Vallourec reports third quarter results and results for the
first nine months of 2017
Improved 9M 2017 results |
Positive EBITDA in Q3 2017: +€9 million compared with -€52 million
in Q3 2016 Strong improvement in EBITDA for first nine months: -€9
million compared with -€156 million in 9M 2016 Mainly driven by
higher Oil & Gas revenue in the US and the realized benefits
from the Transformation Plan Liquidity strengthened:
€800 million refinancing through bond and convertible bond
issuance Range for EBITDA target for 2017 revised upwards to -€30
million and -€10 million. |
Boulogne-Billancourt (France), 9 November
2017 - Vallourec, world leader in premium tubular solutions,
today announces its results for the third quarter and first nine
months of 2017. The consolidated financial information was
presented by Vallourec's Management Board to its Supervisory Board
on 9 November 2017.
Key figures
9M |
9M |
Change |
In millions of euros |
Q3 |
Q3 |
Change |
2017 |
2016 |
YoY |
|
2017 |
2016 |
YoY |
1,601 |
905 |
76.9% |
Sales Volume (k tons) |
588 |
333 |
76.6% |
2,680 |
2,127 |
26.0% |
Revenue |
964 |
693 |
39.1% |
(9) |
(156) |
+€147m |
EBITDA |
9 |
(52) |
+€61m |
-0.3% |
-7.3% |
7.0pt |
As %
of revenue |
0.9% |
-7.5% |
8.4pt |
(373) |
(575) |
+€202m |
Net
income (loss), Group share |
(119) |
(160) |
+€41m |
(397) |
(392) |
-€5m |
Free cash flow |
(72) |
(75) |
+€3m |
30 Sept. |
31
Dec. |
Change |
In
millions of euros |
30
Sept. |
30
Sept. |
Change |
2017 |
2016 |
9M
2017 |
|
2017 |
2016 |
YoY |
1,645 |
1,287 |
+€358m |
Net debt |
1,645 |
1,020 |
+€625m |
Commenting on these results, Philippe
Crouzet, Chairman of the Management Board, said:"Over the first
nine months of 2017, Vallourec's financial performance has improved
in each of the three quarters leading to significant progress
compared to the same period in 2016. In the third quarter, the full
effect of announced price increases in the US became evident. In
EAMEA, NOCs continued to issue tenders for Oil & Gas products,
and while IOCs' are starting to sanction new projects in the
region, market prices are still challenging. Vallourec remains
focused on the sustained implementation of its Transformation
Plan.In October, the Group both strengthened and diversified its
liquidity position by raising €800 million on the bond and
convertible bond markets. The EBITDA target for the full year 2017
has been raised to a range between -€30 million and -€10
million."
I - CONSOLIDATED REVENUE BY MARKET
9M |
9M |
Change |
At constant scope and exchange rate |
In millions of euros |
Q3 |
Q3 |
Change |
At constant scope and exchange rate |
2017 |
2016 |
YoY |
|
2017 |
2016 |
YoY |
1,859 |
1,370 |
35.7% |
9.1% |
Oil
& Gas, Petrochemicals |
681 |
439 |
55.1% |
15.0% |
283 |
335 |
-15.5% |
-15.8% |
Power
Generation |
94 |
108 |
-13.0% |
-14.8% |
538 |
422 |
27.5% |
19.7% |
Industry & Other |
189 |
146 |
29.5% |
30.8% |
2,680 |
2,127 |
26.0% |
11.1% |
Total |
964 |
693 |
39.1% |
29.4% |
For the third quarter of 2017, Vallourec
recorded revenue of €964 million, up 39.1% compared with the
third quarter of 2016 (up 43.1% at constant exchange
rates). At constant scope and exchange rates, revenue
was up 29.4%, with a positive volume impact particularly in the Oil
& Gas market in the US and EAMEA[1]. Price/mix effect was
-9.3%, higher prices in the US being more than offset by the
deliveries from the backlog booked in 2016 at low prices for Oil
& Gas in EAMEA. Lower Powergen revenue was more than offset by
increased Industry & Other revenue.Sequentially, revenue
increased compared to the second quarter, mainly driven by the
improvement in the Oil & Gas market. The positive volume effect
in EAMEA and the price increases in the US were partly offset by a
lower price/mix effect in EAMEA and Brazil.
