By Mathias de Rozario
(Reuters) -French steel tubes maker Vallourec expects an improvement in its core profit in the second half of the year, benefiting from higher international prices.
It now expects its operating earnings before interest, taxes, depreciation and amortization (EBITDA) to be between 195 and 225 million euros in the third quarter and sees its full year performance marked by an improvement in the second half by charging higher international prices and cutting costs.
“In the United States, market prices continued to improve in the second quarter as a result of the steel tariffs introduced at the beginning of the year,” the goup said in a press release.
Vallourec expects imports in the U.S. to go down from their Q2 level due to tariffs which should support industrial players based in the U.S., such as Vallourec.
The group, which provides tubing for oil and gas, low-carbon energy and industrial markets, also reported a 10% drop in its second quarter core profit on Thursday due to lower sales volumes, a decline which was within the guidance it had previously given.
Its operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 187 million euros ($219.56 million) in the second quarter of 2025, compared to 170-200 million euros range expected by the company and 215 million euros a year ago.
“Commercially, Vallourec has confirmed its attractiveness, CEO Philippe Guillemot said in a call with journalists. “This is reflected in the orders and contracts won throughout the first half of the year, such as Sonatrach in Algeria and Allseas in Brazil.”
The metallurgical group which reached its zero net debt objective in January, a year earlier than planned, thanks to cost saving measures, posted a net debt of 201 million euros in the quarter, down from 1.49 billion euros in mid-2022.
“In the coming quarters, we’re going to continue to generate cash and continue to reduce this debt,” Guillemot added.
($1 = 0.8517 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
