Vallourec's outlook for the remainder of 2011 remains unchanged from the update provided during its Investor Day in Brazil on October 7th 2011.

The current business environment remains positive in energy markets, and Vallourec forecasts an increase in volumes and sales in the second half of 2011 compared to the first half. Taking into account the cautious attitude of distributors in non energy markets as a consequence of economic uncertainties, as well as the negative translation effect resulting from the recent evolution of the Brazilian real against the euro, the EBITDA for the second half of 2011 is expected to be similar to the first half of 2011.

Looking at 2012, the prospects for the oil & gas markets remain favorable, despite the uncertainties of the macro economic environment. Entering 2012, Vallourec will benefit from selling price increases implemented in 2011.