Vallourec reports 2nd quarter and 1st half 2018 results

02 August 2018

Vallourec a premium tubular solutions company, has announced 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.

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. Firstly, 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."