France-based pipe manufacturer Vallourec has announced its financial results for the full year of 2015.
In 2015, Vallourec reported a net loss of €865 million, compared to a net loss of €924 million in the previous year. Vallourec's sales revenues in the same year amounted to €3.8 billion, falling 33.3 percent year on year, while it registered an operating loss of €838 million, compared to an operating loss of €661 million in 2014.
In 2015, the company's sales volume amounted to 1.41 million mt, declining by 39.3 percent compared to the previous year.
The company stated that the full year results were severely affected by the sharp drop in high-margin sales to the oil and gas industry in the Europe, Africa, Middle East and Asia (EAMEA) region and in North America. In Brazil, Vallourec’s activities were impacted by a very challenging macroeconomic environment and depressed iron ore prices. Therefore, Vallourec announced additional major strategic initiatives which will reshape and reposition it on a long-term profitable growth path. These measures, most of which will be implemented by 2017, will improve Vallourec’s competitiveness and reinforce its financial strength, with the objective of delivering EBITDA in the range of €1.2-1.4 billion in 2020.