Meudon (France), May 18, 2022
Vallourec first
quarter 2022
results
New initiatives
launched to be
cycle-proof
Q1 2022
results in line with expectations
- €916 million
revenue, a 30% year-over-year increase led by North America
- €45 million
reported EBITDA negatively impacted by the iron ore mine shutdown;
normalized level of ~€130 million1
- €(230) million
Free Cash Flow impacted by €(217) million working capital build-up
reflecting higher forward volume expectations and raw material
price increases
FY 2022 EBITDA now expected to be
significantly above 2021, despite
Q1 impacted by mine shutdown
€230
million of recurring
EBITDA and €250 million
ongoing cash up-lift (+€100
million compared to
November 2021 announcement)
- Launching the
closure process of German sites and refocusing European plants
- Streamline
corporate structure to better manage a reshaped industrial
footprint and a leaner organization
Philippe Guillemot,
Chairman of the Board of
Directors and Chief Executive
Officer, declared:
“Stepping up the execution of our strategy with
a stronger focus on value and performance will enable the group to
benefit further from its leading positions, with a resized
industrial footprint and a more agile organization. In the context
of stronger E&P drilling fundamentals, Vallourec is ideally
positioned to seize attractive growth opportunities ahead. The
group benefits from its unique assets, solid engineering culture,
strong customer relationships and global reach with market leading
products. I am confident that the group will deliver this year
stronger profitability, significantly above last year’s. The
group’s transformation will also be driven by an increased focus on
energy transition opportunities, preparing for a future low-carbon
economy. With this agile and entrepreneurial approach, we will
build a new Vallourec that is stronger, more efficient and
innovative for the years to come.”
Key figures
In € million |
Q1 2022 |
Q1 2021 |
Change |
Q4 2021 |
Production shipped (k tons) |
395 |
358 |
10.3% |
510 |
Revenue |
916 |
702 |
30.5% |
1,064 |
EBITDA |
45 |
80 |
€(35)m |
136 |
(as a % of revenue) |
4.9% |
11.4% |
(6.5)p.p. |
12.8% |
Operating income (loss) |
(17) |
27 |
€(44)m |
75 |
Net income, Group share |
(35) |
(93) |
€58m |
89 |
Free cash-flow |
(230) |
(62) |
€(168)m |
17 |
Net debt |
1,213 |
2,364 |
€(1,151)m |
958 |
I CONSOLIDATED
REVENUE BY MARKET
In € million |
Q1
2022 |
Q1 2021 |
Change |
At constantFX rates |
Q4 2021 |
Oil & Gas, Petrochemicals |
623 |
410 |
51.7% |
41.7% |
709 |
Industry & Other |
261 |
255 |
2.7% |
(3.0)% |
306 |
Power Generation |
32 |
37 |
(12.7)% |
(21.1)% |
48 |
Total |
916 |
702 |
30.5% |
22.2% |
1,064 |
In the
first quarter
of
2022,
Vallourec recorded revenues
of €916
million, up
30.5%
compared with
the first
quarter of
2021
(+22.2%
at constant exchange
rates)
reflecting:
- 8% currency conversion effect
mainly related to EUR/USD and EUR/BRL
- 9% volume increase mainly driven by
Oil & Gas in North America
- 22% price/mix effect
- (9)% mine and other impacts
Oil & Gas, Petrochemicals
(68%
of Q1
2022
consolidated
revenue)
In Q1
2022,
Oil & Gas revenue
reached €552
million, a
52% increase
year-on-year
(+41.7%
at constant exchange
rates).
- In North
America, Oil & Gas revenue almost tripled thanks to
higher prices and volumes.
- In EA-MEA, Oil
& Gas revenue decreased slightly, with comparable volumes but
unfavorable mix
- In South America,
revenue increased, mainly driven by higher volumes in project line
pipes.
In Q1
2022,
Petrochemicals revenue
was €70
million, up 53% year-on-year
(+41.8% at constant exchange rates) notably due to higher volumes
and better prices in North America.
