GlobeNewswire by notified

Vallourec First Quarter 2024 Results

Share

Meudon (France), May 16th, 2024

Vallourec, a world leader in premium tubular solutions, announces today its results for the first quarter 2024. The Board of Directors of Vallourec SA, meeting on May 15th 2024, approved the Group's first quarter 2024 Consolidated Financial Statements.

First Quarter 2024 Results

  • Cash generation capability of New Vallourec on display with sixth straight quarter of deleveraging
  • International OCTG pricing remains strong due to robust demand pipeline across multiple geographic regions
  • Market demand remains stable in the US; industry inventories have normalized
  • Expect to reduce net debt further in the second quarter
  • Target initiation of capital returns to shareholders in 2025 at the latesta

HIGHLIGHTS

First Quarter 2024 Results

  • Effects of New Vallourec plan and Value over Volume strategy on display:
    • Tubes EBITDA margin of 23.6% up 277bps sequentially and 135bps year-over-year
    • Tubes EBITDA per tonne of €751 increased sequentially and year over year despite lower US pricing
  • Group EBITDA of €235 million down 16% sequentially and 27% year over year
    • Tubes EBITDA of €220 million down 12% sequentially and 21% year over year due to reductions in US pricing and lower volumes, largely driven by the closure of Germany
    • Mine & Forest EBITDA of €30 million down 29% sequentially and 37% year over year due to lower sales volumes and lower non-cash forest revaluation effects
  • Adjusted free cash flow €172 million; total cash generation €102 million
  • Deleveraging ahead of plan: net debt declined sequentially and more than halved year over year from €1,000 million in Q1 2023 to €485 million in Q1 2024

Second Quarter 2024 Outlookb

  • Group EBITDA is expected to moderately decline versus Q1 due to US Tubes market dynamics:
    • For the Tubes segment, increased volumes and EBITDA in our international portfolio are expected to be more than offset by lower prices and volumes in the US
    • Mine & Forest EBITDA is expected to move closer to the €100 million annualized run-rate
  • Net debt is expected to decline further versus the Q1 2024 level

Full Year 2024 Outlooka

  • Group EBITDA margin expected to remain strong through 2024 due to robust international Tubes pricing in backlog and further operational improvement
  • Net debt is expected to decline meaningfully versus the Q1 2024 level

Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:

“Our first quarter results confirm the merits of the New Vallourec plan and our Value over Volume strategy. Following the closure of our German rolling mills at the end of 2023, our Tubes profitability per tonne and EBITDA margin took meaningful steps higher despite lower volumes in the first quarter. We also continue to deliver on our goal to decrease our net debt, which we reduced again by €85 million sequentially and €515 million year over year.

“The international OCTG market remains strong. We see a robust pipeline of new order opportunities across the Middle East, Africa and North Sea, and accordingly, market prices remain favorable. In the US, a reset in market expectations has caused some further incremental pricing pressure. That said, market demand remains stable and inventories have normalized. We remain disciplined in executing our Value over Volume strategy both in the US and globally.

“We are seeing clear opportunities to deliver differentiated value to our customers via our premium product offering. In the Middle East, our customers are increasingly focusing on developing their gas resources, for which they demand premium connections. Continued momentum in deepwater exploration and development campaigns is leading to strong demand for our high-end products in mission-critical offshore applications. Finally, in North America, operators’ desire to drill ever-longer laterals in their horizontal wells is driving strong demand for our high-torque connections.

“On March 12th, we announced that ArcelorMittal had reached an agreement to purchase Apollo’s stake in Vallourec. The deal is expected to close in the second half of 2024, following the completion of various regulatory approvals. We are delighted to welcome ArcelorMittal as a reference shareholder and look forward to finding ways to enhance value with this industrial partner.

