Vallourec reports less of a loss in 1Q 2017
By Kalea Hall
YOUNGSTOWN
Although Vallourec reported a loss in the first quarter of 2017, the loss was less than the one seen in the first quarter of 2016.
“In the first quarter of 2017, our financial performance improved sequentially and compared to the first quarter of 2016,” said Philippe Crouzet, chairman of the management board, in a statement. “This is the direct consequence of the rigorous implementation of our transformation plan, of a favorable product mix in Brazil during this quarter, and to a lesser extent, of the first benefits of the new momentum in the United States.”
The France-based tubular company for energy markets with operations in Youngstown reported an adjusted loss of $22.9 million, which compares with an adjusted loss of $78.4 million reported in the first quarter of 2016. The figures have been converted from euros to U.S. dollars.
The company’s revenue was $852.65 million in the first quarter of 2017, which compares with $730.69 million in 2016.
Vallourec’s local operations – Vallourec Star, on Martin Luther King Jr. Boulevard and VAM USA on Ohio Works Drive in Youngstown – are recruiting and hiring. Both are suppliers of premium connections for the oil-and- gas industry.
“U.S. rig activity is up, particularly in the premium segment that we serve,” said Jean Gaetano, spokesman for Vallourec.
In the U.S., oil-and-gas revenue increased as the number of active rigs rose on average 26 percent quarter-over-quarter and 33 percent year-over-year, which supported demand for Vallourec’s tubular products.
Vallourec said the positive momentum in the U.S. allowed the company to announce price increases during the first quarter, which will mostly impact the second half of this year.
Vallourec expects oil-and-gas revenue in the U.S. to rebound more significantly this year.
The company had taken a hit to that revenue source and had to cut back the local workforce because of a slowdown in the market.
The slowdown is connected to the massive drop in the price for a barrel of oil. During summer 2014, the price of oil started to drop from more than $100 a barrel down to below $30 in January 2016.
Last year, the Organization of Petroleum Exporting Countries and non-OPEC members agreed to cut their supply and that moved prices upward. With the price increase, came an increase in the U.S. rig count, which was 857 as of April 21, up 426 from April 24 last year.
Those interested in job openings at Vallourec’s local companies should go to: VallourecJobsOnline.com.