Vallourec reports third quarter and first nine months 2016 results paris stock exchange_vk

Revenues of €693 million, down 20.5% year-on-year (-20.6% at constant exchange rates) EBITDA of €-52 million, improved by €14 million year-on-year Net result, Group share of €-160 million broadly stable year-on-year

Revenues of €2,127 million, down 27.7% year-on-year (-25.3% at constant exchange rates) EBITDA of €-156 million compared with €0 million in 9M 2015 Free Cash Flow of €-392 million compared with €+35 million in 9M 2015 Net debt of €1,020 million, down €499 million compared with 31 December 2015 Net result, Group share of €-575 million, compared with €-439 million in 9M 2015

Merger [1] of Vallourec Tubos do Brasil and Vallourec & Sumitomo Tubos do Brasil into Vallourec Soluções Tubulares do Brasil on 1 October 2016

Clearance obtained from all local Chinese authorities to acquire a majority stake in Tianda Oil Pipe Cost reductions on track and Group headcount at the end of Q3 2016 down by c. Gas tax 300 compared to the end of H1 2016 and down 22% since end 2014.

BOULOGNE-BILLANCOURT, France, Nov. Gas 10 8 schlauchadapter 08, 2016 (GLOBE NEWSWIRE) — Vallourec, world leader in premium tubular solutions, today announces its results for the third quarter and first nine months of 2016. Electricity rate per kwh philippines The consolidated financial information was presented by Vallourec’s Management Board to its Supervisory Board on 8 November 2016.

” During this quarter, we have seen signs of improvement in the United States where the rig count and OCTG demand have increased for the first time since the end of 2014. Electricity in costa rica current On the other hand, in the Eastern Hemisphere, IOCs’ ordering activity remained very low and the order book to be delivered to NOCs over the next quarters reflects the very tough pricing environment of the past quarters.

We have taken important steps forward in our Transformation Plan this quarter. Electricity and magnetism worksheets As announced last month, we finalized the merger of our Brazilian operations into Vallourec Soluções Tubulares do Brasil allowing for significant industrial and administrative synergies. Electricity in the body symptoms In China, Tianda acquisition should be finalized shortly as all clearances have been obtained. Electricity song 2015 In Europe, the implementation of our reorganization is progressing well. Electricity orlando Through these actions, we are addressing today’s challenges and preparing Vallourec to fully benefit from the oil and gas market recovery.”

• Free cash flow (FCF) is a non-GAAP measure and is defined as cash flow from operating activities minus gross capital expenditure and plus/minus change in operating working capital requirement

For the third quarter of 2016, Vallourec recorded revenues of €693 million, down 20.5% compared with the third quarter of 2015 (down 20.6% at constant exchange rates) . Electricity n and l The positive volume impact (+5.0%) was offset by a significantly negative price/mix effect (-25.6%).

For the first nine months of 2016, Vallourec recorded revenues of €2,127 million, down 27.7% compared with the first nine months of 2015 (down 25.3 % at constant exchange rates) mainly resulting from the volume decrease (-17.0%) and a negative price/mix effect (-8.3%). Electricity out This negative price/mix effect mainly results from a positive customer mix in EAMEA in H1 2016, more than offset by the sharp deterioration of prices in the course of the period in EAMEA and the USA.

• In the USA, Q3 volumes and revenues increased sequentially driven by the beginning of inventory replenishment and the gradual recovery of OCTG consumption resulting from increases in rig count and rig efficiencies, while prices have stabilized in H2 at a low level. 1 unit electricity cost in bangalore Compared to Q3 2015, revenues were down due to the price decline.

• In the EAMEA [2] region, although Q3 OCTG volumes were broadly stable year-on-year, Q3 revenues were down due to a significantly negative price effect.

• In Brazil, in order to ensure a smooth transition towards the new entity Vallourec Soluções Tubulares do Brasil, H2 volumes planned deliveries were heavily concentrated over Q3. Electricity outage austin This resulted in Q3 revenues being up year-on-year.

In Q3 2016, Petrochemicals revenues were €28 million, down 42.9% year-on-year (down 44.9% at constant exchange rates) due to a persistent low demand in a highly competitive environment.

