Boulogne-Billancourt (France), 28 July 2016 - Vallourec today announces its results for the second quarter and first half of 2016. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board on 27 July 2016.

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H1 2016 results in line with expectations

  • Revenues of €763 million in Q2 2016 and €1,434 million in H1 2016 compared to €2,070 million in H1 2015, down -30.7% (-27.3% at constant exchange rates)
  • EBITDA of -€32 million in Q2 2016 and -€104 million in H1 2016 compared to €66 million in H1 2015
  • Free cash flow of -€317 million
  • Net debt of €944 million
  • Net result, Group share of -€415 compared to -€275 million in H1 2015

Transformation plan on track

  • Success of the rights issue with shareholders' preferential subscription rights
  • Conversion of Bpifrance Participations' and NSSMC's mandatory convertible bonds into Vallourec shares
  • Additional credit lines of €520 million maturing in 2020 signed in Q2 2016
  • Maturity extension of c. €1.5 billion medium and long-term credit facilities signed in July 2016
  • Divestiture of Vallourec Heat Exchanger Tubes completed
  • Clearance from the Chinese Competition Authority to acquire a controlling stake in Tianda Oil Pipe
  • Exclusive negotiations initiated with Ascometal to sell majority stake in Saint-Sauve steel mill
  • Completion of mandatory discussions with workers' councils in France
  • Closure of the Déville-Lès-Rouen and Saint-Saulve (France) rolling mills respectively in H2 2016 and in Q1 2017
  • Reduction of global headcount at end of June 2016 by c. 21%* vs. end of 2014
*including Vallourec Heat Exchanger Tubes headcount which was deconsolidated on 1 May 2016

Outlook

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

'Poor market conditions have continued to weigh on our first half 2016 revenues and results despite a second quarter which benefited from a better mix compared with the first quarter. The second half of 2016 will continue to be significantly impacted by low demand and intense pricing pressure.

Vallourec successfully finalized the last steps of its capital increase with the conversion of Bpifrance's and NSSMC's mandatory convertible bonds into Vallourec shares. Vallourec benefits from additional credit lines for an amount of €520 million and extended the maturity of its medium and long-term credit facilities.

The implementation of our Transformation plan is moving forward in every region in line with our objectives. These vigorous actions, and particularly the ongoing restructuring and divestments in Europe, are paving the way for a transformed and more competitive Vallourec positioned for long-term profitable growth when market conditions improve.'​

Vallourec SA published this content on 28 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 July 2016 15:56:06 UTC.

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