France-based pipe manufacturer Vallourec has announced its financial results for the third quarter and the first nine months of 2013.
According to Vallourec's report, in the third quarter this year the company registered a net profit of €80 million, increasing by 29 percent compared to the corresponding quarter of the previous year. Vallourec's sales revenues in the same period amounted to €1.4 billion, up 3.4 percent, while its operating income amounted to €159 million, up 18.7 percent, both year on year.
During the first nine months of the current year, Vallourec's net profit increased by 20.4 percent to €177 million, compared to the corresponding period of the previous year. The company's sales revenues amounted to €4 billion, up 2.8 percent year on year, reflecting higher volumes and a positive mix effect, which were partly offset by lower OCTG prices in the USA. In January-September, Vallourec's operating income increased by 16.5 percent year on year to €388 million.
Vallourec's sales volume in the third quarter totaled 545,000 mt, improving by 3.8 percent year on year, mainly driven by oil and gas pipe volumes growth. In January-September, the pipe sales volume amounted to 1.57 million mt, rising by 1.2 percent year on year.
According to Vallourec's statement, for the full year 2013, the company continues to target an increase in volume and sales and an improvement in EBITDA margin. This improved performance in Vallourec's results will, however, be impacted by the current weakness of the Brazilian real, the recent weakening of the US dollar against the euro and the temporary reduction of OCTG demand in Brazil.