By his own admission, a certain former President was not keen on “the vision thing” as a general proposition.  He never did get around to proposing a Unified National Energy Policy.  The successor co-Presidency brought forth many initiatives, but a Unified National Energy Policy was not one of them.  Iteration II of the “no vision thing” has done no better in this regard.

Apparently the next Presidency is to be neither a Restoration nor a Continuation, which is probably a net positive.  The prospect of a breath of fresh air carries with it a certain appeal.  Whoever is elected President next autumn has a great opportunity to bring forth a unified national energy plan.  It is indeed very late in the day, but it ought to be one of the entries at the very top of the Priority List.

So very much time has been wasted.  It can’t be recaptured.  The current thrashing-about for a “windfall profits tax” on Big Oil may be a reflection of a peculiarly human instinct to inflict punishment.  There is a certain vengefulness about it all, with overtones of envy, jealousy, and coveting thy neighbor’s goods.  Certainly, there is great pain involved in having to pay a small fortune to fill the gas tank, but there would seem not to be very great profit in the retail side of the business, for otherwise Exxon Mobil would not be exiting therefrom, as has been reported this morning.  XOM concluded that the availability of gasoline on the retail premises has become the loss-leader or zero-profit “bait” in order to bring the customer into the store in order to pay for the gas and then sell him pretzels and hot coffee at good markups, which after all is not really its chosen line of work.

I lived on Long Island, New York, from birth until just a few years ago.  I clearly remember the drumbeat of opposition to the proposed nuclear energy plant at Shoreham, which was actually fueled and ready to begin producing electricity when the naysayers finally prevailed and the plant was shut down before it ever earned its first dollar.  The memories of Chernobyl and of the close shave at Three Mile Island were fresh in the mind.  The costs involved in building Shoreham and then decommissioning it were inevitably “administered” to customers at the retail level, who continue to pay for it to this very day.

France (perhaps unexpectedly, France?) generates about 40% of its national electricity usage at its nuclear generating plants.  It is a world leader in the design and construction supervision of state-of-the-art nuclear power facilities.  Other European countries, by contrast, reflexively stopped new atomic electricity generation cold.  Now chickens are coming home to roost, with a newly invigorated Gazprom holding all of the face cards, possessing the power (and perhaps the willfulness) to have its way with Europe in terms of the availability and the cost of natural gas.

It may be that we in the United States have tapped all of our practical sources of hydroelectric power.  And yet – one wonders about that, upon seeing pictures of vast acreage of farmland and entire Midwestern cities inundated with flood water – all of it doing damage, and none of it generating a single kilowatt of power on its determined way to the Mississippi River and the Gulf of Mexico, loaded with valuable topsoil to build up the Delta.  What a waste.

Is there no reasonable way to capture the inherent generative power of much of that wasted water – and prevent massive property damage and disruption of lives while doing so?

Is there latent hydroelectric generative power available to be harnessed in northern Canada, which by mutual agreement might be developed?

We are told that the United States still has very substantial reserves of soft coal in the ground.  Granted, coal is polluting, and utilities consider it to be the “fallback fuel.”  (We read that they are falling back on it now, at least to some extent, in view of the prices of fuel oil and of natural gas). It would seem that coal will necessarily be a major part of the electricity-generation equation for decades to come, like it or not.

Then there is wind power, which is still tiny, but growing.  Denmark generates a very large percentage of its total electricity by wind power.  It’s a small country, to be sure, but it’s leading the way and showing us what can be done.

Generation of electricity by tidal action or by wave action is in the picture.  Those concepts are appealing because the source of power never goes away.  They do seem to be a long distance from becoming real on any substantial scale.

And then there is nuclear.  I had thought to myself, years ago when Shoreham was shut down, that a terrible mistake had just been made, that we were going in reverse, and that we would come to rue the day.  That is not to say that “Shoreham” was the right installation in the right place, because it probably wasn’t – only that the mob-like, frenzied reaction to its construction evoked an animalistic, irrational streak in human nature which has been seen before over the centuries, and will no doubt be seen again. 

Rather than “shutting down Shoreham” and stopping in its tracks the development of nuclear-powered electricity generating plants nationwide, we should instead have been proceeding apace with constructing those plants and building up a uranium fuel reserve at the same time, especially since uranium is available in reasonable abundance right here at home.  Canada has a pound or two of it too, we hear.

Cursory reading reveals that good strides are now being made in solar generation of electricity.  Surely, as the technology advances, solar will become an ever-more-important part of the entire electricity picture.

The whole concept of deriving ethanol from corn has turned out badly.  I never understood the supposed logic of it.  The entire enterprise is one gigantic boondoggle at the taxpayers’ expense, and it robs the world of food at exactly a time when it is most needed.  I foresee that ethanol can become an important fuel for cars and trucks, as it has in Brazil; but it ought not be made in great volume from food grains.  It is difficult to transport in bulk, as compared to gasoline, partly because of its corrosive properties; but in dilute form and in small package units it is widely available and is easily carried about.  (see: research categories “beer” and “Jack Daniels”).

Liquefied natural gas is a bit of a puzzle.  It’s devilish to handle; it’s dangerous; if it comes from overseas, that adversely affects the balance of payments and does little if anything to promote our energy independence.  LNG may be and remain in the mix, but I doubt that it has the potential of becoming a major part of the solution.

