Company: TNRSF
Filing Date: 2025-04-01
Form Type: 20-F
Source: 0001554855-25-000262
Chunk: 18

Company: TENARIS SA
Filing Date: 2025-04-01
Form: 20-F
Item: Item 17
Chunk 18
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 in 2024, it is unclear whether Congress will

endorse

other major

reforms,

including labor and tax reforms.

While the deregulation of the economy and intended reforms aim to create a more competitive and investment-friendly environment, the associated uncertainties and potential for abrupt policy changes pose substantial risks for companies operating in the country.

In addition,

conflict

s

between the national government and provincial governors, court decisions setting aside some of the governmental measures, resistance by social and union leaders and general social and political unrest

may arise

. Adverse economic and political conditions could cause a drop in demand for our products in the domestic

market, adversely affecting our operations and financial results. Similarly, they could also negatively impact the business and operations of our customers (oil and gas companies operating in Argentina) and consequently our revenues and profitability.

Our business and operations in Argentina may be adversely affected by high inflation or by

governmental

measures to address inflation. In particular, increases in services and labor costs could affect cost-competitiveness and margins, negatively impacting our results of operations. An economic environment characterized by high inflation could undermine Argentina’s foreign competitiveness in international markets and negatively affect economic activity and employment levels.

While

inflation

has falling significantly in recent months, failure to maintain low inflation rates could

undermine Argentina’s foreign competitiveness in international markets and negatively affect economic activity and employment levels.

In addition, if market

volatility

increases

it

may be

impossible to estimate with reasonable certainty the extent to which our activity levels and results of operations could be affected in the future. In addition, an increased level of labor demands in response to spiraling inflation could trigger higher levels of labor conflict and

,

eventually

,

result in strikes or work stoppages involving our operations or those of our suppliers and customers. Any such disruption of operations could have an adverse effect on our operations and financial results.

  22  

  Annual Report 2024  

Other events that may have an adverse effect on our operations and financial results include increased taxes, currency devaluation, exchange controls, restrictions on capital flows and export and import taxes or restrictions. Between September 2019 and December 2023, the Argentine government imposed significant restrictions on foreign exchange transactions. Although after a new administration took office in Argentina in December 2023 certain restrictions were eased and other changes to such regulations are expected, at the date of this annual report, the application of existing foreign exchange regulations remains uncertain, and the scope and timing of upcoming changes