For the first nine months of 2017, Vallourec recorded revenue
of €2,680 million, up 26.0% compared with the first nine
months of 2016 (up 23.5% at constant exchange rates). At
constant scope and exchange rates, revenue was up 11.1%, mainly
driven by a positive volume impact of +30.7%, partly offset by a
negative price/mix effect of -19.6%.
Oil & Gas, Petrochemicals (69.4% of consolidated
revenue)
In Q3 2017, Oil & Gas revenue
amounted to €616 million, up 49.9% year-on-year (up 35.0% at
constant scope and exchange rates).
Over the first 9M of 2017, Oil &
Gas revenue was €1,685 million, up 32.3% year-on-year (up 13.0%
at constant scope and exchange rates):
- In the USA, 9M 2017 revenue increased significantly
year-on-year thanks to much higher volumes. The recovery of
OCTG consumption resulted primarily from the significant increase
in the drilling activity and rig count.
Strong customer demand was served through domestic
production which was supplemented by imports from our Brazilian
mill, notably in the third quarter. This positive trend enabled the
Group to announce price increases which were partially reflected in
Q2 revenue and took full effect as from July 2017.
Over
Q3 2017, despite a slight erosion in the rig count, revenue was up
sequentially and year-on-year.
- In the EAMEA region, 9M 2017 volumes were up
year-on-year essentially as a result of positive scope
impacts.
Excluding
those impacts, volumes were up in the third quarter mainly driven
by deliveries to the Middle East. However, the orders booked in
2016 and delivered along the first nine months of 2017 to NOCs were
recorded at low price and mix resulting in lower revenue
year-on-year. Prices have bottomed out in H1 2017 and some price
increases are gradually being negotiated with customers with whom
price concessions were the most severe during the trough.
- In Brazil, 9M 2017 revenue was up year-on-year supported
by high OCTG deliveries to Petrobras in Q1 for the drilling of
exploratory wells in the Libra field. As anticipated, Q3 product
mix for domestic Oil & Gas market was weaker than in Q1 and Q2
2017.
Q3
2017 revenue was down year-on-year, it being specified that H2 2016
deliveries were concentrated in Q3 2016 before the creation of
Vallourec Soluções Tubulares do Brasil, therefore making it an
unfavorable comparison
basis.
In Q3 2017, Petrochemicals revenue
was €65 million, up 132.1% year-on-year (up 110.7% at constant
scope and exchange rates) mainly due to a very low comparison basis
over the same period in 2016.
Over the first 9M of 2017,
Petrochemicals revenue was €174 million, up 81.3%
year-on-year (up 43.8% at constant scope and exchange rates) mainly
due to a very low comparison basis over the same period in
2016.
Power Generation (10.6% of consolidated
revenue)
In Q3 2017, Power Generation revenue was
€94 million, down 13.0% year-on-year (down 14.8% at constant scope
and exchange rates).
Power Generation 9M 2017 revenue amounted
to €283 million, down 15.5% year-on-year (down 15.8% at constant
scope and exchange rates).
The revenue declined essentially as a result of
a challenging market environment for both conventional and nuclear
applications.
Industry & Other (20.0% of consolidated
revenue)
In Q3 2017, Industry & Other
revenue amounted to €189 million, up 29.5% year-on-year (up 30.8%
at constant scope and exchange rates).
Over the first 9M of 2017, Industry
& Other revenue amounted to €538 million, up 27.5%
year-on-year (up 19.7% at constant scope and exchange rates):
- In Europe, 9M 2017 revenue was up year-on-year
essentially thanks to higher volumes in Mechanical
Engineering.
- In Brazil, 9M 2017 Industry & Other revenue was up
year-on-year mainly due to increased volumes and to a lesser
extent, to higher prices in Automotive. Revenue generated from the
mine was up year-on-year thanks to increased iron ore prices.
II - Q3 AND 9M 2017 CONSOLIDATED RESULTS
ANALYSIS
Q3 2017 consolidated results
analysisIn Q3 2017, EBITDA stood at +€9 million, up
by €61 million year-on-year, with:
- Consolidated revenue up 39.1% compared with Q3 2016, reaching
€964 million;
- A higher industrial margin of €114 million, up €58 million
reflecting (i) higher revenue, (ii) the savings and scope impact
from the Transformation Plan initiatives along with (iii) favorable
change in provisions;
- Reduced sales, general and administrative costs (SG&A) of
€102 million, down 3.3%, with cost savings more than offsetting the
negative scope, forex and inflation impacts.
