Annual Report 2005 - Tenaris

The segment supplying fuel tanks for service stations performed well during
the year, especially worthy of note being the company's sales to Companhia
Ipiranga and to BR Distribuidora.
The outlook for 2006 in TenarisConfab is affected by the evolution of the
GASENE projects in Brazil and the second expansion phase of the north and
south gas pipelines in Argentina. It is expected that the lack of definition in
these projects will result in decreased demand for welded pipes in the regional
market, which should be partially offset by higher sales outside the region.
Even so, if the demand and prices of natural gas maintain their current levels,
large projects in the area may well come to fruition.
In the industrial equipments unit, the outlook for 2006 is favorable, based
on the expansion plans announced by Petrobras, as well as the enlargement
and modernization of its main refineries. In the petrochemical and pulp
sectors there are also a number of investment plans. Companhia Vale do Rio
Doce should also be investing in equipment and plants in the mining sector.
We take this opportunity to thank our team for their great professionalism
and dedication, resulting once again in increased efficiency and productivity
for the company.
We also thank our customers, suppliers and shareholders for their continous
support and confidence in the company.
Roberto Caiuby Vidigal
President of the Board
14. TenarisConfab