Meudon (France), November 21, 2022
Third
Quarter and
Nine Month 2022
Results
- FY 2022
EBITDA guidance
confirmed at €650 to €750
million
- Free Cash Flow
to be positive in H2, driven by
an expected
strong Q4
performance
- Social plan agreements
finalized in Germany, France and UK, substantially de-risking New
Vallourec plan
- New Vallourec plan
initiatives to be implemented
in other regions
Highlights
Solid Q3 2022
Performance
- EBITDA of €198 million, +55%
year-over-year and +24% quarter-over-quarter
- Continued positive OCTG price
dynamics in the U.S. and in the Middle East
- Iron Ore mine production of 1.5
million tons; civil works for restoration of the Cachoeirinha pile
completed1 and request to release pile registered
Strong commercial dynamic
in the
U.S.
and from
long-term
agreements with
customers like Saudi Aramco, ADNOC and
Petrobras
2022 financial objectives confirmed
- FY 2022 EBITDA expected between
€650 and €750 million
- Mine production to continue in Q4
2022 and Q1 2023 with c.1.2 million tons per quarter using
alternative waste piles
- Positive Free Cash Flow in H2,
driven by an expected strong Q4 performance
- FY 2022 CAPEX expected around €200
million
New Vallourec plan on track with new initiatives
added
- Social plan agreements finalized in
Germany, France and the UK, substantially de-risking New Vallourec
plan
- On track to generate €230 million
of recurring EBITDA uplift with full impact starting Q2 2024
- New Vallourec plan initiatives to
be implemented in other regions, starting with Brazil
Philippe
Guillemot, Chairman
of the Board of Directors,
and Chief Executive Officer,
declared:
“Our tube business continues to improve quarter
after quarter driven by a favorable environment due to a worldwide
focus on energy security. Q3 results are positively impacted by the
new Company-wide pricing strategies implemented since Q2 and strong
volume dynamics related to new or existing contracts. In addition,
we have made significant progress towards restoring normal
operations at our Pau Branco mine. We have received permission to
continue to use alternative waste piles until the beginning of Q2
2023. In parallel, we have finalized civil works related to the
restoration of the minimum safety factor of the core Cachoeirinha
waste pile and registered the request for its release.
Within our businesses, Q4 mine production will
be above our previous assumptions, at lower prices. Our tube
business continues to perform strongly across the global platform,
even though we are seeing higher energy costs in the to be closed
German operations. In addition, as part of our focus on inventory
management, we have scrapped unallocated materials and inventories
with low resale value potential, leading to one-off expenses in
2022.
Overall, we confirm our full year 2022 EBITDA
objective of €650 million to €750 million, and we are on track to
deliver positive Free Cash Flow in the second half, driven by an
expected strong Q4 performance.
At the same time, we are making steady progress
in the implementation of our New Vallourec plan: in recent weeks we
have secured firm social agreements in France, Germany, and the UK,
substantially de-risking our plan and allowing our teams to focus
on execution. In addition, we will expand the scope of the
transformation of our business and implement New Vallourec plan
initiatives in other geographies, starting with Brazil. Our
strategic targets remain unchanged: to become cycle proof and to
increase our margins towards best-in class levels. The New
Vallourec plan is fully on track to generate €230 million of
recurring EBITDA uplift with full impact starting in Q2 2024.”