I recall having a conversation some years ago with a very book-learned man of academe.  His main theme centered upon the necessity to mandate the manufacture of automobiles in such manner that they would operate on stored electricity (batteries) only – i.e., without petroleum-derived fuel whatsoever.  Recharging of the batteries would be accomplished by the use of electrical outlets at home and at universally-available “filling” stations.  My response was that it was a marvelous idea; but I gently inquired what he envisioned to be the fuel which would be used in order to generate all that electricity. The question stumped him cold.

There are not going to be any easy answers; and they are not going to be provided by people whose lives are centered upon the concept of “No,” “Never,” or “Not In My Back Yard.”  Many folks will be unhappy, maybe including me.  There may even be more drilling in Alaska, wind farms in the sea within sight of Nantucket or even (!) Hyannis, and oil rigs offshore Palm Beach.  However, if the professional naysayers would prefer to remain mobile, warm in winter and cool in summer, and continue to see Pat and Vanna appear on the TV screen when they click the “On” button, there may have to be some tradeoffs.

Every actual or potential source of electrical energy should be on the new President’s desk for discussion.  He has the opportunity to get off to a good start by gathering around him the best advice he can find; and thereupon, for the first time, formulate a Unified National Energy Policy, to be presented to the Congress and intended to be in place by the end of his first year in office.  It should include specific goals for each actual and potential source of electrical power, together with targets for the substitution of alternate fuels in place of gasoline, Diesel fuel, home heating oil, and jet fuel.

My Dad taught me a long time ago that there are only two steps involved in getting a job done: 1) Start, and 2) Keep Going.

On his very first day in office, the new President should start work on development of a Unified National Energy Policy.  And then he should Keep Going when the brickbats begin to fly.

William Kurtz      June 14, 2008     http://www.candlewave.com

Summary of 2009 Third Quarter Results

(Comparison with second quarter of 2009 and third quarter of 2008)

Q3 2009 Q2 2009 Q3 2008 ——- —————– —————– Net sales (US$ million) 1,771.5 2,096.3 (15%) 3,074.0 (42%) Operating income (US$ million) 360.6 436.8 (17%) 931.8 (61%) Net income (US$ million) 237.3 336.4 (29%) 631.2 (62%) Shareholders’ net income (US$ million) 229.9 343.3 (33%) 570.6 (60%) Earnings per ADS (US$) 0.39 0.58 (33%) 0.97 (60%) Earnings per share (US$) 0.19 0.29 (33%) 0.48 (60%) EBITDA (US$ million) 488.3 563.1 (13%) 1,064.6 (54%) EBITDA margin (% of net sales) 28% 27% 35%

Our results in the third quarter reflect weak demand for our products and services from our customers in all regions though sales in the Middle East and Africa region registered a modest year on year increase. Shipments of tubular products fell 50% year on year and 16% sequentially. However, our EBITDA margin stabilized on a sequential basis as lower input costs offset lower prices. Earnings per share declined by 60% year on year reflecting the decline in sales and margins. However, cash flow from operations remained strong and we reduced our investment in working capital by a further US$359.5 million. Our net financial position (total financial debt less cash and other current investments) is now net cash positive with a balance of US$556.9 million at the end of the period.

Interim Dividend Payment

Our board of directors approved the payment of an interim dividend of US$0.13 per share (US$0.26 per ADS), or approximately US$153 million. The payment date will be November 26, 2009 (however, because such date is not a business day in the US, shareholders in all jurisdictions may receive their interim dividend on or after November 27, 2009, which is the first business day following the stated payment date), and the ex-dividend date will be November 23, 2009.

Market Background and Outlook

Global oil prices have risen during the first nine months of 2009 from their low of around US$30 per barrel at the beginning of the year and now stand around US$75-80 per barrel. The increase in oil prices is supported by expectations for a continuing recovery in the outlook for global growth led by the resilient performance of the Chinese economy and OPEC actions to curtail production. North American gas prices have recently rebounded from their lows below US$3.00 per million BTU but production has not yet fallen in line with demand and gas in storage is now at historically high levels.

The international count of active drilling rigs, as published by Baker Hughes, continued to decline during the third quarter. It averaged 969 during the third quarter of 2009, 1% lower than the second quarter of 2009 and 12% lower than the same quarter of the previous year. The corresponding rig count in the US, however, started to rebound in July driven mainly by an increase in oil drilling activity and lower rig rates. It averaged 973 during the third quarter, 4% higher than the second quarter of 2009 but 51% lower than the third quarter of 2008. In Canada, the corresponding rig count, which is affected by seasonal drilling patterns, averaged 187 during the quarter, a decrease of 57% compared to third quarter of 2008.

Whereas demand for our pipes this year has been severely affected by the decline in oil and gas drilling activity and the actions taken by customers to adjust to reduced cash flows and a less favorable market outlook, in the third quarter our level of incoming orders by volume is recovering. In addition, in the US and Canadian markets, inventory levels, although they remain high, have been coming down from the extraordinarily high levels they reached in the first quarter of this year. With activity levels now stabilizing, the oil price at an attractive level, and inventories closer to more reasonable levels, we can expect pipe shipments in our Tubes operating segment to begin showing a moderate increase in the fourth quarter.

During this quarter the order backlog for our large-diameter pipes for pipeline projects in South America has continued to decline and we therefore expect lower shipments going forward.