“In April, we successfully executed our holistic balance sheet refinancing. This marked a major step towards our objective of making Vallourec crisis-proof. Through these transactions, we have extended our debt and liquidity facility maturities, increased our available liquidity, and reduced our debt service costs. We now benefit from greater visibility and financial flexibility for the years to come. Alongside this transaction, our significant progress in reshaping Vallourec has been recognized by all three of the major ratings agencies. S&P has upgraded our rating for the fourth time since we announced the New Vallourec plan, which now stands at BB+, Outlook stable. We are also delighted to welcome the addition of Moody’s and Fitch, which rate Vallourec Ba2, Outlook positive and BB+, Outlook positive, respectively.

“We are now notably ahead of schedule on our plan to reach zero net debt by year-end 2025 at the latest. As such, we anticipate that we will initiate our return of capital to shareholders in 2025 at the latest.c

Key Quarterly Data


in € million, unless notedQ1 2024Q4 2023Q1 2023QoQ chg.YoY chg.
Tubes volume sold (k tonnes)292 382 431 (90)(139)
Iron ore volume sold (m tonnes)1.4 1.7 1.5 (0.4)(0.1)
Group revenues 990 1,276 1,338 (286)(348)
Group EBITDA 235 280 320 (45)(85)
(as a % of revenue) 23.7% 22.0% 23.9% 1.8 pp(0.2) pp
Operating income (loss) 174 198 257 (25)(84)
Net income, Group share105 105 156 0 (51)
Adj. free cash flow172 275 194 (103)(22)
Total cash generation102 149 151 (47)(49)
Net debt 485 570 1,000 (85)(515)

CONSOLIDATED RESULTS ANALYSIS

In Q1 2024, Vallourec recorded revenues of €990 million, down (26%) year over year, which was also (26%) at constant exchange rates. The decrease in Group revenues reflects:

  • (32%) volume decrease mainly driven by the closure of the European rolling mills and decreased shipments in Oil & Gas Tubes in North America
  • 7% price/mix effect
  • (1%) Mine and Forest effect
  • 0.1% currency effect

In Q1 2024, EBITDA amounted to €235 million, or 23.7% of revenues, compared to €320 million (23.9% of revenues) in Q1 2023. The decrease was largely driven by lower average selling prices in Tubes in North America, offset by improved Tubes results outside of North America.

In Q1 2024, operating income was €174 million, compared to €257 million in Q1 2023.

Financial income (loss) was negative at (€20) million,compared to (€46) million in Q1 2023. Net interest expense in Q1 2024 was (€15) million compared to (€26) million in Q1 2023.

Income tax amounted to (€46) million compared to (€53) million in Q1 2023.

This resulted in positive net income, Group share, of €105 million, compared to €156 million in Q1 2023.

Earnings per diluted share was €0.43, versus €0.66 in Q1 2023, reflecting the above changes in net income as well as an increase in potentially dilutive shares largely related to the Company’s outstanding warrants, which are accounted for using the treasury share method.

RESULTS ANALYSIS BY SEGMENT

Tubes: In Q1 2024, Tubes revenues were down 26%year over year due to a 32% reduction in shipments, offset by a 9% increase in average selling price. This decrease in shipments was largely attributable to the closure of Vallourec’s German rolling operations as a result of the New Vallourec plan and decreased shipments in North America. Tubes EBITDA decreased from €279 million in Q1 2023 to €220 million Q1 2024 due to decreases in profitability in North America offset by improvements in the rest of the world.

Mine & Forest: In Q1 2024, iron ore production sold was 1.4 million tonnes, decreasing by 9% year over year. In Q1 2024, Mine & Forest EBITDA reached €30 million, versus €48 million in Q1 2023, largely reflecting lower sales volumes, lower forest revaluation effects and higher costs.

CASH FLOW AND FINANCIAL POSITION

Cash Flow Analysis

In Q1 2024, adjusted operating cash flow was €235 million versus €299 million in Q1 2023. The decrease was attributable to lower EBITDA, offset by reduced financial cash out.

Adjusted free cash flow was €172 million, versus €194 million in Q1 2023. Lower adjusted operating cash flow was partially offset by a smaller working capital build versus the prior year period.

Total cash generation in Q1 2024 was €102 million, versus €151 million in Q1 2023. The decrease was attributable to lower adjusted free cash flow as well as higher restructuring charges and non-recurring items.

