popular articles

Vallourec Reinvents its Future: Financial Success and Going Green

Vallourec, announces a remarkable increase in its financial forecasts for 2023, underlining a period of successful transformation and diversification.
Vallourec excelle diversifie et prospère

Please share:

Vallourec recently made waves in the industrial sector by revising upwards its financial forecasts for 2023. The change in outlook is the result of an effective reorganization strategy and an impressive third-quarter performance.

Exceptional third-quarter performance

For fiscal 2023, the Group now expects EBITDA of between €1.075 and €1.175 billion, surpassing the initial estimate of €950 million to €1.1 billion. This positive revision stems from a particularly successful third quarter, in which the company posted a net profit of 76 million euros, compared with just 6 million the previous year.

Debt Reduction and Strategic Reorganization

Consolidated EBITDA for the July-September period amounted to 222 million euros, representing 19.4% of sales, a significant increase on the 198 million euros (15.4%) recorded in the third quarter of 2022. This improvement is partly attributable to cost reductions in Germany, where Vallourec closed plants and moved operations to Brazil.

Declining sales and market challenges

However, the third quarter saw an 11% drop in sales to 1.14 billion euros, as well as a fall in tube sales from 462,000 tonnes to 343,000 tonnes. However, this fall was due to a decline in deliveries to the European industry and a drop in tubes for the oil & gas sector in North America, exacerbated by an unfavorable currency effect due to the euro’s appreciation against the US dollar.

Commitment to Renewable Energies and Energy Transition

In the first nine months of the year, Vallourec recorded a 15% increase in sales, reaching 3.83 billion euros. This growth is part of a strategy to diversify into new energies and the energy transition, particularly in the fields of carbon capture and hydrogen. The Group expects these sectors to account for between 10 and 15% of its EBITDA by 2030.
A key element of this diversification strategy is the development of a large-scale liquid hydrogen storage demonstrator at the Aulnaye-Aymeries site in northern France. Scheduled for unveiling in early December, the project will enable the storage of up to 100 tonnes of hydrogen, marking a significant step forward in the field of renewable energy.

Vallourec is firmly on the road to success. With an upwardly revised financial outlook, a significant reduction in debt, and a promising diversification strategy, the company is demonstrating its ability to adapt and prosper in a constantly changing economic environment.

Register free of charge for uninterrupted access.

