Vallourec reports second quarter and
first half 2021
results
Boulogne-Billancourt (France),
July
28th
2021 –
Vallourec, a world leader in premium tubular solutions, announces
today its results for the second quarter and first half 2021. The
Board of Directors of Vallourec SA, meeting on July 27th 2021,
approved the Group's second quarter and half year 2021
accounts.
Q2
2021: strong
EBITDA increase
- €842 million
revenue, stable year-on-year, the decrease of the Oil & Gas
activity in EA-MEA being offset by the mine contribution and the
dynamism of the Industry markets
- €148 million
EBITDA, versus €43 million in Q2 2020, EBITDA margin increasing to
17.6%
- Free cash flow
at (€135) million including one-off financial restructuring fees
versus (€77) million in Q2 2020
|
Successful completion of the
financial restructuring on
June 30th 2021
-
As at June 30th 2021, net debt at €720 million and equity Group
share at €1,602 million
-
As at June 30th 2021, strong liquidity of €1,189 million
|
2021 Outlook
- Increased 2021
outlook released on July 21st:
- EBITDA targeted
between €475 and €525 million versus €350 and €400 million
previously
- Free cash flow
targeted between (€240) and (€160) million versus (€340) and (€260)
million previously
- Continuous cost
savings throughout the year
- Strict cash
control, capex envelope kept at c. €160 million
|
Edouard
Guinotte, Chairman
of the Board of Directors and
Chief Executive Officer,
declared:
“As expected, Q2 marked the completion of our
financial restructuring, achieved on June 30th. We welcome Apollo
and SVPGlobal, our new reference shareholders, as well as our new
Board of Directors. We are very excited to focus together on
driving Vallourec on its path to value creation and fully deploy
our strategic plan.
With regards to our financial results, our Q2
EBITDA benefited as expected from the increased contribution of
Vallourec’s iron ore mine, along with the recovery of some markets,
like the Industry market in Brazil or the OCTG market in North
America. In addition, we took advantage of the resumption of
tendering activity in EA-MEA markets to capture satisfying new
contracts in East Africa, and the Middle East.
We expect current market trends to continue,
including the progressive improvement of the North American OCTG
market, a sustained activity in Industry markets, and expect a
gradual decrease of the iron ore prices. This leads to target an
EBITDA between €475 million and €525 million and a free cash flow
between (€240) million and (€160) million.”
Key figures
First-half 2021 |
First-half 2020 |
Change |
In € million |
Q2 2021 |
Q2 2020 |
Change |
739 |
872 |
-15.3% |
Production shipped (k tons) |
381 |
422 |
-9.7% |
1,544 |
1,696 |
-9.0% |
Revenue |
842 |
843 |
-0.1% |
228 |
111 |
+€117m |
EBITDA |
148 |
43 |
244.2% |
14.8% |
6.5% |
+8.3p.p. |
(as a % of revenue) |
17.6% |
5.1% |
+12.5p.p. |
227 |
(514) |
+€741m |
Operating income (loss) |
200 |
(485) |
+€685m |
(42) |
(567) |
+€525m |
Net income, Group share |
51 |
(493) |
+€544m |
(197) |
(258) |
+€61m |
Free cash-flow |
(135) |
(77) |
-€58m |
720 |
2,326 |
-€1,606m |
Net debt |
720 |
2,326 |
-€1,606m |
I - CONSOLIDATED
REVENUE BY MARKET
First-half 2021 |
First-half 2020 |
Change |
At constant exchange rates |
In € million |
Q2 2021 |
Q2 2020 |
Change |
At constant exchange rates |
887 |
1,198 |
-26.0% |
-19.3% |
Oil & Gas, Petrochemicals |
478 |
585 |
-18.3% |
-13.4% |
589 |
393 |
49.9% |
69.8% |
Industry & Other |
333 |
200 |
66.2% |
78.2% |
68 |
105 |
-35.2% |
-33.8% |
Power Generation |
31 |
57 |
-45.9% |
-45.7% |
1,544 |
1,696 |
-9.0% |
0.4% |
Total |
842 |
843 |
-0.1% |
6.2% |
Over the
second quarter of
2021,
Vallourec recorded a
€842 million
revenue, stable
compared with the
second quarter
of 2020
(+6% at
constant exchange rates)
with:
- a -10% volume impact mainly driven
by Oil & Gas in EA-MEA, while Industry & Other volume was
up both in Europe and Brazil
- a +16% price/mix
effect reflecting the higher contribution of the iron ore mine
as well as a better price/mix in North America and South
America
- a -6% currency conversion effect
mainly related to EUR/BRL.