Net Debt and Liquidity

As of March 31, 2024, net debt stood at €485 million, a significant decrease compared to €1,000 million on March 31, 2023. Gross debt amounted to €1,551 million including €43 million of fair value adjustment under IFRS 9. Long-term debt amounted to €1,352 million and short-term debt totaled €199 million.

As of March 31,2024, the liquidity position was very strong at €1,714 million, with cash amounting to €1,066 million, availability on our revolving credit facility (RCF) of €462 million, and availability on an asset-backed lending facility (ABL) of €186 million (d).

COMPLETION OF BALANCE SHEET REFINANCING

In April 2024, we executed a significant and holistic balance sheet refinancing that has substantially extended our debt maturities and reduced our financial costs. The key elements of this operation include:

  • Entry into a new 5-year €550 million multi-currency revolving credit facility (RCF) with a substantially diversified, global banking group
  • Entry into an upsized and extended 5-year $350 million asset-backed lending facility (ABL) in the United States
  • Issuance of 8-year $820 million 7.5% senior notes and entry into a cross-currency swap to hedge Vallourec’s currency exposure on its new senior notes with a euro-effective interest rate of approximately 5.8%
  • Redemption of the full €1,023 million of previously outstanding 8.5% Senior Notes due 2026
  • Repayment of approximately €68 million of the €262 million PGE (prêts garantis par l’Etat) during the transaction and repayment of the remaining amount by December 31, 2024.

The successful completion of this refinancing further strengthens Vallourec's financial position and sustainably improves its cash flow generation. Accordingly, the Group will benefit from both greater visibility and financial flexibility over the coming years. Vallourec estimates that this process will generate a recurring net economic benefit in a range of €30 to €35 million per year.

Furthermore, Vallourec now maintains credit ratings with all three of the major ratings agencies. Vallourec’s issuer rating with S&P, has been upgraded for the fourth time since we announced the New Vallourec plan and now stands at BB+, Outlook stable. We furthermore welcome the addition of Moody’s and Fitch, which rate Vallourec Ba2, Outlook positive and BB+, Outlook positive, respectively.

SECOND QUARTER AND FULL YEAR 2024 OUTLOOKE

In the second quarter of 2024, based on our assumptions and current market conditions, Vallourec expects:

  • Group EBITDA to moderately decline versus Q1 due to US Tubes market dynamics:
    • For the Tubes segment, increased volumes and EBITDA in our international portfolio will be more than offset by lower prices and volumes in the US
    • Iron ore production sold will be slightly higher sequentially with Mine & Forest EBITDA moving closer to the €100 million annualized run-rate
  • Net debt to decline further versus the Q1 2024 level

For the full year 2024, based on our assumptions and current market conditions, Vallourec expects:

  • Group EBITDA margin to remain strong through 2024, driven by:
    • Continued strong performance in Tubes, due to robust international Tubes pricing in backlog and further operational improvement
    • Iron ore production sold of approximately 6 million tonnes
  • Total cash generation to be positive
  • Net debt to decline meaningfully versus the Q1 2024 level

Information and Forward-Looking Statements

This press release includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “should”, “estimate”, “risk” and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, Vallourec’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Vallourec’s or any of its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if Vallourec’s or any of its affiliates’ results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks include those developed or identified in the public documents filed by Vallourec with the French Financial Markets Authority (Autorité des marches financiers, or “AMF”), including those listed in the “Risk Factors” section of the Universal Registration Document filed with the AMF on March 14, 2024, under filing number n° D. 24-0113.
Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Vallourec disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. or further information, please refer to the website https://www.vallourec.com/en .

Presentation of Q1 2024 Results

Conference call / audio webcast on May 16th at 9:30 am CET

  • Audio webcast replay and slides will be available at:

https://www.vallourec.com/en/investors

About Vallourec

Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting edge R&D open new technological frontiers. With close to 15,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.

Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.

In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.

