Vallourec sales numbers tank as oil and gas markets implode
France-based Vallourec announced a drop of 17.2 percent in sales at 1,052 million euros ($1,175 million) in the first quarter of 2015 compared with 1,271 million euros ($1,419 million) in the first quarter of 2014.
The parent company of Vallourec Star, 2669 Martin Luther King Jr Blvd., said in a news release that a severe drop oil and gas markets significantly affected financial results.
“Vallourec is currently facing very difficult market conditions, characterized by major E&P capex cuts by our customers. Q1 2015 was severely affected by a drop in high margin Oil & Gas sales in the EAMEA region (Europe, the Middle East and Africa), along with a challenging macroeconomic environment in Brazil and depressed iron ore prices. Following the decline in demand, price pressure in the market has intensified for new orders, particularly in North America and for less differentiated products in the EAMEA region,” Philippe Crouzet, chairman of the management board, said in a statement.