Incredible Financial Milestone: Vallourec Reaches Net Debt Zero

Vallourec's Remarkable Achievement in Financial Stability

Vallourec, a renowned leader in premium seamless tubular solutions, has reached a significant milestone by achieving zero net debt ahead of its scheduled target. This accomplishment underscores the company's commitment to strengthening its financial foundation and enhancing shareholder value.

Details of the Net Debt Reduction

In the fourth quarter of 2024, Vallourec reported a remarkable reduction in net debt by over €240 million, marking the ninth consecutive quarter of successful deleveraging. Preliminary estimates suggest that the full year 2024 EBITDA will align with Vallourec's guidance of €800 to €850 million, demonstrating consistent operational performance.

Impact of Strategic Sales and Cash Flow Improvement

The positive cash flows experienced during this period were significantly bolstered by a €155 million transaction involving the sale of a major facility, combined with a reduction in capital expenditures and working capital needs. Vallourec has confirmed that a substantial portion of its cash flows from the second half of 2024 will be eligible for return to its shareholders.

Leadership Insights and Future Plans

Philippe Guillemot, the Chairman and CEO, expressed his satisfaction with reaching this financial goal ahead of schedule. He highlighted that since the third quarter of 2022, Vallourec has successfully reduced its net debts by more than €1.5 billion. This transformation of their balance sheet, along with continuous operational enhancements and a robust product strategy, has set the stage for sustainable growth.

Vision for Shareholder Returns

Guillemot further outlined Vallourec's goal of returning capital to shareholders, with plans to enact dividend payments for the first time in a decade during 2025. This signals a new era of prosperity for the company and its investors.

About Vallourec and Its Operations

As a frontrunner in providing premium tubular solutions for diverse energy markets and demanding industrial applications, Vallourec stands out due to its technological advancements and dedicated workforce of nearly 14,000 employees spread across more than 20 countries. The company's commitment extends beyond just delivering tubes; it includes providing innovative and smart solutions tailored to meet the evolving needs of its customers.

Registered and Trading Information

Listed on the Euronext Paris exchange (ISIN code: FR0013506730, Ticker VK), Vallourec is recognized as part of significant indices like the CAC Mid 60 and SBF 120, further enhancing its visibility among investors.

Frequently Asked Questions

1. What does reaching net debt zero mean for Vallourec?

Achieving net debt zero indicates that Vallourec has successfully eliminated all outstanding debt, positioning the company for future investments and stability.

2. How did Vallourec achieve such a significant reduction in net debt?

The company reduced net debt by more than €240 million in the fourth quarter of 2024, driven by operational efficiency and strategic asset sales.

3. What are Vallourec's plans for shareholder returns?

Vallourec aims to return capital to its shareholders, planning to reinstate dividend payments for the first time in a decade starting in 2025.

4. When will Vallourec release its financial results for 2024?

The company will report its fourth quarter and full year 2024 results on February 27, 2025.

5. In which markets does Vallourec operate?

Vallourec operates in various markets, primarily focusing on energy sectors and demanding industrial applications, including oil and gas.

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