KEY DATA
|
9 Months
2022 |
9 Months
2021 |
Change |
In € million |
Q3 2022 |
Q3 2021 |
Change |
|
1,290 |
1,130 |
14.2% |
Production shipped (k
tons) |
462 |
391 |
18.2% |
|
3,342 |
2,378 |
40.5% |
Revenue |
1,281 |
834 |
53.6% |
|
403 |
356 |
€47m |
EBITDA |
198 |
128 |
€70m |
|
12.1% |
15.0% |
(2.9)p.p. |
(as a % of revenue) |
15.4% |
15.3% |
0.1p.p. |
|
(286) |
299 |
na |
Operating income
(loss) |
89 |
72 |
23.6% |
|
(444) |
(49) |
€(395)m |
Net income,
Group share |
6 |
(7) |
€13m |
|
(482) |
(300) |
€(182)m |
Free cash-flow |
(81) |
(103) |
€22m |
|
1,493 |
993 |
€500m |
Net debt |
1,493 |
993 |
€500m |
CONSOLIDATED
REVENUES BY MARKET
|
9 Months
2022 |
9 Months
2021 |
Change |
At constant exchange rates |
In € million |
Q3 2022 |
Q3 2021 |
Change |
At constant exchange rates |
|
2,310 |
1,343 |
72.0% |
54.4% |
Oil & Gas, Petrochemicals |
907 |
456 |
98.8% |
74.4% |
|
931 |
937 |
(0.6)% |
(8.5)% |
Industry & Other |
346 |
348 |
(0.5)% |
(8.5)% |
|
100 |
98 |
2.8% |
(6.8)% |
Power Generation |
28 |
30 |
(5.7)% |
(15.3)% |
|
3,342 |
2,378 |
40.5% |
27.1% |
Total |
1,281 |
834 |
53.6% |
36.6% |
In the
Third
Quarter of
2022,
Vallourec recorded revenues
of
€1,281
million, up
54% year-on-year
and by
37%
at constant exchange
rates reflecting:
- 17% currency conversion effect
mainly related to weaker EUR/USD and EUR/BRL
- 16% volume increase mainly driven
by Oil & Gas in EA-MEA and North America
- 26% price/mix effect
- (5)% iron ore mine
For the
First Nine
months,
revenues totaled
€3,342
million, up
41% year-on-year
and by
27% at constant exchange
rates on the back
of:
- 13% currency conversion effect
mainly related to weaker EUR/USD and EUR/BRL
- 12% volume increase mainly driven
by Oil & Gas in North America and, to a lesser extent, in
EA-MEA
- 22% price/mix effect
- (8)% iron ore mine
Oil & Gas, Petrochemicals
(71%
of Q3
2022
consolidated
revenues)
In Q3
2022,
Oil & Gas
revenues amounted
to €794
million, a
sharp increase of 94%
year-on-year and
of 71%
at constant
exchange rates.
- In North
America, Oil & Gas revenues more than doubled thanks
to both higher prices and volumes
- In EA-MEA, the
significant Oil & Gas revenue increase was mainly driven by
higher volumes
- In South
America, the decrease in revenues was explained by lower
project line pipe activity
For the
First
Nine months,
Oil & Gas
revenues totaled
€2,025
million, up
67% year-on-year
(+51%
at constant exchange rates), mainly thanks to
North America and, to a lesser extent, EA-MEA.
In Q3
2022,
Petrochemicals
revenues stood
at €113
million, more than
doubling year-on-year (+105% at constant
exchange rates) notably explained by increased prices and volumes
in North America. For the
First
Nine months,
Petrochemicals revenues
increased sharply year-on-year to
reach €285
million, (+89% at constant exchange rates).
In Q3
2022
revenues for Oil &
Gas and Petrochemicals amounted to
€907 million,
up 99%
year-on-year (+74% at constant exchange rates).
For the
First
Nine months
revenues for Oil &
Gas and Petrochemicals totaled
€2,310
million, up
72% compared
with 2021 (+54% at constant
exchange rates).
Industry & Other
(27%
of Q3
2022
consolidated
revenues)
In Q3
2022,
Industry & Other
revenues amounted
to €346
million, stable
year-on-year
(down 8.5% at constant exchange rates):
- In Europe, Industry revenues were
up on the back of price increases
- In South America, Industry &
Other revenues declined, reflecting the lower iron ore mine
activity
For the
First Nine
Months,
Industry & Other revenues
totaled €931
million, stable
year-on-year and down 8.5% at
constant exchange rates; better prices in engineering and, to a
lesser extent, in automotive, did not offset the impact of the mine
shutdown.
