Improved FY 2017 performance

  • EBITDA at breakeven
    • Significantly higher activity level
    • Cost savings generated by our Transformation Plan
  • Net debt of €1,542 million as at 31 December 2017
  • Liquidity strengthened: €800 million refinancing through bond and convertible bond issuance

Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:

'In 2017, we benefited from the first tangible signs of a recovery in the Oil & Gas industry following three years of an unprecedented downturn. In North America, drilling activity recovered at a stronger pace than initially forecasted, allowing us to boost deliveries and prices. Tender activity in international Oil & Gas markets began to resume at a gradual pace. An improved macroeconomic context in Europe and Brazil supported our Industry & Other activities.

Thanks to the teams' commitment and hard work, we continued to implement a meaningful transformation of the Group's industrial footprint. We expanded new competitive production routes, developed a new organization that bring us closer to our customers and generated significant cost savings. Furthermore, we maintained a continuous focus on cash, namely by efficiently managing the working capital requirement and by monetizing non-core assets.

As a result of these efforts, we delivered a financial performance that exceeded initial expectations and registered an EBITDA at breakeven, a significant achievement over the previous year.

We also strengthened and diversified our liquidity position by raising €800 million on the bond and convertible bond markets.

Looking towards 2018, we expect to benefit from a favorable activity level in the U.S. and a stable Oil & Gas activity in Brazil. Meanwhile, the timing and magnitude of the international Oil & Gas market rebound is still uncertain, but tender activity is increasing, which should result in higher bookings. Finally, the macroeconomic environment has recently seen an unfavorable evolution in currencies. We remain focused on the implementation of our Transformation Plan which will continue to generate significant savings, and contribute to the continuous improvement of our results.'


Vallourec SA published this content on 21 February 2018 and is solely responsible for the information contained herein.
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