Our production costs should start to benefit from efficiencies associated with an increase in production levels, and from the effect of the actions underway to reduce our structural costs.

Our average selling prices in the coming quarters will reflect a gradual adjustment to the lower levels currently in the market and, consequently, any recovery in net sales and EBITDA will be more modest than that of our shipments.

Analysis of 2009 Third Quarter Results

Increase/ Sales volume (metric tons) Q3 2009 Q3 2008 (Decrease) ——- ——- ——– Tubes – Seamless 407,000 669,000 (39%) Tubes – Welded 67,000 263,000 (75%) Tubes – Total 474,000 932,000 (49%) Projects – Welded 97,000 155,000 (37%) Total 571,000 1,087,000 (47%) Increase/ Tubes Q3 2009 Q3 2008 (Decrease) ——- ——- ——– (Net sales – $ million) North America 515.6 1,280.8 (60%) South America 225.9 368.3 (39%) Europe 176.9 408.1 (57%) Middle East & Africa 360.4 344.2 5% Far East & Oceania 82.3 169.9 (52%) Total net sales ($ million) 1,361.0 2,571.3 (47%) Cost of sales (% of sales) 58% 53% Operating income ($ million) 285.8 856.2 (67%) Operating income (% of sales) 21% 33%

Net sales of tubular products and services decreased 47% to US$1,361.0 million in the third quarter of 2009, compared to US$2,571.3 million in the third quarter of 2008, in line with shipments as lower like for like prices were offset by a richer product mix. All regions were affected except for the Middle East and Africa which benefited from higher sales of deepwater line pipe products in West Africa. In North America, notwithstanding higher demand for OCTG products in Mexico, demand for OCTG products in the US and Canada declined precipitously due to the decline in drilling activity and inventory reductions. Sales in South America were affected by low levels of demand in Venezuela and Argentina. In Europe, sales were affected by lower demand from the industrial sector, lower demand from distributors serving the process and power plant sector and lower sales of OCTG principally in Romania. Sales in the Far East & Oceania were lower mainly in Japan and China.

Increase/ Projects Q3 2009 Q3 2008 (Decrease) ——- ——- ——– Net sales ($ million) 288.7 319.1 (10%) Cost of sales (% of sales) 71% 73% Operating income ($ million) 59.5 44.3 34% Operating income (% of sales) 21% 14%

Net sales of pipes for pipeline projects decreased 10% to US$288.7 million in the third quarter of 2009, compared to US$319.1 million in the third quarter of 2008, reflecting a lower level of shipments to gas and other pipeline projects in Brazil and Colombia.

Increase/ Others Q3 2009 Q3 2008 (Decrease) ——- ——- ——– Net sales ($ million) 121.7 183.6 (34%) Cost of sales (% of sales) 74% 68% Operating income ($ million) 15.2 31.4 (52%) Operating income (% of sales) 12% 17%

Net sales of other products and services decreased 34% to US$121.7 million in the third quarter of 2009, compared to US$183.6 million in the third quarter of 2008. Although demand for our Brazilian industrial equipment business remained firm, demand for our US electric conduit business was substantially lower and sales of sucker rods were affected by lower activity.

Selling, general and administrative expenses, or SG&A, increased as a percentage of net sales to 18.5% in the quarter ended September 30, 2009 compared to 14.7% in the corresponding quarter of 2008, mainly due to the effect of fixed and semi-fixed expenses over lower revenues.

Net interest expenses decreased to US$20.6 million in the third quarter of 2009 compared to US$21.5 million in the same period of 2008. Interest expenses in the third quarter of 2009, include US$11.1 million of losses on interest rate swaps entered into in order to minimize the volatility effect of floating rate debt assumed to finance the acquisitions of Maverick and Hydril.

Other financial results recorded a loss of US$15.4 million during the third quarter of 2009, compared to a loss of US$31.7 million during the third quarter of 2008. These results largely reflect gains and losses on net foreign exchange transactions and the changes in the fair value of derivative instruments and are partially offset by changes to our net equity position. These gains and losses are mainly attributable to variations in the exchange rates between our subsidiaries’ functional currencies (other than the US dollar) and the US dollar, in accordance with IFRS.

Equity in earnings of associated companies generated a gain of US$10.3 million in the third quarter of 2009, compared to a gain of US$24.3 million in the third quarter of 2008. These gains mainly derived from our equity investment in Ternium.

Income tax charges totalled US$97.6 million in the third quarter of 2009, equivalent to 30% of income before equity in earnings of associated companies and income tax, compared to US$272.7 million in the third quarter of 2008, equivalent to 31% of income before equity in earnings of associated companies and income tax.

Income attributable to minority interest decreased to US$7.4 million in the third quarter of 2009, compared to US$60.5 million in the corresponding quarter of 2008 as we registered lower profits at our Confab subsidiary and losses at our NKKTubes subsidiary.

Cash Flow and Liquidity

Net cash provided by operations during the third quarter of 2009 was US$772.4 million (US$2,647.0 million in the first nine months), compared to US$242.8 million in the third quarter of 2008 (US$1,085.7 million in the first nine months). Working capital decreased by US$359.5 million during the third quarter, mainly due to inventories decrease of US$248.2 million and trade receivables decrease of US$241.6 million, partially offset by a decrease in customer advances of US$104.2 million.

