Vallourec Reports $176M Loss in Third Quarter
BOULOGNE-BILLANCOURT, France – Vallourec, the parent of Vallourec Star, posted a net loss of $176 million during the quarter that ended Sept. 30.
The company, which operates a tube production plant in Youngstown, Ohio, said that revenues fell 20.5% compared to year ago figures because of a continued slump in oil prices. Revenues during the third quarter stood at $763.3 million versus $960.5 million during the third quarter of 2015, the company reported.
Vallourec manufactures oil country tubular goods, or OCTG, pipe used for oil and gas exploration. The company has experienced a loss in business because of the diminished number of rigs in operation across the country since oil prices collapsed in late 2014.
While that market has improved in the United States, it is still slow in Europe, said Vallourec Chairman Philippe Crouzet
“During this quarter, we have seen signs of improvement in the United States where the rig count and OCTG demand have increased for the first time since the end of 2014,” he said in a statement. “On the other hand, in the Eastern Hemisphere, ordering activity remained very low and order book over the next quarters reflect the very tough pricing environment over the past quarters.”
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