France-based pipe manufacturer Vallourec has announced its financial results for the fourth quarter and the full year 2012.
According to Vallourec's report, in the fourth quarter the company registered a net profit of €70 million, decreasing by 40 percent compared to the corresponding quarter of the previous year. Vallourec's sales revenues in the same period amounted to €1.46 billion, down six percent, while its operating income decreased by 28 percent to €142 million, both year on year.
In 2012, Vallourec's net profit declined by 46 percent to €217 million, compared to the previous year. The company's sales revenues slightly increased by one percent year on year to €5.32 billion, with strong growth in the oil and gas segment and lower sales in other segments. In the same period, Vallourec registered an operating income of €474 million, decreasing by 32 percent year on year.
Vallourec's sales volume in the fourth quarter totaled 535,000 mt, decreasing by nine percent year on year and up two percent quarter on quarter, while the company's sales volume for the full year 2012 amounted to 2.09 million mt, down seven percent year on year.
According to Vallourec's statement, its exploration and production spending is expected to increase in 2013, mostly driven by international markets, notably in Brazil and in the Middle East. The company also continues actively with its program to generate cost savings and to improve its operating efficiency.
Overall, based on the current market conditions, Vallourec expects sales to increase and the EBITDA margin standing at 14.8 percent in 2012 to improve in the current year.