Annual Report 2005 - Tenaris

22. TenarisConfab
The graph shows the equity equivalence evolution
for Siat over the last five years.
The holding in Socotherm Brasil, a company special
ized in pipe coatings, produced earnings of R$ 11.1
million for Confab in 2005 (compared with R$ 1.1
million in 2004) as a result of the increased demand
for coated pipes. There follows the evolution in
results for the period 2001 to 2005, net of minority
shareholdings (50%).
Tenaris Confab Hastes de Bombeio was founded in
2004 to produce sucker rods and other materials for
the oil and petrochemical sector. Up until September,
SIAT EQUITY EQUIVALENCE
MILLLIONS
OF R$
36
30
24
18
12
6
0
(6)
(12)
OPERATING
RESULTS
12.8
(11.6)
1.1
EXCHANGE
PARITY
35.7
(9.4)
26.3
TOTAL SIAT
2001 2002 2003 2004
0.9
15.2
(3.8)
(5.9)
(4.6) (3.7)
(9.7) (10.4)
2005
4.8
the company honored previously signed commercial
contracts denominated in US dollars. In October
a new two-year contract was signed with Petrobras,
producing positive results for the end of the year,
but not enough to revert the losses accumulated
in the company's balance sheet for the year of 2005.
This led to a loss of R$ 1.6 million for Confab
in 2005 (compared with R$ 0.4 million in 2004).
Human Resources
Social Action - Working Responsibly
Confab seeks to practice corporate social responsibility
by means of diverse actions that contemplate the
needs of the different publics with which it interacts.
To this end, the company is involved in identifying
the needs of its employees and the communities
in which it operates, as well as emphasizing respect
for the environment. At the end of 2005, the company
had 2,086 employees.
In 2005, Confab invested a total of R$ 2.7 million
in technical, management, information technology,
language and postgraduate courses for its employees,
a 153% increase compared with the previous year
(see Social Action Report on page 40).
Investments
The company invested R$ 47.2 million last year,
mainly in the amplification and modernization
of plants. The main focus was on technological
modernization to improve quality, automation
and competitiveness. The investments undertaken
over the last five years are shown in the chart on
the next page.
A number of investments were aimed at increasing
productivity and the quality of our products for
the offshore market. Especially worthy of mention
are the installation of a fluoroscopic station at the
UOE plant, a transportation mechanism at the exit