Power Generation
(2%
of
Q3
2022 consolidated
revenues)
In Q3
2022,
Power Generation
revenues
amounted to
€28
million, down
by 6%
year-on-year and
by 15% at constant exchange rates. For
the First
Nine
Months
2022,
revenues totaled
€100 million,
up 3%
year-on-year and down by 7% at constant exchange
rates.
CONSOLIDATED RESULTS
ANALYSIS
Q3
2022 consolidated results
analysis
In Q3
2022,
EBITDA amounted to
€198
million compared with €128 million in Q3
2021; the
EBITDA margin
stood at
15.4%
of revenues versus 15.3% in Q3
2021, reflecting:
- An industrial margin of €278
million, or 21.7% of revenues, versus €207 million or 24.8% of
revenues in Q3 2021. The positive contribution of the Oil & Gas
market in North America, both in prices and volumes, was partially
offset by the negative impact of the lower mine activity.
- Sales, general and administrative
costs (SG&A) stood at €77 million or 6% of revenue versus 9% in
Q3 2021.
Operating
income was
positive at
€89
million, compared to €72 million
in Q3 2021. In Q3 2022, the Group booked €51 million mainly related
to adaptation measures in Germany and the accelerated amortization
of ceased activities.
Financial
income was negative at
€(30)
million, compared with €(36)
million in Q3 2021; net interest expenses in Q3 2022 stood at €(25)
million reflecting the new balance sheet structure.
Income tax amounted
to
€(53)
million compared to €(41) million
in Q3 2021, reflecting both corporate tax as well as changes in
deferred taxes.
This resulted
in positive net
income, Group
share, of
€6
million,
compared to negative €(7) million in Q3 2021.
First nine months
2022 consolidated results
analysis
Over the
first nine months
2022,
EBITDA amounted to
€403
million, a €47
million increase
year-on-year,
to stand at
12.1%
of revenues, reflecting:
- An industrial margin of €661
million or 19.8% of revenues, up €43 million compared with 9M 2021.
The positive contribution of the Oil & Gas market in North
America, both in prices and volumes, was partially offset by the
negative impact of the temporary suspension of the mine
operations.
- Sales, general and administrative
costs (SG&A) of €260 million, or 7.8% of revenues, versus €233
million and 9.8% of revenues in 9M 2021.
Operating income was
negative at
€(286)
million compared
with a positive
€299
million in 9M
2021, resulting mainly from
provisions related to the adaptation measures (European social
plans and associated fees) and, to a lesser extent, from provisions
for non-recurring costs in respect of the mine
incident.
Financial income was negative
at
€(51)
million, compared with €(221)
million in 9M 2021; net interest expenses in 9M 2022 of €(70)
million reflecting the new balance sheet structure, were partially
offset by other financial income.
Income tax amounted to
€(104)
million mainly related to North America and
Brazil.
As a result, net income, Group share,
amounted to
€(444)
million, compared to €(49) million in 9M 2021.
CASH FLOW
AND FINANCIAL POSITION
Cash flow from operating
activitiesIn
Q3
2022,
cash flow from operating activities
improved to
€108
million, compared to €18 million
in Q3 2021; mainly driven by a higher EBITDA and lower income
tax cash-out.
Over the first nine months,
cash flow from operating activities
was positive at
€169
million compared to €16 million in 9M 2021. The
improvement was mainly related to lower income tax.
Operating working capital
requirementIn Q3
2022,
the operating
working capital requirement
increased by
€(135)
million, versus a rise of €(93) million in
Q3 2021, reflecting higher forward volume expectations and
raw-material price increases. The net working capital requirement
stood at 118 days of sales, compared to 111 days in Q3 2021.
For the first nine
months 2022,
the operating working capital
requirement increased by
€(538)
million versus an increase of €(232) million in 9M
2021.
CapexCapital
expenditure was
€(54)
million in Q3
2022, compared with €(28) million
in Q3 2021, and €(113) million in 9M 2022 compared to €(84) million
in 9M 2021.