Financial Calendar

May 23rd 2024

July 26th 2024

November 15th 2024
Annual General Meeting

Release of Second Quarter and Half Year 2024 Results

Release of Third Quarter and Nine Month 2024 results

For further information, please contact:

Investor relations
Connor Lynagh
Tel: +1 (713) 409-7842
connor.lynagh@vallourec.com
Press relations
Héloïse Rothenbühler
Tel: +33 (0)1 41 03 77 50
heloise.rothenbuhler@vallourec.com

Individual shareholders
Toll Free Number (from France): 0 805 65 10 10
actionnaires@vallourec.com

APPENDICES

The Group’s reporting currency is the euro. All amounts are expressed in millions of euros, unless otherwise specified. Certain numerical figures contained in this document, including financial information and certain operating data, have been subject to rounding adjustments.

Documents accompanying this release:

  • Tubes Sales Volume
  • Mine Sales Volume
  • Foreign Exchange Rates
  • Tubes Revenues by Geographic Region
  • Tubes Revenues by Market
  • Segment Key Performance Indicators (KPIs)
  • Summary Consolidated Income Statement
  • Summary Consolidated Balance Sheet
  • Key Cash Flow Metrics
  • Summary Consolidated Statement of Cash Flows (IFRS)
  • Indebtedness
  • Liquidity
  • Reconciliation of New Cash Metrics
  • Definitions of Non-GAAP Financial Data

Tubes Sales Volume

in thousands of tonnes20242023YoY chg.
Q1292 431 (32%)
Q2-396 -
Q3-343 -
Q4-382 -
Total292 1,552 -

Mine Sales Volume

in millions of tonnes20242023YoY chg.
Q11.4 1.5 (9%)
Q2-1.9 -
Q3-1.8 -
Q4-1.7 -
Total1.4 6.9 -

Foreign Exchange Rates

Average exchange rateQ1 2024Q4 2023Q1 2023
EUR / USD1.09 1.08 1.07
EUR / BRL5.38 5.40 5.58
USD / BRL4.95 4.99 5.19

Quarterly Tubes Revenues by Geographic Region

in € millionQ1 2024Q4 2023Q1 2023QoQ
% chg.
YoY
% chg.
North America450 548 658 (18%)(32%)
South America153 230 189 (33%)(19%)
Middle East162 212 112 (24%)45%
Europe51 57 152 (11%)(67%)
Asia68 89 54 (23%)26%
Rest of World48 61 92 (20%)(48%)
Total Tubes932 1,196 1,258 (22%)(26%)

Quarterly Tubes Revenues by Market

in € millionQ1 2024Q4 2023Q1 2023QoQ
% chg.
YoY
% chg.
YoY % chg. at Const. FX
Oil & Gas and Petrochemicals762 1,017 1,021 (25%)(25%)(25%)
Industry119 112 214 6% (44%)(46%)
Other51 67 23 (24%)125% 133%
Total Tubes932 1,196 1,258 (22%)(26%)(26%)

Quarterly Segment KPIs

Q1 2024Q4 2023Q1 2023QoQ chg.YoY chg.
Tubes







Volume sold*292 382 431 (23%)(32%)
Revenue (€m)932 1,196 1,258 (22%)(26%)
Average Selling Price (€)3,189 3,130 2,919 2% 9%
EBITDA (€m)220 249 279 (12%)(21%)
Capex (€m)46 33 45 38% 3%
Mine & Forest





Volume sold*1.4 1.7 1.5 (21%)(9%)
Revenue (€m)80 101 93 (21%)(14%)
EBITDA (€m)30 43 48 (29%)(37%)
Capex (€m)9 7 7 18% 14%
H&O

Revenue (€m)45 53 46 (15%)(3%)
EBITDA (€m)(13)(12)(5)10% nm
Int.

