popular articles

Vallourec out of the red in the third quarter, driven by the need for “energy security

Vallourec, which specializes in seamless pipes for the oil industry, came out of the red in the third quarter.

Please share:

Vallourec, which specializes in seamless pipes for the oil industry, came out of the red in the third quarter, benefiting in particular from “energy security concerns” of countries deprived of Russian gas, and the “difficult” decision to close its plants in Germany in 2023 to ensure its “survival”.

The French group announced for the third quarter a net result of 6 million euros after a loss of 7 million last year, on a turnover up 54% to 1.28 billion euros.

Over nine months, however, the net loss increased to 444 million euros, compared with 49 million euros in the same period of 2021.

“We have taken difficult but necessary decisions for the survival of the group,” recalled CEO Philippe Guillemot, appointed seven months ago.

The group posted “very encouraging results” in the third quarter, he said in a telephone interview with the press.

In May, following a lengthy financial restructuring process, the group announced the elimination of 3,000 jobs worldwide, including 320 in France, following the cessation of tube manufacturing in Europe, the closure of its German plants, and the transfer of part of its activities to Brazil.

Since then, Vallourec has become closer to its traditional oil customers, with whom it has obtained long-term supply contracts, notably with Saudi Aramco of Saudi Arabia, ADNOC in Abu Dhabi and Petrobras in Brazil. It is also benefiting from a “strong commercial dynamic” in the United States, where exports of liquefied natural gas (LNG) to Europe have risen sharply since Russia’s invasion of Ukraine.

“Many people no longer believed in the future of the group, and today Vallourec has a future because decisions that have been postponed many times have finally been taken,” added Mr Guillemot.

The “New Vallourec” plan to improve performance and reorganize activities will be extended to Brazil.

In the United States and Saudi Arabia, the group plans to increase its production to “take advantage” of the increase in oil investments.

For the future, in addition to its core oil business, Vallourec believes that its know-how can be used in the emerging and fast-developing carbon capture business, since its seamless pipes are “capable of withstanding very hostile environments in terms of temperature, pressure and corrosion”.

It also plans to expand into geothermal energy, where it is already present, and into hydrogen storage.

The group also announced that it has received approval to continue operating the Pau Branco iron ore mine in Brazil, using alternative tailings storage facilities “until the beginning of the second quarter of 2023″.

In early 2022, Vallourec was fined some 45 million euros for “environmental damage” after a sediment containment dam at this mine overflowed.

“We have completed the work necessary to restore the minimum safety level required for the use of the Cachoeirinha tailings facility,” he said.

Register free of charge for uninterrupted access.

