Meudon France headquartered seamless pipe leader Vallourec announced that For the First Half of 2022, Oil & Gas revenues totaled EUR 1,231 million, EUR 430 million increase or 54% YoY, mainly thanks to North America and, to a lesser extent, EA-MEA while petrochemicals revenues doubled year-on-year to reach EUR 172 million and industry & other revenues totaled EUR 585 million, stable YoY. Vallourec Chairman Mr Philippe Guillemot said “Robust Second Quarter results were fully in line with our expectations. Our tube business continues to operate in a highly favorable environment, particularly in North America. Our iron ore mine has reopened but is still operating below typical production levels, and this situation is now assumed to continue for the remainder of the year.”April-June 2022 QuarterShipment - 0.433 million tonne, up14% YoYRevenue - EUR 1,144 million, up 36% YoYEBITDA - EUR 16 million, up 8% YoYNet Loss, Group share – EUR 415 millionJanuary-June 2022Shipment – 0.828 million tonne, up 12% YoYRevenue - EUR 2,060 million, up 33% YoYEBITDA - EUR 205 million, down 10% YoYNet Loss, Group share - EUR 4502022 Outlook Oil & Gas “In North America, the highly favorable market conditions should continue into H2 2022, in both price and volume terms. Market is very tight in terms of available supply. In EA-MEA, volumes expected to continue to recover modestly in the coming quarters; cost increases will be passed onto customers. In South America, volumes are expected to increase leading to margin improvement throughout the year. In Europe, the outlook for volumes is neutral in a softer market; price increases are expected to fully offset cost inflation. In Brazil, the outlook for volumes is neutral relative to currently elevated levels, with price increases fully offsetting cost inflation.”Vallourec has partially restarted the mining operations. Assumptions for H2 2022 assume production of approximately 1.5 million tonnes, bringing the total for the year to 2.6 million tonnes. H2 2022 consensus estimates for iron ore average prices stand at approximately USD 120 per tonne. Based on these market trends and assumptions Vallourec is quantifying EBITDA outlook for FY 2022 which is now expected in a range of EUR 650-750 million. On a normalized basis (for full production at the iron ore mine) EBITDA would have been estimated at approximately EUR 1 billion.”
Meudon France headquartered seamless pipe leader Vallourec announced that For the First Half of 2022, Oil & Gas revenues totaled EUR 1,231 million, EUR 430 million increase or 54% YoY, mainly thanks to North America and, to a lesser extent, EA-MEA while petrochemicals revenues doubled year-on-year to reach EUR 172 million and industry & other revenues totaled EUR 585 million, stable YoY. Vallourec Chairman Mr Philippe Guillemot said “Robust Second Quarter results were fully in line with our expectations. Our tube business continues to operate in a highly favorable environment, particularly in North America. Our iron ore mine has reopened but is still operating below typical production levels, and this situation is now assumed to continue for the remainder of the year.”April-June 2022 QuarterShipment - 0.433 million tonne, up14% YoYRevenue - EUR 1,144 million, up 36% YoYEBITDA - EUR 16 million, up 8% YoYNet Loss, Group share – EUR 415 millionJanuary-June 2022Shipment – 0.828 million tonne, up 12% YoYRevenue - EUR 2,060 million, up 33% YoYEBITDA - EUR 205 million, down 10% YoYNet Loss, Group share - EUR 4502022 Outlook Oil & Gas “In North America, the highly favorable market conditions should continue into H2 2022, in both price and volume terms. Market is very tight in terms of available supply. In EA-MEA, volumes expected to continue to recover modestly in the coming quarters; cost increases will be passed onto customers. In South America, volumes are expected to increase leading to margin improvement throughout the year. In Europe, the outlook for volumes is neutral in a softer market; price increases are expected to fully offset cost inflation. In Brazil, the outlook for volumes is neutral relative to currently elevated levels, with price increases fully offsetting cost inflation.”Vallourec has partially restarted the mining operations. Assumptions for H2 2022 assume production of approximately 1.5 million tonnes, bringing the total for the year to 2.6 million tonnes. H2 2022 consensus estimates for iron ore average prices stand at approximately USD 120 per tonne. Based on these market trends and assumptions Vallourec is quantifying EBITDA outlook for FY 2022 which is now expected in a range of EUR 650-750 million. On a normalized basis (for full production at the iron ore mine) EBITDA would have been estimated at approximately EUR 1 billion.”