For the full year
it is expected
to be
around €200
million,
including €120 million of
capital expenditures
equally spread over FY
2022 and FY 2023 related
to the transfer of the German Oil
& Gas activities to Brazil.
Free cash flowAs a result,
in Q3
2022,
free cash flow was
negative at
€(81)
million versus €(103) million in Q3 2021.
Free cash flow
for 9M
2022 was
negative at
€(482)
million, compared with €(300)
million in 9M 2021, after €538
million working capital build over the
first nine months.
Free Cash Flow
will be positive in H2, driven by
an expected strong performance in
Q4.
Asset
disposals and other
itemsIn Q3
2022,
asset disposals and
other items amounted to
€(24)
million compared with €(171) million in Q3
2021.Over the first nine months of 2022, they amounted to €(54)
million.
Net debt and
liquidityAs of
September
30,
2022, net debt stood at
€1,493
million, compared with
€1,389
million at June
30,
2022. Gross debt
amounted to €1,784 million including €76 million of fair value
adjustment under IFRS 9 (which will be reversed over the life of
the debt). Long-term debt amounted to €1,375 million and short-term
debt totaled €409 million.
Net debt at year-end 2022 is projected
below September levels
thanks to an expected strong
free cash flow performance in
Q4.
As of September 30, 2022, lease debt stood at
€78 million following the application of IFRS 16 standards,
compared with €61 million on June 30, 2022.
As of September 30,
2022, the
liquidity position
was strong at
€703
million, with cash amounting to €291 million and
an undrawn committed Revolving Credit Facility of €412 million.
As of November 21, 2022, Vallourec has fully
repaid the utilized Revolving Credit Facility.
The Group also
closed a $210 million
asset-backed loan with a
5-year tenor
provided by a group of
four top ranked
international banks.
The Group has no
repayments scheduled before June
2026.
UPDATE ON PAU BRANCO MINE
Operations at Vallourec’s Pau Branco iron ore
mine were temporarily suspended in January 2022 following flooding
which caused damage to its Cachoeirinha waste pile. Operations were
partially restarted in May using an alternative waste pile, albeit
at lower-than-normal capacity levels. Volumes extracted in first
nine months 2022 amounted to c.2.6 million tons.
Permissions from authorities have been obtained
to continue to use alternative waste piles until the beginning of
Q2 2023. In parallel, the Group has finalized civil works related
to the restoration of the minimum safety factor of the core
Cachoeirinha waste pile and registered the request for full
release.
For 2022 as a whole, Vallourec estimates
production of around 3.8 million tons, which is embedded in our FY
2022 EBITDA outlook.
MARKET TRENDS
Oil & Gas
In North America, the highly
favorable market conditions should continue through year-end and
into 2023. The OCTG market remains very tight in terms of available
supply. In EA-MEA, ongoing volume recovery is
expected in the coming quarters especially in the dynamic Middle
East markets, with a progressive recovery in pricing
power.In Europe, higher energy costs are set to
impact GDP growth. In South America, prices and
volumes are expected to increase.
Industry & Other
In Brazil, the outlook for
volumes is neutral, with price increases fully offsetting cost
inflation.
OUTLOOK
We
confirm our
EBITDA objective for FY
2022 in a range of
€650 to
€750
million.
Capex is expected to be around €200
million, including approximately €60 million for the
preparation of the transfer of Oil & Gas volumes from Germany
to Brazil.
Free Cash Flow
will be positive in H2, driven by
an expected strong Q4
performance.
NEW VALLOUREC PLAN ON TRACK WITH NEW
INITIATIVES ADDED
The New Vallourec plan, announced in May 2022,
remains fully on track. The plan aims to generate €230 million of
recurring EBITDA uplift and around €20 million CAPEX reduction with
full impact starting in Q2 2024, contributing to making the Group
cycle-proof and generating positive free cash flow2 even at the
bottom of the cycle.
