The industrial group Vallourec, a leading manufacturer of seamless tubes for the oil and gas sector, reported a net profit of €452 million for 2024, marking a 9% decrease compared to the previous year. This decline came despite a significant surge in net profit during the fourth quarter, which more than doubled to €163 million.
Revenue down but financial structure strengthened
The company also saw a 21% drop in annual revenue, which fell to €4.035 billion, due to a reduction in the volume of shipments. In 2024, Vallourec shipped 1,297 tonnes of steel tubes, a 16% decrease, and sold 5.4 million tonnes of iron ore, down 22%. Its gross operating profit fell by 30% to €832 million, although this was in line with the company’s projections.
Despite the decline, Vallourec reached its strategic goal of achieving net debt neutrality a year ahead of schedule, reporting a net cash position of €21 million at year-end.
Return to shareholders and growth outlook
After a decade marked by restructuring, including the closure of its German plants and a refocus on Brazil, Vallourec plans to pay a dividend of €1.50 per share in 2025. This decision, which will be put to a vote at the annual general meeting on May 22, marks the company’s return to regular shareholder payouts.
For the first quarter of 2025, Vallourec is targeting a gross operating profit between €180 million and €215 million, with an expected increase in the second half of the year due to higher delivery volumes. According to Philippe Guillemot, the company’s CEO, the transformation carried out in recent years now allows Vallourec to focus on improving its profitability and expanding its markets, particularly in the U.S. and internationally.
