Boulogne-Billancourt (France), 25 July 2018 – Vallourec today announces its results for the second quarter and first half of 2018. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board on 24 July 2018.
- Revenue of €1,844 million in H1 2018 up 7.5% year-on-year (+17.6% at constant exchange rates) driven by the positive momentum on the Oil & Gas market
- EBITDA of +€18 million in H1 2018, improved by €36 million year-on-year
- Confirmation that H2 2018 EBITDA is targeted to be significantly higher than H1, notably supported by higher prices in the US and deliveries on international Oil & Gas markets
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"The increase in Vallourec's H1 2018 revenue and EBITDA was driven by the positive momentum on the US Oil & Gas market. It allows Vallourec to take advantage of its fully integrated US manufacturing facilities and to pass on as planned significant price increase on OCTG products, coming into force in the third quarter. Oil and Gas International markets also show positive signs of improving activity. Higher bookings in the EA and MEA regions will benefit Vallourec's deliveries from the second part of this year on. In Brazil, we are starting to execute our new long-term contracts with Petrobras and are ideally positioned to capture opportunities which will come from the opening of the Brazilian pre-salt fields to IOCs.
Going forward, we are focused on three pillars which will continue to improve EBITDA. First, the continued improvement in our competitiveness through the implementation of our Transformation Plan, which will again generate significant cost reductions. Secondly, ensuring we benefit from the improvements in volumes and prices in our main markets. Lastly, the opportunities which come from our new competitive routes in China and Brazil have already generated, and will continue to generate commercial successes in all regions. Vallourec remains very focused on its objective of returning to cash flow positive as soon as possible.
Taking into account the gradual recovery in our main markets and the continued progress in our Transformation Plan, we confirm our positive outlook for the year with EBITDA in the second half of 2018 targeted to be significantly higher than in the first half."
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec's pioneering spirit and cutting edge R&D open new technological frontiers. With close to 19,500 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and eligible for the Deferred Settlement System (SRD), Vallourec is included in the following indices: SBF 120 and Next 150.
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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