Vallourec reports Q3 and first nine months 2013 results

07/11/2013 - Finance
Vallourec reports third quarter and first nine months 2013 results.


Boulogne-Billancourt, 7 November 2013 – Vallourec, world leader in premium tubular solutions, today announced its results for the third quarter and the first nine months of 2013. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board.

Third quarter (Q3) 2013:

Revenues of € 1,379 million, up 3.4% versus Q3 2012

EBITDA of € 240 million, up 15.4% versus Q3 2012

EBITDA margin improved by 180 bp to 17.4% of revenues

Net income, Group share of € 80 million (or € 0.6 per share), up 29.0% versus Q3 2012

First nine months (9M) of 2013:

Revenues of € 3,969 million, up 2.8% versus the first nine months of 2012

EBITDA of € 661 million, up 20.0% versus the first nine months of 2012

EBITDA margin improved by 240 bp to 16.7% of revenues

Net income, Group share of € 177 million (or € 1.4 per share), up 20.4% versus the first nine months of 2012

Commenting on these results, Philippe Crouzet, Chairman of the Management Board, stated:

"The results for the third quarter and the first nine months reflect the good sales performance achieved in Oil & Gas, which represented approximately 67% of our sales in Q3, with high premium deliveries in Brazil for the deep offshore market and in the Middle East. In the USA, commissioning of the new rolling mill enabled Vallourec to enlarge its offer of products and services, thus increasing the sales volumes. However, the market continues to be mainly shale oil oriented resulting in a product mix which is evolving towards lower-margin semi-premium connections. In its other activities, the Group faced sluggish market conditions.

The EBITDA margin improved and reached 17.4% of revenues for Q3 and 16.7% of revenues in the first nine months. Despite a lower contribution of the US, improvement of Vallourec's profitability was mainly brought by the better sales mix combined with cost reductions implemented across the Group.

Over the full year 2013, Vallourec continues to target an increase in volume and sales and an improvement in EBITDA margin. However, the current weakness of the Brazilian real, the recent weakening of the US dollar against the Euro and the temporary reduction of OCTG demand in Brazil will dampen this improvement.

While these temporary factors will also affect the next quarters, Vallourec remains very much focused on strengthening its premium positioning and enhancing its operating efficiency. The Group shall also benefit from its new facilities coming into play after a major investment cycle to take advantage of the dynamic Oil & Gas market over the medium and long term."

About Vallourec

Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.

With over 23,000 employees, integrated manufacturing facilities, advanced R&D and a presence in more than 20 countries, Vallourec offers its customers innovative global solutions to meet the energy challenges of the 21st century.

Listed on the NYSE Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and eligible for the Deferred Settlement System (SRD), Vallourec is included in the following indices: MSCI World Index, Euronext 100 and CAC 40.

In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.

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