Global tube and pipe producer Vallourec announced Wednesday that in Q3, sales volume of rolled tubes amounted to 525,000 metric tons, in line with Q2. For the first nine months, sales totaled 1.55 million mt, reflecting a 6 percent drop compared to the prior year primarily due to lower volumes in Europe. Net income, meanwhile, was € 62 million (US$79.1 million), up 9 percent versus Q2 2012, but still down 32 percent compared to Q3 2011.
Oil and gas segment sales in Q3 2012 amounted to €816 million (US$1.04 billion), stable sequentially. For the first nine months of 2012, sales were up 19 percent year-on-year at €2.332 billion (US$2.9 billion), and now represent 60 percent of total sales compared to 52 percent of sales for the same prior year period.
Looking to Q4, Vallourec noted the major declines in the US gas rig count as of late, and said that sales overall continue to be impacted by the global economic weakness, particularly in Europe, but also in Brazil. Business confidence remains low and uncertainty weighs on the outlook.