Over the first half
2021, revenue
totaled
€1,544 million,
down 9%
versus the first
half 2020 (+0.4% at constant
exchange rate). Volume effect was -15% mainly due to Oil & Gas
in EA-MEA and North America, price/mix effect +16% and currency
conversion effect -9%.
Oil & Gas, Petrochemicals
(56.8%
of Q2 2021
consolidated
revenue)
In Q2 2021, Oil &
Gas revenue reached
€438
million, a
15% decrease
year-on-year
(-10%
at constant exchange rates).
- In North
America, Oil & Gas revenue remained stable over the
quarter year-on-year and started to pick-up at the end of the
quarter.
- In EA-MEA, Oil
& Gas revenue decreased, reflecting lower shipments as well as
an unfavorable price/mix
- In South America,
Oil & Gas revenue increased, reflecting a better price/mix,
despite an unfavorable currency conversion effect.
Over the first half
2021,
Oil & Gas revenue totaled
€801 million,
a
(€269)
million decrease
or
-25%
year-on-year
(-18% at constant
exchange rates), mainly due to EA-MEA and
North America.
In Q2
2021, Petrochemicals
revenue was €40
million, down
40% year-on-year (-37%
at constant exchange rates) notably due to lower deliveries in
North America and to a lesser extent in EA-MEA.Over the
first half 2021,
Petrochemicals revenue totaled €86 million, down 33% year-on-year
(-26% at constant exchange rates).
In Q2
2021,
revenue for Oil & Gas and Petrochemicals amounted to
€478 million,
down 18%
compared with Q2 2020 (-13% at
constant exchange rates).Over the first half
2021, revenue
for Oil & Gas and Petrochemicals
totaled €887
million, down
26% compared
with H1 2020 (-19% at constant
exchange rates).
Industry & Other
(39.5% of Q2
2021 consolidated
revenue)
Industry & Other revenue
amounted to €333 million in Q2 2021, a €133 million increase or 66%
year-on-year (+78% at constant exchange rates):
- In Europe, Industry revenue was up
reflecting higher volumes.
- In South America, Industry &
Other revenue was up on account of higher revenue from the iron ore
mine, reflecting both higher prices and volumes which reached 2.3Mt
(up 23% versus Q2 2020), as well as of higher sales in the Industry
markets driven by increased volumes and prices, despite an
unfavorable currency conversion effect.
Over the first half
2021, Industry
& Other revenue totaled €589
million, up 50%
year-on-year (+70% at constant exchange rates) as
a result of a higher contribution from the iron ore mine and higher
deliveries in South America and in Europe, despite an unfavorable
conversion currency effect.
Power Generation
(3.7% of
Q2 2021 consolidated
revenue)
Power Generation revenue
amounted to €31 million in Q2 2021, down 46% year-on-year (-46% at
constant exchange rates), reflecting the closure of the Reisholz
facility mid-2020 and the disposal of Valinox Nucléaire SAS on May
31st 2021.
For the first half
2021, revenue totaled
€68 million, down 35% year-on-year (-34% at constant exchange
rates).
II –
CONSOLIDATED RESULTS ANALYSIS
Q2 2021
consolidated results analysis
In Q2
2021,
EBITDA reached
€148
million (compared with
€43 million in Q2
2020),
EBITDA margin
at
17.6%
of revenue, as a result
of:
- An industrial margin of €243
million, or 28.9% of revenue, reflecting a higher contribution of
the mine in volumes and prices, the improved activity in Oil &
Gas in North America, the recognition of Nippon Steel Corporation
payment of its residual fixed costs coverage obligation to VSB for
€24 million, as well as continued savings more than offsetting
lower activity in O&G in EA-MEA.
