17 - Current Tax Assets _3
Note 17 - Current Tax Assets and Liabilities - Summary of Current Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Current Tax Receivables and Payables [Abstract] | ||
V.A.T. credits | $ 106,293 | $ 112,161 |
Prepaid taxes | 30,091 | 55,227 |
Current tax assets, current | $ 136,384 | $ 167,388 |
Note 17 - Current Tax Assets _4
Note 17 - Current Tax Assets and Liabilities - Summary of Current Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Current Tax Receivables and Payables [Abstract] | ||
Income tax liabilities | $ 27,616 | $ 64,994 |
V.A.T. liabilities | 9,933 | 9,953 |
Other taxes | 53,044 | 52,678 |
Current tax liabilities, current | $ 90,593 | $ 127,625 |
Note 18 - Trade Receivables, _3
Note 18 - Trade Receivables, Net - Summary of Current Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | |||
Current accounts | $ 1,017,663 | $ 1,387,494 | |
Receivables from related parties | 4,161 | 9,448 | |
Current trade receivables, gross | 1,021,824 | 1,396,942 | |
Allowance for doubtful accounts, see note 24 (i) | (53,676) | (48,782) | |
Current trade receivables | $ 968,148 | $ 1,348,160 | $ 1,737,366 |
Note 18 - Trade Receivables, _4
Note 18 - Trade Receivables, Net - Summary of the Aging of Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | $ 191,514 | $ 234,427 | |
Not guaranteed | 830,310 | 1,162,515 | |
Guaranteed and not guaranteed | $ 1,021,824 | $ 1,396,942 | |
Expected loss rate | 0.07% | 0.09% | |
Allowances for doubtful accounts | $ (721) | $ (1,294) | |
Nominative allowances for doubtful accounts | (52,955) | (47,488) | |
Net Value | 968,148 | 1,348,160 | $ 1,737,366 |
Current trade receivables, not due [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 170,796 | 205,764 | |
Not guaranteed | 655,132 | 948,449 | |
Guaranteed and not guaranteed | $ 825,928 | $ 1,154,213 | |
Expected loss rate | 0.04% | 0.04% | |
Allowances for doubtful accounts | $ (321) | $ (529) | |
Nominative allowances for doubtful accounts | (718) | ||
Net Value | 824,889 | 1,153,684 | |
Current trade receivables, past due, less than 180 days [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 18,778 | 26,899 | |
Not guaranteed | 116,802 | 157,960 | |
Guaranteed and not guaranteed | $ 135,580 | $ 184,859 | |
Expected loss rate | 0.23% | 0.24% | |
Allowances for doubtful accounts | $ (331) | $ (455) | |
Nominative allowances for doubtful accounts | (1,011) | (1,922) | |
Net Value | 134,238 | 182,482 | |
Current trade receivables, past due, greater than 180 days [member] | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Guaranteed | 1,940 | 1,764 | |
Not guaranteed | 58,376 | 56,106 | |
Guaranteed and not guaranteed | $ 60,316 | $ 57,870 | |
Expected loss rate | 0.72% | 0.57% | |
Allowances for doubtful accounts | $ (69) | $ (310) | |
Nominative allowances for doubtful accounts | (51,226) | (45,566) | |
Net Value | $ 9,021 | $ 11,994 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | |||
Cash at banks | $ 117,807 | $ 118,314 | |
Liquidity funds | 98,183 | 1,166,697 | |
Short – term investments | 368,691 | 269,288 | |
Total cash and cash equivalents | 584,681 | 1,554,299 | $ 428,361 |
Other investments - current | |||
Fixed income (time-deposit, zero coupon bonds, commercial papers) | 763,697 | 65,874 | |
Bonds and other fixed income | 108,791 | 144,502 | |
Other investments | 872,488 | 210,376 | |
Other investments - Non-current | |||
Bonds and other fixed income | 239,422 | 18,012 | |
Others | 7,660 | 6,922 | |
Other investments | $ 247,082 | $ 24,934 |
Note 20 - Borrowings - Non-curr
Note 20 - Borrowings - Non-current and Current Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Non-current costs of issue of debt | $ (145) | $ (16) |
Total non-current portion of non-current borrowings | 315,739 | 40,880 |
Current costs of issue of debt | (10) | |
Total current borrowings and current portion of non-current borrowings | 303,268 | 781,272 |
Total Borrowings | 619,007 | 822,152 |
Bank borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings before costs of issue of debt | 315,884 | 40,896 |
Current borrowings before costs of issue of debt | 303,170 | 781,258 |
Bank overdrafts [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings before costs of issue of debt | $ 98 | $ 24 |
Note 20 - Borrowings - Maturity
Note 20 - Borrowings - Maturity of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | $ 619,007 | $ 822,152 | |
Interest to be accrued (*) | [1] | 15,933 | 12,532 |
Total | 634,940 | 834,684 | |
Not later than one year [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 303,268 | 781,272 | |
Interest to be accrued (*) | [1] | 9,829 | 11,370 |
Total | 313,097 | 792,642 | |
Later than one year and not later than two years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 104,147 | 17,307 | |
Interest to be accrued (*) | [1] | 5,068 | 1,045 |
Total | 109,215 | 18,352 | |
Later than two years and not later than three years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 207,595 | 23,573 | |
Interest to be accrued (*) | [1] | 1,014 | 117 |
Total | 208,609 | 23,690 | |
Later than three years and not later than four years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 3,997 | ||
Interest to be accrued (*) | [1] | 22 | |
Total | 4,019 | ||
Later than four years and not later than five years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | |||
Interest to be accrued (*) | [1] | ||
Total | |||
Later than five years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | |||
Interest to be accrued (*) | [1] | ||
Total | |||
Other borrowings [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 619,007 | 822,152 | |
Other borrowings [member] | Not later than one year [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 303,268 | 781,272 | |
Other borrowings [member] | Later than one year and not later than two years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 104,147 | 17,307 | |
Other borrowings [member] | Later than two years and not later than three years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 207,595 | 23,573 | |
Other borrowings [member] | Later than three years and not later than four years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | 3,997 | ||