Revenue (€m)(67)(73)(59)(9%)13%
EBITDA (€m)(2)1 (3)nmnm
Total



Revenue (€m)990 1,276 1,338 (22%)(26%)
EBITDA (€m)235 280 320 (16%)(27%)
Capex (€m)56 42 53 31% 5%
* Volume sold in thousand tonnes for Tubes and in million tonnes for Mine
H&O = Holding & Other, Int. = Intersegment Transactions
nm = not meaningful

Quarterly Summary Consolidated Income Statement

€ million, unless notedQ1 2024Q4 2023Q1 2023QoQ chg.YoY chg.
Revenues990 1,276 1,338 (286)(348)
Cost of sales(669)(886)(926)216 257
Industrial margin321 390 412 (70)(91)
(as a % of revenue)32.4% 30.6% 30.8% 1.8 pp1.6 pp
Selling, general and administrative expenses(87)(86)(79)(1)(8)
(as a % of revenue)(8.8%)(6.7%)(5.9%)(2.1) pp(2.9) pp
Other1 (24)(13)25 14
EBITDA235 280 320 (45)(85)
(as a % of revenue)23.7% 22.0% 23.9% 1.8 pp(0.2) pp
Depreciation of industrial assets(45)(40)(40)(5)(5)
Amortization and other depreciation(8)(10)(10)2 2
Impairment of assets3 153 (150)3
Asset disposals, restructuring costs and non-recurring items(11)(185)(13)174 2
Operating income (loss)174 198 257 (25)(84)
Financial income (loss)(20)26 (46)(46)26
Pre-tax income (loss)154 224 211 (70)(57)
Income tax(46)(102)(53)55 7
Share in net income (loss) of equity affiliates1 (0)(1)1 2
Net income108 122 157 (14)(49)
Attributable to non-controlling interests3 17 1 (13)2
Net income, Group share105 105 156 0 (51)
Basic earnings per share (€)0.46 0.46 0.67 0.00 (0.22)
Diluted earnings per share (€)0.43 0.44 0.66 (0.01)(0.23)
Basic shares outstanding (millions)230 229 232 0 (2)
Diluted shares outstanding (millions)244 240 237 4 7

Summary Consolidated Balance Sheet

In € million
Assets 31-Mar-24 31-Dec-23 Liabilities 31-Mar-24 31-Dec-23
Equity - Group share2,307 2,157
Net intangible assets 40 42 Non-controlling interests 71 67
Goodwill 40 40 Total equity 2,378 2,224
Net property, plant and equipment1,974 1,980 Bank loans and other borrowings (A)1,352 1,348
Biological assets66 70 Lease debt37 40
Equity affiliates 17 16 Employee benefit commitments 91 102
Other non-current assets 171 159 Deferred taxes 83 83
Deferred taxes 208 209 Provisions and other long-term liabilities 323 317
Total non-current assets 2,516 2,516 Total non-current liabilities 1,885 1,890
Inventories 1,319 1,242 Provisions 185 249
Trade and other receivables697 756 Overdraft & other short-term borrowings (B)199 122
Derivatives - assets18 47 Lease debt16 17
Other current assets 263 251 Trade payables 832 763
Cash and cash equivalents (C)

1,066

900

Derivatives - liabilities71 79
Other current liabilities 314 369
Total current assets 3,364 3,196 Total current liabilities 1,617 1,599
Assets held for sale and discontinued operations 1 1 Liabilities held for sale and discontinued operations
Total assets 5,881 5,713 Total equity and liabilities 5,881 5,713
Net financial debt (A+B-C)485 570 Net income (loss), Group share105 496

Quarterly Key Cash Flow Metrics

In € million Q1 2024Q4 2023Q1 2023QoQ chg.YoY chg.
EBITDA235 280 320 (45)(85)
Non-cash items in EBITDA10 (1)13 11 (3)
Financial cash out5 (1)(18)6 23
Tax payments(15)(52)(16)37 1
Adjusted operating cash flow235 226 299 9 (64)
Change in working capital(7)92 (52)(99)45
Gross capital expenditure(56)(43)(53)(13)(3)
Adjusted free cash flow172 275 194 (103)(22)
Restructuring charges & non-recurring items(67)(193)(47)126 (20)
Asset disposals & other cash items(3)67 4 (70)(7)
Total cash generation102 149 151 (47)(49)
Non-cash adjustments to net debt(17)22 (21)(39)4
(Increase) decrease in net debt85 171 130 (86)(45)