- A 2% decrease in sales, general and
administrative costs (SG&A) at €81 million or 9.6% of revenue
versus 9.8% in Q2 2020.
Operating
income was
positive at
€200
million, compared with (€485)
million in Q2 2020 (which was negatively impacted by impairment
charges for €441 million), resulting from the EBITDA improvement
and the sale of the Reisholz buildings and land (+€70 million) as
well as the favorable Brazilian Supreme Court decision on
PIS/COFINS tax claim (+€32 million).
Financial
income was negative at
(€93)
million, compared with (€80) million
in Q2 2020. Net interest expenses remained stable at (€52) million
versus (€50) million in Q2 2020. Other financial charges of (€41)
million, compared with (€30) million in Q2 2020, included notably
the positive effect of the PIS/COFINS tax litigation in Brazil for
€27 million and the actualization of the DBOT leasing debt for €24
million resulting from exercising the repurchase option, more than
offset by (€64) million cost of exercising the option of DBOT
repurchase as well as the net impact of the financial restructuring
for (€18) million (breaking down into (€47) million of
restructuring fees and €29 million non-cash gain on the equity and
debt initial valuations, in application of IFRS standards following
the financial restructuring).
Income tax amounted to
(€60) million mainly
related to Brazil, compared to (€10) million in Q2 2020.
This resulted in a
net income, Group
share, of
€51
million, compared to (€493)
million in Q2 2020.
H1
2021
consolidated results analysis
In H1
2021, EBITDA
reached €228
million, a
€117
million increase
year-on-year,
at
14.8%
of revenue, including:
- An industrial margin of €411
million, up €114 million compared with H1 2020, reflecting a higher
contribution of the mine in volumes and prices, higher activity for
the Industry market in Brazil and for Oil & Gas in North
America, the recognition of Nippon Steel Corporation payment of its
residual fixed costs coverage obligation to VSB, along with savings
more than offsetting lower activity in O&G in EA-MEA.
- Sales, general and administrative
costs (SG&A) down 9% at €158 million, reflecting our adaptation
measures, and representing 10.2% of revenue.
Operating
income was positive at
€227
million comparing
to a loss of
(€514)
million in
H1 2020 (which was negatively
impacted by impairment charges for €441 million and by €46 million
of restructuring costs), resulting from the improvement in EBITDA
and the positive effects from the sale of Reisholz buildings and
land as well as from the favorable Brazilian Supreme Court decision
on PIS/COFINS tax claim.
Financial
income was negative at
(€175)
million, compared to (€115) million
in H1 2020. Net interest expenses amounted to €103 million versus
€99 million in H1 2020. Other financial charges of €72 million,
compared with €16 million in H1 2020, included notably the positive
effects of the PIS/COFINS tax litigation in Brazil for €27 million
and the actualization of the DBOT leasing debt for €24 million
resulting from exercising the repurchase option, more than offset
by (€64) million cost of exercising the option of DBOT repurchase
as well as the net impact of the financial restructuring for (€40)
million (breaking down into (€55) million of restructuring fees,
the accelerated amortization of bonds costs for (€14) million and a
€29 million non-cash gain on the equity and debt initial
valuations, in application of IFRS standards following the
financial restructuring).
Income tax amounted to
(€100) million mainly
related to Brazil.
As a result, net
income,
Group share, amounted to
(€42)
million, compared to (€567) million in H1 2020.
III
- CASH FLOW & FINANCIAL
POSITION
Cash flow from operating
activitiesIn
Q2
2021,
cash flow from operating activities
was negative
(€15)
million, compared to (€65)
million in Q2 2020, reflecting mainly the improved EBITDA and
higher tax paid. It included debt restructuring fees (€48 million)
and adaptation measures (€12 million). In H1
2021, cash flow
from operating activities was
negative at
(€2)
million compared to (€96) million in H1 2020,
mainly due to higher EBITDA. It included debt restructuring fees
(€55 million) and adaptation measures (€21 million).