Other borrowings [member] | Later than four years and not later than five years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | |||
Other borrowings [member] | Later than five years [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total borrowings | |||
[1] | 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, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | $ 619,007 | $ 822,152 |
Significant borrowings as of closing date [member] | Maverick Tube Corporation and Subsidiaries One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 50,000 | |
Significant borrowings as of closing date [member] | Maverick Tube Corporation and Subsidiaries Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 75,000 | |
Significant borrowings as of closing date [member] | Tamsa Hydril and Other One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 60,000 | |
Significant borrowings as of closing date [member] | Tamsa Hydril and Other Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 80,000 | |
Significant borrowings as of closing date [member] | Tamsa Hydril and Other Three [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | 60,000 | |
Significant borrowings as of closing date [member] | Saudi Steel Pipe Company [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Significant borrowings as of closing date | $ 81,000 |
Note 20 - Borrowings - Weighted
Note 20 - Borrowings - Weighted Average Interest Rates of Borrowings (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted average [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings, weighted average interest rates | 2.51% | 3.18% |
Note 20 - Borrowings - Borrowin
Note 20 - Borrowings - Borrowings by Currency and Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 315,739 | $ 40,880 |
Borrowings | 303,268 | 781,272 |
United States of America, Dollars | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 17,936 | 18,370 |
Borrowings | 2,322 | 274,799 |
United States of America, Dollars | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 274,600 | |
Borrowings | 67,823 | 17,092 |
Saudi Arabia, Riyals | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 20,902 | 16,106 |
Borrowings | 38,750 | 24,797 |
Saudi Arabia, Riyals | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 37,776 | 35,666 |
Euro Member Countries, Euro | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,828 | 5,108 |
Borrowings | 3,886 | 3,772 |
Euro Member Countries, Euro | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 473 | 1,296 |
Borrowings | 1,015 | 80 |
Mexico, Pesos | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 147,997 | 424,964 |
Argentina, Pesos | Fixed interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,699 | 86 |
Other currency [member] | Floating interest rate [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 16 |
Note 20 - Borrowings - Borrow_2
Note 20 - Borrowings - Borrowings Evolution (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Borrowings [abstract] | |
At the beginning of the year, noncurrent | $ 40,880 |
At the beginning of the year, current | 781,272 |
Translation differences, noncurrent | 266 |
Translation differences, current | (487) |
Proceeds and repayments, net, noncurrent | 234,455 |
Proceeds and repayments, net, current | (478,913) |
Interests Accrued less payments, noncurrent | 426 |
Interests Accrued less payments, current | (12,016) |
Reclassifications, noncurrent | (12,940) |
Reclassifications, current | 12,940 |
Increase due to Business Combinations, noncurrent | 52,652 |
Increase due to Business Combinations, current | 398 |
Overdrafts variation, noncurrent | |
Overdrafts variation, current | 74 |
At the end of the year, noncurrent | 315,739 |
At the end of the year, current | $ 303,268 |
Note 21 - Deferred Income Tax_2
Note 21 - Deferred Income Tax (Details Textual) $ in Millions | Dec. 31, 2020USD ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Recognized tax losses expiring within one year, percentage | 0.00% |
Recognized tax losses expiring in two to five years, percentage | 1.70% |
Recognized tax losses expiring in more than five years, percentage | 98.30% |
Unused tax losses for which no deferred tax asset recognised | $ 173.7 |
Unused tax losses for which no deferred tax asset recognised, percent expiring in less than one year | 4.60% |
Unused tax losses for which no deferred tax asset recognised, percent expiring between two and five years | 17.10% |
Unused tax losses for which no deferred tax asset recognised, percent expiring in more than five years | 78.30% |
UNITED STATES | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Deferred tax assets related to taxable losses of subsidiaries | $ 438.8 |
Note 21 - Deferred Income Tax -
Note 21 - Deferred Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | $ 111,302 | $ 197,433 |
Translation differences | 6,854 | 1,100 |
Increase due to business combinations | 32,099 | 10,847 |
Charged to other comprehensive income | (3,146) | (838) |
Income statement charge / (credit) | (97,898) | (97,240) |
At the end of the year | 49,211 | 111,302 |
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 | (19,653) | (16,116) |
Translation differences | 1,804 | 362 |
Increase due to business combinations | (7,452) | (1,160) |
Charged to other comprehensive income | ||
Income statement charge / (credit) | 4,093 | (2,739) |
At the end of the year | (21,208) | (19,653) |
Deferred tax assets, inventory [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | (93,404) | (86,585) |
Translation differences | 513 | 306 |
Increase due to business combinations | (24,580) | (1,413) |
Charged to other comprehensive income | ||
Income statement charge / (credit) | 31,534 | (5,712) |
At the end of the year | (85,937) | (93,404) |
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 | (382,832) | (396,257) |
Translation differences | 1,996 | 497 |
Increase due to business combinations | (33,598) | (1,172) |
Charged to other comprehensive income | ||
Income statement charge / (credit) | (65,715) | 14,100 |
At the end of the year | (480,149) | (382,832) |
Deferred tax assets, other [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | (181,606) | (86,184) |
Translation differences | 644 | 286 |