Summary Consolidated Statement of Cash Flows (IFRS)

In € millionQ1 2024Q1 2023YoY chg.
Consolidated net income (loss)108 157 (49)
Net additions to depreciation, amortization and provisions 0 32 (32)
Unrealized gains and losses on changes in fair value 13 7 6
Capital gains and losses on disposals (7)(2)(5)
Share in income (loss) of equity-accounted companies (1)1 (1)
Other cash flows from operating activities(0)(0)
Cash flow from (used in) operating activities after cost of net debt and taxes 114 195 (81)
Cost of net debt15 26 (11)
Tax expense (including deferred taxes) 46 53 (7)
Cash flow from (used in) operating activities before costs of net debt and taxes 175 274 (99)
Interest paid (7)(10)3
Tax paid (15)(16)1
Interest received 10 2 8
Other cash flow on financial income5 5
Cash flow from (used in) operating activities 168 250 (82)
Change in operating working capital in the statement of cash flows(7)(52)45
Net cash flow from (used in) operating activies (A) 161 198 (37)
Acquisitions of property, plant and equipment and intangible assets (56)(53)(3)
Disposals of property, plant and equipment and intangible assets 12 10 2
Impact of acquisitions (changes in consolidation scope)(0)(0)0
Impact of disposals (changes in consolidation scope)
Other cash flow from investing activities 0 0 0
Net cash flow from (used in) investing activities (B)(44)(43)(0)
Increase or decrease in equity attributable to owners2 (2)
Dividends paid to non-controlling interests (1)(2)2
Proceeds from new borrowings 63 195 (132)
Repayment of borrowings (5)(0)(4)
Repayment of lease liabilities(6)(6)0
Other cash flow used in financing activities (9)1 (10)
Net cash flow from (used in) financing activites (C)44 190 (146)
Impact of changes in exchange rates (D)6 (1)8
Impact of reclassification to assets held for sale and discontinued operations (E)
Change in net cash (A+B+C+D+E)167 343 (176)
Opening net cash 898 547
Closing net cash 1,065 889

Indebtedness

In € million31-Mar-24 31-Dec-23
8.500% Bonds due 20261,098 1,105
1.837% PGE due 2027231 229
ACC ACE (a)117 94
Other106 42
Total gross financial indebtedness1,551 1,470
Cash and cash equivalents1,066 900
Total net financial indebtedness485 570

(a)   Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil


Liquidity

In € million31-Mar-24 31-Dec-23
Cash and cash equivalents1,066 900
Available RCF462 462
Available ABL (a)186 177
Total liquidity1,714 1,539

(a)   This $210m committed ABL is subject to a borrowing base calculation based on eligible accounts receivable and inventories, among other items. The borrowing base is currently approximately $201m. Availability is shown net of approximately $9m of letters of credit and other items.

DEFINITIONS OF NON-GAAP FINANCIAL DATA

Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross capital expenditure.

Adjusted operating cash flow is defined as EBITDA adjusted for non-cash benefits and expenses, financial cash out and tax payments.

Asset disposals and other cash items includes cash inflows from asset sales as well as other investing and financing cash flows.

Change in working capital refers to the change in the operating working capital requirement.

Data at constant exchange rates: The data presented “at constant exchange rates” is calculated by eliminating the translation effect into euros for the revenue of the Group’s entities whose functional currency is not the euro. The translation effect is eliminated by applying Year N-1 exchange rates to Year N revenue of the contemplated entities.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization is calculated by taking operating income (loss) before depreciation and amortization, and excluding certain operating revenues and expenses that are unusual in nature or occur rarely, such as:

  • impairment of goodwill and non-current assets as determined within the scope of impairment tests carried out in accordance with IAS 36;
  • significant restructuring expenses, particularly resulting from headcount reorganization measures, in respect of major events or decisions;
  • capital gains or losses on disposals;
  • income and expenses resulting from major litigation, significant roll-outs or capital transactions (e.g., costs of integrating a new activity).

