Boulogne-Billancourt (France), 30 July 2014 – Vallourec, world leader in premium tubular solutions, today announces its results for the second quarter and first half of 2014. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board.
SECOND QUARTER 2014 (Q2) RESULTS:
- Sales of €1,422 million, up 3.3% year-on-year (up 8.7% at constant exchange rates)
- EBITDA of €248 million, up 7.8% year-on-year, with a 17.4% EBITDA margin
- Net income, Group share of €88 million, up 41.9% year-on-year
FIRST HALF 2014 (H1) RESULTS:
- Sales of €2,693 million, up 4.0% year-on-year (up 10.1% at constant exchange rates)
- EBITDA of €444 million, up 5.5% year-on-year, with a 16.5% EBITDA margin
- Net income, Group share of €144 million, up 48.5% year-on-year
- Positive H1 2014 Free Cash Flow at €37 million vs. -€100 million in H1 2013
- Net debt of €1,739 million as of June 30, 2014
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"We achieved a solid performance in the first half 2014, with sales up 10.1% at constant exchange rates and EBITDA up 5.5%. We continue to structurally improve our European cost base, and tightly manage working capital requirement and capital expenditures. This resulted in the generation of a positive free cash flow of €37 million over the period.
Obviously, we are facing short‑term challenges, notably in Brazil, that will affect our results in the second half of 2014, while we target 2014 sales to be close to 2013 level. As a result, we have taken immediate actions on the operational front to mitigate these temporary negative impacts, and adapt our industrial operations to the lower load. Vallourec's management and operational teams remain focused on generating positive Free Cash Flow for 2014.
We continue to build on the long-term attractiveness of global Oil & Gas markets, driven by the need for E&P capital expenditures, and remain confident that our strategy positions us well to capture future growth in these markets."