In recent weeks we have secured firm social
agreements in France, Germany, and the UK, substantially de-risking
our plan and allowing our teams to focus on execution. Moreover, we
will implement New Vallourec plan initiatives in other geographies
starting with Brazil, as well as production increases in the US and
Saudi Arabia.
In addition, a value-over-volume strategy
incorporates portfolio rationalization to drive profitable growth.
Vallourec aims to achieve best-in-class profitability levels and
close the margin gap with peers.
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 April 19, 2022, under filing number n° D.22-0305. 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
Q3 2022
results
Conference call / audio webcast on Monday,
November 21st at 9:30 am CET
- To listen to the audio webcast:
https://channel.royalcast.com/landingpage/vallourec-en/20221121_1/
- To participate in the conference
call, please dial (password: “Vallourec”):
-
+44 (0) 33 0551 0200 (UK)
-
+33 (0) 1 70 37 71 66 (France)
- +1 212 999 6659 (USA)
- Audio webcast replay and slides
will be available 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 CAC Mid 60, SBF 120 and Next 150 indices and is eligible for
Deferred Settlement Service. 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.
Financial
Calendar
|
March 2nd
2023 |
Fourth Quarter and Full Year 2022 results |
For further information, please
contact:
| Investor
relations Investor.relations@vallourec.com |
Press
relations Héloïse RothenbühlerTel: +33 (0)1 41 03 77
50 heloise.rothenbuhler@vallourec.com |
| Individual
shareholdersToll Free Number (from France): 0 800 505 110
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 |
2022 |
2021 |
Change |
|
Q1 |
395 |
358 |
10.3% |
|
Q2 |
433 |
381 |
13.6% |
|
Q3 |
462 |
391 |
18.2% |
|
Q4 |
|
510 |
- |
|
Total |
|
1,640 |
- |
Forex
|
Average exchange rate |
|
9 months
2022 |
9 months
2021 |
|
EUR / USD |
|
1.06 |
1.20 |
|
EUR / BRL |
|
5.46 |
6.38 |
|
USD / BRL |
|
5.14 |
5.32 |
Revenue by geographic
region
|
In € million |
9 months
2022 |
As % of revenue |
9 months
2021 |
As % of revenue |
Change |
Q3 2022 |
As % of revenue |
Q3 2021 |
As % of revenue |
Change |
|
Europe |
426 |
12.7% |
386 |
16.2% |
10.3% |
141 |
11.0% |
139 |
16.6% |
1.7% |
|
North America (Nafta) |
1,353 |
40.5% |
524 |
22.0% |
158.1% |
546 |
42.6% |
215 |
25.8% |
153.4% |
|
South America |
748 |
22.4% |
810 |
34.1% |
(7.7)% |
277 |
21.7% |
302 |
36.2% |
(8.1)% |
|
Asia and Middle East |
634 |
19.0% |
512 |
21.5% |
23.7% |
224 |
17.5% |
142 |
17.0% |
58.2% |
|
Rest of the world |
182 |
5.4% |
145 |
6.1% |
25.3% |
93 |
7.2% |
37 |
4.4% |
154.1% |
|
Total |
3,342 |
100% |
2,378 |
100% |
40.5% |
1,281 |
100% |
834 |
100% |
53.6% |
Revenue by market
|
9 months
2022 |
As % of revenue |
9 months
2021 |
As % of revenue |
Change |
In € million |
Q3 2022 |
As % of revenue |
Q3 2021 |
As % of revenue |
Variation |
|
2,025 |
60.6% |
1,209 |
