Vallourec Reports Solid Results for Third Quarter 2024
Vallourec's Third Quarter 2024 Financial Performance
As the global leader in premium tubular solutions, Vallourec has released its commendable financial results for the third quarter of 2024. Following a productive meeting of the Board of Directors, the Group's consolidated financial statements reflect strong operational results amid challenging market conditions.
Key Financial Metrics
Vallourec achieved an impressive EBITDA of €168 million during the third quarter, representing a 19% margin, which maintains the Group's robust profitability despite a sequential decline. Cash generation also remained significant, with total cash generation of €130 million for the quarter. Furthermore, net debt has been effectively reduced to €240 million, marking the eighth consecutive quarter of deleveraging for Vallourec.
Operational Highlights
Despite a forecasted decrease in EBITDA due to lower US OCTG prices, the Group continues to demonstrate resilience driven by stable demand in international markets. The decrease in EBITDA per tonne of tubes, now at €556, can be attributed to ongoing pricing pressures, although offset by strong international pricing.
Outlook for the Fourth Quarter
Looking ahead, Vallourec anticipates an increase in Group EBITDA for the fourth quarter, driven by higher volume deliveries in both US and international markets. While the Mine & Forest segment faces challenges due to the rainy season affecting iron ore production, the overall outlook remains positive.
Full Year Guidance and Shareholder Returns
Vallourec has reaffirmed its guidance for 2024, expecting full-year Group EBITDA to be within the range of €800 million to €850 million. Importantly, the company intends to return 80% to 100% of its total cash generation to shareholders through dividends, a proposal for which will be communicated in conjunction with the full-year results for 2024.
CEO Statement
Philippe Guillemot, Chairman and CEO, expressed satisfaction with the quarter's performance, emphasizing the Group's ability to manage costs and working capital efficiently while generating substantial cash flow. The Group's commitment to offshore development projects has also been underlined, highlighting contracts secured with major partners like Petrobras and TotalEnergies.
Frequently Asked Questions
What were Vallourec's EBITDA results for Q3 2024?
Vallourec reported an EBITDA of €168 million with a 19% margin.
How much cash was generated in Q3 2024?
The total cash generation in Q3 2024 was €130 million.
What is Vallourec's net debt currently?
The current net debt stands at €240 million.
What is the outlook for the fourth quarter of 2024?
Vallourec expects an increase in Group EBITDA for Q4, supported by higher volumes in the tubular segment.
Will there be any proposed dividends for shareholders?
Yes, Vallourec plans to propose a dividend for 2025 at the time of the full-year results announcement for 2024.
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