Increase due to business combinations | (34,974) | (2,238) |
Charged to other comprehensive income | (1,952) | (1,261) |
Income statement charge / (credit) | 10,930 | (92,209) |
At the end of the year | (206,958) | (181,606) |
Deferred tax assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | (677,495) | (585,142) |
Translation differences | 4,957 | 1,451 |
Increase due to business combinations | (100,604) | (5,983) |
Charged to other comprehensive income | (1,952) | (1,261) |
Income statement charge / (credit) | (19,158) | (86,560) |
At the end of the year | (794,252) | (677,495) |
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 | 651,339 | 710,995 |
Translation differences | 1,644 | (347) |
Increase due to business combinations | 89,306 | 5,621 |
Charged to other comprehensive income | ||
Income statement charge / (credit) | (39,874) | (64,930) |
At the end of the year | 702,415 | 651,339 |
Deferred tax liabilities, inventory [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | 19,396 | 25,048 |
Translation differences | ||
Increase due to business combinations | ||
Charged to other comprehensive income | ||
Income statement charge / (credit) | (4,141) | (5,652) |
At the end of the year | 15,255 | 19,396 |
Deferred tax liabilities, intangible and other assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | 118,062 | 46,532 |
Translation differences | 253 | (4) |
Increase due to business combinations | 43,397 | 11,209 |
Charged to other comprehensive income | (1,194) | 423 |
Income statement charge / (credit) | (34,725) | 59,902 |
At the end of the year | 125,793 | 118,062 |
Deferred tab liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
At the beginning of the year | 788,797 | 782,575 |
Translation differences | 1,897 | (351) |
Increase due to business combinations | 132,703 | 16,830 |
Charged to other comprehensive income | (1,194) | 423 |
Income statement charge / (credit) | (78,740) | (10,680) |
At the end of the year | $ 843,463 | $ 788,797 |
Note 21 - Deferred Income Tax_3
Note 21 - Deferred Income Tax - Recovery Analysis of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets to be recovered after 12 months | $ (205,590) | $ (225,680) |
Deferred tax liabilities to be settled after 12 months | 254,801 | 336,982 |
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 | (640,603) | (538,274) |
Deferred tax liabilities to be settled after 12 months | $ 840,892 | $ 766,852 |
Note 21 - Deferred Income Tax_4
Note 21 - Deferred Income Tax - Net Deferred Tax Liabilities (Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||||
Deferred tax assets | $ (205,590) | $ (225,680) | ||
Deferred tax liabilities | 254,801 | 336,982 | ||
Net deferred tax liability (asset) | $ 49,211 | $ 111,302 | $ 49,211 | $ 111,302 |
At the beginning of the year | 111,302 | 197,433 | ||
Translation differences | 6,854 | 1,100 | ||
Increase due to business combinations | 32,099 | 10,847 | ||
Charged to other comprehensive income | (3,146) | (838) | ||
Income statement charge / (credit) | (97,898) | (97,240) | ||
At the end of the year | $ 49,211 | $ 111,302 |
Note 22 - Other Liabilities (De
Note 22 - Other Liabilities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Overfunded Plan | $ 2.1 | $ 4.2 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 2.8 | |
Unfunded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | 1.6 | 1.3 |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | $ 3.8 | 5.7 |
Unfunded post-employment benefits [member] | Actuarial assumption of discount rates [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 7.2 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 6 | |
Unfunded post-employment benefits [member] | Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 3.1 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 2.8 | |
Funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | 3.7 | 0.4 |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | $ 14.3 | $ 12.4 |
Funded post-employment benefits [member] | Actuarial assumption of discount rates [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 24.2 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 19.7 | |
Funded post-employment benefits [member] | Actuarial assumption of expected rates of salary increases [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 1.9 | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 1.7 |
Note 22 - Other Liabilities - O
Note 22 - Other Liabilities - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Other Liabilities [Abstract] | ||
Post-employment benefits | $ 136,811 | $ 144,993 |
Other-long term benefits | 64,928 | 85,473 |
Miscellaneous | 43,896 | 20,917 |
Other non-current liabilities | $ 245,635 | $ 251,383 |
Note 22 - Other Liabilities - P
Note 22 - Other Liabilities - Post-employment Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of defined benefit plans [line items] | |||
Post-employment benefits | $ 136,811 | $ 144,993 | |
Values at the beginning of the year | 99,000 | ||
At the end of the year | 82,400 | 99,000 | |
Unfunded post-employment benefits [member] | |||
Disclosure of defined benefit plans [line items] | |||
Post-employment benefits | 115,774 | 125,573 | |
Values at the beginning of the year | 125,573 | 97,318 | |
Current service cost | 4,796 | 7,978 | |
Interest cost | 6,496 | 5,526 | |
Curtailments and settlements | (1,237) | ||
Remeasurements | [1] | (2,230) | 7,010 |
Translation differences | (415) | (1,567) | |
Increase due to business combinations | 1,566 | 15,660 | |
Benefits paid from the plan | (22,955) | (9,328) | |
Other | 4,180 | 2,976 | |
At the end of the year | 115,774 | 125,573 | |
Funded post-employment benefits [member] | |||
Disclosure of defined benefit plans [line items] | |||
Post-employment benefits | 21,037 | 19,420 | |
Values at the beginning of the year | 160,412 | 146,885 | |
Current service cost | 850 | 721 | |
Interest cost | 5,009 | 5,754 | |
Remeasurements | [2] | 18,025 | 12,769 |
Translation differences | 2,148 | 4,542 | |
Benefits paid from the plan | (9,266) | (10,259) | |
Other | (869) | ||
At the end of the year | 176,309 | 160,412 | |
Present value of funded obligations | 176,309 | 160,412 | |
Fair value of plan assets | (157,335) | (145,160) | |