In Q1
2022,
revenue for Oil & Gas and Petrochemicals
amounted to €623
million, up
52% compared
with Q1 2021 (+41.7% at constant exchange rates).
Industry & Other
(28.5%
of Q1
2022
consolidated
revenue)
In Q1
2022,
Industry & Other revenue amounted
to
€261
million,
increasing by
3%
year-on-year
(-3%
at constant exchange
rates):
- In Europe, Industry revenue was up,
reflecting price increase in particular in Mechanical
Engineering
- In South America, Industry &
Other revenue decreased reflecting the mine shutdown.
Power Generation
(3.5%
of
Q1
2022 consolidated
revenue)
In Q1
2022,
Power Generation revenue amounted
to €32
million,
decreasing by
13%
year-on-year
(-21% at constant exchange rates).
II
CONSOLIDATED RESULTS ANALYSIS
Q1
2022
consolidated results analysis
In Q1
2022,
EBITDA amounted to
€45 million
(compared with €80 million in Q1 2021), and
the EBITDA
margin stood at
4.9%
of revenue (versus 11.4% in Q1 2021), as a result
of:
- An industrial margin of €129
million, or 14.1% of revenue, versus €168 million and 23.9% of
revenue in Q1 2021. The positive contribution of the Oil & Gas
market in North America, both in volumes and prices, was more than
offset by the negative impact of the temporary suspension of the
mine operations and by a less favorable mix on Oil & Gas
International markets.
- Sales, general and administrative
costs (SG&A) at €85 million or 9.3% of revenue (versus 11.0% in
Q1 2021) increasing by 10.4%.
The normalized level of EBITDA is approximately
€130 million. The adjustment refers predominantly to the operations
of the iron ore mine.
Operating
income was
negative at
€(17)
million, compared to €27 million
in Q1 2021, resulting mainly from lower EBITDA.
Financial
income was negative at
€(13)
million, compared with €(82) million
in Q1 2021, reflecting the new balance sheet structure and
non-recurring financial expenses in Q1 2021.
Income tax
expense was
€(3)
million compared to €(40) million
in Q1 2021 reflecting the temporary curtailment of the iron ore
mine operations.
This resulted in
a negative net
income, Group
share, of
€(35)
million,
compared to €(93) million in Q1 2021.
III CASH
FLOW & FINANCIAL POSITION
Cash flow from operating
activitiesIn
Q1
2022,
cash flow from operating activities
was positive at
€21
million, compared to €13 million
in Q1 2021; the improvement reflected mainly financial
expenses, as well as income tax paid.
Operating working capital
requirementIn Q1
2022,
operating working
capital requirement
increased by
€(217) million, versus
an increase of €(47) million in Q1 2021, reflecting higher
forward volume expectations and raw-material price increases. The
net working capital requirement, excluding the impact of IFRS 5,
stood at 125 days of sales, compared to 104 days in Q1 2021.
CapexCapital
expenditure was
€(34)
million in Q1
2022, compared with €(28) million
in Q1 2021.
Free cash flowAs a result,
in Q1
2022,
free cash flow was
negative at
€(230) million
versus €(62) million in Q1 2021.
Asset disposals &
other itemsIn Q1
2022,
asset disposals & other items amounted
to €(25)
million, compared with €(89) million in Q1
2021.
Net debt and
liquidityAs of March 31, 2022, net debt stood at €1,213
million, compared with €958 million on December 31, 2021. As of
March 31, 2022, gross debt amounted to €1,606 million including €86
million of fair value adjustment under IFRS 9 (which will be
reversed over the life of the debt). Long-term debt amounted to
€1,383 million and short-term debt totaled €223 million.
As of March 31, 2022, lease debt stood at €50
million following the application of IFRS 5 standards, compared
with €48 million on December 31, 2021.
The liquidity position was strong at €855
million, with cash amounting to €393 million and an undrawn
committed Revolving Credit Facility of €462 million.
