Vallourec Reports 3Q Earnings of $10.5M
YOUNGSTOWN, Ohio – The parent of Vallourec Star and VAM USA said that its earnings increased during the third quarter of 2017 because of improved oil and gas exploration activity in the United States.
Vallourec, based in France, reported earnings of $10.5 million during the quarter compared to a $60 million loss posted during the third quarter of 2016, the company said.
“Over the first nine months of 2017, Vallourec’s financial performance has improved in each of the three quarters leading to significant progress compared to the same period in 2016,” chairman Phillipe Crouzet said in a statement. “In the third quarter, the full effect of announced price increases in the U.S. became evident.”
The markets in Europe, however, remain challenging, he said.
Revenues during the quarter soared 39.1% to $1.1 billion, while the company reported revenues of $3 billion for the first nine months of 2017, an improvement of 26% versus the first nine months of 2016.
Vallourec Star, which operates a pipe mill along Martin Luther King Jr. Blvd., manufactures pipe that is used in drilling applications in the oil and gas industry. A sister company, VAM USA, operates a threading mill at the nearby Ohio Works Business Park.
Vallourec said its operations in the United States saw increased revenues as a result of a rebound in the country’s rig count and additional drilling programs.
The trend enabled the U.S. group to announce price increases, which took full effect in July 2017, the company said.
Copyright 2017 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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