Liability | [3] | $ 18,974 | $ 15,252 |
[1] | For 2020 a loss of $1.6 million is attributable to demographic assumptions and a gain of $3.8 million to financial assumptions. For 2019 a loss of $1.3 million is attributable to demographic assumptions and a loss of $5.7 million to financial assumptions. | ||
[2] | For 2020 a loss of $3.7 million is attributable to demographic assumptions and a loss of $14.3 million to financial assumptions.For 2019 a loss of $0.4 million is attributable to demographic assumptions and a loss of $12.4 million to financial assumptions. | ||
[3] | In 2020 and 2019, $2.1 million and $4.2 million corresponding to a plan with a surplus balance were reclassified within other non-current assets, respectively. |
Note 22 - Other Liabilities - A
Note 22 - Other Liabilities - Actuarial Assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Bottom of range [member] | Unfunded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.00% | 1.00% |
Rate of compensation increase | 0.00% | 0.00% |
Bottom of range [member] | Funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.00% | 3.00% |
Rate of compensation increase | 0.00% | 0.00% |
Top of range [member] | Unfunded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 7.00% | 7.00% |
Rate of compensation increase | 3.00% | 3.00% |
Top of range [member] | Funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.00% | 4.00% |
Rate of compensation increase | 3.00% | 3.00% |
Note 22 - Other Liabilities -_2
Note 22 - Other Liabilities - Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Values at the beginning of the year | $ 99,000 | |
At the end of the year | 82,400 | $ 99,000 |
Fair value of funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Values at the beginning of the year | (145,160) | (132,438) |
Translation differences | (1,729) | (4,137) |
Return on plan assets | (4,411) | (5,018) |
Remeasurements | (10,396) | (10,507) |
Contributions paid to the plan | (5,017) | (3,589) |
Benefits paid from the plan | (9,266) | (10,259) |
Other | 112 | 270 |
At the end of the year | (157,335) | (145,160) |
Funded post-employment benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Values at the beginning of the year | 160,412 | 146,885 |
Translation differences | (2,148) | (4,542) |
Benefits paid from the plan | (9,266) | (10,259) |
Other | (869) | |
At the end of the year | $ 176,309 | $ 160,412 |
Equity instruments | 49.30% | 49.00% |
Debt instruments | 46.80% | 47.00% |
Others | 3.90% | 4.00% |
Note 22 - Other Liabilities -_3
Note 22 - Other Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Other Liabilities [Abstract] | ||
Payroll and social security payable | $ 175,175 | $ 153,009 |
Miscellaneous | 27,651 | 23,255 |
Other current liabilities | $ 202,826 | $ 176,264 |
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, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Values at the beginning of the year | $ 54,599 | $ 36,089 |
Translation differences | (5,739) | (1,571) |
Increase due to business combinations | 26,542 | |
Additional provisions | 478 | 19,904 |
Reclassifications | 557 | 5,641 |
Used | (3,219) | (5,464) |
Values at the end of the year | $ 73,218 | $ 54,599 |
Note 24 - Current allowances _3
Note 24 - Current allowances and provisions - Deducted From Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts - trade receivables [member] | ||
Disclosure of other provisions [line items] | ||
Values at the beginning of the year | $ (48,782) | $ (66,535) |
Translation differences | (37) | 9 |
Increase due to business combinations | (1,930) | (1,788) |
(Additional) / reversals allowances | 16,256 | |
Used | 1,717 | 3,276 |
(Additional) allowances | (4,644) | |
Values at the end of the year | (53,676) | (48,782) |
Allowance for other doubtful accounts - other receivables [member] | ||
Disclosure of other provisions [line items] | ||
Values at the beginning of the year | (4,892) | (6,784) |
Translation differences | 801 | 88 |
Increase due to business combinations | ||
(Additional) / reversals allowances | 1,239 | |
Used | 1,437 | 565 |
(Additional) allowances | (1,263) | |
Values at the end of the year | (3,917) | (4,892) |
Allowance for inventory obsolescence [member] | ||
Disclosure of other provisions [line items] | ||
Values at the beginning of the year | (217,717) | (209,796) |
Translation differences | 1,560 | 794 |
Increase due to business combinations | (76,776) | (10,761) |
(Additional) / reversals allowances | (29,138) | |
Used | 65,107 | 31,184 |
(Additional) allowances | (35,809) | |
Values at the end of the year | $ (263,635) | $ (217,717) |
Note 24 - Current allowances _4
Note 24 - Current allowances and provisions - Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Sales risks [member] | |||
Disclosure of other provisions [line items] | |||
Values at the beginning of the year | $ 5,867 | $ 6,814 | |
Translation differences | (5) | (28) | |
Increase due to business combinations | 116 | 505 | |
Additional / (reversals) provisions | 9,728 | 11,880 | |
Reclassifications | |||
Used | (13,911) | (13,304) | |
Values at the end of the year | 1,795 | 5,867 | |
Miscellaneous other provisions [member] | |||
Disclosure of other provisions [line items] | |||
Values at the beginning of the year | [1] | 11,150 | 17,469 |
Translation differences | [1] | (975) | (570) |
Increase due to business combinations | [1] | 398 | 8,000 |
Additional / (reversals) provisions | [1] | 1,751 | (3,219) |
Reclassifications | [1] | (557) | (5,641) |
Used | [1] | (1,283) | (4,889) |
Values at the end of the year | [1] | 10,484 | 11,150 |
Provision for current liabilities [member] | |||
Disclosure of other provisions [line items] | |||
Values at the beginning of the year | 17,017 | 24,283 | |
Translation differences | (980) | (598) | |
Increase due to business combinations | 514 | 8,505 | |
Additional / (reversals) provisions | 11,479 | 8,661 | |
Reclassifications | (557) | (5,641) | |
Used | (15,194) | (18,193) | |
Values at the end of the year | $ 12,279 | $ 17,017 | |
[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 - Net Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [line items] | ||
Derivatives with positive fair values | $ 11,449 | $ 19,929 |