Capital expenditures amounted to US$101.5 million in the third quarter of 2009 (US$327.8 million in the first nine months), compared to US$131.8 million in the third quarter of 2008 (US$337.1 million in the first nine months).

During the first nine months of 2009, total financial debt decreased by US$1,263.7 million to US$1,713.3 million at September 30, 2009 from US$2,977.0 million at December 31, 2008. Net financial debt during the first nine months of 2009 decreased by US$1,949.3 million to a positive net cash position of US$556.9 million at September 30, 2009.

Analysis of 2009 First Nine Months Results

Net income attributable to equity holders in the company during the first nine months of 2009 was US$939.2 million, or US$0.80 per share (US$1.59 per ADS), which compares with net income attributable to equity holders in the company during the first nine months of 2008 of US$2,031.1 million, or US$1.72 per share (US$3.44 per ADS). Net income for the first nine months of 2008 includes the result for the sale of Hydril’s pressure control business of US$394.3 million, or US$0.33 per share (US$0.67 per ADS). Operating income was US$1,483.0 million, or 24% of net sales, compared to US$2,456.4 million, or 28% of net sales. Operating income plus depreciation and amortization was US$1,858.8 million, or 29% of net sales, compared to US$2,853.8 million, or 32% of net sales.

Increase/ Sales volume (metric tons) 9M 2009 9M 2008 (Decrease) ——- ——- ——– Tubes – Seamless 1,483,000 2,126,000 (30%) Tubes – Welded 242,000 815,000 (70%) Tubes – Total 1,725,000 2,941,000 (41%) Projects – Welded 271,000 457,000 (41%) Total 1,996,000 3,398,000 (41%) Increase/ Tubes 9M 2009 9M 2008 (Decrease) ——- ——- ——– (Net sales – $ million) North America 2,192.4 3,099.9 (29%) South America 720.2 897.1 (20%) Europe 661.8 1,336.5 (50%) Middle East & Africa 1,208.4 1,385.5 (13%) Far East & Oceania 387.7 533.5 (27%) Total net sales ($ million) 5,170.4 7,252.5 (29%) Cost of sales (% of sales) 55% 54% Operating income ($ million) 1,312.1 2,198.2 (40%) Operating income (% of sales) 25% 30%

Net sales of tubular products and services decreased 29% to US$5,170.4 million in the first nine months of 2009, compared to US$7,252.5 million in the first nine months of 2008, due to a sharp reduction in volumes, which was partially offset by higher average selling prices, reflecting in part higher proportion of sales of specialized high-end products.

Increase/ Projects 9M 2009 9M 2008 (Decrease) ——- ——- ——– Net sales ($ million) 765.4 959.0 (20%) Cost of sales (% of sales) 72% 72% Operating income ($ million) 154.0 173.2 (11%) Operating income (% of sales) 20% 18%

Net sales of pipes for pipeline projects decreased 20% to US$765.4 million in the first nine months of 2009, compared to US$959.0 million in the first nine months of 2008, reflecting lower deliveries in Brazil, Argentina and Colombia to gas and other pipeline projects.

Increase/ Others 9M 2009 9M 2008 (Decrease) ——- ——- ——– Net sales ($ million) 366.4 572.9 (36%) Cost of sales (% of sales) 81% 71% Operating income ($ million) 16.8 85.0 (80%) Operating income (% of sales) 5% 15%

Net sales of other products and services decreased 36% to US$366.4 million in the first nine months of 2009, compared to US$572.9 million in the first nine months of 2008, reflecting lower sales of electric conduit pipes and sucker rods, partially offset by higher sales of industrial equipment.

Selling, general and administrative expenses, or SG&A, increased as a percentage of net sales to 17.6% in the nine months ended September 30, 2009 compared to 15.1% in the corresponding nine months of 2008, mainly due to the effect of fixed and semi-fixed expenses over lower revenues.

Net interest expenses decreased to US$71.4 million in the first nine months of 2009 compared to US$93.0 million in the same period of 2008 reflecting a lower net debt position and lower interest rates. Interest expenses in the first nine months of 2009, include US$ 14.1 million in losses on interest rate swaps entered into in order to minimize the volatility effect of floating rate debt.

Other financial results recorded a loss of US$67.6 million during the first nine months of 2009, compared to a loss of US$41.2 million during the first nine months of 2008. These results largely reflect gains and losses on net foreign exchange transactions and the changes in the fair value of derivative instruments and are partially offset by changes to our net equity position. These gains and losses are mainly attributable to variations in the exchange rates between our subsidiaries’ functional currencies (other than the US dollar) and the US dollar, in accordance with IFRS.

Equity in earnings of associated companies generated a gain of US$68.2 million in the first nine months of 2009, compared to a gain of US$122.3 million in the first nine months of 2008. These gains were derived mainly from our equity investment in Ternium.

Income tax charges totalled US$417.2 million in the first nine months of 2009, equivalent to 31% of income before equity in earnings of associated companies and income tax, compared to US$701.1 million in the first nine months of 2008, equivalent to 30% of income before equity in earnings of associated companies and income tax.

Result for discontinued operations amounted to a loss of US$28.1 million in the first nine months of 2009, corresponding to our Venezuelan operations that are being nationalized, compared to a gain of US$417.8 million in the corresponding period of 2008, of which US$394.3 million corresponded to the result of the sale of Hydril’s pressure control business.

