Third Quarter 2024 Results
11/29/2024
Press release
Vallourec, a world leader in premium tubular solutions, announces today its results for the third quarter 2024. The Board of Directors of Vallourec SA, meeting on November 14 th 2024, approved the Group’s third quarter 2024 Consolidated Financial Statements.
- Q3 EBITDA of €168m, EBITDA margin remained strong at 19%
- Very strong total cash generation, with €130 million in Q3
- Net debt now €240 million, marking eighth consecutive quarter of deleveraging
- Group full year EBITDA guidance of €800 – €850 million confirmed; Q4 EBITDA to increase sequentially
- Vallourec confirms total cash generation in Q3 and future periods will be subject to its 80 – 100% payout ratio
- Vallourec plans to announce dividend proposal for 2025 AGM with Full Year 2024 results communication
HIGHLIGHTS Third Quarter 2024 Results
- Group EBITDA of €168 million, down 22% QoQ as anticipated; EBITDA margin remained strong at 19%
– Tubes EBITDA per tonne of €556 was down (7%) sequentially and only (1%) year over year due to lower US OCTG prices, offset by robust international OCTG prices and cost savings
– Mine & Forest EBITDA of €22 million, up 43% sequentially due to improved cost performance and down (44%) year over year due to lower realized prices and volumes
- Adjusted free cash flow of €183 million; total cash generation of €130 million
- Further deleveraging during the quarter: net debt declined €124 million sequentially to €240 million
Fourth Quarter 2024 Outlook
- Group EBITDA to increase versus Q3:
– In Tubes, volumes will increase sequentially driven by higher deliveries for both US and international markets
– In Mine & Forest, iron ore production sold will decline sequentially due to rainy season impact and soft export market conditions - Net debt to be broadly stable versus Q3 2024, driven by sequentially higher EBITDA offset by sequentially higher capex, increased restructuring charges & non-recurring items, and higher financial cash out
Full Year 2024 Outlook
- Confirm full year Group EBITDA will range between €800 and €850 million
- Confirm second half total cash generation will be positive
- Confirm net debt will decline versus the Q2 2024 level in H2 2024