Operating working capital
requirementOperating working
capital requirement
increased by
(€92)
million in Q2
2021, versus a decrease of €20 million in
Q2 2020, as a result of activity increase. Net working capital
requirement decreased to 101 days of sales, compared to 115 days in
Q2 2020.In H1
2021, operating
working capital requirement
increased by
(€139)
million versus an increase of (€99) million in H1
2020.
CapexCapital
expenditure was
(€28)
million in Q2
2021, compared with (€32) million in Q2
2020, and was (€56) million in H1 2021 compared to (€63) million in
H1 2020.
Free cash flowAs a result,
in Q2
2021,
free cash flow was
negative
(€135)
million versus (€77) million in Q2 2020. Free cash flow
for H1 2021 was
negative (€197)
million, an improvement of €61 million compared with
(€258) million in H1 2020.
Asset disposals &
other itemsAsset disposals & other items amounted to
€1,780 million in Q2 2021 resulting from the recognition of the
financial restructuring and the cash-in from Reisholz buildings and
land disposal for €71 million and from Valinox Nucléaire SAS
disposal for €12 million.For H1 2021, they amounted to €1,691
million mainly as a result of the financial restructuring.
Net debt and
liquidityAs at June 30th 2021, net debt stood at €720
million, compared with €2,364 million on March 31st 2021.As at June
30th 2021, gross debt amounted to 1,909 million including €101
million of fair value adjustment under IFRS 9 (which will be
reversed over the life of the debt). Long-term debt amounted to
€1,398 million and short-term debt totaled €511 million (including
€462 million drawing on the revolving credit facility, which will
be reimbursed at end of July).As at June 30th 2021, lease debt
stood at €75 million, compared with €103 million on March 31st
2021.Cash as at June 30th 2021 amounted to €1,189 million.
IV –
Operational
achievements and
changes in perimeter
In line with its objective to further improve
its competitiveness with gross savings of €400 million over
2021-2025, the Group has achieved €92 million gross savings in H1
2021.
Vallourec also recorded several commercial
successes, in particular in the EA-MEA regions by winning contracts
in East Africa and the Middle East, benefitting from the
progressive resumption of tendering activity in these areas and
further demonstrating the quality and competitiveness of its
commercial offer.
A worldwide premiere in the manufacturing of
offshore equipment has been achieved, with a 3D-printed
safety-critical component delivered to TotalEnergies in the North
Sea.
The Group continued to optimize its portfolio of
activities and has finalized the sale of Valinox Nucléaire SAS to
Framatome on May 31st 2021.
On July 27th 2021, Vallourec acquired Nippon
Steel Corporation and Sumitomo Corporation shares in VAM USA,
representing 49% of its capital, for 42 million dollars. VAM USA
commercial relationship with them will be maintained.
V – Focus on the
impacts of the financial restructuring
Impact of the financial restructuring
on balance sheetImpact on gross debt:
(€1,800) million, and (€1,699) million after IFRS 9 fair market
value reevaluation of new debtAs at June 30th 2021, Vallourec SA
gross debt amounted to €1,848 million, reduced by €1,800 million,
and €1,699 million under IFRS 9, breaking down into: €462 million
of drawn Revolving Credit Facility, €1,023 million of reinstated
bonds valued at €1,178 million under IFRS 9 and €262 million of
state guaranteed loans valued at €208 million under IFRS 9.
Impact on equity (excluding P&L impacts):
+€1,607 millionEquity Group Share amounted to €1,602 million as at
30th June, 2021. With the completion of the financial
restructuring, the value of equity increased by €1,607 million
breaking down into €1,257 million coming from the capital increase
reserved to creditors reevaluated at closing share price, €300
million from the capital increase with Preferential Subscription
Rights, €59 million coming from BSA at fair market value and (€9)
million fees related to the capital increase.
Impact on other current and non-current
liabilities: +€54 million (related to the fair value adjustment of
state guaranteed loans).