Income attributable to minority interest decreased to US$27.7 million in the first nine months of 2009, compared to US$130.0 million in the corresponding nine months of 2008, mainly reflecting lower results at our Confab and NKKTubes subsidiaries.

Some of the statements contained in this press release are “forward-looking statements.” Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

Press releases and financial statements can be downloaded from Tenaris’s website atwww.tenaris.com/investors.

Consolidated Condensed Interim Income Statement (all amounts in thousands Three-month period Nine-month period of U.S. dollars) ended September 30, ended September 30, ———————- ———————- 2009 2008 2009 2008 ———- ———- ———- ———- Continuing operations (Unaudited) (Unaudited) Net sales 1,771,475 3,073,978 6,302,107 8,784,402 Cost of sales (1,080,161) (1,712,417) (3,708,372) (5,015,248) ———- ———- ———- ———- Gross profit 691,314 1,361,561 2,593,735 3,769,154 Selling, general and administrative expenses (327,234) (450,453) (1,110,240) (1,328,491) Other operating income (expense), net (3,528) 20,688 (504) 15,741 ———- ———- ———- ———- Operating income 360,552 931,796 1,482,991 2,456,404 Interest income 10,435 16,910 23,172 45,591 Interest expense (31,007) (38,442) (94,589) (138,566) Other financial results (15,377) (31,664) (67,643) (41,236) ———- ———- ———- ———- Income before equity in earnings of associated companies and income tax 324,603 878,600 1,343,931 2,322,193 Equity in earnings of associated companies 10,294 24,290 68,229 122,253 ———- ———- ———- ———- Income before income tax 334,897 902,890 1,412,160 2,444,446 Income tax (97,583) (272,668) (417,175) (701,132) ———- ———- ———- ———- Income for continuing operations 237,314 630,222 994,985 1,743,314 Discontinued operations Result for discontinued operations – 935 (28,138) 417,841 ———- ———- ———- ———- Income for the period 237,314 631,157 966,847 2,161,155 Attributable to: Equity holders of the Company 229,873 570,635 939,188 2,031,149 Minority interest 7,441 60,522 27,659 130,006 ———- ———- ———- ———- 237,314 631,157 966,847 2,161,155 ———- ———- ———- ———- Consolidated Condensed Interim Statement of Financial Position (all amounts in thousands of U.S. dollars) At September 30, 2009 At December 31, 2008 ——————— ——————— (Unaudited) ASSETS Non-current assets Property, plant and equipment, net 3,193,279 2,982,871 Intangible assets, net 3,707,914 3,826,987 Investments in associated companies 578,758 527,007 Other investments 31,835 38,355 Deferred tax assets 195,778 390,323 Receivables 81,143 7,788,707 82,752 7,848,295 ———- ———- Current assets Inventories 1,902,555 3,091,401 Receivables and prepayments 225,905 251,481 Current tax assets 234,587 201,607 Trade receivables 1,295,386 2,123,296 Available for sale assets 21,572 – Other investments 528,861 45,863 Cash and cash equivalents 1,741,352 5,950,218 1,538,769 7,252,417 ———- ———- ———- ———- Total assets 13,738,925 15,100,712 ========== ========== EQUITY Capital and reserves attributable to the Company’s equity holders 8,982,765 8,176,571 Minority interest 618,746 525,316 ———- ———- Total equity 9,601,511 8,701,887 ========== ========== LIABILITIES Non-current liabilities Borrowings 844,946 1,241,048 Deferred tax liabilities 872,861 1,053,838 Other liabilities 202,024 223,142 Provisions 84,695 89,526 Trade payables 3,018 2,007,544 1,254 2,608,808 ———- ———- Current liabilities Borrowings 868,358 1,735,967 Current tax liabilities 322,041 610,313 Other liabilities 250,986 242,620 Provisions 35,986 28,511 Customer advances 152,690 275,815 Trade payables 499,809 2,129,870 896,791 3,790,017 ———- ———- Total liabilities 4,137,414 6,398,825 ========== ========== Total equity and liabilities 13,738,925 15,100,712 ========== ========== Consolidated Condensed Interim Statement of Cash Flows Three-month period Nine-month period ended September 30, ended September 30, (all amounts in thousands ———————- ———————- of U.S. dollars) 2009 2008 2009 2008 ———- ———- ———- ———- (Unaudited) (Unaudited) Cash flows from operating activities Income for the period 237,314 631,157 966,847 2,161,155 Adjustments for: Depreciation and amortization 127,789 134,885 375,850 403,758 Income tax accruals less payments (15,741) (309,497) (345,431) (219,750) Equity in earnings of associated companies (10,294) (24,290) (67,367) (122,386) Income from the sale of pressure control business – - (394,323) Interest accruals less payments, net 5,741 34,401 (17,957) 26,507 Changes in provisions (10,174) (4,404) 4,026 10,839 Changes in working capital 359,488 (257,464) 1,534,948 (803,078) Other, including currency translation adjustment 78,278 37,986 196,070 22,969 ———- ———- ———- ———- Net cash provided by operating activities 772,401 242,774 2,646,986 1,085,691 ========== ========== ========== ========== Cash flows from investing activities Capital expenditures (101,460) (131,772) (327,795) (337,138) Acquisitions of subsidiaries and minority interest (29) (8,003) (73,564) (9,868) Proceeds from the sale of pressure control business – 1,113,805 Proceeds from disposal of property, plant and equipment and intangible assets 1,676 3,340 12,004 12,166 Investments in short terms securities (255,411) 324,934 (482,998) 60,533 Dividends received 3,680 – 8,903 13,636 Other – - – (3,428) ———- ———- ———- ———- Net cash (used in) provided by investing activities (351,544) 188,499 (863,450) 849,706 ========== ========== ========== ========== Cash flows from financing activities Dividends paid – - (354,161) (295,134) Dividends paid to minority interest in subsidiaries (5,522) (4,981) (32,698) (60,117) Proceeds from borrowings 245,961 301,117 509,802 731,205 Repayments of borrowings (554,689) (444,709) (1,704,173) (1,777,464) ———- ———- ———- ———- Net cash used in financing activities (314,250) (148,573) (1,581,230) (1,401,510) ========== ========== ========== ========== Increase in cash and cash equivalents 106,607 282,700 202,306 533,887 Movement in cash and cash equivalents At the beginning of the period 1,608,695 1,319,049 1,525,022 954,303 Effect of exchange rate changes 18,118 (138,107) 15,788 (24,548) Decrease due to deconsolidation – - (9,696) – Increase in cash and cash equivalents 106,607 282,700 202,306 533,887 ———- ———- ———- ———- At September 30, 1,733,420 1,463,642 1,733,420 1,463,642 ========== ========== ========== ========== ———————- ———————- Cash and cash equivalents At September 30, At September 30, ———————- ———————- 2009 2008 2009 2008 Cash and bank deposits 1,741,352 1,489,787 1,741,352 1,489,787 Bank overdrafts (7,932) (26,145) (7,932) (26,145) ———- ———- ———- ———- 1,733,420 1,463,642 1,733,420 1,463,642 ———- ———- ———- ———-