Operating result was a loss of €88
million, compared to a loss of €143 million in Q3 2016,
resulting mostly from the improved EBITDA.
Financial result was negative at -€39
million versus -€31 million in Q3 2016, resulting mainly from
higher interest charges over the period.
Income tax was a gain of €6
million stable compared to Q3 2016, mainly related to the
recognition of deferred tax assets in the US.
The share attributable to non-controlling
interests amounted to €2 million, compared to €10 million in Q3
2016.
This resulted in a net loss of €119
million, compared to a loss of €160 million in Q3 2016.
9M 2017 consolidated results
analysisFor the first nine months of 2017, EBITDA stood at
-€9 million, representing an improvement of €147 million
year-on-year, with:
- Consolidated revenue up 26.0% compared to the first nine months
of 2016 (+11.1% at constant scope and exchange rates) of €2,680
million;
- An industrial margin of €327 million, up €149 million
reflecting (i) the increase in revenue, (ii) the savings and scope
impact from the Transformation Plan initiatives along with (iii)
favorable change in provisions;
- Sales, general and administrative costs (SG&A) of €323
million, down 2.3%, cost savings more than offsetting the negative
scope, forex and inflation impacts.
Operating result was a loss of €277
million, compared to a loss of €561 million in 9M 2016. The
improvement of €284 million resulted from a higher EBITDA and lower
restructuring and impairment charges. In the first nine months of
2016, the operating result was impacted by restructuring charges of
€92 million and impairment charges of €70 million mainly
related to the strategic initiatives announced on 1 February
2016.
For the first nine months of 2017, financial
result was negative at -€140 million versus -€99 million in 9M
2016, resulting mainly from change in scope and forex result,
change in fair value of NSSMC shares and higher interest
charges.
Income tax was a gain of €24 million
in 9M 2017 compared to a gain of €52 million in 9M 2016, mainly
related to the recognition of deferred tax assets in the US.
The share attributable to non-controlling
interests amounted to €23 million in 9M 2017, compared
to €37 million in 9M 2016.
Net result, Group share was a loss of €373
million in 9M 2017, compared to a loss of €575 million in 9M
2016.
III - CASH FLOW & FINANCIAL
POSITION
Vallourec generated a negative free cash flow
of -€72 million in Q3 2017.
Over 9M 2017, negative free cash flow
amounted to -€397 million, close to stable compared to
-€392 million in 9M 2016. This is mainly explained by:
- Negative cash flow from operating activities of -€208 million,
versus -€275 million in 9M 2016, as the better EBITDA was partly
offset by unfavorable change in non-cash provisions and higher
financial interests paid over the period;
- Change in working capital requirement amounted to -€103 million
compared to -€17 million in 9M 2016. This increase took place in Q1
2017 before stabilization in Q2 and Q3. Working capital needs
related to the activity recovery in the US were partly offset by
better efficiencies in operational working capital management over
the period;
- Strict capex management with -€86 million in 9M 2017 compared
to -€100 million in 9M 2016.
As at 30 September 2017, Group net debt stood
at €1,645 million compared to €1,287 million on 31 December 2016,
and €1,613 million on 30 June 2017.
The Company's cash position as at 30 September
2017 amounted to €992 million. Vallourec's medium and long-term
committed facilities amounted to €2.1 billion (€0.2 billion
credit facilities having matured in July 2017), out of which €0.7bn
were drawn. At the same date, excluding drawings of the long-term
committed facilities, short-term debt amounted to €0.9 billion,
mainly comprised of €0.6 billion of commercial paper.
Vallourec reinforced its liquidity profile in
October 2017 by raising €800 million on the bond and convertible
bond markets.On 4 October 2017, Vallourec issued €250 million
OCEANE (Bonds Convertible into New Shares and/or Exchangeable for
Existing Shares) due in 2022. The original €170 million quantum was
upsized as a result of strong investor demand. On 18 October
2017, Vallourec issued €400 million of senior notes due 2022.