In Q3 2016, Power Generation revenues amounted to €108 million, down 27.5% year-on-year at current perimeter [3] (down 26.2% at constant exchange rates)

Over the first 9M of 2016, Power Generation revenues amounted to €335 million, down 16.6% year-on-year at current perimeter 3 (down 15.2% at constant exchange rates):

• Conventional power generation revenues were broadly stable year-on-year both in Q3 2016 and over the first nine months of 2016, supported by deliveries for coal-fired power plants in China in a still very competitive environment.

Over the first 9M of 2016, Industry & Other revenues amounted to €422 million, down 18.7% year-on-year (down 15.2% at constant exchange rates):

• In Brazil, despite a better Q3 year-on-year, revenues over the first nine months of 2016 were slightly down, impacted by the difficult local macroeconomic environment in the automotive and construction sectors. Gas kinetic energy formula Although iron ore prices benefited from a positive trend in Q3 2016, 9M 2016 iron ore revenues were down year-on-year as average iron ore spot prices in Brazil decreased compared with 9M 2015.

• A slightly lower industrial margin at €56 million, down €4 million compared with Q3 2015, the impact of revenues decline being almost offset by the concentration of H2 2016 deliveries to Petrobras in Q3 2016, and lower costs as a result of the Valens plan and ongoing adaptation in the mills;

• A lower industrial margin at €178 million, down €218 million mainly affected by: (i) the drop in activity and, to a lower extent, (ii) inefficiencies of low load in the mills, despite high adaptation of costs;

Operating result was a loss of €561 million, compared to a loss of €393 million in 9M 2015, resulting primarily from (i) lower EBITDA and from (ii) restructuring charges of €92 million and impairment charges of €70 million mainly related to the strategic initiatives announced on 1 February 2016 and accounted for in H1 2016.

For the first nine months of 2016, financial result was negative at €-99 million versus €-52 million in 9M 2015, resulting mainly from the evolution of the forex result.

Income tax was a gain of €52 million in 9M 2016 compared to a charge of €-12 million in 9M 2015, mainly related to recognition of deferred tax assets.

As at 30 September 2016, Group net debt decreased by €499 million compared to 31 December 2015 to reach €1,020 million, resulting in a gearing ratio of 29.1% compared with 50.0% at the end of 2015.

The decrease in net debt during the first nine months of 2016 is due to the €959 million net proceeds of the capital increase in H1 2016, partly offset by cash outflows from operations over the period.

As at 30 September 2016, Vallourec’s medium and long-term undrawn committed credit facilities amounted to €2.110 billion and €0.2 billion undrawn committed credit facilities maturing in July 2017.

Implementation of Vallourec’s Transformation plan to rationalize its industrial footprint and enhance its competitiveness is progressing well:

As previously announced, Vallourec Soluções Tubulares do Brasil was created on 1 October 2016 following the merger of Vallourec Tubos do Brasil and Vallourec Sumitomo Tubos do Brasil. A level physics electricity equations This merger is an important step towards the rationalisation of Vallourec’s Brazilian industrial footprint which will generate significant industrial and administrative synergies.

In China, Vallourec has obtained all clearances from local authorities to acquire control of Tianda Oil Pipe. Electricity worksheets for 4th grade The closing is expected to be finalized before the end of 2016, enabling Vallourec to develop a highly competitive offer combining VAM® technology and very competitive production costs.

In France, the last production campaign at the Déville-Lès-Rouen rolling mill took place in September 2016. Gas out game instructions Closure of the mill is scheduled by year-end. Gas density In Saint-Saulve, the rolling mill is planned to be closed in Q1 2017. Types of electricity In Scotland, the heat treatment line located in Bellshill is planned to be closed by the end of 2016.

Exclusive negotiations initiated with Ascometal to sell a majority stake in the steel mill are progressing according to plan and a final agreement is expected to be signed by the end of 2016.

Cost cuttings as part of the Valens Plan are on track, and Group headcount at the end of September 2016 is down by c. Electricity merit badge pamphlet pdf 300 compared to the end of H1 2016. Electricity jeopardy The total headcount reduction since December 2014 amounts to 22% of the Group workforce.

