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Vallourec announces Q1 2019 results

Steel News - Published on Wed, 22 May 2019

Image Source: Wikimedia Commons
Vallourec announced its results for the first quarter of 2019. The consolidated financial information was presented by Vallourec’s Management Board to its Supervisory Board on May 15th 2019. Commenting on these results, Mr Philippe Crouzet, Chairman of the Management Board, said that "In the first quarter, Vallourec delivered again a robust year-on-year increase in its financial performance. The strong growth in EBITDA was notably driven by the recovery of our activity in the EA-MEA regions, our largest Oil & Gas markets, where bookings doubled in 2018.”

Highlights

Revenue of EUR 1,025 million, up 19% year-on-year (+17% at constant exchange rates)

EBITDA at EUR 67 million versus (EUR 5) million in Q1 2018

Reduced free cash flow consumption to (EUR 159) million, EUR 95 million less than in Q1 2018, reflecting:

Improved operating cash flow at (EUR 29) million compared to (EUR 83) million in Q1 2018

Reduced net working capital outflow at 117 days of sales versus 121 in Q1 2018

Net debt at EUR 2,125 million (after reclassification of EUR 58 million to lease debt under IFRS 16)

Mr Philippe Crouzet said “For the rest of the year, we confirm our expectation for a continued market recovery in the O&G market, albeit with varying profiles in our key regional areas. While the North American market has slowed down in the first part of the year, we are very confident in the solidity of the market recovery in EA-MEA which will strongly contribute to our results improvement in 2019, leveraging on the renewed competitiveness of our Brazilian and Chinese routes. We are also looking forward to the restart of exploration activity in Brazil, where we enjoy strong positions. This is expected as from next year as a result of drilling commitments taken by oil companies following the successful bidding rounds over the last two years. We are progressing, notably in Germany, on the delivery of at least EUR 200 million additional cost savings that we recently announced and we confirm that a significant part is achievable as soon as 2019. Based on this outlook and on current macroeconomic and market trends, we confirm our targets for 2019, with, in particular, a strong increase in EBITDA, an improvement in working capital requirement in number of days on both quarterly average and end of year, and the respect of our banking covenant at the end of 2019."

Source :

Posted By : Ratan Singh on Wed, 22 May 2019
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