France-based pipe manufacturer Vallourec has announced its financial results for the first quarter of 2013.
According to Vallourec's report, in the first quarter this year the company registered a net profit of €35 million, increasing by 21 percent compared to the corresponding quarter of the previous year. Vallourec's sales revenues in the same period amounted to €1.21 billion, up one percent, while its operating income improved by 13 percent to €90 million, both year on year.
Vallourec's sales volume in the given quarter totaled 487,000 mt, decreasing by three percent year on year. Higher volumes in the oil and gas segment, reflecting especially higher sales in Brazil and in the Middle East, were offset by lower volumes in industrial markets, particularly in Europe.
According to Vallourec's statement, the company continued to benefit from its strong market position and enhanced premium offering to achieve higher sales especially in the most complex oil and gas basins, such as Brazilian deep offshore or sour environment in the Middle East. In the meantime, Vallourec's other markets continued to face a difficult environment marked by economic uncertainty and low demand in Europe.
Regarding the remainder of the year, indicators for the global oil and gas markets remain well oriented, while the economic environment continues to be challenging for other markets, with limited visibility. Based on these conditions and thanks to the progressive ramp-up of new mills, Vallourec continues to expect volumes and sales to grow and its EBITDA margin to improve in 2013.