Vallourec Reports Strong Numbers on Oil and Gas Rebound
YOUNGSTOWN, Ohio – France’s Vallourec, which operates a pipe and tube-manufacturing complex here, reported strong earnings during 2018 due to a rebound in the oil and gas market, the company said Wednesday.
Vallourec, the parent of Vallourec Star and VAM USA – both of which boast Youngstown operations – reported revenues of $4.5 billion in 2018 versus $4.2 billion in 2017, an increase of about 4.6%.
Much of the increase was generated because of an improved oil and gas market, especially in North America. According to Vallourec, oil and gas revenues increased in 2018 compared with the previous year as the rig count across the country increased 18% versus 2017.
The company manufactures pipe used in the oil and gas industry. Vallourec’s tube manufacturing mill is located along Martin Luther King Boulevard while VAM USA is a pipe-threading operation at the Ohio Works Business Park.
“The rebound in profitability continued in 2018 supported by improved oil and gas activities in North America recent restart of EA-MEA (East Asia, Middle East, Africa),” Philippe Crouzet, chairman of the management board said in a statement. “In 2019, we expect further growth in our oil and gas activity. We will continue to take advantage of the North American oil and gas market while leveraging the ongoing rebound in EA-MEA, supported by our reshaped manufacturing routes allows us to transfer part of our production to more competitive countries.”
Overall, Vallourec posted a net income loss of $570 million in 2018, compared to a net income loss of $609 million in 2017.
Vallourec announced it would cut approximately 18% of its workforce in Germany by 2020 in order to reduce costs. The company also announced it would divest its coal interests, which would save the company an additional $227 million by 2020.
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