IV UPDATE ON
MINE
On January 8, 2022, following the exceptionally
heavy rainfall in Minas Gerais State (Brazil), some material from
the waste pile associated with the operations of Vallourec’s Pau
Branco mine slid into a rainwater dam (“the Lisa Dam”) causing it
to overflow, and resulting in the interruption of traffic on the
nearby highway. The structure of the dam was not affected, and
there were no casualties. As a result of this incident, the
operations of the mine have been temporarily suspended.
On May 4, 2022, Vallourec partially restarted
operations, after having obtained the approval of the mining
authorities to resume activities for a period of three months
without using the waste pile. Under these temporary conditions,
Vallourec is targeting a progressive ramp-up from 70% to full
capacity.
In parallel, Vallourec is continuing to prepare
for a return to normal operations, subject to the validation of the
stability of the waste pile by the mining and state environmental
authorities.
V SUPPORTIVE
MARKET ENVIRONMENT
After several years of underinvestment, a global
increase in Exploration and Production (E&P) capital spending
is forecasted, driven notably by the tight OCTG market environment
in North America. According to IHS Markit data, E&P drilling
capex forecasts have been revised upwards by $173 billion in
aggregate between the projections made in March 2021 and those
issued a year later for the 2022-2025 period.
Drilling activity is increasing again globally,
with the current rig count up 63% from its Covid-19 trough. This
situation reflects a tight OCTG market, particularly in North
America, which benefits from a strong price environment. The Middle
East region is also seeing high activity, particularly in the UAE
and Iraq. North Africa is showing strong growth in its region while
market conditions are remaining solid in South America.
There nevertheless remains substantially more
potential for further volume growth, with current rig count at only
78% of pre-Covid levels.
OCTG prices are also recovering on the back of
the restart of global demand and the increase of raw-material and
energy prices.
VI
LOOKING AHEAD FOR A NEW
VALLOUREC
1. Pursue footprint
reshaping
Launch closure process of German
sites
In November 2021, Vallourec decided to launch
the disposal process of all its German manufacturing assets in
order to find a new operator, better positioned to profitably serve
the European Industry markets. The disposal process has been
carried out and no credible buyer has been identified. As a result,
Vallourec is launching the closure process of its German assets
which will result in a 685kt reduction in less competitive rolling
capacity.
The closure process will take place over the
next two years and will include the sale of the land and
buildings.
German rolling activity for Oil &
Gas relocated to Brazil
This transfer will require €110 million of capex
in our Brazilian operations to support the transition of premium
tubular volumes from Europe by end 2023.
Impact of the closure of German assets
on the other European assets
The closure of the German assets implies a
further rationalization of the other European assets which were
finishing tubes rolled in Germany.
This rationalization will entail the
consolidation of all European threading activities in a single
location in Aulnoye in France. The Group will launch the closure
process of the heat treatment line of Saint-Saulve in France and of
the threading line in Bellshill in Scotland. In addition, Vallourec
will complete the divestiture of Vallourec Bearing Tubes.
Research & Development
Aulnoye Competence Center will lead ‘one
R&D’ organization.
The completion of this
footprint reshape will allow Vallourec to benefit from a lower-cost
manufacturing base capable of serving worldwide O&G markets.
This reorganization is
targeted to generate €130 million of
run-rate EBITDA
and a €20 million capex
reduction. The associated headcount
reduction2 should be approximatively 2,400
The implementation of these measures is subject
to consultation of the employee representatives.
2. Streamline corporate
structure to better manage a reshaped industrial footprint and a
leaner organization
In addition to the reshape of Vallourec’s
footprint, the Group has launched a comprehensive program aiming to
streamline global overheads in-line with its new manufacturing
footprint, representing a major step to lower the break-even point
and create a cycle-proof company that is free cash flow-positive at
the bottom of the cycle.
These measures encompass the following:
- A leaner organization in all regions (North America, South
America and Eastern Hemisphere): the Group will move its main
manufacturing base to Americas.
- Lower overheads
and central costs: the Group will further downsize the headquarter
functions which will be primarily focused on strategy and
expertise.
- Higher
productivity: the Group will implement process automation for all
transactional processes and will consolidate support functions in
larger Shared Services Centers to leverage the Company’s
scale.
