Vallourec reports strong Q3 results, anticipates higher EBITDA in Q4, optimistic about market demand.

From GlobeNewswire: 2024-11-15 01:30:00

Vallourec, a global leader in premium tubular solutions, reported third quarter 2024 results with an EBITDA of €168 million and a strong EBITDA margin of 19%. Total cash generation reached €130 million, leading to a net debt of €240 million. The company confirmed its full-year EBITDA guidance of €800 – €850 million and plans to propose a dividend for the 2025 AGM.

In the third quarter, Vallourec’s Tubes EBITDA per tonne was €556, down 7% sequentially due to lower US OCTG prices. Mine & Forest EBITDA was €22 million, up 43% sequentially. Adjusted free cash flow was €183 million, with a total cash generation of €130 million. Net debt decreased by €124 million to €240 million.

Looking ahead to the fourth quarter, Vallourec anticipates an increase in EBITDA compared to Q3, with higher Tube volumes and stable net debt. For the full year 2024, the company expects positive total cash generation and a decline in net debt compared to Q2 levels. Market dynamics remain strong, particularly in international markets.

Vallourec’s Chairman and CEO, Philippe Guillemot, highlighted the company’s ability to control costs, manage working capital, and generate significant cash flow. The company secured major contracts for offshore projects and remains optimistic about market demand. The US OCTG market has shown improvement, supporting Vallourec’s position as a key supplier.

In the first nine months of 2024, Vallourec recorded revenues of €2,969 million, a decrease of 23% year over year. EBITDA amounted to €618 million, reflecting the impact of lower average selling prices in Tubes in North America and reduced iron ore production. Operating income was €397 million, with positive net income of €289 million.

Vallourec’s financial position shows a significant decrease in net debt to €240 million as of September 30, 2024, with strong liquidity of €1,561 million. The company’s focus on deleveraging and operational efficiency has contributed to its financial stability and positive cash flow generation.

For more details, refer to the full press release on Vallourec’s Q3 & 9M 2024 results.



Read more at GlobeNewswire:: Vallourec Third Quarter 2024 Results