Derivatives with negative fair values | (3,217) | (1,814) |
Total | 8,232 | 18,115 |
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 | 10,119 | 19,000 |
Derivatives with negative fair values | (2,250) | |
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 | 1,330 | 929 |
Derivatives with negative fair values | $ (967) | $ (1,814) |
Note 25 - Derivative Financia_4
Note 25 - Derivative Financial Instruments - Foreign Exchange Derivative Contracts and Hedge Accounting (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | $ 8,232 | $ 18,115 | |
Hedge accounting reserve | (4,800) | 2,600 | |
Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 8,232 | 18,115 | |
Hedge accounting reserve | (4,771) | 2,591 | $ (916) |
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 | 9,838 | 18,999 | |
Hedge accounting reserve | 156 | 404 | |
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 | (5) | (576) | |
Hedge accounting reserve | |||
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 | (1,969) | ||
Hedge accounting reserve | 5 | ||
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 | 543 | 588 | |
Hedge accounting reserve | |||
Foreign exchange contract, purchase currency JPY, sell currency USD [member] | Cash flow hedges [member] | Term, One [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (190) | ||
Hedge accounting reserve | |||
Foreign exchange contract, purchase currency JPY, sell currency USD [member] | Cash flow hedges [member] | Term Two [Member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 94 | ||
Hedge accounting reserve | (4,958) | 2,149 | |
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 | 412 | (234) | |
Hedge accounting reserve | 85 | ||
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 | (246) | 103 | |
Hedge accounting reserve | (59) | 38 | |
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 | (200) | ||
Hedge accounting reserve | |||
Foreign exchange contract, purchase currency USD, sell currency COP [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | (345) | ||
Hedge accounting reserve | |||
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 | (482) | (167) | |
Hedge accounting reserve | |||
Foreign exchange contract, Other [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Fair value of derivatives | 47 | 137 | |
Hedge accounting reserve |
Note 25 - Derivative Financia_5
Note 25 - Derivative Financial Instruments - Hedge Reserve Evolution (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | $ 2,600 | |
Hedge accounting reserve | (4,800) | $ 2,600 |
Cash flow hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | 2,591 | (916) |
Movements | (7,362) | 3,507 |
Hedge accounting reserve | (4,771) | 2,591 |
Foreign exchange derivatives contracts [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge accounting reserve | 2,591 | (916) |
Movements | (7,362) | 3,507 |
Hedge accounting reserve | $ (4,771) | $ 2,591 |
Note 26 - Contingencies, Comm_2
Note 26 - Contingencies, Commitments and Restrictions On the Distribution of Profits (Details Textual) $ / shares in Units, R$ in Thousands, $ in Thousands, € in Millions | Oct. 09, 2018USD ($) | Sep. 01, 2013$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020USD ($) | Nov. 19, 2020BRL (R$) | Nov. 19, 2020USD ($) | Sep. 28, 2020BRL (R$) | Sep. 28, 2020USD ($) | Dec. 31, 2019 | Oct. 10, 2018BRL (R$) |
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Term of supply contract (Year) | 9 years | |||||||||||
Performance Guarantees Issued | $ 2,500,000 | |||||||||||
Techgen s.a. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Proportion of ownership interest in associate | 22.00% | |||||||||||
Proportion of corporate guarantee covering obligations | 22.00% | 22.00% | 22.00% | 22.00% | ||||||||
Confab [member] | Chubb [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Payments for settlement | $ 3,500 | |||||||||||
Settlement, amount ordered to pay | R$ | R$ 13100 | |||||||||||
Confab [member] | Veracel Celulose S.A. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Settlement, amount ordered to pay, insurance deductible | R$ 69900 | $ 13,500 | ||||||||||
Settlement, amount ordered to pay, damages | 59,900 | 11,500 | ||||||||||
Tribunal de Contas da Uniao [member] | Legal proceedings contingent liability [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | R$ 30600 | $ 5,900 | ||||||||||
Tribunal de Contas da Uniao [member] | Legal proceedings contingent liability [member] | Top of range [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Alleged overprice that will be reduced amount | R$ 9000 | $ 1,700 | ||||||||||
Tribunal de Contas da Uniao [member] | Legal proceedings contingent liability [member] | Bottom of range [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Alleged overprice that will be reduced amount | R$ 401 | $ 77 | ||||||||||
Transportadora de Gas del Norte S.A. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Term of supply contract (Year) | 14 years | |||||||||||
Purchase commitments | 16,800 | |||||||||||
Transportadora de Gas del Norte S.A. [member] | Techgen s.a. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Term of supply contract (Year) | 25 years | |||||||||||
Praxair S.A. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Purchase commitments | 31,000 | |||||||||||
Graftech [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Purchase commitments | 10,900 | |||||||||||
Air Liquide Mexico S. de R.L. de C.V. [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Purchase commitments | 19,000 | |||||||||||
CONFAB INDUSTRIAL S.A. and subsidiaries [member] | Tax contingent liability [member] | BRAZIL | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | R$ 57200 | $ 11,000 | ||||||||||
Fine imposed, percentage of allegedly undue credits | 75.00% | 75.00% | 75.00% | |||||||||
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 | 80.00% | |||||||||||
