Vallourec Celebrates Early Achievement of Zero Net Debt Goal

Vallourec Celebrates Financial Milestone Ahead of Schedule

Vallourec, recognized globally for its excellence in premium seamless tubular solutions, has announced a remarkable financial achievement: reaching zero net debt a full year ahead of its planned target. This accomplishment underscores the company's strong financial management and commitment to operational efficiency.

Significant Reduction in Net Debt

In the fourth quarter, Vallourec successfully reduced its net debt by over €240 million, marking the ninth consecutive quarter of declining debt levels. This ongoing strategy of deleveraging demonstrates Vallourec's dedication to improving its balance sheet and financial position.

Full Year EBITDA Expectations

Looking ahead, Vallourec anticipates its EBITDA for the year 2024 to fall within the €800 – 850 million guidance range previously communicated to the market. The company benefited from strategic decisions in the last quarter, including the sale of a significant portion of its Rath facility which contributed €155 million to cash flows.

Returning Value to Shareholders

With cash flows expected to be robust, Vallourec's board confirmed that a substantial portion of cash generated in the latter half of 2024 will be available for shareholder returns. This strategy is part of Vallourec's long-term vision to reward investors and enhance shareholder value.

Upcoming Financial Reporting

Investors and stakeholders can look forward to Vallourec's detailed financial results for the fourth quarter and the entire year of 2024, which are set to be released soon, providing further insights into the company's performance and strategic initiatives.

Leadership Insights on Company Transformation

Philippe Guillemot, Vallourec's Chairman and CEO, expressed his satisfaction with the company's rapid progress. He emphasized the transformative work done since the third quarter of 2022, where Vallourec has successfully reshaped its debt structure and emerged from its restructuring phase. This transformation is key to positioning Vallourec for sustainable growth and resilience.

About Vallourec and Its Expertise

Vallourec stands as a leader in providing premium tubular solutions tailored for energy markets and demanding industrial applications. The company prides itself on its innovation and close collaboration with clients, ensuring that Vallourec delivers not just products but comprehensive solutions that meet diverse project needs.

With a dedicated workforce of nearly 14,000 employees across more than 20 countries, Vallourec is committed to advancing technology in its field, continually pushing the boundaries to offer safe and competitive solutions.

Corporate Listings and Shareholder Engagement

Vallourec is publicly listed on Euronext in Paris under the ticker VK. The company is part of the CAC Mid 60, SBF 120, and Next 150 indices, showcasing its standing in the market. For shareholders in the U.S., Vallourec offers a Level 1 American Depositary Receipt program, facilitating investment opportunities for a broader audience.

Contact Information for Investor Relations

For inquiries regarding investor relations, individuals can contact Connor Lynagh at +1 (713) 409-7842 or via email. Vallourec also has dedicated support for individual shareholders through a toll-free hotline and email contact for ongoing assistance and engagement.

Frequently Asked Questions

What milestone did Vallourec achieve ahead of schedule?

Vallourec achieved its goal of zero net debt one year ahead of its planned target.

How much did Vallourec reduce its net debt in the last quarter?

The company reduced its net debt by over €240 million in the fourth quarter.

What is the expected EBITDA for Vallourec in 2024?

Vallourec expects its EBITDA to be within the €800 – 850 million range for the year 2024.

When will Vallourec release its fourth-quarter financial results?

Vallourec is set to release its fourth quarter and full-year results soon, providing insights into its financial performance.

How does Vallourec plan to return value to shareholders?

The company plans to return 80 to 100% of cash flows generated in the second half of 2024 to shareholders, potentially with a dividend in 2025.

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