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Vallourec Reports Q3 and 9 Months Results

Steel News - Published on Tue, 19 Nov 2019

Image Source: vallourec.com
World leader in premium tubular solutions Vallourec announced its results for the third quarter and first nine months of 2019. Mr Philippe Crouzet, Chairman of the Management Board, said “Vallourec delivered another set of improving results in the third quarter, with a strong year on year EBITDA increase and a positive free cash flow, demonstrating the solidity of the ongoing recovery of the Group. The continued commitment of the teams to deploy the Transformation plan over the last years enabled Vallourec to regain competitiveness and to take advantage of the EA-MEA Oil & Gas markets rebound, as illustrated by the recent major contract won with ADNOC. In North America, the slowdown in drilling activity reflecting continuing operators' cash discipline is amplified by inventories' adjustment by distributors, leading to lower deliveries and prices expected in the last quarter, the impact of which we intend to mitigate thanks to the flexibility of our industrial operations. In Brazil, a pick-up in our O&G deliveries for offshore projects is expected in the latter part of the year, and should accelerate in 2020, driven by a significant increase in exploration drilling in deep off-shore fields. In this context, we reiterate our target of a strong increase in EBITDA in 2019 with the EBITDA generation achieved in the first semester confirmed in the second one, the current slowdown in the North American Oil and Gas market being counterbalanced by an overall good level of activity in the Group's other markets, and higher savings in H2. Vallourec's teams remain firmly focused on cash discipline and we target free cash flow for the last quarter to be positive.”

Third quarter 2019
Revenue: EUR 1,060 million, up 10% year-on-year (+7% at constant exchange rates)
EBITDA: EUR 84 million, versus EUR 43 million in Q3 2018

9M 2019 consolidated results
EBITDA reached EUR 253 million, improving by UR 192 million year on year
Net loss, Group share, has been reduced by EUR 172 million, amounting to (EUR 227) million, compared to (EUR 399) million for the first nine months of 2018.

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Posted By : Rabi Wangkhem on Tue, 19 Nov 2019
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