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% | |||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2014 [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | € 25.7 | $ 31,600 | ||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2014, principal [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 20.7 | 25,500 | ||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2014, interest and penalties [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 5 | 6,100 | ||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2015 [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 10.5 | 12,900 | ||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2015, principal [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 8.1 | 10,000 | ||||||||||
DALMINE S.p.A. [member] | Tax contingent liability related to fiscal year 2015, interest and penalties [member] | ITALY | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | € 2.4 | 2,900 | ||||||||||
IPSCO Tubulars, Inc. | Commitments and guarantees | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 498,300 | |||||||||||
Master distribution agreement, term (Year) | 6 years | |||||||||||
Master distribution agreement, term, available extension (Month) | 12 months | |||||||||||
Penalties imposed | $ 0 | |||||||||||
IPSCO Tubulars, Inc. | Product liability litigation | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 17,600 | |||||||||||
IPSCO Tubulars, Inc. | Product liability litigation | Legal proceedings contingent liability [member] | ||||||||||||
Contingencies, commitments and restrictions on the distribution of profits | ||||||||||||
Estimated financial effect of contingent liabilities | 15,000 | |||||||||||
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 | $ 113,400 | |||||||||||
Purchase commitments percentage to be made | 75.00% | 75.00% | 75.00% |
Note 27 - Foreign exchange cont
Note 27 - Foreign exchange control measures in Argentina (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 8.00% | |
Percentage of entity's revenue | 12.00% | |
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 | $ 39,561 | $ 95,811 |
Argentine Peso / U.S. dollar foreign exchange risk [member] | Argentina, Pesos | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Currency exposure / functional currency | $ 39,600 |
Note 28 - Cash Flow Disclosur_3
Note 28 - Cash Flow Disclosures - Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Cash Flow [Abstract] | |||
Inventories | $ 828,796 | $ 311,459 | $ (176,443) |
Receivables and prepayments and Current tax assets | 74,877 | (34,368) | 30,144 |
Trade receivables | 409,163 | 428,326 | (517,579) |
Other liabilities | (34,871) | (18,295) | (22,984) |
Customer advances | (34,388) | 16,844 | 5,976 |
Trade payables | (184,442) | (180,857) | (57,066) |
Increase (decrease) in working capital | 1,059,135 | 523,109 | (737,952) |
Income tax accruals less payments | |||
Tax accrued | 23,150 | 202,452 | 229,207 |
Taxes paid | (140,364) | (395,869) | (170,713) |
Adjustments for income tax expense | (117,214) | (193,417) | 58,494 |
Interest accruals less payments, net | |||
Interest accrued | 8,627 | (4,616) | (2,914) |
Interest received | 19,613 | 30,890 | 40,613 |
Interest paid | (28,778) | (30,655) | (31,548) |
Interest income (expense) | $ (538) | $ (4,381) | $ 6,151 |
Note 29 - Related Party Trans_3
Note 29 - Related Party Transactions (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 27.4 | $ 33.7 | $ 33.7 |
Key management personnel compensation, share-based payment | $ 5 | $ 4.8 | $ 5.6 |
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 | 0.08% | ||
Units issued, related party transactions (in shares) | 522,000 | 468,000 | 558,000 |
Note 29 - Related Party Trans_4
Note 29 - Related Party Transactions - Transactions Carried Out With Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Revenue, related party transactions | $ 49,304 | $ 100,555 | $ 168,545 |
Purchases of goods and services, related party transactions | 122,489 | 290,271 | 407,545 |
Amounts receivable (payable), related party transactions | 55,944 | 63,136 | |
Finance lease liabilities from non-consolidated parties | (2,042) | (2,064) | |
Finance lease liabilities from other related parties | (810) | ||
Financial debt, related parties | (2,852) | (2,064) | |
Associates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods to related parties | 20,183 | 20,577 | 23,709 |
Sales of services to related parties | 5,829 | 5,620 | 7,641 |
Purchases of goods to related parties | 84,485 | 174,588 | 245,186 |
Purchases of services to related parties | 6,979 | 9,404 | 9,556 |
Receivables from non-consolidated parties | 78,721 | 78,884 | |
Payables to non-consolidated parties | (24,914) | (19,100) | |
Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods to related parties | 18,243 | 69,972 | 131,548 |
Sales of services to related parties | 5,049 | 4,386 | 5,647 |
Purchases of goods to related parties | 12,892 | 51,765 | 106,624 |
Purchases of services to related parties | 18,133 | 54,514 | $ 46,179 |
Receivables from non-consolidated parties | 4,447 | 10,400 | |
Payables to non-consolidated parties | $ (2,310) | $ (7,048) |
Note 30 - Fees Paid to the Co_3
Note 30 - Fees Paid to the Company's Principal Accountant - Fees Accrued for Professional Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional information [abstract] | |||
Audit fees | $ 3,781 | $ 3,846 | $ 3,841 |
Audit-related fees | 134 | 50 | 43 |
Tax fees | 102 | 7 | |
All other fees | 1 | 7 | |
Total | $ 4,017 | $ 3,904 | $ 3,891 |
Note 31 - Principal Subsidiar_2
Note 31 - Principal Subsidiaries (Details Textual) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
HYDRIL COMPANY and subsidiaries [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | ||
Technical Drilling & Production Services Nigeria. Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 80.00% | 80.00% | |
Tenaris Supply Chain S.A. [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 97.50% | ||
Tubular Technical Services and Pipe Coaters [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 40.00% | ||
Amaja Tubular Services Limited [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 49.00% | ||
Tubular Services Angola Lda. [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 49.00% | ||
Tenaris Baogang Baotou Steel Pipes Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 60.00% |
Note 31 - Principal Subsidiar_3
Note 31 - Principal Subsidiaries - Percentage of Ownership of Each Controlled Company (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
