Tenaris S.A.(US:TS)2019-04-03 18:05Financial Risks - The company is exposed to foreign exchange rate risk due to operations in multiple currencies, which could adversely affect financial condition and results of operations[66]. - The company's ability to pay dividends is dependent on the financial health of its subsidiaries and may be restricted by legal and contractual limitations[78]. - Cyberattacks pose a significant risk, potentially leading to operational disruptions and financial losses[77]. Regulatory Compliance - Compliance with anti-corruption laws is critical, as violations could lead to governmental investigations, fines, and impact sales and profitability[67]. - Environmental regulations are becoming more stringent, potentially increasing operating costs and negatively impacting financial condition and results of operations[69]. - Compliance with local procedural requirements is necessary for the enforceability of judgments[88]. Operational Risks - The company’s oil and gas products are subject to inherent risks, including well failures and environmental liabilities, which could result in significant damages[72]. - Defects in specialty tubing products may lead to claims for damages, impacting financial condition and operational performance[74]. Intellectual Property - Limitations on intellectual property rights could result in revenue loss and diminished competitive advantage[76]. Shareholder Rights - The controlling shareholder holds 60.45% of shares, which may lead to decisions that do not align with the interests of minority shareholders[82]. - Holders of ADSs may face challenges in exercising certain shareholder rights, which could limit their influence over corporate actions[84]. Jurisdictional Challenges - The Company is organized under the laws of Luxembourg, complicating enforcement of judgments against it outside this jurisdiction[88]. - Most of the Company's assets and directors are located in different jurisdictions, impacting investors' ability to serve process[88]. - Investors may face challenges in enforcing judgments based on civil liability provisions of their home countries' laws against the Company and its officers[88]. - There is uncertainty regarding the enforceability of civil liability actions based on securities laws outside the jurisdiction where judgments are rendered[88]. - The Company may not be subject to the civil liability provisions of U.S. federal securities laws in Luxembourg courts[88]. - Investors not domiciled in Luxembourg may find it difficult to initiate original actions in Luxembourg courts[88]. - The public policy of the applicable jurisdiction may affect the enforceability of judgments[88].