Vallourec Reports Robust North American Results
YOUNGSTOWN, Ohio – Pipe and tube manufacturer Vallourec reported Friday that revenue from oil and gas operations in North America nearly tripled during the first quarter of 2022, citing higher prices and volumes.
Vallourec, based in Meudon, France, operates pipe and tube mills in Youngstown, Texas, Louisiana and Oklahoma. Its Youngstown operations consists of a melt shop and seamless pipe mill along Martin Luther King Boulevard, and a pipe threading operation, VAM USA, at the Ohio Works Business Park.
In all, Vallourec reported a 30% increase in revenue for its global operations, driven mostly by the North American market. Global volume increased by 9%, once again because of North American operations, the company said.
The company said the forecast for the North American market remains strong, citing “favorable market conditions.”
Vallourec also announced it would move its main manufacturing base to the Americas and locate more than 50% of its support functions there. At the same time, the group announced it would close operations in Germany, France and Scotland, affecting 3,000 employees.
“Stepping up the execution of our strategy with a stronger focus on value and performance will enable the group to benefit further from its leading positions, with a resized industrial footprint and a more agile organization,” said Phillipe Guillemont, CEO and chairman of the Board of Directors.
“In the context of stronger E&P drilling fundamentals, Vallourec is ideally positioned to seize attractive growth opportunities ahead. The group benefits from its unique assets, solid engineering culture, strong customer relationships and global reach with market leading products. I am confident that the group will deliver this year stronger profitability, significantly above last year’s. The group’s transformation will also be driven by an increased focus on energy transition opportunities, preparing for a future low-carbon economy. With this agile and entrepreneurial approach, we will build a new Vallourec that is stronger, more efficient and innovative for the years to come.”
Vallourec reported first quarter revenues of $970 million, up 30.5% compared to the first quarter of 2021.
Published by The Business Journal, Youngstown, Ohio.