50.9% |
67.5% |
Oil & Gas |
794 |
62.0% |
408 |
48.9% |
94.4% |
|
285 |
8.5% |
134 |
5.6% |
112.5% |
Petrochemicals |
113 |
8.8% |
48 |
5.7% |
136.1% |
|
2,310 |
69.1% |
1,343 |
56.5% |
72.0% |
Oil & Gas,
Petrochemicals |
907 |
70.8% |
456 |
54.7% |
98.8% |
|
446 |
13.3% |
337 |
14.2% |
32.5% |
Mechanicals |
154 |
12.0% |
130 |
15.6% |
18.4% |
|
71 |
2.1% |
64 |
2.7% |
11.5% |
Automotive |
21 |
1.6% |
24 |
2.8% |
(10.8)% |
|
415 |
12.4% |
537 |
22.6% |
(22.8)% |
Construction & Other |
171 |
13.3% |
194 |
23.3% |
(12.0)% |
|
931 |
27.9% |
937 |
39.4% |
(0.6)% |
Industry &
Other |
346 |
27.0% |
348 |
41.7% |
(0.5)% |
|
100 |
3.0% |
98 |
4.1% |
2.8% |
Power Generation |
28 |
2.2% |
30 |
3.6% |
(5.7)% |
|
3,342 |
100% |
2,378 |
100% |
40.5% |
Total |
1,281 |
100% |
834 |
100% |
53.6% |
Summary consolidated income statement
|
9 months
2022 |
9 months
2021 |
Change |
In € million |
Q3 2022 |
Q3 2021 |
Change |
|
3,342 |
2,378 |
40.5% |
Revenue |
1,282 |
834 |
53.7% |
|
(2,681) |
(1,760) |
52.3% |
Cost of sales |
(1,004) |
(627) |
60.1% |
|
661 |
618 |
7.0% |
Industrial Margin |
278 |
207 |
34.3% |
|
19.8% |
26.0% |
(6.2)p.p. |
(as a % of revenue) |
21.7% |
24.8% |
(3.1)p.p. |
|
(260) |
(233) |
11.6% |
Sales, general and administrative costs |
(77) |
(75) |
2.7% |
|
2 |
(29) |
na |
Other |
(3) |
(4) |
na |
|
403 |
356 |
€47m |
EBITDA |
198 |
128 |
€70m |
|
12.1% |
15.0% |
(2.9)p.p. |
(as a % of revenue) |
15.4% |
15.3% |
0.1p.p. |
|
(137) |
(121) |
13.2% |
Depreciation of industrial assets |
(47) |
(43) |
9.3% |
|
(34) |
(32) |
6.3% |
Amortization and other depreciation |
(11) |
(10) |
na |
|
- |
- |
- |
Impairment of assets |
- |
- |
- |
|
(518) |
96 |
na |
Asset disposals, restructuring costs and non-recurring items |
(51) |
(3) |
na |
|
(286) |
299 |
€(585)m |
Operating income
(loss) |
89 |
72 |
€17m |
|
(51) |
(211) |
(75.8)% |
Financial income/(loss) |
(30) |
(36) |
16.7% |
|
(337) |
88 |
€(425)m |
Pre-tax income
(loss) |
59 |
36 |
€23m |
|
(104) |
(141) |
na |
Income tax |
(53) |
(41) |
29.3% |
|
(3) |
(4) |
na |
Share in net income/(loss) of equity affiliates |
(1) |
(1) |
na |
|
(443) |
(57) |
€(386)m |
Net income |
6 |
(6) |
€12m |
|
1 |
(8) |
na |
Attributable to non-controlling interests |
- |
1 |
na |
|
(444) |
(49) |
€(395)m |
Net income,
Group share |
6 |
(7) |
€13m |
|
(1.9) |
(0.6) |
na |
Net earnings per share (in €) * |
0.03 |
(0.03) |
na |
na = not applicable
Summary consolidated balance sheet
| In €
million |
|
|
|
|
|
|
Assets |
09/30/2022 |
12/31/2021 |
Liabilities |
09/30/2022 |
12/31/2021 |
|
|
|
|
Equity - Group share * |
1,767 |
1,763 |
| |
|
|
Non-controlling interests |
44 |
45 |
|
Net intangible assets |
41 |
45 |
Total equity |
1,811 |
1,808 |
|
Goodwill |
42 |
38 |
Shareholder loan |
- |
- |
|
Net property, plant and equipment |
1,972 |
1,666 |
Bank loans and other borrowings (A) |
1,375 |
1,387 |
|
Biological assets |
66 |
38 |
Lease debt (D) |
56 |
33 |
|
Equity affiliates |