- Focus on
value-creating projects: selective approach to R&D and IT
projects with careful return on investment parameters and interface
with a broader strategic vision. The Group will create one global
R&D organization securing consistency and focusing resources on
key strategic developments.
- Support
functions close to production sites: the Group targets to locate
more than 50% of its support functions in the Americas. The
Industrial support will be located in production sites.
With
this
initiative,
the Group aims
to generate €100 million of additional
run-rate EBITDA. The
associated headcount reduction3 should be approximatively 550
The implementation of these measures is subject
to consultation of the employee representatives.
Combined, these initiatives will
reduce CO2 emissions
(the CO2 content of a tube produced in Brazil is 30% lower
than of a tube produced in Germany)
and lead to €230
million of recurring
EBITDA and €250 million
ongoing cash up-lift. The execution is
expected to be finalized in Q1 2024
Preparing
the future low-carbon economy
Appointment
of Ulrika Wising
On May 2, 2022, Vallourec announced the
appointment of Ulrika Wising as Senior Vice President Energy
Transition. Ulrika has a solid energy transition and corporate
development background. She reports to Philippe Guillemot and will
play a key role in Vallourec's ongoing transformation. She will
strengthen the focus and commitments to energy transition and will
be responsible for accelerating and developing new profitable
business opportunities for the Group.
A committed player
with a clear roadmap
In 2020, Vallourec announced its ambition to
reduce its direct and indirect carbon emissions by 2025, taking
2017 as baseline year. These objectives were approved by the
Science Based Targets initiative (SBTi), and Vallourec became the
first company in the Oil & Gas sector to obtain this
recognition4. The Group, which is already a low emitter of
greenhouse gases, is committed to:
- reducing its direct emissions by
20% (Scopes 1 & 2);
- reducing both direct and indirect
emissions by 25% (Scopes 1, 2 & 3).
In December 2021, Vallourec announced that it
was again part of the "A List" compiled by the CDP. This
accomplishment serves as a recognition for the Company's
transparency and leadership on climate issues.Concretely, in terms
of ton of CO2 emitted to produce a tube, Vallourec is clearly a
best-in-class actor. The Group consumes 1.796 ton of CO2 per
ton of tube produced versus 2 tons on average for peers5.
Investment in Closed
Loop Geothermal Company GreenFire Energy
On May 3, 2022, Vallourec announced an
investment in GreenFire Energy Inc., an American start-up
developing Advanced Geothermal Systems based on its innovative
technology called GreenFire’s GreenLoop™. This transaction was
carried out alongside other major investors, Baker Hughes and
Helmerich & Payne.
Vallourec and GreenFire Energy have been working
together since 2019 on several successful Closed- Loop Geothermal
demonstrators in various fields. Vallourec THERMOCASE® Vacuum
Insulated Tubing (VIT) is a key enabler of closed loop geothermal
systems: these thermally insulated pipes allow the harvesting of
underground heat and bring it to the surface (as hot water or
steam) with minimal losses. Thanks to its leading edge in VIT with
its THERMOCASE® product range, Vallourec will be able to support
GFE by designing and manufacturing bespoke solutions for their
downhole heat exchanger. While conventional geothermal systems rely
on the exploitation of geothermal resources in very specific areas,
Advanced Geothermal Systems – such as the one developed by
GreenFire Energy - could unlock the possibility of producing energy
virtually anywhere.
New steps in the Carbon
Capture and Storage
(CCS) and Hydrogen
fields
For the injection of super critical CO2 into
carbon storage wells, VAM Top® connections have been tested for
specific conditions requiring low temperature (-80°C) and a very
sudden temperature drop under severe loading conditions, with
full-scale samples. This has been validated by customers including
Oil & Gas technology leaders.
Due to the small size and low viscosity of the
molecule, hydrogen is known to be a difficult gas to contain.
Vallourec is the first company to have tested and validated full
leak-tightness of the VAM® 21 connection with 100% hydrogen content
up to 560 bar that are even more stringent than those required for
future storage wells.
