Revenue of €1,025 million, up 19% year-on-year (+17% at constant exchange rates)
EBITDA at €67 million versus (€5) million in Q1 2018
Reduced free cash flow consumption to (€159) million, €95 million less than in Q1 2018, reflecting:
Net debt at €2,125 million (after reclassification of €58 million to lease debt under IFRS 16)
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"In the first quarter, Vallourec delivered again a robust year-on-year increase in its financial performance. The strong growth in EBITDA was notably driven by the recovery of our activity in the EA-MEA regions, our largest Oil & Gas markets, where bookings doubled in 2018.
Furthermore, cash-flow performance improved markedly as free cash flow consumption decreased by almost €100 million year-on-year, as a result of both the EBITDA increase and a reduced operating working capital requirement outflow.
For the rest of the year, we confirm our expectation for a continued market recovery in the O&G market, albeit with varying profiles in our key regional areas. While the North American market has slowed down in the first part of the year, we are very confident in the solidity of the market recovery in EA-MEA which will strongly contribute to our results improvement in 2019, leveraging on the renewed competitiveness of our Brazilian and Chinese routes.
We are also looking forward to the restart of exploration activity in Brazil, where we enjoy strong positions. This is expected as from next year as a result of drilling commitments taken by oil companies following the successful bidding rounds over the last two years.
We are progressing, notably in Germany, on the delivery of at least €200 million additional cost savings that we recently announced and we confirm that a significant part is achievable as soon as 2019.
Based on this outlook and on current macroeconomic and market trends, we confirm our targets for 2019, with, in particular, a strong increase in EBITDA, an improvement in working capital requirement in number of days on both quarterly average and end of year, and the respect of our banking covenant at the end of 2019."