Publicite

Recently published in

TerraForm Power reached a $34.5mn court settlement with its former chairman Carlos Domenech, nine years after his dismissal, ending a case tied to SunEdison's financial management.
Chinese group Sinopec reported annual revenue of CNY 3,070 bn and net profit of CNY 48.94 bn, achieving record performance across its oil, gas and chemical segments.
Chinese group Sinopec reported annual revenue of CNY 3,070 bn and net profit of CNY 48.94 bn, achieving record performance across its oil, gas and chemical segments.
Maurel & Prom confirmed that US authorities cancelled its operating licence in Venezuela, while allowing it to finalise operations until 27 May.
Maurel & Prom confirmed that US authorities cancelled its operating licence in Venezuela, while allowing it to finalise operations until 27 May.
Estonian state-owned energy group Eesti Energia plans to acquire all shares in its subsidiary Enefit Green in a voluntary takeover bid worth over €200mn, set to begin on April 8.
Estonian state-owned energy group Eesti Energia plans to acquire all shares in its subsidiary Enefit Green in a voluntary takeover bid worth over €200mn, set to begin on April 8.
Orano's French hydrometallurgy project has been designated as strategic by the European Commission under the Critical Raw Materials Act, aimed at securing the supply of critical raw materials.
TotalEnergies reported a 2.9% drop in emissions for 2024, reaffirming its climate strategy ahead of a key general meeting.
TotalEnergies reported a 2.9% drop in emissions for 2024, reaffirming its climate strategy ahead of a key general meeting.
Shell Global Solutions International B.V. has awarded McDermott a three-year framework agreement for engineering, procurement and project management services across several strategic markets.
Shell Global Solutions International B.V. has awarded McDermott a three-year framework agreement for engineering, procurement and project management services across several strategic markets.
Australian company Earth AI confirms six new mineral prospects, including cobalt and tungsten, discovered through its predictive exploration software based on artificial intelligence.
Australian company Earth AI confirms six new mineral prospects, including cobalt and tungsten, discovered through its predictive exploration software based on artificial intelligence.
Nexans is expanding its industrial capacity near Noyelles-Godault to recycle more copper, as global demand outpaces primary mining production.
Naturgy secures shareholder approval to buy back 10% of its shares to increase free float and boost market visibility.
Naturgy secures shareholder approval to buy back 10% of its shares to increase free float and boost market visibility.
Investment firm Ardian has completed the acquisition of renewable energy producer Akuo, active in photovoltaics, wind and storage, with stated ambitions for international expansion and increased capacity.
Investment firm Ardian has completed the acquisition of renewable energy producer Akuo, active in photovoltaics, wind and storage, with stated ambitions for international expansion and increased capacity.
Shell aims to increase its cost reductions to USD 7 billion by 2028, leveraging artificial intelligence and targeted restructurings in its chemical divisions.
Shell aims to increase its cost reductions to USD 7 billion by 2028, leveraging artificial intelligence and targeted restructurings in its chemical divisions.
Global energy consumption growth doubled in 2024 compared to its ten-year average, fuelled by rising electricity use in advanced and emerging economies, according to a report by the International Energy Agency.
Crowley, in partnership with Naturgy, has launched LNG transport to Puerto Rico, bypassing restrictions imposed by the Jones Act to meet the island's energy demand.
Crowley, in partnership with Naturgy, has launched LNG transport to Puerto Rico, bypassing restrictions imposed by the Jones Act to meet the island's energy demand.
Abastible, a Chilean company specializing in liquefied gas and electricity, has signed a power purchase agreement with Zelestra. This hybrid project combines 220 MWdc of solar energy and 1 GWh of battery storage to support night-time energy supply.
Abastible, a Chilean company specializing in liquefied gas and electricity, has signed a power purchase agreement with Zelestra. This hybrid project combines 220 MWdc of solar energy and 1 GWh of battery storage to support night-time energy supply.
Brookfield has completed the acquisition of 97.73% of Neoen, a French renewable energy producer, and has initiated the process to withdraw the company from the Paris Stock Exchange.
Brookfield has completed the acquisition of 97.73% of Neoen, a French renewable energy producer, and has initiated the process to withdraw the company from the Paris Stock Exchange.
Octopus Energy Generation announces four new investments in renewable energy in France, bringing the total capacity of its assets in the country to over 500 MW, with a target of one billion euros invested by 2025.
Nexans has announced that it has entered into exclusive negotiations with the investment fund Latour Capital for the sale of Lynxeo, its industrial cable division, for an amount of 525 million euros. This transaction is part of the group’s strategy to focus on electrification.
Nexans has announced that it has entered into exclusive negotiations with the investment fund Latour Capital for the sale of Lynxeo, its industrial cable division, for an amount of 525 million euros. This transaction is part of the group’s strategy to focus on electrification.
Lyon-based company Carester has begun construction of a rare earth recycling and refining plant in Lacq, Pyrénées-Atlantiques, after securing €216 million in funding from the French government and Japanese partners. The site, named Caremag, is set to begin operations by the end of 2026.
Lyon-based company Carester has begun construction of a rare earth recycling and refining plant in Lacq, Pyrénées-Atlantiques, after securing €216 million in funding from the French government and Japanese partners. The site, named Caremag, is set to begin operations by the end of 2026.
In Fos-sur-Mer, the transformation of the industrial-port zone into a low-carbon industrial hub raises both ambitions and questions. Despite announced investments, challenges related to infrastructure, energy, and timelines remain significant.
In Fos-sur-Mer, the transformation of the industrial-port zone into a low-carbon industrial hub raises both ambitions and questions. Despite announced investments, challenges related to infrastructure, energy, and timelines remain significant.
TotalEnergies faces multiple lawsuits initiated by international NGOs over environmental and social issues related to its global projects. While several cases remain ongoing, the majority have been dismissed or dropped by the courts, questioning their legitimacy.
Enel doubled its net profit to €7 billion in 2024, despite the decline in electricity and gas prices. The company also reduced its net debt through asset disposals and implemented a strategy focused on profitability.
Enel doubled its net profit to €7 billion in 2024, despite the decline in electricity and gas prices. The company also reduced its net debt through asset disposals and implemented a strategy focused on profitability.
US data centre capacity surpassed 92 GW by the end of 2024, with a significant rise in investments and larger projects, driven by the increasing demand for artificial intelligence (AI).
US data centre capacity surpassed 92 GW by the end of 2024, with a significant rise in investments and larger projects, driven by the increasing demand for artificial intelligence (AI).
Viridien S.A. has completed a $925 million senior secured bond issuance to refinance its second-lien debt and strengthen its liquidity profile. Rating agencies have upgraded their assessments following this transaction.
Viridien S.A. has completed a $925 million senior secured bond issuance to refinance its second-lien debt and strengthen its liquidity profile. Rating agencies have upgraded their assessments following this transaction.

Advertising