Company: TNRSF
Filing Date: 2025-02-21
Form Type: 6-K
Source: 0001171843-25-000987
Chunk: 49

Company: TENARIS SA
Filing Date: 2025-02-21
Form: 6-K
Chunk 49
---
 initially recognized in the statement
of financial position at fair value. Tenaris uses market prices or specific tools for calculation of each instrument’s fair value,
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. Gains or losses arising from changes in fair value
of derivatives are recognized in Financial Results in the Consolidated Income Statement, except for derivatives that are designated
and qualify for hedge accounting.

| - 34 - |

| Consolidated Financial Statements                                                                           |
| For the years ended 2024, 2023 and 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated |

Tenaris designates certain derivatives 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. 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.

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 undertaking various hedge transactions. Tenaris also documents its assessment on an ongoing basis, of whether
the hedging instruments are highly effective in offsetting changes in the fair value or cash flow of hedged items. At December 31, 2024
and 2023, the effective portion of designated cash flow hedges which is included in Other Reserves in equity amounted to $0.6
million debit and $8.1 million credit
respectively.

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 note 26
to these Consolidated Financial Statements.

| - 35 - |

| Consolidated Financial Statements                                                                           |
| For the years ended 2024, 2023 and 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated |

**IV.