Vallourec - comment

With a return of operations at their mine coupled with strong tubes business, Vallourec's revenue and EBITDA have continued to improve, further reducing net debt to €868m.  The Company projects a further reduction in Net debt for H2, with cash generation to be positive, excluding potential benefits of asset sales.  The US rig count has lowered from the beginning of the year the international market continues to show strength with the Middle East a major driver of this strength.  

The Company is projecting a slowdown in earnings momentum for H2, in both segments, but have reconfirmed their full-year guidance.  The Company have reiterated its commitment to cycle-proofing the business and balance sheet (i.e. further reduction in its net debt).