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Vallourec Reports Q4 and Full Year 2012 Results

02/21/2013 - Vallourec announced its results for the fourth quarter and full year 2012, noting a year of contrastfor the company as it benefited from a strong market position in the oil and gas sector, while other markets faced a challenging environment marked by economic uncertainty, lower demand and increased competition.

Vallourec, world leader in premium tubular solutions, announced its results for the fourth quarter and full year 2012.  
Key figures
Q4 2012:
  • Sales up 10% versus Q3 2012 at € 1,465 million 
  • EBITDA up 13% versus Q3 2012 at € 235 million representing 16.1% of sales 
Full year 2012:
  • Sales volume of 2,092 thousand tonnes (-7% versus 2011)
  • Sales stable year on year at € 5,326 million (+1%)
  • EBITDA of € 786 million representing 14.8% of sales (-16% versus 2011)
  • Net income, Group share of € 217 million representing € 1.80 per share
Commenting these results, Philippe Crouzet, chairman of the management board, stated: “2012 was a year of contrast for Vallourec. The Group benefited from its strong market position and enhanced premium offering to achieve a record level of oil & gas sales, which now represent over 60% of total Group sales. However, Vallourec’s other markets faced a challenging environment marked by economic uncertainty, lower demand and increased competition. 
"Moreover, 2012 was still a year of significant capital expenditure, but Vallourec is now approaching the end of its major investments in key projects. The Group made decisive progress throughout the year with the ramping up of its new mills in the U.S. and in Brazil. Youngstown’s new mill is now delivering its first pipes to customers and the qualification process of premium products at VSB is advancing well. The new finishing mill in Saudi Arabia has just been qualified.  
"At the same time, the Group has kept on innovating and strengthening its R&D efforts to deliver its customers the products they need to operate in the most complex environments. The VAM 21® connection is now setting the reference for the most technically challenging projects in Brazil, the Middle East, the North Sea, West Africa and Asia.    
"Looking forward, Vallourec expects volume and sales to grow and the EBITDA margin to increase in 2013. Drilling activity in the USA is expected to progressively pick-up from current levels, while indicators for the global oil & gas markets are positive. The Group will benefit as its new mills progressively increase production. The economic environment remains challenging for other markets, with limited visibility.”