Impact of the financial restructuring
on financial result: (€40)
million in H1 2021, of
which (€18) million in Q2 2021
(€55) million restructuring fees have been paid
in H1 2021 of which (€47) million were recorded in Q2 2021. The
financial result was also impacted by (€14 million) related to the
accelerated amortization of existing bonds mainly recorded in Q1
2021, and by the result of the financial restructuring amounting to
+€29 million (difference between €3,547 million total restructured
debt and €3,518 million fair value of the new financial instruments
breaking down into €1,616 million new equity instruments, €1,848
million new debt and €54 million grants linked to state guaranteed
loans).
VI – 2021
OUTLOOK
Oil & Gas
In North America, the OCTG
market is confirming its progressive improvement driven by the
continuous increase in the active rig count. In
EA-MEA, the activity remains impacted by the low order
intake in 2020 resulting from delayed or canceled projects due to
the pandemic. The sharp decline in deliveries will negatively
impact revenue and margin. Nevertheless, tendering activity has
started to resume in 2021 and should positively impact 2022.
In Brazil, Oil & Gas deliveries are expected
to increase compared with 2020 while costs are impacted by high
inflation.
Industry & Other
In Europe, the ongoing economic
recovery should continue having a positive impact on volumes and to
a lesser extent on prices. In Brazil, the overall
level of activity is expected to continue increasing strongly.A
higher contribution is expected from the iron ore mine, although
prices are expected, as per consensus, to gradually decrease along
the balance of the year.
Cost savings
Cost saving initiatives will enable the Group to
continue lowering its cost base.A strict cash control will be
maintained, and the capex envelope is kept at c.€160 million.
Based on these perspectives, Vallourec
has released on July
21st an
upgraded outlook for full year 2021:
-
€475 to
€525 million targeted
EBITDA
-
(€240) to
(€160) million targeted free cash
flow
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 March 29, 2021, under
filing number n° D.21-0226 and the amendment to the Universal
Registration Document filed with the AMF on June 2, 2021 under
filing number n° D.21-0226-A01. 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
Q2 & H1
2021 results
Analyst conference call / audio webcast at 6:30
pm (Paris time) to be held in English.
- To listen to the audio
webcast:
https://channel.royalcast.com/landingpage/vallourec-en/20210728_1/
- To participate in the conference
call, please dial (password to use is “Vallourec”):
-
+44 (0) 33 0551
0200 (UK)
-
+33 (0) 1 7037 7166
(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 SBF 120 index
and is eligible for Deferred Settlement Service Long Only.
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
November 17th
2021 |
Release of third quarter and first nine-months 2021 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): 0 805 65 10 10
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 |
2021 |
2020 |
Change |
Q1 |
358 |
450 |
-20.4% |
Q2 |
381 |
422 |
- 9.7 % |
Q3 |
- |
- |
- |
Q4 |
- |
- |
- |
Total |
739 |
