Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (October 2012)
16 slides from Tenaris's investor presentation, October 2012
Slide 1: Investor Presentation
Investor Presentation Paolo Rocca Chairman and CEO
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements.” Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by th
Slide 3: Oil and gas prices
Oil and gas prices Oil Prices Gas Prices 140 [US$/bbl] 25 [US$/MMbtu] Brent 120 Spot LNG 20 NE Asia 100 80 15 WTI 60 NBP ICE UK 10 40 5 HH 20 0 0 Jan'07 Jan'08 Jan'09 Jan'10 Jan'11 Jan'12 Jul'07 Jul'08 Jul'09 Jul'10 Jul'11 Jul'12 Jul'07 Jul'08 Jul'09 Jul'10 Jul'11 Jul'12 Jan'07 Jan'08 Jan'09 Jan'10
Slide 4: Industry dynamics in USA
Industry dynamics in USA Oil Production Gas Production [Mbbl/d] [Tcf] 25 8 20 Shales Shales 6 15 Lower 48 w/o shales Lower 48 w/o shales 4 10 2 GoM GoM 5 Alaska Associated w/oil production 0 0 2012E 2012E 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 1990 1992 1994 1996 1998 2000 2002 2004
Slide 5: Drilling activity in USA
Drilling activity in USA US rig count 2,500 Total 2,000 1,500 Gas 1,000 500 Oil 0 May'07 May'08 May'09 May'10 May'11 May'12 Jan'07 Jan'08 Jan'09 Jan'10 Jan'11 Jan'12 Sep'07 Sep'08 Sep'09 Sep'10 Sep'11 Sep'12 Source: BHI Investor Presentation Tenaris October 2012 5
Slide 6: Global OCTG demand
Global OCTG demand 18 [Mill Tn] 16 Total 14 12 10 API 8 +4.6% per year Premium 6 +10.1% per year 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012E Investor Presentation Tenaris October 2012 6
Slide 7: OCTG and premium consumption
OCTG and premium consumption OCTG consumption by region Premium OCTG consumption by [Mill Tn] (2012E) application (2012E) 8 Others Deep 6 Oil Water 21% 13% 4 Shallow Others Water Gas 24% 2 17% Shales Oil+Gas Shales 0 USA Oil+Gas Americas International China & Russia 23% RoW 2% API Premium Investor P
Slide 8: Growth in complex projects
Growth in complex projects Global deepwater rig count 200 160 120 80 40 0 2007 2008 2009 2010 2011 2012E Source: Rig Logix Investor Presentation Tenaris October 2012 8
Slide 9: Deepwater well requirements
Deepwater well requirements Main characteristics ¬¬ y x¬ CONDUCTOR 36 in. TSH BlueDock 0 1 0 ¬¬ ¬ ¬y 0 1 0 x¬ ¬ ¬ CONDUCTOR 28 in. 0 1 0 0 1 0 • Gulf of Mexico production well 0 1 0 TSH ER ¬¬ ¬ ¬ ¬y 0 1 0 x¬ ¬ ¬ ¬ SURFACE CASING 22 in. • Water depth: 2,083 [m] 0 0 1 1 0 0 • Well depth: 4,351 [m] 0 1
Slide 10: HPHT well requirements
HPHT well requirements Main characteristics ¬y 0 1 0 x CONDUCTOR 30 in. TSH BlueDock 0 1 0 0 1 0 • SE Asia exploration well 0 1 0 0 1 0 • Water depth: 100 [m] ¬¬ y 0 1 0 x¬ SURFACE CASING 22 in. TSH ER 0 1 0 • Well depth: 5,585 [m] 0 1 0 0 1 0 • BHP: 17,300 psi 0 1 0 0 1 0 • BHT: 155 [°C] 0 1 0 0 1
Slide 11: Deepwater/HPHT value proposition
Deepwater/HPHT value proposition Premium products TSH Wedge TSH Blue Others Conductor and TSH BlueDock TM TSH ER TM Surface Casing TSH W513TM Intermediate TSH W511TM TSH Blue ® NF Casing and Liners TSH W523TM Production TSH Blue ® TSH W523TM Casing/Liners and TSH Blue ® HW TSH W563TM Tubing TSH Blue
Slide 12: Shale well requirements
Shale well requirements Main characteristics • Eagle Ford production well • Total measured depth: ¬¬ ¬ ¬ ¬ ¬ y x¬ ¬ ¬ ¬ ¬ SURFACE CASING 13 3/8 in. 5,800 [m] • Horizontal section: 1,800 [m] • Pore pressure: 10,000 [psi] TSH W625 TSH W563 PRODUCTION CASING 5 1/2 in. • BHT: 350 [°F] ¬¬ ¬ ¬ ¬ ¬ ¬ ¬ 0 0
Slide 13: Shales - value proposition
Shales - value proposition Premium products TSH Wedge TSH Blue Others TM TSH W625 TM ® Production Casing TSH W563 TSH Blue TXP BTC TM TSH W521 • Technical service and field support • Service centers and supply chain management • Proprietary steel grades • Complementary products (oil tools, coiled tu
Slide 14: China
China Chinese seamless pipe capacity Chinese OCTG production [Mill Tn] [Mill Tn] 50 100% 8 Domestic Exports 40 80% 6 Utilization % 30 60% 4 20 40% 2 10 20% 0 0% 0 2007 2008 2009 2010 2011 2012E 2007 2008 2009 2010 2011 1H 2012 Profitability [US$ Mill] 2010 2011 1H 2012 Revenue 6.640 8.055 4.388 Prof
Slide 15: Strategic actions
Strategic actions • Expansion in North America: new industrial and logistics center in USA • Consolidation in Latin America: Brazil, Colombia, Mexico, Argentina • Leverage technical leadership in complex projects worldwide • Differentiation through product development, industrial excellence and cust
Slide 16: Investor Presentation Tenaris October 2012
Investor Presentation Tenaris October 2012 16