Boulogne Billancourt, 27 July 2011 - Vallourec, world leader in premium tubular solutions, today announced its results for the second quarter and first half of 2011. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board.
Volume and sales up 12% versus Q1 2011
EBITDA up 25% to €254 million representing 19.7% of sales
Net income, Group share up 37% at €112 million
Volume up 28% year on year to 1,062 thousand tonnes
Sales up 22% to €2,438 million
EBITDA up 11% to €458 million representing 18.8% of sales
Net income, Group share up 4% at €194 million
Successful start-up of new capacity at Valinox Nucléaire, France
Acquisition of 19.5% of Tianda Oil Pipe, China
Project to acquire Zamil Pipes and construct new threading facility, Saudi Arabia
Commenting these results, Philippe Crouzet, Chairman of the Management Board, stated:
"As anticipated, the activity of the Group during the first half of 2011 was broadly in line with that of the second half of 2010, with a second quarter better than the first. Our results reflect, however, the strong increase in raw material costs which we are progressively recovering in our sales prices.
The markets remain well oriented and our mills are operating at high utilisation rates. Our activity is going to progress in the second half. We should, nevertheless, continue to operate in a context marked by the volatility and high level of raw material costs as well as the strengthening of the euro against the dollar. The costs associated with the construction and start up of our new facilities will also continue to impact our margins.
In this transition year several strategic projects are in progress to respond to growth. The new mill VSB in Brazil is in the process of obtaining its certifications and the first orders have been taken for delivery in the fourth quarter. In the USA, the construction of our new tube mill is progressing well. Other projects underway will enable us to strengthen our local presence in regions of strong development such as China through our partnership with Tianda Oil Pipe and the construction of two new mills to serve the power generation market as well as in the Middle East with the acquisition of Zamil Pipes and the construction of a new finishing line."
Half year financial statements at 30 June 2010 and 30 June 2011 are subject to limited audit review.
Full year financial statements at 31 December 2010 have been audited. Quarterly statements are unaudited and not subject to any review.