Publicite

Recently published in

In 2024, Getlink reported a 5% drop in net profit, reaching €317 million. This decline is attributed to the temporary suspension of its ElecLink cross-Channel cable and the growing competition from ferries.
Baker Hughes and Woodside Energy have signed an agreement to develop a low-carbon energy production solution using the NET Power platform, targeting the energy and industrial sectors at small scale.
Baker Hughes and Woodside Energy have signed an agreement to develop a low-carbon energy production solution using the NET Power platform, targeting the energy and industrial sectors at small scale.
Vaalco Energy, Inc. has announced the signing of a new $300 million revolving credit facility with The Standard Bank of South Africa Limited, aimed at supporting its growth projects and investments across its African assets.
Vaalco Energy, Inc. has announced the signing of a new $300 million revolving credit facility with The Standard Bank of South Africa Limited, aimed at supporting its growth projects and investments across its African assets.
State-owned companies, such as Saudi Aramco, are responsible for more CO2 emissions than private firms like Shell or ExxonMobil, according to a study by the British think tank InfluenceMap.
State-owned companies, such as Saudi Aramco, are responsible for more CO2 emissions than private firms like Shell or ExxonMobil, according to a study by the British think tank InfluenceMap.
Consolidated Edison announces the sale of 6.3 million common shares via Barclays, with proceeds intended to support its capital needs and other business purposes.
Eco Wave Power shows notable financial progress for 2024, with reduced operating expenses and a strengthened cash position. The company continues its international expansion with key projects in Israel, the United States, Portugal, and Asia.
Eco Wave Power shows notable financial progress for 2024, with reduced operating expenses and a strengthened cash position. The company continues its international expansion with key projects in Israel, the United States, Portugal, and Asia.
Industrial group ABB announces a $120 million investment in two new US factories aimed at boosting production capacity to meet the strong demand from data centres.
Industrial group ABB announces a $120 million investment in two new US factories aimed at boosting production capacity to meet the strong demand from data centres.
Spanish banking group La Caixa takes a 5% stake in Veolia, becoming a strategic investor in the French environmental services giant. The collaboration aims to support Veolia's development plan.
Spanish banking group La Caixa takes a 5% stake in Veolia, becoming a strategic investor in the French environmental services giant. The collaboration aims to support Veolia's development plan.
Eni and PETRONAS partner to create a joint venture in the energy sector, combining their assets in Indonesia and Malaysia to form a strategic player with reserves estimated at 3 billion barrels of oil equivalent.
Boralex reported financial results for 2024 marked by lower production due to adverse weather conditions but maintains a strong financial position thanks to record financing and the progression of its renewable energy projects.
Boralex reported financial results for 2024 marked by lower production due to adverse weather conditions but maintains a strong financial position thanks to record financing and the progression of its renewable energy projects.
Kineticor Asset Management and Pembina Pipeline Corporation announce a partnership to develop a major project in Alberta, combining an electricity generation plant and a data centre complex. The project aims to meet the growing demand of the local data centre industry.
Kineticor Asset Management and Pembina Pipeline Corporation announce a partnership to develop a major project in Alberta, combining an electricity generation plant and a data centre complex. The project aims to meet the growing demand of the local data centre industry.
Portuguese group Energias de Portugal (EDP) announces a 16% decrease in its 2024 annual profit, affected by disappointing performance in its renewable energy subsidiary, particularly due to the abandonment of wind projects.
Portuguese group Energias de Portugal (EDP) announces a 16% decrease in its 2024 annual profit, affected by disappointing performance in its renewable energy subsidiary, particularly due to the abandonment of wind projects.
Despite a drop in its profits in 2024, Eni confirms its strategy of energy transition and shareholder remuneration. The company plans significant investments in renewable energy and biofuel production.
Mainstream Renewable Power has announced the appointment of Morten Henriksen as CEO, effective from April 1, 2025, as part of its strategy to focus on cost reduction and expansion into three key markets.
Mainstream Renewable Power has announced the appointment of Morten Henriksen as CEO, effective from April 1, 2025, as part of its strategy to focus on cost reduction and expansion into three key markets.
Engie aims to accelerate its growth through 2030 by investing in renewable energy, batteries, and electrical grids, with a target of 95 GW of installed capacity by 2030.
Engie aims to accelerate its growth through 2030 by investing in renewable energy, batteries, and electrical grids, with a target of 95 GW of installed capacity by 2030.
Brazil's oil giant Petrobras announced a $2.8 billion loss for Q4 2024, primarily driven by a depreciation of the real and falling oil prices. Its net profit for the full year plummeted by 70%.
Brazil's oil giant Petrobras announced a $2.8 billion loss for Q4 2024, primarily driven by a depreciation of the real and falling oil prices. Its net profit for the full year plummeted by 70%.
In 2024, Technip Energies posted a significant increase in net profit, supported by liquefied natural gas (LNG) markets and decarbonised electricity production. The French group anticipates strong prospects for 2025.
French pipe manufacturer Vallourec reported a 9% decline in net profit for 2024 but plans to pay a dividend of €1.50 per share, its first in ten years.
French pipe manufacturer Vallourec reported a 9% decline in net profit for 2024 but plans to pay a dividend of €1.50 per share, its first in ten years.
Iberdrola achieved a record net profit of €5.61 billion in 2024, a 17% increase over 2022, driven by asset sales and increased investment in renewable energy.
Iberdrola achieved a record net profit of €5.61 billion in 2024, a 17% increase over 2022, driven by asset sales and increased investment in renewable energy.
Italian energy group Eni reports a 45% drop in net profit in 2024, reaching €2.46 billion, impacted by lower gas and oil prices. Its shares fell on the stock market after results fell short of expectations.
Italian energy group Eni reports a 45% drop in net profit in 2024, reaching €2.46 billion, impacted by lower gas and oil prices. Its shares fell on the stock market after results fell short of expectations.
During the state visit of the President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan, Eni signed three collaboration agreements with Emirati companies, focusing on data centre development, the electricity interconnection between Albania and Italy, and research on critical minerals.
Tata Power has signed a memorandum of understanding with the government of Assam to develop up to 5,000 MW of renewable energy projects. This ₹30,000 crore investment aims to strengthen the state's energy infrastructure and foster local job creation.
Tata Power has signed a memorandum of understanding with the government of Assam to develop up to 5,000 MW of renewable energy projects. This ₹30,000 crore investment aims to strengthen the state's energy infrastructure and foster local job creation.
Blackstone has finalised the closing of its Blackstone Energy Transition Partners IV fund, reaching a cap of $5.6 billion, a 33% increase compared to its previous fund.
Blackstone has finalised the closing of its Blackstone Energy Transition Partners IV fund, reaching a cap of $5.6 billion, a 33% increase compared to its previous fund.
Uniper recorded adjusted EBITDA of €2.61 billion in 2024, significantly down from the previous year. The company has reduced its business risks, notably by terminating its gas supply contracts with Gazprom Export, and plans to make a €2.6 billion payment to the German state.
Uniper recorded adjusted EBITDA of €2.61 billion in 2024, significantly down from the previous year. The company has reduced its business risks, notably by terminating its gas supply contracts with Gazprom Export, and plans to make a €2.6 billion payment to the German state.

Advertising