By Mathias de Rozario and Johan BODINIER
(Reuters) -France’s Vallourec reported a nearly 24% drop in its fourth quarter core profit on Thursday, citing lower average selling prices of its steel tubes in North America, its main market.
Vallourec, which makes tubing for oil and gas, low-carbon energy and industrial markets, said its operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 214 million euros ($224 million) in the final quarter of 2024, driven by a 27% drop in the North American tubes business.
Globally, the tubes business made up around 92% of Vallourec’s total revenue in the fourth quarter.
“We have seen prices fall throughout last year, but from a very high base,” CEO Philippe Guillemot said in a call with journalists.
The metallurgical group forecast an operating EBITDA of between 180 million and 215 million euros for the first quarter of 2025.
Based on recent bookings, it said international steel tube shipments should increase in the second half of the year compared to the first six months, leading to an improvement in its per-tonne EBITDA.
Vallourec also confirmed it would pay its first dividend in 10 years, at 1.50 euros per share, after it completed its financial restructuring plan and paid off its remaining debt.
($1 = 0.9555 euros)
(Reporting by Mathias de Rozario and Johan Bodinier in Gdansk; Editing by Milla Nissi)
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