Boulogne-Billancourt (France), 6 November 2014 – Vallourec, world leader in premium tubular solutions, today announces its results for the third quarter and the first nine months of 2014. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board.
VALLOUREC CONFIRMS ITS FY 2014 TARGETS
FIRST NINE MONTHS 2014 (9M) RESULTS:
- Sales of €4,036 million, up 1.7% year-on-year (up 5.3% at constant exchange rates)
- EBITDA of €619 million, down 6.4% year-on-year, with a 15.3% EBITDA margin
- Net income, Group share of €169 million, down 4.5% year-on-year
- Positive Free Cash Flow at €135 million vs. -€126 million in 9M 2013
THIRD QUARTER 2014 (Q3) RESULTS:
- Sales of €1,343 million, down 2.6% year-on-year (down 3.7% at constant exchange rates)
- EBITDA of €175 million, down 27.1% year-on-year, with a 13.0% EBITDA margin
- Net income, Group share of €25 million, down 68.8% year-on-year
- Positive Free Cash Flow at €98 million vs. -€26 million in Q3 2013
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"Q3 2014 was marked by the anticipated slowdown of our Brazilian Oil & Gas operations, largely as a result of the decision taken by Petrobras to reduce significantly the volume of tubes held as inventory, as well as by a less favourable product mix in the EAMEA region. This was mitigated by the robust performance of our Oil & Gas operations in the USA. Vallourec's Industry & Other operations in Brazil were affected as well by the deterioration of the macroeconomic environment while elsewhere Industry & Other operations were broadly stable.
Industrial operations have adapted to the market conditions and a combination of industrial flexibility and tight management of working capital requirements and capital expenditure has allowed us to generate Free Cash Flow over the first nine months.
For the Full Year 2014, assuming no significant changes in markets and currencies, we continue to target sales close to those of 2013 with an EBITDA down by approximately 10% compared to 2013. Vallourec's management and operational teams remain focused on generating positive Free Cash Flow in 2014.
In spite of some uncertainties on the market due to the recent oil prices trends, we remain confident on the long-term attractiveness of global Oil & Gas markets and committed to our strategy of providing the most innovative and competitive tubular solutions."