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 16.4 percent year on year to €834 million, while it reported EBITDA of €128 million, compared to €71 million in the third quarter last year. The growth in the company’s revenue and EBITDA in the third quarter was driven by the dynamism of the oil and gas market in North America and the strong mine contribution. In the first nine months this year, the company’s sales revenue totaled €2.37 billion, down by 1.4 percent year on year, while its EBITDA was €356 million, compared to €182 million in the same period last year.
In the third quarter, the company’s sales volume rose by 22.6 percent to 391,000 mt, while in the first nine months this year, its sales volume totaled 1.13 million mt, down by 5.1 percent year on year.
Vallourec stated that it decided to divest all its German manufacturing assets in order to find a new operator to profitably serve the European industrial markets. The disposal process will be launched in the coming weeks with a targeted binding offer in the second quarter of 2022. If no buyer is identified, Vallourec will look at all alternatives, including closure.
As a result of the recent decline in iron ore prices, the company expects EBITDA of close to €475 million for the full year.