Following strong investor demand, this operation was also upsized
from an original amount of €300 million. On 26 October 2017,
Vallourec issued an additional €150 million of the same senior
notes.The proceeds from these offerings will be used to repay the
amounts drawn under the Group's revolving credit facilities and
certain short-term indebtedness. Amounts repaid under the Group's
revolving credit facilities will remain available following
repayment.
IV - TRANSFORMATION
PLAN
Vallourec continues to deploy its Transformation
Plan including its new industrial footprint combined with the
implementation of the structural cost reductions program.
In Q3 2017, Vallourec demonstrated the
efficiency of the new routes created under the Transformation Plan
and how they enable the Group to offer competitive solutions to its
customers. Vallourec indeed announced the signature of a contract
with Badr El Din Petroleum Company, a joint venture between Shell
and the Egyptian General Petroleum Corporation for the supply of
tubular solutions. Most of the seamless carbon steel tubes will be
produced by Tianda, the new plant purchased by the Group in 2016 in
Chuzhou, while the premium VAM TOP® threading will be made at
Vallourec's Chinese threading plant in Changzhou.
V - MAIN MARKET TRENDS & OUTLOOK
In the months to come, Vallourec expects the rig
count to plateau in the US assuming no significant change in
WTI price. This would allow to maintain a high load of its domestic
facilities. In Brazil, Petrobras' drilling activity is expected to
remain stable. In the other regions, IOCs' are progressively
starting to sanction new projects, which should not impact 2017
deliveries, while NOCs' operations remain sustained.Power
Generation is expected to be progressively impacted by a
diminishing number of conventional power plant projects,
particularly in China.The better momentum in the Industry markets
in Europe and Brazil is expected to be confirmed, although these
markets remain very competitive.The Group's results are also
dependent notably on the evolution of raw material prices and
foreign exchange, which remain volatile. The Group remains focused
on the sustained implementation of its Transformation Plan, which
will continue generating significant savings.
Vallourec's FY 2017 EBITDA target is revised
upwards to a range between -€30 million and -€10
million[2]: Q4 2017 EBITDA is now targeted to range between
-€20 million and breakeven as market trends in the US and raw
material prices have proved to be slightly more favorable than
expected, however taking into account a mix for Q4 deliveries
in the Middle-East and Brazil less favorable than in the first
quarters.
Information and Forward-Looking
Statements
Information and Forward-Looking Statements This
press release contains forward-looking statements. These statements
include financial forecasts and estimates as well as assumptions on
which they are based, statements related to projects, objectives
and expectations concerning future operations, products and
services or future performance. Although Vallourec's management
believes that these forward-looking statements are reasonable,
Vallourec cannot guarantee their accuracy or completeness and these
forward-looking statements are subject to numerous risks and
uncertainties that are difficult to foresee and generally beyond
Vallourec's control, which may mean that the actual results and
developments may differ significantly from those expressed, induced
or forecasted in the statements. These risks include those
developed or identified in the public documents filed by Vallourec
with the AMF, including those listed in the "Risk Factors" section
of the Registration Document filed with the AMF on 21 March 2017
(N° D.17-0191).
Presentation of Q3 and first 9M 2017
financial results
Analyst conference call / audio webcast held at
6:30 pm (Paris time) in
English.
- To listen to the audio webcast:
http://edge.media-server.com/m6/go/vallourec_3Q17
- To participate in the conference call, please dial :
+44(0)20
3427 1915 |
(UK) |
+33(0)1
76 77 22 24 |
(France) |
+1646
254 3367 |
(USA) |
+44(0)20
3427 1915Conference ID: |
(other
countries) 8365712 |
- Audio webcast and slides will be available on the website
at:
http://www.vallourec.com/EN/GROUP/FINANCE
Calendar
|
|
21
February 2018 |
Release
of fourth quarter and full year 2017 results |
About VallourecVallourec is a world
leader in premium tubular solutions for the energy markets and for
demanding industrial applications such as oil & gas wells in
harsh environments, new generation power plants, challenging
architectural projects, and high-performance mechanical equipment.