HYDRIL COMPANY and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | 100.00% | |||
CANADA | ALGOMA TUBES INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
CANADA | PRUDENTIAL STEEL LTD. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1],[2] | 100.00% | 100.00% | 100.00% |
CANADA | TENARIS GLOBAL SERVICES (CANADA) INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
BRAZIL | CONFAB INDUSTRIAL S.A. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
ITALY | DALMINE S.p.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
UNITED STATES | HYDRIL COMPANY and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1],[3] | 100.00% | 100.00% | 100.00% |
UNITED STATES | IPSCO TUBULARS INC. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | ||
UNITED STATES | MAVERICK TUBE CORPORATION and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
UNITED STATES | TENARIS BAY CITY, INC. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
UNITED STATES | TENARIS GLOBAL SERVICES (U.S.A.) CORPORATION [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
KAZAKHSTAN | Kazakhstan Pipe Threaders Limited [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
JAPAN | NKKTUBES [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 51.00% | 51.00% | 51.00% |
INDONESIA | PT SEAMLESS PIPE INDONESIA JAYA [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 89.00% | 89.00% | 89.00% |
ROMANIA | S.C. SILCOTUB S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
SAUDI ARABIA | Saudi Steel Pipe Company [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 48.00% | ||
ARGENTINA | SIAT SOCIEDAD ANONIMA [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
ARGENTINA | SIDERCA S.A.I.C. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
PORTUGAL | TALTA—TRADING E MARKETING SOCIEDADE UNIPESSOAL LDA. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
NETHERLANDS | TENARIS CONNECTIONS BV [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
NETHERLANDS | TENARIS INVESTMENTS (NL) B.V. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | |
URUGUAY | TENARIS FINANCIAL SERVICES S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
URUGUAY | TENARIS GLOBAL SERVICES S.A. and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1],[4] | 100.00% | 100.00% | 100.00% |
UNITED KINGDOM | TENARIS GLOBAL SERVICES (UK) LTD [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
LUXEMBOURG | TENARIS INVESTMENTS S.àr.l. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
Colombia | TENARIS TUBOCARIBE LTDA. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
MEXICO | TUBOS DE ACERO DE MEXICO S.A. [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of ownership | [1] | 100.00% | 100.00% | 100.00% |
[1] | All percentages rounded. | |||
[2] | See note 36. | |||
[3] | Tenaris Investments S.a.r.l. holds 100 % of Hydril's subsidiaries shares except for Technical Drilling & Production Services Nigeria. Ltd where it held 80% for 2019 and 2018. | |||
[4] | Tenaris holds 97.5% of Tenaris Supply Chain S.A. and 40% of Tubular Technical Services Ltd. and Pipe Coaters Nigeria Ltd., 49% of Amaja Tubular Services Limited, 49% of Tubular Services Angola Lda and 60% of Tenaris Baogang Baotou Steel Pipes Ltd. |
Note 32 - Business Combinatio_3
Note 32 - Business Combinations (Details Textual) ر.س in Millions | Jan. 02, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Jan. 21, 2019SAR (ر.س)Mt | Jan. 21, 2019USD ($)Mt |
Ipsco Tubulars Inc [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of voting equity interests acquired | 100.00% | ||||||
Cash transferred | $ 1,067,000,000 | ||||||
Final closing price determined | 1,029,000,000 | ||||||
Difference amount between closing price paid & final closing price determined | $ 38,500,000 | ||||||
Master distribution agreement, term (Year) | 6 years | ||||||
Goodwill recognized | $ 357,000,000 | ||||||
Acquisition-related costs | $ 9,700 | ||||||
General and administrative expense | $ 300,000 | $ 9,400,000 | |||||
Ipsco Tubulars Inc [Member] | Tubes [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Net revenues contributed by acquiree since the acquisition date | $ 186,700,000 | ||||||
Saudi Steel Pipe Company [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of voting equity interests acquired | 47.79% | 47.79% | |||||
Cash transferred | ر.س 530 | $ 141,000,000 | |||||
Net revenues contributed by acquiree since the acquisition date | $ 170,600,000 | ||||||
Goodwill recognized | $ 32,900,000 | ||||||
Manufacturing capacity, steel pipes (Metric Ton) | Mt | 360,000 | 360,000 | |||||
Total assets and liabilities acquired | $ 109,000,000 |
Note 32 - Business Combinatio_4
Note 32 - Business Combinations - Assets and Liabilities Assumed (Details) ر.س in Millions, $ in Millions | Jan. 02, 2020USD ($) | Jan. 21, 2019SAR (ر.س) | Jan. 21, 2019USD ($) |
Ipsco Tubulars Inc [Member] | |||
Disclosure of detailed information about business combination [line items] | |||
Property, Plant and Equipment | $ 503 | ||
Intangible assets | 170 | ||
Working capital | 138 | ||
Cash and Cash Equivalents | 4 | ||
Borrowings | (53) | ||
Provisions | (27) | ||
Other assets and liabilities, net | (63) | ||
Net assets acquired | $ 672 | ||
Saudi Steel Pipe Company [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Property, Plant and Equipment | ر.س 671 | $ 179 | |
Customer relationship | 305 | 81 | |
Investment in associated | 77 | 21 | |
Working capital | 167 | 45 | |
Cash and Cash Equivalents | 32 | 9 | |
Other Receivables | 11 | 3 | |
Borrowings | (304) | (81) | |
Employees end of service benefits | (59) | (16) | |
Deferred Tax Liabilities | (47) | (13) | |
Net assets acquired | ر.س 853 | $ 228 |
Note 33 - Agreement to Build _2
Note 33 - Agreement to Build a Welded Pipe Plant in West Siberia (Details Textual) - Welded pipe plant in West Siberia [member] $ in Millions | Feb. 05, 2019USD ($)t | Dec. 31, 2019USD ($) |
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest in joint venture | 49.00% | |
Investments in joint ventures | $ 280 | |
Manufacturing capacity, steel pipes (Metric Ton) | t | 300,000 | |
Other cash payments to acquire interests in joint ventures | $ 19.6 | |
PAO Severstal [member] | ||