VII
2022 OUTLOOK
Oil & GasIn North
America, the very favorable market conditions should
continue and even improve in H2 2022, in both price and volume
terms. In EA-MEA, volumes are expected to
significantly recover from Q2 onward; cost increases to be passed
on to customers.In South America, volumes are
expected to increase leading to margin increase throughout the
year.
Industry & OtherIn
Europe, prices are expected to increase to fully offset
cost inflation.In Brazil, volumes are expected to
increase slightly, with price increases fully offsetting cost
inflation. Vallourec has partially restarted mining operations,
while H2 activity depends on validation of waste pile stability by
the authorities. FY 2022 consensus estimates for iron ore average
prices c.$130/MT6.
Based on these
market trends and
assumptions, particularly
related to the operations of the
iron ore mine,
EBITDA is now
expected to increase significantly for FY
2022 compared to prior year.
OtherCapex is expected to be
slightly above €200 million, including approximately €50 million
for the preparation of the transfer of operations from Germany to
Brazil.Information and Forward-Looking
Statements
This press release may include forward-looking
statements. These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms as
“believe”, “expect”, “anticipate”, “may”, “assume”, “plan”,
“intend”, “will”, “should”, “estimate”, “risk” and or, in each
case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters
that are not historical facts and include statements regarding the
Company’s intentions, beliefs or current expectations concerning,
among other things, Vallourec’s results of operations, financial
condition, liquidity, prospects, growth, strategies and the
industries in which they operate. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. These risks include those developed or identified in the
public documents filed by Vallourec with the French Financial
Markets Authority (Autorité des marches financiers, or “AMF”),
including those listed in the “Risk Factors” section of the
Registration Document filed with the AMF on April 19, 2022, under
filing number n° D.22-0305. Readers are cautioned that
forward-looking statements are not guarantees of future performance
and that Vallourec’s or any of its affiliates’ actual results of
operations, financial condition and liquidity, and the development
of the industries in which they operate may differ materially from
those made in or suggested by the forward-looking statements
contained in this press release. In addition, even if Vallourec’s
or any of its affiliates’ results of operations, financial
condition and liquidity, and the development of the industries in
which they operate are consistent with the forward-looking
statements contained in this press release, those results or
developments may not be indicative of results or developments in
subsequent periods.
Presentation of
Q1 2022
results
Analyst conference call / audio webcast on
Thursday, May 19th at 10:00 am (Paris time) to be held in
English.
- To listen to the audio
webcast:
https://channel.royalcast.com/landingpage/vallourec-en/20220519_2/
- To participate in the conference
call, please dial (password to use is “Vallourec”):
-
+44 (0) 33 0551
0200 (UK)
-
+33 (0) 1 70 37 71 66 (France)
- +1 212 999
6659 (USA)
- Audio webcast replay and slides
will be available on the website at:
https://www.vallourec.com/en/investors
About Vallourec
Vallourec 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 17,000 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:
FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF
120 and Next 150 indices and is eligible for Deferred Settlement
Service.
In the United States, Vallourec has established
a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN
code: US92023R4074, Ticker: VLOWY). Parity between ADR and a
Vallourec ordinary share has been set at 5:1.
Calendar
May
24th
2022July
27th
2022 |
Shareholders’ Annual MeetingRelease of second quarter and first
half 2022 results |
For further information, please
contact:
Investor
relations Jérôme FribouletTel : +33 (0)1 49 09 39
77Investor.relations@vallourec.com |
Press
relations Héloïse Rothenbühler Tel: +33 (0)1 41 03 77
50 heloise.rothenbuhler@vallourec.com |
Individual
shareholdersToll Free Number (from France): 0 800 505 110
actionnaires@vallourec.com |
|
Appendices
Due to rounding, numbers presented throughout this and other
documents may not add up precisely to the totals provided and
percentages may not precisely reflect the absolute figures.
