Boulogne-Billancourt (France), 26 February 2014 – Vallourec, world leader in premium tubular solutions, today announces its results for the fourth quarter and the full year 2013.
The consolidated financial statements were presented by Vallourec’s Management Board to its Supervisory Board.
- Full year sales of € 5,578 million, up 4.7% (+9.8% at constant exchange rates)
- Full year EBITDA of € 920 million, up 16.8%, with a 16.5% EBITDA margin
- Robust performance in Q4, driven by higher Oil & Gas sales and cost management efficiency
- Full year net income, Group share of € 262 million, up 18.6% year-on-year
- Net debt stable at € 1,631 million at the end of 2013 versus € 1,614 million at the end of 2012
- Proposed dividend of € 0.81 per share, up 17.4%
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, stated:
“2013 was marked by an overall improvement of Vallourec’s financial performance, with full year Group sales up 4.7% (up 9.8% at constant exchange rates) and EBITDA up 16.8%. I am pleased with the strong dynamism of our Oil & Gas sales which represented two thirds of our total sales in 2013 and contributed to the increase in our EBITDA margin at 16.5% and the 18.6% year-on-year growth of our net income.
2013 was a year of key achievements for Vallourec after several years of strategic investments, as we saw the first effects of our new industrial set-up on the Group’s financial and commercial performance. We continued to extend our offer of products and services, which enabled us to reinforce Vallourec’s competitive position and capture additional volumes in key Oil & Gas markets.
The increasing sales of very high premium products such as VAM® 21 or VAM® BOLT and the two new long-term contracts signed with Petrobras for services and accessories and announced today highlight our ability to turn innovation and investment into commercial successes.
Furthermore, our strong focus on cost efficiency, working capital discipline as well as good control over capital expenditures over the period enabled us to stabilize the net debt.
Going forward, I am confident that our strong positions in key geographies, our customer and product portfolio and a reshaped industrial set-up will enable us to continue increasing our Oil & Gas sales again in 2014. We do not foresee any changes in trends in our other markets.
In line with its commitment to financial discipline and return to shareholders, Vallourec will continue to adapt its European costs base, offset inflation on costs through its Capten+ savings program, reduce capital expenditures and tightly manage working capital.
Based on current market and currency trends, and notwithstanding further changes affecting them, Vallourec targets stable to moderate increase in sales and EBITDA, and a positive Free Cash Flow generation in 2014.”