France-based pipe manufacturer Vallourec has announced its financial results for the first half of the current year.
In the given period, Vallourec reported a net loss of €275 million, compared to a net profit of €144 million in the corresponding period of the previous year. Vallourec's sales revenues in the same period amounted to €2.07 billion, falling 23.1 percent year on year, while it registered an operating loss of €228 million, compared to an operating profit of €265 million in the same period of 2014. The company's EBITDA in the first six months decreased by 85.1 percent year on year to €66 million.
In the first half of the current year, the company’s sales volume amounted to 774,000 mt, declining by 31.7 percent compared to the corresponding period of the previous year.
According to Vallourec, in the Europe, Africa, Middle East and Asia (EAMEA) region, the order inflow is staying at a very low level and destocking in Saudi Arabia is continuing. Therefore, low deliveries and an unfavorable mix, associated with price pressure, will continue to significantly weigh on the second half performance, which is expected to decline compared to the first half, despite the favorable effect of a stronger US dollar.