Financial cash out includes interest payments on financial and lease debt, interest income and other financial costs.

Free cash flow, as previously defined, may continue to be derived as follows: total cash generation - asset disposals & other cash items. This is also defined as EBITDA adjusted for changes in provisions, less interest and tax payments, changes in working capital, less gross capital expenditures, and less restructuring/other cash outflows.

Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets.

(Increase) decrease in net debt (alternatively, “change in net debt”) is defined as total cash generation +/- non-cash adjustments to net debt.

Industrial margin: The industrial margin is defined as the difference between revenue and cost of sales (i.e. after allocation of industrial variable costs and industrial fixed costs), before depreciation.

Lease debt is defined as the present value of unavoidable future lease payments.

Net debt: Consolidated net debt (or “net financial debt”) is defined as bank loans and other borrowings plus overdrafts and other short-term borrowings minus cash and cash equivalents. Net debt excludes lease debt.

Net working capital requirement is defined as working capital requirement net of provisions for inventories and trade receivables; net working capital requirement days are computed on an annualized quarterly sales basis.

Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items.

Non-cash items in EBITDA includes provisions and other non-cash items in EBITDA.

Operating working capital requirement includes working capital requirement as well as other receivables and payables.

Restructuring charges and non-recurring items consists primarily of the cash costs of executing the New Vallourec plan, including severance costs and other facility closure costs.

Total cash generation is defined as adjusted free cash flow +/- restructuring charges and non-recurring items and asset disposals & other cash items. It corresponds to net cash used in operating activities +/- gross capital expenditure and asset disposals & other cash items.

Working capital requirement is defined as trade receivables plus inventories minus trade payables (excluding provisions).


a Vallourec’s dividend policy would in any event be conditional upon the Board’s decision taking into account Vallourec’s results, its financial position including the deleveraging target and the potential restrictions applicable to the payment of dividends. Dividends and share repurchases would also be subject to shareholders’ approval.
b In all cases, total cash generation and net debt guidance excludes the potential positive impact of major asset sales. See further details regarding the second quarter and full year 2024 outlook at the end of this press release.
c Vallourec’s dividend policy would in any event be conditional upon the Board’s decision taking into account Vallourec’s results, its financial position including the deleveraging target and the potential restrictions applicable to the payment of dividends. Dividends and share repurchases would also be subject to shareholders’ approval
d As of March 31, 2024, the borrowing base for this facility was approximately $201 million, and $9 million in letters of credit and other commitments were issued.
e In all cases, total cash generation and net debt guidance excludes the potential positive impact of major asset sales.

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Hexagon Purus and Hino Trucks Introduce Tern: A Pioneering Electric Heavy-Duty Truck20.5.2024 07:00:00 CEST | Press release

Las Vegas, NV, May 20, 2024 – Today at the Advanced Clean Transportation (ACT) Expo, Hexagon Purus in partnership with Hino Trucks, proudly announces the launch of Tern, a dedicated zero-emission truck brand along with their inaugural vehicle model, the RC8, a groundbreaking battery electric Class 8 tractor tailored for the U.S. market. This innovative semi-tractor leverages Hexagon Purus' years of development of zero-emission drivetrains for heavy-duty trucks and represents a driver-preferred option for fleets that are electrifying practical routes. A product of the new long-term agreement between Hexagon Purus and Hino Trucks, valued at up to approximately $2 billion, Tern is designed to deliver a seamless transition to electrification for the U.S. commercial vehicle sector. Manufactured in Hexagon Purus' new facility in Dallas, Texas, the Tern RC8 is scheduled for serial production in late 2024. Built on Hino's proven XL Series 4x2 chassis and equipped with Hexagon Purus' cutting-ed

