Vallourec expects shipments rebound in 2nd half of 2025

By Mathias de Rozario and Johan BODINIER

(Reuters) -France's Vallourec signalled improvement in deliveries in the second half of 2025 on Thursday, after it reported an expected 24% drop in fourth quarter earnings due to lower steel tube prices in North America.

"We have seen prices fall throughout last year, but from a very high base," CEO Philippe Guillemot said in a call with journalists.

The group's shares rose more than 5% in early trading, after it said the first half of 2025 would mark the low point for international shipments, with an improvement thereafter.

Vallourec, which makes tubing for oil and gas, low-carbon energy and industrial markets, said its quarterly operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 214 million euros ($224 million), driven by a 27% drop in the North American tubes business.

Analysts at Midcap Partners said the decline was in line with market expectations after both deliveries and prices fell in the tubes business, which is responsible for more that 90% of Vallourec's total revenue.

The metallurgical group forecast an operating EBITDA of between 180 million and 215 million euros for the first quarter of 2025, and confirmed it would pay its first dividend in 10 years at 1.50 euros per share.

It said it was sticking to its strategy of refocusing on core operations and developing the business towards solutions for energy transition.

During the fourth quarter of 2024, Vallourec sold Indonesia-based Logistics Group, specialized in providing integrated port and logistics services, for around 20 million euros.

The company, which aims to supply the energy transition industry through its "New Energies" line, said its hydrogen storage solution, dubbed "Delphy", was set to get its first certification in the coming weeks.

Guillemot also reiterated that he saw no direct impact on the company from tariffs imposed by the United States.

"100% of what we sell to our on-shore customers in the United States is produced in the United States," he said.

($1 = 0.9555 euros)

(Reporting by Mathias de Rozario and Johan Bodinier in Gdansk; Editing by Milla Nissi)