Vallourec expects EBITDA growth in the Q2 to €370 million

French pipe producer Vallourec expects the company’s financial results for the second quarter of 2023 to exceed previous expectations. SteelOrbis reports about it.

In particular, for April-June 2023, the company forecasts EBITDA at the level of €370 million, and in 2023 the indicator will reach €950 million – €1.1 billion.

«We see significant opportunities to optimize our profitability in 2024. We expect EBITDA in the second half of 2023 to be lower than in the first half amid lower US Tube profitability and higher losses in Germany due to ongoing issues with these assets,» the company’s CEO Philippe Guillemot noted.

In Q1 2023, Vallourec’s sales revenue increased by 64% compared to the first quarter of 2022 – to €1.34 billion. The company’s EBITDA for this period amounted to €320 million compared to €45 million for January-March last year. The increase in indicators was due to the high profitability of the pipe division and the recovery of iron ore production volumes.

In January-March 2023, the company sold 431,000 tons of pipes (+9.1% y/y) and 1.5 million tons of iron ore.

As GMK Center reported earlier, the European Union in January-May 2023 reduced production of steel by 10.4% compared to the same period in 2022 – to 56 million tons. Steel enterprises of France in 5 months produced 4.07 million tons of steel, which is 27.9% less year-on-year.