Following the announcement of 11 January 2016, Serimax, Vallourec’s wholly-owned subsidiary, world leader in offshore & onshore welding solutions, and Technip, a world leader in project management, engineering and construction for the energy industry, and a long-lasting customer of Serimax, finalized a strategic partnership agreement in the domain of pipeline welding on 28 October 2016.

In this respect, Technip, has acquired a 20% stake in Serimax. Electricity static electricity Technip and Serimax will combine their expertise and will deploy Serimax’s welding technology at all Technip’s spoolbases [4] and S-lay [5] vessels.

• In the USA, the rebound in deliveries experienced in Q3 2016, which resulted from restocking at Vallourec’s distributors and progressive market recovery, should be confirmed in Q4. Gas density units Over the next quarters, OCTG deliveries should be similar. Electricity explained Prices which have been under pressure in H1 2016 have stabilized at a low level in H2.

• In the EAMEA region, current backlog is made of tenders awarded by NOCs in the past quarters, at prices which continued their decline, combined with very low orders from IOCs, which have not yet started to sanction new projects. Electricity png As a result, the low volumes and margins recorded in Q3 2016 should not materially improve in the next quarters.

• In Brazil, H2 2016 deliveries were concentrated in Q3, which will result in a low level of deliveries in Q4 2016. Static electricity sound effect According to Petrobras’ Strategic & Business Management Plan released on 20 September 2016, the consumption of OCTG tubes should remain approximately stable, compared to H2 level, over the next quarters.

Power Generation revenues are expected to be down in 2016 compared to 2015 at current perimeter [6] with the nuclear power generation activity experiencing a slowdown in 2016. Hp gas kushaiguda No marked evolution is expected in the next quarters.

Industry & Other revenues are expected to be down in 2016 compared to 2015 with activity in Europe being affected by the weakness of global investments and pricing pressure while in Brazil, operations are expected to be broadly stable. Gas natural No marked evolution is expected in the next quarters.

As a result of these elements, the conditions in which Vallourec is operating in this semester should stay broadly comparable in the first half of 2017. Gas what i smoke Group results should benefit as from mid-2017 from the expected re-balancing of Oil and Gas markets, and from the continuing effects of the Transformation Plan.

This press release contains forward-looking statements. La gas prices These statements include financial forecasts and estimates as well as assumptions on which they are based, statements related to projects, objectives and expectations concerning future operations, products and services or future performance. Gas in back Although Vallourec’s management believes that these forward-looking statements are reasonable, Vallourec cannot guarantee their accuracy or completeness and these forward-looking statements are subject to numerous risks and uncertainties that are difficult to foresee and generally beyond Vallourec’s control, which may mean that the actual results and developments may differ significantly from those expressed, induced or forecasted in the statements. Dynamic electricity examples These risks include those developed or identified in the public documents filed by Vallourec with the AMF, including those listed in the “Risk Factors” section of the Registration Document filed with the AMF on 16 March 2016 (N° D.16-0141).

Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Gas 78 industries Vallourec’s pioneering spirit and cutting-edge R&D open new technological frontiers. I feel electricity in my body Operating in more than 20 countries, its 20,000 dedicated and passionate people work hand-in-hand with their customers to offer more than just tubes: they deliver innovative, safe, competitive and smart tubular solutions, to make every project possible.

Listed on Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and eligible for the Deferred Settlement System (SRD), Vallourec is included in the following indices: SBF 120 and Next 150.

In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY). Gas after eating dairy Parity between ADR and a Vallourec ordinary share has been set at 5:1.

[4] A spoolbase is primarily used for the fabrication and spooling of rigid pipe onto vessels with Reel-lay capability. Electricity pictures information Technip owns and operates four rigid pipe spoolbase facilities located close to clients’ deepwater developments. Electricity lesson plans for 5th grade Reel-lay refers to a pipeline laying method for which the pipes are assembled in an onshore spoolbase and then spooled onto reels on vessels or at quay side. Gas bloating pregnancy The pipe is then unspooled from reels during offshore activities.

[5] S-lay refers to a pipeline laying method for which all assembly activity of the pipe is done onboard the vessel and laid simultaneously offshore.