Company: TNRSF
Filing Date: 2025-02-21
Form Type: 6-K
Source: 0001171843-25-000987
Chunk: 38

Company: TENARIS SA
Filing Date: 2025-02-21
Form: 6-K
Chunk 38
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 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.

Fair 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.

Equity instruments are subsequently measured at fair value.

Accounting for derivative financial instruments and hedging activities is included within the section III, Financial Risk Management.

| - 27 - |

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

#### iii.
Financial risk management

The multinational nature of Tenaris’s operations and customer base
exposes the Company 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, taking advantage of exposure netting. The 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 |

Tenaris seeks to maintain a low debt to total equity ratio considering
the industry and the markets 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 0.03 as
of December 31, 2024 and 2023. 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