Packard Richardson

The management team of Yale Resources Ltd. (TSXV: YLL) has a sound strategy that continues to place them in attractive positions. The team focuses on countries whose governments are mining friendly. They consider existing infrastructure or feasibility of bringing in infrastructure at new sites. One of their key strategies, however, is to explore areas near producing or past producing mines. Many companies have had much success with this strategy (a prime example is Incoâ??s 777 mine in Manitoba). To this end, Yaleâ??s properties in Mexico have already begun to turn up exquisite results.

For example, Yaleâ??s Carol property 20 km north of Alamos, Mexico is well positioned to take advantage of significant finds in the area. Frontera Copper Corp. has a reported proven and probable reserve of 191 million tonnes grading 0.36% copper. The Carol property is located 6 kilometres north of their property and has excellent infrastructure to work with, as well as a road to the core of the property. Three zones make up the Carol property, yielding copper, zinc, silver and gold. The Carol property has six claims over a total area of approximately 750 hectares.

Precious metal prices are still on the rise, and with the current state of the US economy they continue to remain a good hedge against inflation. Gold has gone up approximately 12% in the past year, and has been rising steadily since 2001. Silver is also in bull mode with a 27% increase in the past 12 months. As Canada increases interest rates later in the year, we will see increased movement by investors towards precious metals. Yale Resources has capitalized on these bull markets in precious metals and has put itself in a position to benefit from the commoditiesâ?? increasing value. One property that really stands to benefit from silverâ??s upward movement, is Yaleâ??s Zacatecas property.

The Zacatecas District is one of the largest historic silver districts in the world, with past production estimated at 1.2 billion ounces. Yaleâ??s property here has shown excellent results so far. The area has a run of mine dumps from historic work on the site. The samples from the mine dumps have yielded on average above 300 g/t silver. Select samples from the San Jose area of the project have shown very high grades, with the highest being 4,970 g/t silver, 6.74 g/t gold, 1.67 % lead, and 2.98 % zinc. Significant exploration potential remains on the San Jose project as well.

Yale Resources has partnered with IMPACT Silver Corp (TSXV: IPT) on the properties in Zacatecas District: Mina San Jose, Salvador, and Zacatecas. They stand to earn a 80% interest on each of the claims. Yale and IMPACT are in the process of investigating the option of processing the mineralized dumps at the nearby Veta Grande Mill. Processing the dumps will act as a bulk sample and may generate cash flow. With the processing plant, established infrastructure and a producing mine nearby, the ingredients for Yale Resourcesâ?? success here are already in place.

Recent drilling results have been promising, especially on the Mina San Jose property which yielded a significant intercept of 1,340 grams per tonne of silver at a vertical depth of approximately 75 metres below surface. Their next drill program is scheduled for the fall. Further work will go towards expanding their knowledge of the high-grade mineralization.

Additional projects for Yale Resources include a large claim on the historic Sierra Madre gold belt of northern Mexico. Titled the Urique project, it is 290 square kilometers in size and covers ten mineralized targets, a number of which have previously been in production.

Utilizing the strategy of exploring near proven resources, the Urique claims lie forty kilometers north of Goldcorpâ??s El Sauzal mine, which hosts over two million ounces of gold. After recent sample work, Yale has advanced their target to the drill ready stage. Yale has the right to earn a 75% interest in the Urique Project from EXMIN Resources Inc. Other producing mines in the area factor into this propertyâ??s appeal. These include Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo (Gammon Lake), as well as the El Sauzal mine (Glamis Goldcorp).

