France-based pipe manufacturer Vallourec has announced its financial results for the first quarter of the current year.
In the given period, Vallourec recorded a net loss of €284 million, compared to a net loss of €76 million in the corresponding quarter of the previous year. Vallourec's sales revenues in the same period amounted to €671 million, falling 36.2 percent year on year, while it registered an operating loss of €290 million, compared to an operating loss of €35 million in the same quarter of 2015.
According to Vallourec, in the second quarter revenues and results are expected to be better than in the first quarter as a consequence of the concentration of orders to be delivered during the second quarter. However, Vallourec also stated that in the Europe, Africa, Middle East and Asia (EAMEA) region deliveries will be severely impacted by the very low order intake in 2015 and since the beginning of this year. In the US, the company expects low demand for OCTG products and lower prices. In addition, the company’s operations in Europe are expected to continue to be affected by the weakness of global investments and pricing pressure, and in Brazil business will continue to suffer from the depressed local environment and from iron ore prices that are expected to be lower than in 2015.