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(This is an abridged version of the press release. For the full version click here)
Boulogne-Billancourt (France), 9 November 2017 - Vallourec, world leader in premium tubular solutions, today announces its results for the third quarter and first nine months of 2017. The consolidated financial information was presented by Vallourec's Management Board to its Supervisory Board on 9 November 2017.
|9M||9M||Change||In millions of euros||Q3||Q3||Change|
|1,601||905||76.9%||Sales Volume (k tons)||588||333||76.6%|
|-0.3%||-7.3%||7.0pt||As % of revenue||0.9%||-7.5%||8.4pt|
|(373)||(575)||+€202m||Net income (loss), Group share||(119)||(160)||+€41m|
|(397)||(392)||-€5m||Free cash flow||(72)||(75)||+€3m|
|30 Sept.||31 Dec.||Change||In millions of euros||30 Sept.||30 Sept.||Change|
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"Over the first nine months of 2017, Vallourec's financial performance has improved in each of the three quarters leading to significant progress compared to the same period in 2016. In the third quarter, the full effect of announced price increases in the US became evident. In EAMEA, NOCs continued to issue tenders for Oil & Gas products, and while IOCs' are starting to sanction new projects in the region, market prices are still challenging.
Vallourec remains focused on the sustained implementation of its Transformation Plan.
In October, the Group both strengthened and diversified its liquidity position by raising €800 million on the bond and convertible bond markets.
The EBITDA target for the full year 2017 has been raised to a range between -€30 million and -€10 million."
I - CONSOLIDATED REVENUE BY MARKET
|9M||9M||Change||At constant scope |
and exchange rate
|In millions of euros||Q3||Q3||Change||At constant scope |
and exchange rate
|1,859||1,370||35.7%||9.1%||Oil & Gas, Petrochemicals||681||439||55.1%||15.0%|
|538||422||27.5%||19.7%||Industry & Other||189||146||29.5%||30.8%|
For the third quarter of 2017, Vallourec recorded revenue of €964 million, up 39.1% compared with the third quarter of 2016 (up 43.1% at constant exchange rates). At constant scope and exchange rates, revenue was up 29.4%, with a positive volume impact particularly in the Oil & Gas market in the US and EAMEA. Price/mix effect was -9.3%, higher prices in the US being more than offset by the deliveries from the backlog booked in 2016 at low prices for Oil & Gas in EAMEA. Lower Powergen revenue was more than offset by increased Industry & Other revenue.
Sequentially, revenue increas