32 |
35 |
Employee benefit commitments |
85 |
14 |
|
Other non-current assets |
213 |
162 |
Deferred taxes |
28 |
29 |
|
Deferred taxes |
221 |
239 |
Provisions and other long-term liabilities |
428 |
140 |
|
Total non-current
assets |
2,587 |
2,223 |
Total non-current
liabilities |
1,972 |
1,603 |
|
Inventories |
1,561 |
856 |
Provisions |
213 |
40 |
|
Trade and other receivables |
808 |
541 |
Overdraft and other short-term borrowings (B) |
409 |
190 |
|
Derivatives - assets |
21 |
4 |
Lease debt (E) |
22 |
15 |
|
Other current assets |
260 |
133 |
Trade payables |
709 |
457 |
|
Cash and cash equivalents (C) |
291 |
619 |
Derivatives - liabilities |
117 |
19 |
|
Other current liabilities |
281 |
242 |
|
Total current
assets |
2,941 |
2,153 |
Total current
liabilities |
1,751 |
963 |
|
Assets held for sale and discontinued operations |
14 |
372 |
Liabilities held for sale and discontinued operations |
8 |
374 |
|
Total assets |
5,542 |
4,748 |
Total equity and
liabilities |
5,542 |
4,748 |
|
|
|
|
|
|
|
|
* Net income (loss), Group share |
(444) |
40 |
|
|
|
|
|
|
|
|
|
|
|
Net debt (A+B-C) |
1,493 |
958 |
|
|
|
|
|
|
|
|
|
|
|
Lease debt
(D+E) |
78 |
48 |
|
|
|
Free cash flow
|
9 months
2022 |
9 months
2021 |
Change |
In € million |
Q3 2022 |
Q3 2021 |
Change |
|
403 |
356 |
€47m |
Ebitda |
198 |
128 |
€70m |
|
(38) |
3 |
€(41)m |
Provisions and other non-cash elements |
(36) |
(5) |
€(31)m |
|
365 |
359 |
€6m |
Cash Ebitda |
162 |
123 |
€39m |
|
(61) |
(67) |
€6m |
Interest payments |
(8) |
(6) |
€(2)m |
|
(56) |
(139) |
€83m |
Tax payments |
(18) |
(71) |
€53m |
|
(79) |
(137) |
€58m |
Other (including restructuring charges) |
(28) |
(28) |
- |
|
169 |
16 |
€153m |
Operating cash flow before change in WCR |
108 |
18 |
€90m |
|
(538) |
(232) |
€(306)m |
Change in operating WCR [+ decrease, (increase)] |
(135) |
(93) |
€(42)m |
|
(369) |
(216) |
€(153)m |
Operating cash flow |
(27) |
(75) |
€48m |
|
(113) |
(84) |
€(29)m |
Gross capital expenditure |
(54) |
(28) |
€(26)m |
|
(482) |
(300) |
€(182)m |
Free cash flow |
(81) |
(103) |
€22m |
Cash flow statement
|
9 months
2022 |
9 months
2021 |
In € million |
Q3 2022 |
Q3 2021 |
|
169 |
16 |
Cash flow from operating activities |
108 |
18 |
|
(538) |
(232) |
Change in operating WCR [+ decrease, (increase)] |
(135) |
(93) |
|
(369) |
(216) |
Net cash flow from operating activities |
(27) |
(75) |
|
(113) |
(84) |
Gross capital expenditure |
(54) |
(28) |
|
(54) |
1,520 |
Asset disposals and other items |
(24) |
(171) |
|
(536) |
1,220 |
Change in net debt [+ decrease, (increase)] |
(105) |
(274) |
|
1,493 |
993 |
Financial net debt (end of period) |
1,493 |
993 |
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).
1 Civil works related to restoration of minimum safety factor
completed2 *Free Cash Flow before change in working capital
- Vallourec-press-release - Q3 9M 2022 results
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