Vallourec profit rises as expected, boosted by higher selling prices

By Mathias de Rozario

(Reuters) -French steel tubes maker Vallourec reported a 12.3% rise in its third-quarter core profit on Friday, within its own guidance range, aided by higher selling prices and a slight increase in volumes.

Its earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 210 million euros ($245 million) in the July-September period, right in the middle of the 195-225 million euro range it had provided alongside its second-quarter results.

The earnings rise was driven by higher volumes and average selling prices in the tubes division, and cost-saving measures and higher profitability in the mine and forest business, largely related to an ongoing mine extension project, it said.

Vallourec expects its full-year EBITDA to land between 799 million and 829 million euros, with fourth-quarter earnings expected in the same range as the third. The company, which had not provided a full-year outlook before now, last year reported a core profit of 832 million euros.

Delays in some customers' activity will result in some orders being invoiced in 2026, CEO Philippe Guillemot said in a statement.

In September, Vallourec signed a contract with Brazil's state-run oil company Petrobras to supply its offshore operations through 2029, which could generate revenues of up to $1 billion over four years.

"We won almost all of the volumes that were put out to tender and the associated services,"  Guillemot said about the deal, speaking to journalists on an earnings call.

"We will ... significantly increase our market share since the previous contract, which was awarded in 2022, gave us a much smaller share of Petrobras' volumes," he added.

The group, which last January reached its zero net debt objective a year earlier than it had planned, reported a debt of 140 million euros at the end of the quarter.

($1 = 0.8575 euros)

(Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak)