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Vallourec reports second quarter and first half 2021 results

Vallourec reports second quarter and first half 2021 results

Boulogne-Billancourt (France), July 28th 2021 – Vallourec, a world leader in premium tubular solutions, announces today its results for the second quarter and first half 2021. The Board of Directors of Vallourec SA, meeting on July 27th 2021, approved the Group's second quarter and half year 2021 accounts.

Q2 2021: strong EBITDA increase
  • €842 million revenue, stable year-on-year, the decrease of the Oil & Gas activity in EA-MEA being offset by the mine contribution and the dynamism of the Industry markets
  • €148 million EBITDA, versus €43 million in Q2 2020, EBITDA margin increasing to 17.6%
  • Free cash flow at (€135) million including one-off financial restructuring fees versus (€77) million in Q2 2020

Successful completion of the financial restructuring on June 30th 2021
  • As at June 30th 2021, net debt at €720 million and equity Group share at €1,602 million
  • As at June 30th 2021, strong liquidity of €1,189 million

2021 Outlook

  • Increased 2021 outlook released on July 21st:
    • EBITDA targeted between €475 and €525 million versus €350 and €400 million previously
    • Free cash flow targeted between (€240) and (€160) million versus (€340) and (€260) million previously
  • Continuous cost savings throughout the year
  • Strict cash control, capex envelope kept at c. €160 million


Edouard Guinotte, Chairman of the Board of Directors and Chief Executive Officer, declared:

As expected, Q2 marked the completion of our financial restructuring, achieved on June 30th. We welcome Apollo and SVPGlobal, our new reference shareholders, as well as our new Board of Directors. We are very excited to focus together on driving Vallourec on its path to value creation and fully deploy our strategic plan.

With regards to our financial results, our Q2 EBITDA benefited as expected from the increased contribution of Vallourec’s iron ore mine, along with the recovery of some markets, like the Industry market in Brazil or the OCTG market in North America. In addition, we took advantage of the resumption of tendering activity in EA-MEA markets to capture satisfying new contracts in East Africa, and the Middle East.

We expect current market trends to continue, including the progressive improvement of the North American OCTG market, a sustained activity in Industry markets, and expect a gradual decrease of the iron ore prices. This leads to target an EBITDA between €475 million and €525 million and a free cash flow between (240) million and (160) million.


Key figures

First-half 2021 First-half 2020 Change In € million Q2 2021 Q2 2020 Change
739 872 -15.3% Production shipped (k tons) 381 422 -9.7%
1,544 1,696 -9.0% Revenue 842 843 -0.1%
228 111 +€117m EBITDA 148 43 244.2%
14.8% 6.5% +8.3p.p. (as a % of revenue) 17.6%
Författare GlobeNewswire