Vallourec's pioneering spirit and cutting edge R&D open new
technological frontiers. With close to 19,000 dedicated and
passionate employees in more than 20 countries, Vallourec works
hand-in-hand with its customers to offer more than just tubes:
Vallourec delivers innovative, safe, competitive and smart tubular
solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code:
FR0000120354, Ticker VK) and eligible for the Deferred Settlement
System (SRD), Vallourec is included in the following indices: SBF
120 and Next 150.
In the United States, Vallourec has established
a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN
code: US92023R2094, Ticker: VLOWY). Parity between ADR and a
Vallourec ordinary share has been set at 5:1.
vallourec.comFollow us on Twitter
@Vallourec
For further information, please
contact:
Investor relations
Alexandra FichelsonGuilherme CamaraTel: +33 (0)1 49 09 39
76Investor.relations@vallourec.com |
Press relations
Héloïse Rothenbühler Tel: +33 (0)1 41 03 77 50 / +33 (0)6 45
45 19 67heloise.rothenbuhler@vallourec.com |
Individual shareholdersToll Free Number (from France): 0 800
505 110 actionnaires@vallourec.com |
|
Appendices
Documents accompanying this release:
- Sales volume
- Forex
- Revenue by geographic region
- Revenue by market
- Summary consolidated income statement
- Summary consolidated balance sheet
- Free cash flow
- Cash flow statement
- Definitions of non-GAAP financial data
Sales volume
In thousands of tons |
2017 |
2016 |
Change |
|
YoY |
|
|
|
|
Q1 |
475 |
251 |
89.2% |
Q2 |
538 |
321 |
67.6% |
Q3 |
588 |
333 |
76.6% |
Q4 |
|
376 |
|
|
|
|
|
Total |
1,601 |
1,281 |
|
Forex
Average exchange rate |
9M 2017 |
9M 2016 |
EUR / USD |
1.11 |
1.12 |
EUR / BRL |
3.54 |
3.96 |
USD / BRL |
3.17 |
3.54 |
Revenue by geographic region
In millions of euros |
9M |
As % of |
9M |
As % of |
Change |
|
2017 |
revenue |
2016 |
revenue |
YoY |
|
|
|
|
|
|
Europe |
420 |
15.7% |
461 |
21.7% |
-8.9% |
North America |
676 |
25.2% |
366 |
17.2% |
84.7% |
South America |
452 |
16.9% |
378 |
17.7% |
19.6% |
Asia & Middle East |
869 |
32.4% |
559 |
26.3% |
55.5% |
Rest of World |
263 |
9.8% |
363 |
17.1% |
-27.5% |
|
|
|
|
|
|
Total |
2,680 |
100.0% |
2,127 |
100.0% |
26.0% |
Revenue by market
9M |
As % of |
9M |
As % of |
Change |
In millions of euros |
Q3 |
As % of |
Q3 |
Change |
2017 |
revenue |
2016 |
revenue |
YoY |
|
2017 |
revenue |
2016 |
YoY |
|
|
|
|
|
|
|
|
|
|
1,685 |
62.9% |
1,274 |
59.9% |
32.3% |
Oil
& Gas |
616 |
63.9% |
411 |
49.9% |
174 |
6.5% |
96 |
4.5% |
81.3% |
Petrochemicals |
65 |
6.7% |
28 |
132.1% |
1,859 |
69.4% |
1,370 |
64.4% |
35.7% |
Oil
& Gas, Petrochemicals |
681 |
70.6% |
439 |
55.1% |
|
|
|
|
|
|
|
|
|
|
283 |
10.6% |
335 |
15.8% |
-15.5% |
Power Generation |
94 |
9.8% |
108 |
-13.0% |
|
|
|
|
|
|
|
|
|
|
245 |
9.1% |
206 |
9.7% |
18.9% |
Mechanicals |
90 |
9.3% |
73 |
23.3% |
105 |
3.9% |
76 |
3.5% |
38.2% |
Automotive |
35 |
3.6% |
27 |
29.6% |
188 |
7.0% |
140 |
6.6% |
34.3% |
Construction & Other |
64 |
6.6% |
46 |
39.1% |
538 |
20.0% |
422 |
19.8% |
27.5% |
Industry & Other |
189 |
19.6% |
146 |
29.5% |
|
|
|
|
|
|
|
|
|
|
2,680 |
100.0% |
2,127 |
100.0% |
26.0% |
Total |
964 |
100.0% |
693 |
39.1% |
Summary consolidated income statement
9M |
9M |
Change |