872 |
- 15.3 % |
Forex
Average exchange rate |
|
First-half 2021 |
First-half 2020 |
EUR / USD |
|
1.21 |
1.10 |
EUR / BRL |
|
6.49 |
5.41 |
USD / BRL |
|
5.36 |
4.92 |
Revenue by geographic
region
In € million |
First-half 2021 |
As % of revenue |
First-half 2020 |
As % of revenue |
Change |
Q2 2021 |
As % of revenue |
Q2 2020 |
As % of revenue |
Change |
Europe |
247 |
16.0% |
266 |
15.7% |
-7.2% |
134 |
15.9% |
126 |
14.9% |
6.7% |
North America (Nafta) |
309 |
20.0% |
482 |
28.4% |
-35.8% |
194 |
23.0% |
211 |
25.1% |
-8.5% |
South America |
509 |
33.0% |
323 |
19.1% |
57.4% |
283 |
33.6% |
172 |
20.4% |
64.8% |
Asia and Middle East |
371 |
24.0% |
467 |
27.5% |
-20.6% |
173 |
20.5% |
241 |
28.6% |
-28.4% |
Rest of the world |
108 |
7.0% |
158 |
9.3% |
-31.3% |
59 |
7.0% |
93 |
11.0% |
-36.6% |
Total |
1,544 |
100% |
1,696 |
100% |
-9.0% |
842 |
100% |
843 |
100% |
-0.1% |
Revenue by market
First-half 2021 |
As % of revenue |
First-half 2020 |
As % of revenue |
Change |
In € million |
Q2 2021 |
As % of revenue |
Q2 2020 |
As % of revenue |
Variation |
801 |
51.9% |
1,070 |
63.1% |
-25.2% |
Oil & Gas |
438 |
52.0% |
518 |
61.5% |
-15.4% |
86 |
5.6% |
128 |
7.5% |
-32.6% |
Petrochemicals |
40 |
4.8% |
67 |
8.0% |
-40.2% |
887 |
57.5% |
1,198 |
70.6% |
-26.0% |
Oil & Gas, Petrochemicals |
478 |
56.8% |
585 |
69.5% |
-18.3% |
206 |
13.4% |
153 |
9.0% |
34.4% |
Mechanicals |
112 |
13.3% |
74 |
8.8% |
50.8% |
40 |
2.6% |
27 |
1.6% |
48.1% |
Automotive |
21 |
2.5% |
9 |
1.1% |
120.4% |
343 |
22.2% |
212 |
12.5% |
61.4% |
Construction & Other |
200 |
23.7% |
116 |
13.8% |
71.7% |
589 |
38.1% |
393 |
23.2% |
49.9% |
Industry & Other |
333 |
39.5% |
200 |
23.7% |
66.2% |
68 |
4.4% |
105 |
6.2% |
-35.2% |
Power Generation |
31 |
3.7% |
57 |
6.8% |
-45.9% |
1,544 |
100% |
1,696 |
100% |
-9.0% |
Total |
842 |
100% |
843 |
100% |
-0.1% |
Summary consolidated income
statement
First-half 2021 |
First-half 2020 |
Change |
In € million |
Q2 2021 |
Q2 2020 |
Change |
1,544 |
1,696 |
-9.0% |
Revenue |
842 |
843 |
-0.1% |
(1,133) |
(1,399) |
-19.0% |
Cost of sales |
(599) |
(707) |
-15.3% |
411 |
297 |
38.4% |
Industrial Margin |
243 |
136 |
78.7% |
26.6% |
17.5% |
+9.1p.p. |
(as a % of revenue) |
28.9% |
16.1% |
+12.7p.p. |
(158) |
(173) |
-8.7% |
Sales, general and administrative costs |
(81) |
(83) |
-2.4% |
(25) |
(13) |
na |
Other |
(14) |
(10) |
na |
228 |
111 |
+€117m |
EBITDA |
148 |
43 |
+€105m |
14.8% |
6.5% |
+8.3p.p. |
(as a % of revenue) |
17.6% |
5.1% |
+12.5p.p. |
(78) |
(111) |
-29.7% |
Depreciation of industrial assets |
(35) |
(52) |
-32.7% |
(22) |
(27) |
na |
Amortization and other depreciation |
(13) |
(13) |
na |
- |
(441) |
na |
Impairment of assets |
- |
(441) |
na |
99 |
(46) |
na |
Asset disposals, restructuring costs and non-recurring items |
100 |
(22) |
na |
227 |
(514) |
+€741m |
Operating income (loss) |
200 |
(485) |
+€685m |
(175) |
(115) |
52.2% |
Financial income/(loss) |
(93) |
(80) |
16.3% |
52 |
(629) |
+€681m |
Pre-tax income (loss) |
107 |
(565) |
+€672m |
(100) |
(30) |
na |
Income tax |
(60) |
(10) |
na |
(3) |
(1) |
na |
Share in net income/(loss) of equity affiliates |
- |
- |
na |
(51) |
(660) |
+€609m |
Net income |
