Vallourec cites oil and gas boom in improved earnings
Vallourec, the France-based parent company of Youngstown’s Vallourec Star, reported Wednesday that revenues for both the second-quarter and first half of 2018 were up, driven by “the positive momentum in the oil & gas market.”
The company reported Q2 revenue of $1.1 billion, converted from euros, a 5.3 percent increase from Q2 in 2017.
For the first half of the year, the company reported $2.16 billion in revenue, a 7.5 percent increase over the first half of 2017.
“The increase in Vallourec’s H1 2018 revenue and EBITDA was driven by the positive momentum [in] the U.S. oil and gas market. It allows Vallourec to take advantage of its fully integrated U.S. manufacturing facilities and to pass on” price increases on products that are expected in the third quarter, said Philippe Crouzet, chairman of the management board.
Crouzet said he expects continued improvements in earnings through the second half of the year.
“Vallourec remains very focused on its objective of returning to cash flow positive as soon as possible,” he said. “Taking into account the gradual recovery in our main markets and the continued progress in our Transformation Plan, we confirm our positive outlook for the year with EBITDA in the second half of 2018 targeted to be significantly higher than in the first half.”
EBITDA is earnings before interest, taxes, depreciation and amortization.
Vallourec reported EBITDA of about $27 million in Q2 and $21 million in the first half of the year. That compares with EBITDA of about $3.5 million in Q2 of 2017 and negative $21 million in the first half of 2017.