In millions of euros |
Q3 |
Q3 |
Change |
2017 |
2016 |
YoY |
|
2017 |
2016 |
YoY |
2,680 |
2,127 |
26.0% |
REVENUE |
964 |
693 |
39.1% |
(2,353) |
(1,949) |
20.7% |
Cost of sales(1) |
(850) |
(637) |
33.4% |
327 |
178 |
83.7% |
Industrial margin |
114 |
56 |
103.6% |
12.2% |
8.4% |
3.8 pts |
(as % of revenue) |
11.8% |
8.1% |
3.7 pts |
(323) |
(331) |
-2.3% |
SG&A costs(1) |
(102) |
(106) |
-3.3% |
(13) |
(4) |
na |
Other income (expense), net |
(3) |
(3) |
na |
(9) |
(156) |
+€147m |
EBITDA |
9 |
(52) |
+€61m |
-0.3% |
-7.3% |
+7.0
pts |
EBITDA
as % of revenue |
0.9% |
-7.5% |
8.4 pts |
(221) |
(210) |
5.2% |
Depreciation of industrial assets |
(70) |
(69) |
1.4% |
(33) |
(33) |
na |
Amortization and other depreciation |
(10) |
(11) |
na |
(1) |
(70) |
na |
Impairment of assets |
(1) |
(2) |
na |
(13) |
(92) |
na |
Asset
disposals, restructuring and other |
(16) |
(9) |
na |
(277) |
(561) |
+€284m |
OPERATING INCOME (LOSS) |
(88) |
(143) |
+€55m |
(140) |
(99) |
41.4% |
Financial income (loss) |
(39) |
(31) |
25.8% |
(417) |
(660) |
-36.8% |
PRE-TAX INCOME (LOSS) |
(127) |
(174) |
-27.0% |
24 |
52 |
na |
Income
tax |
6 |
6 |
na |
(3) |
(4) |
na |
Share
in net income (loss) of associates |
- |
(2) |
na |
(396) |
(612) |
-35.3% |
NET INCOME (LOSS) FOR THE CONSOLIDATED ENTITY |
(121) |
(170) |
-28.8% |
23 |
37 |
na |
Non-controlling interests |
2 |
10 |
na |
(373) |
(575) |
+€202m |
NET INCOME (LOSS), GROUP SHARE |
(119) |
(160) |
+€41m |
(0.8) |
(3.4) |
na |
EARNINGS PER SHARE (in €) |
(0.3) |
(0.9) |
na |
- Before depreciation and amortization
na: not applicable
Summary consolidated balance sheet
In millions of euros |
Assets |
30-Sept |
31-Dec |
Liabilities |
30-Sept |
31-Dec |
2017 |
2016 |
2017 |
2016 |
|
|
|
|
|
|
|
|
|
Equity, Group share |
2,619 |
3,284 |
Net intangible assets |
96 |
125 |
Non-controlling interests |
471 |
494 |
Goodwill |
349 |
383 |
Total equity |
3,090 |
3,778 |
Net property, plant and equipment |
3,177 |
3,618 |
Shareholder loan |
74 |
84 |
Biological assets |
79 |
88 |
Bank loans and other borrowings (A) |
1,061 |
1,121 |
Associates |
123 |
125 |
Employee benefits |
218 |
227 |
Other non-current assets |
270 |
348 |
Deferred tax liabilities |
52 |
80 |
Deferred tax assets |
206 |
190 |
Provisions and other long-term liabilities |
117 |
121 |
Total non-current assets |
4,300 |
4,877 |
Total non-current liabilities |
1,448 |
1,549 |
Inventories and work-in-progress |
1,136 |
1,035 |
Provisions |
187 |
280 |
Trade and other receivables |
596 |
546 |
Overdrafts and other short-term borrowings (B) |
1,576 |
1,453 |
Derivatives - assets |
33 |
58 |
Trade payables |
563 |
530 |
Other current assets |
237 |
283 |
Derivatives - liabilities |
13 |
105 |
Cash and cash equivalents (C) |
992 |
1 287 |
Tax and other current liabilities |
343 |
310 |
Total current assets |
2,994 |
3,209 |
Total current liabilities |
2,682 |
2,678 |
Assets held for sale |
- |
46 |
Liabilities disposal for sale |
- |
43 |
TOTAL ASSETS |
7,294 |
8,132 |
TOTAL EQUITY AND LIABILITIES |
7,294 |
8,132 |
|
|
|
|
|
|
Net debt (A+B-C) |
1,645 |
1,287 |
Net income (loss), Group share |
(373) |
(758) |
Free cash flow
9M |
9M |
Change |
In millions of euros |
Q3 |
Q3 |
Change |
2017 |
2016 |
(€m) |
|
2017 |
2016 |
(€m) |
(208) |
(275) |
67 |