Udstedelse af RSU program18.5.2024 11:34:18 CEST | pressemeddelelse

I overensstemmelse med bemyndigelsen fra generalforsamlingen den 18. april 2024 har bestyrelsen i dag indført et incitamentsprogram for selskabets bestyrelse. Incitamentetprogrammet er designet og struktureret omkring konceptet med at fastholde medlemmer af bestyrelsen samtidig med at der skabes incitament til en positiv aktiekursudvikling og virksomhedens resultater til gavn for selskabets aktionærer. Incitamentsprogrammet inkluderer Restricted Share Units ("RSU'er"), som giver ret til at deltagerne tildeles et antal aktier svarende til antallet af optjente RSU'er mod betaling af udnyttelseskursen. Programmet er underlagt en række betingelser som deltagerne skal overholde og som betyder at selskabet maksimalt vil skulle udstede 2.025 aktier til kurs 1.056 DKK forudsat at alle betingelser overholdes samt at den enkelte vælger at udnytte sine RSUér. Den beregnede værdi af programmet til den samlede bestyrelse ved brug af Black & Scholes er opgjort til DKK 350.146. Vestingkursen er bereg

Constellation Brands Announces Updated Time of Presentation at the Bernstein 40th Annual Strategic Decisions Conference on Wednesday, May 29, 202418.5.2024 01:05:50 CEST | Press release

VICTOR, N.Y., May 17, 2024 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announces an updated time that Bill Newlands, President and Chief Executive Officer, and Garth Hankinson, Executive Vice President and Chief Financial Officer, will participate in a previously announced fireside chat at the Bernstein 40th Annual Strategic Decisions Conference on Wednesday, May 29, 2024 in New York, NY. The presentation is scheduled to begin at 4:30 p.m. EDT and is expected to cover the company’s strategic business initiatives, financial metrics, and operating performance, as well as outlook for the future. A live, listen-only webcast of the presentation will be available on the company’s investor relations website at ir.cbrands.com under the News&Events section. When the presentation begins, financial information discussed in the presentation, and a reconciliation of reported GAAP financial measures with comparable and other non- GAAP financial mea

DBV Technologies Announces Plan to Implement ADS Ratio Change17.5.2024 22:30:00 CEST | Press release

Châtillon, France, May 17, 2024 DBV Technologies Announces Plan to Implement ADS Ratio Change DBV Technologies (Euronext: DBV – ISIN: FR0010417345 – Nasdaq Stock Market: DBVT—CUSIP: 23306J101), a clinical-stage biopharmaceutical company focused on treatment options for food allergies and other immunologic conditions with significant unmet medical need, today announced plans to change the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares (the “ADS Ratio”), nominal value €0.10 (ten cents) per share, from the current ADS Ratio of one (1) ADS to one-half (1/2) of one (1) ordinary share to a new ADS Ratio of one (1) ADS to one (1) ordinary share (the “ADS Ratio Change”). The Company anticipates that the ADS Ratio Change will be effective on or about June 3rd, 2024 (the “Effective Date”). For the Company’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-two reverse ADS split and is intended to enable the Company to regain compliance with

Oculis updates share capital for its existing at-the-market offering program17.5.2024 22:30:00 CEST | Press release

ZUG, May 17, 2024 (GLOBE NEWSWIRE) -- Oculis Holding AG (Nasdaq: OCS; XICE: OCS) (“Oculis” or the “Company”), a global biopharmaceutical company, has issued registered ordinary shares of the Company, each with a nominal value of CHF 0.01, issued out of existing capital band (Kapitalband), for an aggregate of 1,000,000 ordinary shares of the Company (the "New Shares"), recorded as treasury shares. The number of registered shares issued by the Company as per its Articles of Association is 46,443,700, of which 41.7 million shares are outstanding. The New Shares were issued following the Company and Leerink Partners LLC (”Leerink Partners”) entering into a sales agreement (the "Sales Agreement") with respect to an at-the-market offering program on May 8, 2024 under which the Company may offer and sell, from time to time at its sole discretion, ordinary shares of the Company having an aggregate offering price of up to $100 million through Leerink Partners as its sales agent. The Company is

HiddenA line styled icon from Orion Icon Library.Eye