Yale Resources is in a strong position in Mexico and is making significant progress on its properties. With the added value of existing infrastructure and proven resources surrounding the claims, Yale Resourcesâ?? strategies are taking effect. Since President and CEO Ian Foreman began launching Yaleâ??s exploration programs in Mexico and gathering around him a seasoned management team, volume trading has tripled, the companyâ??s stock price has doubled and still Yale has only issued 26 million shares, which represents good value for a junior exploration company.

This article is intended for informational purposes only and should not be considered as a recommendation to buy stock in any company. Although the author has made efforts to verify the information contained herein, the accuracy of all the information cannot be guaranteed. As always, it is recommended that you commit considerable time to completing your due diligence before buying stocks in publicly traded companies. A fee has been paid for the creation and distribution of this article.

You would need to get your Passport in order to go in and out of these multifold places. Therefore, the simplest solution to steering the government’s policies is to get a Passport. Even though you might be able to travel to a few of your neighboring places with only your license or Identification Card but in order to get in the States, you would need your Passport. To cut it short and that too, simply, you need to produce your passport, in order to travel home by air. According to the regulations of WHTI, you would even need to produce your passport if you are crossing the border checkpoint via a boat, in your car, or even by foot. The declaration of you citizenship would no longer work.

And just to recap the previous statements, WHTI now requires all the travelers to offer their passport or other “approved secure document” which denotes your identity and your citizenship for travel through sea, land or air. This regulation from WHTI is applicable to all the people of the United States, Canada or Bermuda who were formerly excused from providing their passports. Your options now strictly remain to present either your Passport or a membership of a Trusted Traveler Card program such as NEXUS which is used for travel involving the United States and Canada, or SENTRI which is used for travel linking the United States and Mexico.

Two new programs are also provided for your aid in order to provide accommodation for this initiative, they are, the U.S. Passport Card, which is fine for traveling through land or sea but would not wok for air travel. The second program is the Enhanced Driver’s License, which once again is only for land and sea travel and not for air. This card is presently only issued by the states of New York, Vermont and Michigan. All under the age of 16 are exempt from this and may only present their birth certificate.

All the Mexican Citizens are not influenced by WHTI. The Mexican nationals, with the inclusion of children, are presently to show their passport with a non-immigrant visa. They can even show a laser visa Border Crossing Card in order to go across the U.S. border. This prerequisite is also applicable to the members of SENTRI program.

Get more information on Puerto Vallarta rentals, please contact pvrpv at the following numbers.  Their Mexican office number is 322.222.0638.  In case you are calling from the USA or Canada, call on their local Vonage number 206.388.3703. You can email to Tim at his email address. For more details visit pvrpv dot com which has been successfully servicing the tourists & local community for the past four years.  They have a qualified staff with years of experience and they may help you with rental properties in Puerto Vallarta.

If you want seclusion in a more wooded environment, you can also find that when it comes to Vancouver Island condos.  There are plenty of trees and wooded areas where you can hike, jog and just call home with your condo nestled amid the trees.  Many people enjoy living in this part of the country because they feel so close to nature and like being surrounded by beautiful nature. 

Those who like the water and have always wanted to own waterfront property should take a good look at the waterfront condos in Nanaimo.  These condos range from the very elegant and luxurious, to the more simple and refined beach condos.  You can find what you are looking for in this part of the island and choose to live in the condo all year long or just on holidays.  Waterfront condos in Nanaimo come in all types of price ranges and right now are priced to sell. 

One area that you will not want to miss when you are searching for Vancouver Island condos is the historic downtown district of Nanaimo.  This is not only a charming city, but very bustling and filled with work.  If you are thinking about relocating to this part of Canada, now is the time to do it.  You can get downtown Nanaimo condos for a reasonable price if you look at this part of the city. 

To find the best Vancouver island condos for you,  you should take a look at a Nanaimo condo guide.  This will not only list the prices of the condos for sale, but will also give you an idea of what life is like in this peaceful part of the world.  And you do not even have to go to Nanaimo to find out anything about the area.  In fact, you do not even have to leave your home.  You can find out all you need to know about Nanaimo when you go online.  This is one of the best aspects of the internet in that those who are interested in buying property in another part of the country, or in another country, can get a good look of what to expect when they shop online.  Make it easy on yourself, get a guide and then take a look at the waterfront condos in Nanaimo as well as the other properties for sale and rent and consider a move to a peaceful and tranquil setting. 

Every year, Entrepreneur magazine names its top franchises for sale, gathered up into a list called the â??Franchise 500.â?Â  By referring to this list, prospective franchise owners can determine the top franchise for sale in any number of categoriesâ??the best fast-food franchise, the best auto service franchise, the best do-it-yourself picture framing franchise, and so on.  This publication also names the 10 best franchises for sale regardless of the industry they are in, and it is this list that offers the most coveted ranking of all.  The â??next hottest franchise conceptâ? certainly has a chance to advance in the standings.  But year after year, the same companies continue to dominate this list, mainly because they have superb brand recognition, a solid financial base, highly satisfied franchisees committed to excellence, and products or services that have stood the test of time.  As Entrepreneur sees it, here are the top 10 franchise companies for 2009.