Cash
flow from operating activities (FFO) (A) |
(48) |
(72) |
24 |
(103) |
(17) |
(86) |
Change
in operating WCR (B) |
1 |
24 |
(23) |
[+
decrease, (increase)] |
(86) |
(100) |
14 |
Gross capital expenditure (C) |
(25) |
(27) |
2 |
(397) |
(392) |
(5) |
Free cash flow (A)+(B)+(C) |
(72) |
(75) |
3 |
Cash flow statement
9M |
9M |
In millions of euros |
Q3 |
Q3 |
Q2 |
Q1 |
2017 |
2016 |
|
2017 |
2016 |
2017 |
2017 |
(208) |
(275) |
Cash
flow from operating activities |
(48) |
(72) |
(78) |
(82) |
(103) |
(17) |
Change
in operating WCR |
1 |
24 |
- |
(104) |
+ decrease, (increase) |
(311) |
(292) |
Net cash flow from operating activities |
(47) |
(48) |
(78) |
(186) |
(86) |
(100) |
Gross
capital expenditure |
(25) |
(27) |
(27) |
(34) |
- |
- |
Financial investments |
- |
- |
- |
- |
- |
959 |
Increase and decrease in equity |
- |
- |
- |
- |
- |
(2) |
Dividends paid |
- |
(1) |
- |
- |
39 |
(66) |
Asset disposals & other items |
40 |
- |
25 |
(26) |
(358) |
499 |
Change in net debt |
(32) |
(76) |
(80) |
(246) |
+ decrease, (increase) |
1,645 |
1,020 |
Net debt (end of period) |
1,645 |
1,020 |
1,613 |
1,533 |
Definitions of non-GAAP financial data
Gross capital expenditure: Gross capital
expenditure is defined as the sum of cash outflows for acquisitions
of property, plant and equipment and intangible assets and cash
outflows for acquisitions of biological assets.
Free cash flow: Free cash flow (FCF) is
defined as cash flow from operating activities minus gross capital
expenditure and plus/minus change in operating working capital
requirement.
Industrial margin: The industrial margin
is defined as the difference between revenue and cost of sales
(i.e. after allocation of industrial variable costs and industrial
fixed costs), before depreciation.
Consolidated net debt: Consolidated net
debt is defined as Bank loans and other borrowings plus Overdrafts
and other short-term borrowings minus Cash and cash
equivalents.
Banking Covenant: As defined in the bank
loan agreements, the "banking covenant" ratio is the ratio of the
Group's consolidated net debt to the Group's equity, restated for
gains and losses on derivatives and for remeasurements (foreign
currency gains and losses of consolidated subsidiaries).
Data at constant exchange rate: The data
presented « at constant exchange rate » is calculated by
eliminating the translation effect into euros for the revenue of
the Group's entities whose functional currency is not the euro. The
translation effect is eliminated by applying Year N-1 exchange
rates to Year N revenue of the contemplated entities.
Data at constant scope: The data
presented at « constant scope » is calculated by
eliminating the effect of changes in the Group's scope
(acquisitions, divestitures, mergers, etc.) by taking into account
on 1 January of Year N-1 the scope variations which have occurred
during Year N-1.
[1] EAMEA: Europe, Africa, Middle East, Asia.
[2] On 26 July 2017, Vallourec targeted an EBITDA improvement
ranging between €125 million and €175 million when compared to
2016. As a reminder, 2016 EBITDA stood at -€219 million.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/becf505a-ed90-435e-bd26-8d58ff9c7d66
Grafico Azioni Vallourec (EU:VK)
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