Vallourec reports 3Q earnings
Vallourec Star’s parent company, Vallourec, reported a loss of $176 million in net income during the third quarter of 2016 on Tuesday.
The French tubular solutions company’s operating revenues during the third quarter were $763.3 million when converted from euros to U.S. dollars. That compares with $960.5 million made during the third quarter of 2015.
Locally, the Vallourec Star plant on Martin Luther King Jr. Boulevard produces small-diameter pipe for the oil and gas industry.
“During this quarter, we have seen signs of improvement in the U.S. where the rig count and [oil country tubular goods] demand have increased for the first time since the end of 2014,” said Philippe Crouzet, chairman of the management board.
For the first nine months of the year, the company reported a total net income loss of $633.3 million, compared with a loss of $483.5 million reported during the first nine months of 2015.
For Vallourec’s transformation plan, Vallourec Solucoes Tubulares do Brasil was created Oct. 1 after the merger of Vallourec Tubos do Brasil and Vallourec Sumitomo Tubos do Brasil.
In China, the company obtained all clearances from local authorities to acquire control of Tianda Oil Pipe. In France, the last production campaign at the Deville-Les-Rouen rolling mill took place in September. The mill will close by the end of the year.
In Vallourec’s U.S. oil, gas and petrochemicals market, the company said it saw improvement with the recovery of consumption resulting from increases in rig count and rig efficiencies, but over the past nine months, revenues in the U.S. have been down significantly from lower volumes and price decreases.
Vallourec operates in more than 20 countries.