France-based pipe manufacturer Vallourec has announced its financial results for the second quarter and the first half of 2013.
According to Vallourec's report, in the second quarter this year the company registered a net profit of €62 million, increasing by 8.8 percent compared to the corresponding quarter of the previous year. Vallourec's sales revenues in the same period amounted to €1.37 billion, up 3.7 percent, while its operating income improved by 16.8 percent to €139 million, both year on year.
During the first six months of the current year, Vallourec's net profit increased by14.1 percent to €97 million, compared to the corresponding period of the previous year. The company's sales revenues amounted to €2.6 billion, up 2.5 percent year on year, reflecting stable volumes which were partly offset by lower OCTG prices in the USA and a negative currency translation effect. In the first half, Vallourec's operating income increased by 15.1 percent year on year to €229 million.
Vallourec's sales volume in the second quarter totaled 543,000 mt, improving by 2.8 percent year on year, mainly driven by higher oil and gas pipe volumes. In the first half of 2013, the pipe sales volume amounted to 1.03 million mt, almost unchanged compared to the same period of the previous year.
According to Vallourec's statement, the outlook for Vallourec's oil and gas markets remains globally positive due to Brazil and the dynamism of the rest of the world, despite no recovery in US gas drilling activity. 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, the company continues to target growth in volumes and sales and improvement in EBITDA margin in 2013.