France-based pipe manufacturer Vallourec has announced its financial results for the third quarter and the first nine months this year.
In the third quarter this year, Vallourec’s sales revenue increased by 53.6 percent year on year to €1.28 billion, while it reported EBITDA of €198 million, compared to €128 million in the third quarter last year. The growth in the company’s revenue and EBITDA in the third quarter was driven by the strong commercial dynamic in the US and long-term agreements with customers like Saudi Aramco, ADNOC and Petrobras. In the first nine months this year, the company’s sales revenue totaled €3.34 billion, up by 40.5 percent year on year, while its EBITDA was €403 million, compared to €356 million in the same period last year.
In the third quarter, the company’s sales volume rose by 18.2 percent to 462,000 mt, while in the first nine months this year its sales volume totaled 1.29 million mt, up by 14.2 percent year on year.
Vallourec chairman and CEO Philippe Guillemot stated that their tube business continues to perform strongly across the global platform, even though they are seeing higher energy costs in the to-be-closed German operations. He also said that they have made significant progress towards restoring normal operations at their Pau Branco mine in Brazil and that iron ore production will be above their previous assumptions in the fourth quarter.
The company expects an EBITDA in the range of €650-750 million for the full year and a capex around €200 million.