Full year 2016 results

22/02/2017 - Finance
Boulogne-Billancourt (France), 22 February 2017 – Vallourec today announces its results for full year 2016. The consolidated financial statements were presented by Vallourec’s Management Board to its Supervisory Board on 21 February 2017.

2016 financial highlights

  • Revenue of €2,965 million, -22.0% year-on-year
  • EBITDA of €-219 million, compared to €-77 million in 2015
  • Net result, Group share of €-758 million, compared to €-865 million in 2015

  • Fully in line with targets
    • Free Cash Flow of €-395 million in 2016 or €-574 million at constant working capital requirement (vs. target around €-600 million)
    • Net debt of €1.3 billion (vs. target below €1.5 billion) and gearing ratio of 34% at the end of 2016


Transformation Plan executed

  • Strategic initiatives announced in February 2016 fully implemented according to plan
  • New organization to enable the Group to fully benefit from its Transformation Plan
  • Structural cost savings in 2016 : €150 million
  • Group headcount down 12% since end December 2015, -24% since December 2014 (excluding Tianda Oil Pipe acquisition)



  • Based on current forex and market conditions, FY 2017 targeted EBITDA to improve by €50 million to €100 million compared to FY 2016

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

    “Vallourec is responding to a crisis of an unprecedented scale by deploying an ambitious Transformation Plan. In 2016, we completed all the key initiatives announced in February: we significantly reshaped our industrial footprint by creating two new competitive production hubs in Brazil and China and by drastically downsizing our European capacities which now represent 23 % of the Group’s rolling capacity versus 46 % in 2014. We strengthened our balance sheet. Our cost savings are in line with targets. We are reinforcing the Group's customer focus with a new regional organization supported by two central departments. Thanks to all these achievements, the Group is confident in delivering the full contribution from its Transformation Plan, as announced on 1 February 2016.

    2016 financial results are fully in line with targets, in a very challenging environment for Vallourec, and more generally for the oil and gas industry, with a second year of massive E&P capex cuts. The year nonetheless ended on a more positive trend thanks to the recovery of the US market.

    Entering 2017, the positive dynamics of the US OCTG market are confirmed. However, IOCs have not started sanctioning new offshore projects, delaying the recovery of the international OCTG market in volume and prices.

    Our mid-term outlook depends, as previously stated, on the timing of the global Oil & Gas market recovery which still remains unclear in this market environment. For 2017, based on current forex and market conditions, EBITDA is targeted to improve by €50 million to €100 million compared to FY 2016.”​

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