1.Subway

The top company on this list has gained a reputation for offering fresh, healthy food at very reasonable prices.  They also come up with some very innovative national marketing campaigns to keep the name â??freshâ? in the publicâ??s eye.  Subway began franchising in 1974 and has more than 21,000 franchises in the United States.  The company charges a franchise fee of $15,000, with ongoing royalties of eight percent based on gross annual sales.  Oneâ??s total investment will run from between $78,000 and $238,000.  Subway has franchises for sale in nearly every U.S. state.

2.  McDonaldâ??s

Ray Kroc took a California hamburger joint owned by two brothers and turned it into the worldâ??s largest fast-food restaurant chain.  Over the years, McDonaldâ??s has been an innovator from the aspects of both service and menu items, inventing such concepts as the kidsâ?? meal and drink tops with pre-punched access holes.  The company charges a franchise fee of $45,000, with ongoing royalties of 12.5 percent based on gross annual sales.  Oneâ??s total investment will run from between $950,000 and $1.8 million.  McDonaldâ??s has a franchise for sale to residents of every U.S. state, plus worldwide opportunities exist as well.

3.Liberty Tax Service

With the tax deadline of April 15 looming over the heads of U.S. citizens every year, more and more taxpayers realize that it pays to hire an outside expert to help them complete their filings.  The company started as Jackson Hewitt Tax Service in 1972 (and began franchising a year later) and changed its name after buying out another tax business in Canada.  The company charges a franchise fee of $40,000, with variable ongoing royalties based on gross annual sales.  Oneâ??s total investment will run from between $56,000 and $70,000.  Liberty Tax Service has franchises for sale to anyone living in the U.S. or Canada.

4.Sonic Drive-In Restaurants

This company started as a root beer stand in 1954 in Shawnee, Oklahoma, jumping into the franchise business five years later.  Today there are close to 3,000 Sonic Drive-In franchises across the country.  The company charges a franchise fee of $45,000, with ongoing royalties ranging from two percent to five percent, based on gross annual sales.  Oneâ??s total investment will run from between $1.2 million and $3.2 million.  Sonic currently seeks out residents of Canada, New Zealand and Australia, offering exclusive territories in its franchise for sale.

5.InterContinental Hotels Group

The flagship property in this massive chain is the self-named InterContinental, which include some of the most prestigious hotels in such world capitals as London, Paris, Vienna, Cairo, Nairobi, and many others.  This hotel conglomerate also includes such familiar brand names as Holiday Inn, Crown Plaza, Staybridge, and Candlewood.  There are more than 2,600 franchises in the U.S. alone, as well as another 800-plus in foreign countries.  Franchise fees and total investments will vary widely, since every property is unique.  The company charges an ongoing royalty of five percent based on gross annual sales.  InterContinental has franchises for sale in Oregon as well as assorted worldwide locations.

6.Ace Hardware Corp.

The neighborhood hardware store is alive and well in the guise of Ace, a national chain that prides itself on hometown values and helpful personnel who can tell you the best way to paint a door or repair a fence.  The company began in 1924 and became a franchise operation in 1976.  There are currently more than 4,200 U.S. franchises.  The company charges an application fee of $5,000, and oneâ??s total investment will run from between $400,000 and $1.1 million.  Ace Hardware has franchise for sale opportunities in all U.S. states.

7.Pizza Hut

In 1957, when this pizza chain started business as a single restaurant in Wichita, Kansas, no one would have suspected that it would grow into the largest pizza restaurant chain in the world.  Today there are nearly 10,000 franchises in existence, including â??expressâ? and kiosk locations that expose Pizza Hut products to more people than ever.  The company charges a franchise fee of $25,000, with ongoing royalties of six percent based on gross annual sales.  Oneâ??s total investment will run from between $317,000 and $2.9 million.  Pizza Hut has franchises for sale in Oregon as well as assorted worldwide locations.

8.The UPS Store / Mail Boxes Etc.

Mail Boxes Etc. started in 1980 as a competitor to the U.S. Mail and has since expanded to offer all kinds of services that include the sale of packing materials, copying and printing, mailbox rentals, and shipments of darned near anything to anybody who has a permanent address.  Re-branded as The UPS Store – although it ships by other carriers as well – the company charges a franchise fee of $30,000, with ongoing royalties of five percent based on gross annual sales.  Oneâ??s total investment will run from between $155,000 and $295,000.  The UPS Store has franchise for sale opportunities in all U.S. states, plus various locations worldwide.

9.Circle K

This convenience store chain was founded in 1951 in El Paso, Texas.  They waited until 1995 to begin franchising, but since then Circle K has seen its U.S. franchises grow to more than 450.  Surprisingly there are nearly 3,700 franchises overseas.  The company charges a franchise fee of $15,000, with ongoing royalties of four percent based on gross annual sales.  Oneâ??s total investment will run from between $161,000 and $1.4 million.  In a nationwide expansion mode, Circle K has franchises for sale across the United States as well as in assorted worldwide locations.

10.  Papa Johnâ??s International

This pizza chain got its start in 1985 in Jeffersonville, Indiana.  Papa Johnâ??s has more than 2,100 U.S. franchises and close to 500 on international soil.  The company charges a franchise fee of $25,000, with ongoing royalties of five percent based on gross annual sales.  Oneâ??s total investment will run from between $135,000 and $490,000.  Papa Johnâ??s has franchise for sale opportunities in all U.S. states.