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest in joint venture | 51.00% |
Note 34 - Agreement to build _2
Note 34 - Agreement to build a steel pipe premium connection threading plant in Baotou (Details) - Steel Pipe Premium Connection Threading Plant in Baotou [Member] t in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)t | |
Disclosure of joint ventures [line items] | |
Proportion of ownership interest in joint venture | 60.00% |
Investments in joint ventures | $ 32.6 |
Manufacturing plant, estimated construction period (Year) | 1 year |
Manufacturing capacity, steel pipes (Metric Ton) | t | 70 |
Other cash payments to acquire interests in joint ventures | $ 2.3 |
Inner Mongolia Baotou Steel Union Company Ltd [Member] | |
Disclosure of joint ventures [line items] | |
Proportion of ownership interest in joint venture | 40.00% |
Note 35 - Closure of faciliti_2
Note 35 - Closure of facilities at JFE's Keihin steel complex (Details) | 12 Months Ended |
Dec. 31, 2020 | |
JFE [member] | NKKTUBES [member] | |
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | |
Proportion of ownership interest in subsidiary | 49.00% |
Note 36 - Closure of Prudenti_2
Note 36 - Closure of Prudential Steel LTD (Details) $ in Millions | Dec. 31, 2020USD ($) |
Prudential Steel Limited [Member] | ALGOMA TUBES INC. [member] | |
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | |
Additional investment will be made | $ 72 |
Note 37 - Cancellation of tit_2
Note 37 - Cancellation of title deed in Saudi Steel Pipe Company (Details) - SAUDI ARABIA - Saudi Steel Pipe Company [member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020USD ($)m² | ||
Disclosure of geographical areas [line items] | |||
Area of land (in square meters) | m² | 811,284 | ||
Proportion of ownership interest in subsidiary | [1] | 48.00% | |
Land plots, carrying value | $ | $ 56.2 | ||
[1] | All percentages rounded. |
Note 38 - Nationalization of _2
Note 38 - Nationalization of Venezuelan Subsidiaries (Details Textual) - USD ($) $ in Thousands | Jul. 17, 2020 | Dec. 12, 2016 | Jan. 29, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of subsidiaries [line items] | |||||
Nationalization of subsidiaries, compensation award post-award interest | $ 83,400 | ||||
Total trade and other non-current receivables | 154,303 | $ 157,103 | |||
VENEZUELA | |||||
Disclosure of subsidiaries [line items] | |||||
Total trade and other non-current receivables | 48,700 | ||||
Matesi Materiales Siderúrgicos S.A [member] | VENEZUELA | |||||
Disclosure of subsidiaries [line items] | |||||
Nationalization of subsidiaries, compensation award not including pre-award interest | $ 87,300 | ||||
Nationalization of subsidiaries, pre-award interest | 85,500 | ||||
Nationalization of subsidiaries, compensation award including pre-award interest | $ 172,800 | ||||
Nationalization of subsidiaries, post-award interest rate | 9.00% | ||||
Nationalization of subsidiaries, compensation award including including principal and post-award interest | $ 256,200 | ||||
Tavsa and Comsigua [member] | VENEZUELA | |||||
Disclosure of subsidiaries [line items] | |||||
Nationalization of subsidiaries, compensation award including pre-award interest | $ 137,000 | ||||
Nationalization of subsidiaries, reimbursement of legal fees | $ 3,300 | ||||
Nationalization of subsidiaries, basis spread on variable rate | 4.00% | ||||
Interest receivable | $ 132,400 |
Note 39 - The COVID-19 pandem_2
Note 39 - The COVID-19 pandemic and the oil & gas crisis and their impact on Tenaris's operations and financial condition (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Nov. 25, 2020 | Nov. 04, 2020 | Nov. 20, 2019 | May 22, 2019 | Nov. 21, 2018 | May 23, 2018 | Nov. 22, 2017 | Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Unusual or Infrequent Item 1 [line items] | |||||||||||
Dividends recognised as distributions to owners | $ 82,600 | $ 153,000 | $ 484,000 | $ 484,000 | $ 153,000 | $ 87,938 | $ 485,827 | $ 487,681 | |||
Dividends paid, ordinary shares per share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.28 | $ 0.13 | $ 0.28 | $ 0.13 | |||||
Dividends paid, per American Depositary Security (in dollars per share) | $ 0.14 | ||||||||||
Global pandemic [member] | |||||||||||
Unusual or Infrequent Item 1 [line items] | |||||||||||
Estimated annual savings from the reduction of fixed costs | 230,000 | ||||||||||
Reduction of capital expenditures and research and development expenses | 157,000 | ||||||||||
Net cash position [member] | |||||||||||
Unusual or Infrequent Item 1 [line items] | |||||||||||
Total cash | $ 1,085,000 |
Note 40 - Subsequent Events (De
Note 40 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 03, 2021 | Nov. 25, 2020 | Nov. 04, 2020 | Nov. 20, 2019 | May 22, 2019 | Nov. 21, 2018 | May 23, 2018 | Nov. 22, 2017 | Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 26, 2021 |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Dividends paid, ordinary shares per share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.28 | $ 0.13 | $ 0.28 | $ 0.13 | |||||||
Dividends paid, per ADS (in dollars per share) | $ 0.14 | $ 0.56 | $ 0.26 | $ 0.56 | $ 0.26 | ||||||||
Dividends recognised as distributions to owners | $ 82,600 | $ 153,000 | $ 484,000 | $ 484,000 | $ 153,000 | $ 87,938 | $ 485,827 | $ 487,681 | |||||
Dividends payable, amount per ads (in dollars per share) | $ 0.14 | ||||||||||||
Annual Dividend Proposal [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Annual dividend proposed to be distributed (in dollars per share) | $ 0.21 | ||||||||||||
Annual dividend proposed to be distributed, amount per ads (in dollars per share) | $ 0.42 | ||||||||||||
Annual dividend proposed to be distributed | $ 248,000 | ||||||||||||
Dividends payable, amount per share (in dollars per share) | $ 0.14 | ||||||||||||
Dividends payable, amount per ads (in dollars per share) | $ 0.28 | ||||||||||||
Annual dividend payable | $ 165,000 |
Uncategorized Items - ts-202012
Label | Element | Value |
ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | $ 1,644,000 |
ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | 98,000 |
ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | ifrs-full_BankOverdraftsClassifiedAsCashEquivalents | $ 24,000 |