The French group Vallourec, manufacturer of seamless tubes emerging from financial restructuring, announced on Wednesday that it had returned to green in the second quarter and raised its objectives thanks to the recovery of the industry.
Read also: Steel industry: Vallourec sees the end of its financial restructuring
In the second quarter, Vallourec posted a net profit of 51 million euros, against a net loss of 493 million in the second quarter of 2020. In the first half, the group certainly remained in the red, but with a net loss of 42 million euros much lower than last year at the same time (567 million euros). The group's turnover reached 1.54 billion euros,
"down 9% compared to the first half of 2020,"
Vallourec said in a press release on Wednesday. The group reported a drop in its sales volumes to the oil and gas sector in Europe, the Middle East and Africa.
Overall, however, Vallourec is benefiting from the recovery in the industry, particularly in Europe and South America, and from the dynamism of its sales to the oil market in North America.
The “Industry & Others” segment saw its turnover increase by 50% in the first half of the year.
This segment is also driven by the exploitation of iron ore in Brazil, but the group expects a gradual drop in prices during the rest of the year.
In the first half of the year, the group's gross operating income reached 228 million euros, almost doubled over one year.
Objectives identified for 2021
The tube manufacturer ultimately raised its objectives for 2021, and is now targeting gross operating income of between 475 and 525 million euros, against 350 to 400 million announced last May. Vallourec has also raised its free cash flow forecast. At June 30, 2021, Vallourec posted a debt of 720 million euros,
"an amount divided by 3 compared to March 31, 2021"
, said during a conference call Edouard Guinotte, Chairman and CEO of the group.
“Vallourec's financial structure is therefore now sound and adapted to our activity,”
added Olivier Mallet, Deputy CEO. Vallourec is still targeting 400 million euros in additional savings by 2025, thanks to an
“adjustment of its production capacities”
in Europe. The group announced last November the elimination of more than a thousand jobs, including 350 in France, as well as the closure of its factory in Déville-lès-Rouen, in Seine-Maritime.
