France-based pipe manufacturer Vallourec has announced its financial results for the third quarter and the first nine months of this year.
In the third quarter, Vallourec reported a net profit of €25 million, decreasing by 68.8 percent year on year. Vallourec's sales revenues in the same period amounted to €1.34 billion, falling by 2.6 percent, while its operating income amounted to €80 million, down 49.7 percent, both year on year. The company's EBITDA in the third quarter decreased by 27.1 percent year on year to €175 million.
During the first nine months, Vallourec's net profit declined by 4.5 percent year on year to €169 million. The company's sales revenues increased by 1.7 percent to €4.03 billion, while its operating profit decreased by 11.1 percent to €345 million, both year on year. In the given period, Vallourec registered an EBITDA of €619 million, down 6.4 percent compared to the corresponding period of the previous year.
Vallourec said that third quarter was marked by the anticipated slowdown of Brazilian oil and gas operations, largely as a result of the decision taken by Petrobras to reduce significantly the volume of tubes held as inventory, as well as by a less favorable product mix in the Europe, Africa, Middle East and Asia (EAMEA) region. This was mitigated by the robust performance of the oil and gas operations in the US.
Assuming no significant changes in markets and currencies, Vallourec continues to target sales for the current year close to those of 2013 with an EBITDA down by approximately 10 percent compared to 2013.