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 |
2022 |
2021 |
Change |
Q1 |
395 |
358 |
10.3% |
Q2 |
|
381 |
- |
Q3 |
|
391 |
- |
Q4 |
|
510 |
- |
Total |
|
1,640 |
- |
Forex
Average exchange rate |
|
Q1 2022 |
Q1
2021 |
EUR / USD |
|
1.12 |
1.20 |
EUR / BRL |
|
5.87 |
6.60 |
USD / BRL |
|
5.23 |
5.48 |
Revenue by geographic
region
In € million |
Q1 2022 |
As % of revenue |
Q1 2021 |
As % of revenue |
Change |
Europe |
142 |
15.6% |
113 |
16.1% |
25.9% |
North America (Nafta) |
346 |
37.8% |
115 |
16.4% |
200% |
South America |
207 |
22.5% |
226 |
32.2% |
(8.6)% |
Asia and Middle East |
178 |
19.4% |
198 |
28.2% |
(10.1)% |
Rest of the world |
43 |
4.7% |
49 |
7.0% |
(13.4)% |
Total |
916 |
100% |
702 |
100% |
30.5% |
Revenue by market
In € million |
Q1 2022 |
As % of revenue |
Q1 2021 |
As % of revenue |
Change |
Oil & Gas |
552 |
60.3% |
364 |
51.9% |
51.6% |
Petrochemicals |
70 |
7.7% |
46 |
6.6% |
52.5% |
Oil & Gas, Petrochemicals |
623 |
68.0% |
410 |
58.4% |
51.7% |
Mechanicals |
142 |
15.5% |
94 |
13.4% |
51.2% |
Automotive |
23 |
2.5% |
19 |
2.7% |
22.2% |
Construction & Other |
96 |
10.5% |
142 |
20.2% |
(32.1)% |
Industry & Other |
261 |
28.5% |
255 |
36.3% |
2.7% |
Power Generation |
32 |
3.5% |
37 |
5.2% |
(12.7)% |
Total |
916 |
100% |
702 |
100% |
30.5% |
Summary consolidated income statement
In € million |
Q1
2022 |
Q1 2021 |
Change |
Revenue |
916 |
702 |
30.5% |
Cost of sales |
(787) |
(534) |
47.4% |
Industrial Margin |
129 |
168 |
(23.2)% |
(as a % of revenue) |
14.1% |
23.9% |
(9.8)p.p. |
Sales, general and administrative costs |
(85) |
(77) |
10.4% |
Other |
1 |
(11) |
na |
EBITDA |
45 |
80 |
€(35)m |
(as a % of revenue) |
4.9% |
11.4% |
(6.5)p.p. |
Depreciation of industrial assets |
(41) |
(43) |
(4.7)% |
Amortization and other depreciation |
(10) |
(9) |
11.1% |
Impairment of assets |
- |
- |
na |
Asset disposals, restructuring costs and non-recurring items |
(11) |
(1) |
na |
Operating income (loss) |
(17) |
27 |
€(44)m |
Financial income/(loss) |
(13) |
(82) |
€69m |
Pre-tax income (loss) |
(30) |
(55) |
€25m |
Income tax |
(3) |
(40) |
na |
Share in net income/(loss) of equity affiliates |
(1) |
(3) |
na |
Net income |
(34) |
(98) |
€64m |
Attributable to non-controlling interests |
1 |
(5) |
na |
Net income, Group share |
(35) |
(93) |
€58m |
Net earnings per share (in €) * |
(0.2) |
(8.2) |
na |
na = not applicable
Summary consolidated balance sheet
In €
million |
|
|
|
|
|
Assets |
03/31/2022 |
12/31/2021 |
Liabilities |
03/31/2022 |
12/31/2021 |
|
|
|
Equity - Group share * |
1,990 |
1,763 |
|
|
|
Non-controlling interests |
47 |
45 |
Net intangible assets |
44 |
45 |
Total equity |
2,037 |
1,808 |
Goodwill |
44 |
38 |
Shareholder loan |
- |
- |
Net property, plant and equipment |
1,776 |
1,666 |
Bank loans and other borrowings (A) |
1,383 |
1,387 |
Biological assets |
46 |
38 |
Lease debt (D) |
36 |
33 |
Equity affiliates |
32 |
35 |
Employee benefit commitments |
11 |
14 |
Other non-current assets |
183 |
162 |
Deferred taxes |
25 |
29 |
Deferred taxes |
264 |
239 |
Provisions and other long-term liabilities |
148 |
140 |
Total non-current assets |
2,389 |
2,223 |
Total non-current liabilities |
1,603 |
1,603 |
Inventories |
1,092 |
856 |
Provisions |
59 |
40 |
Trade and other receivables |
616 |
541 |
Overdraft and other short-term borrowings (B) |
223 |
190 |
Derivatives - assets |