47 |
(575) |
+€622m |
(9) |
(93) |
na |
Attributable to non-controlling interests |
(4) |
(82) |
na |
(42) |
(567) |
+€525m |
Net income, Group share |
51 |
(493) |
+€544m |
(3.3) |
(49.6) |
na |
Net earnings per share (in €) * |
3.7 |
(43.1) |
na |
na = not applicable* H1 and Q2 2020 figures adjusted for new
number of shares following reverse stock split effective on May 25
2020
Summary consolidated balance sheet
In €
million |
|
|
|
|
|
Assets |
6/30/2021 |
12/31/2020 |
Liabilities |
6/30/2021 |
12/31/2020 |
|
|
|
Equity - Group share * |
1,602 |
(187) |
|
|
|
Non-controlling interests |
231 |
321 |
Net intangible assets |
44 |
50 |
Total equity |
1,833 |
134 |
Goodwill |
27 |
25 |
Shareholder loan |
- |
9 |
Net property, plant and equipment |
1,748 |
1,718 |
Bank loans and other borrowings (A) |
1,398 |
1,751 |
Biological assets |
39 |
30 |
Lease debt (D) |
58 |
84 |
Equity affiliates |
40 |
42 |
Employee benefit commitments |
170 |
203 |
Other non-current assets |
140 |
128 |
Deferred taxes |
16 |
20 |
Deferred taxes |
205 |
187 |
Provisions and other long-term liabilities |
202 |
142 |
Total non-current assets |
2,243 |
2,180 |
Total non-current liabilities |
1,844 |
2,200 |
Inventories |
870 |
664 |
Provisions |
68 |
104 |
Trade and other receivables |
588 |
468 |
Overdraft and other short-term borrowings (B) |
511 |
1,853 |
Derivatives - assets |
13 |
37 |
Lease debt (E) |
18 |
24 |
Other current assets |
256 |
203 |
Trade payables |
530 |
426 |
Cash and cash equivalents (C) |
1,189 |
1,390 |
Derivatives - liabilities |
15 |
21 |
Other current liabilities |
374 |
241 |
Total current assets |
2,916 |
2,762 |
Total current liabilities |
1,516 |
2,669 |
Assets held for sale and discontinued operations |
42 |
107 |
Liabilities held for sale and discontinued operations |
8 |
37 |
Total assets |
5,201 |
5,049 |
Total equity and liabilities |
5,201 |
5,049 |
|
|
|
|
|
|
* Net income (loss), Group share |
(42) |
(1,206) |
|
|
|
|
|
|
|
|
|
Net debt (A+B-C) |
720 |
2,214 |
|
|
|
|
|
|
|
|
|
Lease debt (D+E) |
75 |
108 |
|
|
|
Free cash flow
First-half 2021 |
First-half 2020 |
Change |
In € million |
Q2 2021 |
Q2 2020 |
Change |
(2) |
(96) |
+€94m |
Cash flow from operating activities (A) |
(15) |
(65) |
+€50m |
(139) |
(99) |
-€40m |
Change in operating WCR [+ decrease, (increase)] (B) |
(92) |
20 |
-€112m |
(56) |
(63) |
+€7m |
Gross capital expenditure (C) |
(28) |
(32) |
+€4m |
(197) |
(258) |
+€61m |
Free cash flow (A)+(B)+(C) |
(135) |
(77) |
-€58m |
Cash flow statement
First-half 2021 |
First-half 2020 |
In € million |
Q2 2021 |
Q2 2020 |
(2) |
(96) |
Cash flow from operating activities |
(15) |
(65) |
(139) |
(99) |
Change in operating WCR [+ decrease, (increase)] |
(92) |
20 |
(141) |
(195) |
Net cash flow from operating activities |
(107) |
(45) |
(56) |
(63) |
Gross capital expenditure |
(28) |
(32) |
1,691 |
(38) |
Asset disposals & other items |
1,780 |
17 |
1,494 |
(296) |
Change in net debt [+ decrease, (increase)] |
1,645 |
(60) |
720 |
2,326 |
Financial net debt (end of period) |
720 |
2,326 |
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).
- Vallourec-press-release-H1-2021
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