France-based pipe manufacturer Vallourec has announced its financial results for the fourth quarter and the full year of 2013, while also stating that for 2014 it expects a stable to moderate increase in sales and EBITDA.
According to Vallourec's report, in the fourth quarter last year the company registered a net profit of €85 million, increasing by 14.9 percent year on year. Vallourec's sales revenues in the same period amounted to €1.6 billion, up 9.8 percent, while its operating income amounted to €146 million, up 2.1 percent, both year on year.
During 2013, Vallourec's net profit increased by 18.6 percent to €262 million, compared to the corresponding period of the previous year. The company's sales revenues amounted to €5.57 billion, up 4.7 percent year on year, Higher volumes and a positive mix effect were partly offset by lower OCTG prices in the US and a negative currency translation effect due to the weakening of the Brazilian real and US dollar against the euro. In 2013, Vallourec's operating income increased by 12.2 percent year on year to €534 million.
Vallourec's sales volume in the fourth quarter totaled 584,000 mt, improving by 9.2 percent year on year, while in the full year its pipe sales volume amounted to 2.15 million mt, rising by 3.2 percent year on year.
According to Vallourec's statement, for the current year, in the oil and gas segment, Vallourec targets a further increase in sales, notably in the Europe, Africa, Middle East and Asia (EAMEA) region and in the US. In Brazil, while the first half will be impacted by lower well construction activity year on year, Vallourec confirms its anticipated recovery of the deliveries to Petrobras, Brazilian national oil company by mid-year.