Boulogne-Billancourt, 28 July 2010 - Vallourec, world leader in the production of seamless steel tubes, today announced its results for the second quarter and the first half of 2010. The consolidated financial statements were presented today by Vallourec's Management Board to its Supervisory Board.
Q2 2010: Strong rebound vs. Q1 2010
Sales volume up 41% to 484 thousand tonnes
Sales up 28% to € 1,122 million
EBITDA up 78% to € 264.4 million
Net income, Group share up 107% to € 125.9 million
H1 2010: Performance slightly better than anticipated
Sales down 3% to € 1,999 million vs. H2 09
EBITDA of € 412.8 million representing 20.6% of sales
(19.5% in H2 09)
Net income of € 186.7 million (-10% vs. H2 09)
Acquisition of Serimax completed on 8 June 2010 to strengthen
Vallourec's offer of premium solutions in offshore line pipes
Investment in China to serve the local power generation market
VSB in Brazil on track for first tube production in Q4 2010
Construction under way of a new pipe mill in the US to meet the long term development of unconventional gas
Cost reduction focus maintained and results ahead of target
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, stated:
"We have reacted quickly to meet the strong rebound in activity in all our markets during the second quarter. Once again, our teams have demonstrated a high level of flexibility and mobilization to satisfy our customers' needs and adapt to constantly changing markets.
This has allowed us to benefit from an accelerated level of bookings during the second quarter and, consequently, we expect most of our plants to operate at high utilisation rates during the second half of the year. We are significantly ahead of our 3-year cost savings programme and remain focused on cost efficiencies.
Over the past few months, we have seized several opportunities to increase our presence in high growth markets, to get closer to our customers and develop innovative premium solutions. In addition to the ongoing investments in Brazil, France and the United States, our developments in the Middle East, the recent acquisition of Serimax and the new investment announced today in China are strengthening our positions to benefit from the positive long term prospects of the energy markets."
Half year financial statements at 30 June 2009 and 30 June 2010 are subject to limited audit review.
Full year financial statement at 31 December 2009 have been audited. Quarterly statements are unaudited and not subject to any review.