9 |
4 |
Lease debt (E) |
14 |
15 |
Other current assets |
195 |
133 |
Trade payables |
518 |
457 |
Cash and cash equivalents (C) |
393 |
619 |
Derivatives - liabilities |
21 |
19 |
Other current liabilities |
233 |
242 |
Total current assets |
2,305 |
2,153 |
Total current liabilities |
1,068 |
963 |
Assets held for sale and discontinued operations |
392 |
372 |
Liabilities held for sale and discontinued operations |
378 |
374 |
Total assets |
5,086 |
4,748 |
Total equity and liabilities |
5,086 |
4,748 |
|
|
|
|
|
|
* Net income (loss), Group share |
(35) |
40 |
|
|
|
|
|
|
|
|
|
Net debt (A+B-C) |
1,213 |
958 |
|
|
|
|
|
|
|
|
|
Lease debt (D+E) |
50 |
48 |
|
|
|
Free cash flow
In € million |
Q1 2022 |
Q1 2021 |
Change |
Ebitda |
45 |
80 |
€(35)m |
Provisions and other non-cash elements |
19 |
6 |
€13m |
Cash Ebitda |
64 |
86 |
€(22)m |
Interest payments |
(4) |
(6) |
€2m |
Tax payments |
(21) |
(35) |
€14m |
Other (including restructuring charges) |
(18) |
(32) |
€14m |
Operating cash flow before change in WCR |
21 |
13 |
€8m |
Change in operating WCR [+ decrease, (increase)] |
(217) |
(47) |
€(170)m |
Operating cash flow |
(196) |
(34) |
€(162)m |
Gross capital expenditure |
(34) |
(28) |
€(6)m |
Free cash flow |
(230) |
(62) |
€(168)m |
Cash flow statement
In € million |
Q1 2022 |
Q1 2021 |
Cash flow from operating activities |
21 |
13 |
Change in operating WCR [+ decrease, (increase)] |
(217) |
(47) |
Net cash flow from operating activities |
(196) |
(34) |
Gross capital expenditure |
(34) |
(28) |
Asset disposals & other items |
(25) |
(89) |
Change in net debt [+ decrease, (increase)] |
(255) |
(151) |
Financial net debt (end of period) |
1,213 |
2,364 |
Definitions of non-GAAP financial data
Data at constant exchange
rates: the data presented « at constant exchange
rates » 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.
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.
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.
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.
Lease debt: defined as the
present value of unavoidable future lease payments
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. Net
debt excludes lease debt.
Net working capital
requirement: defined as working capital requirement net of
provisions for inventories and trade receivables; net working
capital requirement days are computed on an annualized quarterly
sales basis.
Operating working capital
requirement: includes working capital requirement as well
as other receivables and payables.
Working capital requirement:
defined as trade receivables plus inventories minus trade payables
(excluding provisions).
1 Normalized predominantly for operation of iron ore mine2
Refers to permanent employees
3 Refers to permanent employees4 It should be
noted that SBTi classifies Vallourec in the “Mining – Iron,
Aluminum, Other Metals” sector when assessing its targets. However,
given thatVallourec derives the bulk of its revenue from the Oil
& Gas sector, the Company compared itself to SBTi’s “Oil &
Gas” category, and no company inthis sector has had its roadmap
validated by SBTi.5 The carbon footprint of our products is
based on EPD International PCR 2012:01 standard and
certified ISO 14025 & EN 15804+A16 Capital IQ:
~$130/MT
- Vallourec-press-release-Q1 2022 results
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