Vallourec with better pricing power

All,

First reaction from Tomas:

  • Vallourec have more pricing power than we think.  Results are good, better than I was expecting.

  • Our volume assumptions were right on target (571kt actual versus 562kt model), but revenue was higher as they got a better price per ton than we thought (1,025m versus 962m in our model).  

  • Cost per ton was again on target as was COGS and SG&A, which has left the company with higher EBITDA of 67m (of which 8m is IFRS16 impact) versus 39m in model.

  • Our WC was in line.  

  • We had a cash outflow of E202m - Vallourec ended with E126m outflow.  A subsidiary had cash injection from a minority of 51m which together with EBITDA explains the difference.  

  • Their guidance is good.  


Tomas will be on the call.

Wolfgang

Wolfgang FelixVALLOUREC