Toll Brothers Announces Grand Opening of Travisso – Verona Collection in Leander, Texas
LEANDER, Texas, Nov. 14, 2024 (GLOBE NEWSWIRE) — Toll Brothers, Inc. TOL, the nation’s leading builder of luxury homes, announced the grand opening of its newest collection of homes, Travisso – Verona Collection, in the master-planned community of Travisso in Leander, Texas. The stunning new model home is now open at 4912 Carsoli Lane in Leander, showcasing the distinctive designs and exquisite craftsmanship that define Toll Brothers homes in this award-winning master plan.
“The new Verona model home exemplifies the luxury and quality that home buyers will find in this new collection of homes at Travisso,” said Brandon Cooper, Division President of Toll Brothers in Austin. “We are thrilled to offer home buyers the opportunity to explore this beautiful community and discover the exceptional lifestyle it provides.”
Travisso – Verona Collection offers luxury single-family homes on expansive 100-foot home sites, the largest home sites offered in Travisso, with home designs ranging from 3,991 to over 6,021 square feet. The community features Hill Country, Mediterranean, Modern Farmhouse, and Transitional exterior architectural styles. Homes in this collection are priced from $1.3 million.
Surrounded by the rolling countryside and open vistas of the Texas Hill Country, Travisso provides a serene and picturesque setting while being conveniently located minutes from major employers and everyday conveniences. Residents can take advantage of superior schools, excellent shopping and dining, and a wide choice of cultural events close to home.
The Palazzo Clubhouse at Travisso, awarded Best Community Clubhouse by the Texas Association of Builders, includes a sprawling pavilion with views of the Texas Hill Country, a resort-style pool with children’s splash pad, state-of-the-art fitness center, playground, fire pit, pickleball courts, tennis courts, and more. Travisso was also honored to win the Best Community Amenities award from the Austin-American Statesman. In addition, Travisso boasts a full-time Lifestyle Director who curates events year-round for residents to gather and get to know their neighbors.
Home buyers will experience one-stop shopping at the Toll Brothers Design Studio. The state-of-the-art Design Studio allows home buyers to choose from a wide array of selections to personalize their dream home with the assistance of Toll Brothers professional Design Consultants.
The new Verona Collection model home at Travisso will be featured in the upcoming Parade of Homes hosted by the Home Builders Association of Greater Austin. For more information on Travisso – Verona Collection, or to request an appointment to learn more about the community and homes for sale, call (833) 405-8655 or visit TollBrothers.com/Austin.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 57 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.
In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World’s Most Admired Companies™ list and the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
From Fortune, ©2024 Fortune Media IP Limited. All rights reserved. Used under license.
Contact: Andrea Meck | Toll Brothers, Director, Public Relations & Social Media | 215-938-8169 | ameck@tollbrothers.com
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/17dadd83-3d58-415f-aee2-7939abd72340
https://www.globenewswire.com/NewsRoom/AttachmentNg/ad5c1400-21c5-4720-9d73-52a8d93d1253
Sent by Toll Brothers via Regional Globe Newswire (TOLL-REG)
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Earnings Scheduled For November 15, 2024
Companies Reporting Before The Bell
• Sigma Lithium SGML is projected to report quarterly earnings at $0.09 per share on revenue of $72.08 million.
• Trinity Biotech TRIB is projected to report quarterly loss at $0.54 per share on revenue of $16.50 million.
• Digihost Technology DGHI is projected to report quarterly loss at $0.13 per share on revenue of $9.90 million.
• Aegon AEG is projected to report earnings for its third quarter.
• Bio-Path Hldgs BPTH is expected to report earnings for its third quarter.
• WiSA Technologies WISA is likely to report quarterly loss at $0.68 per share on revenue of $1.00 million.
• AIM ImmunoTech AIM is likely to report quarterly loss at $0.10 per share on revenue of $20 thousand.
• Nexxen International NEXN is likely to report quarterly earnings at $0.10 per share on revenue of $87.84 million.
• RLX Technology RLX is expected to report quarterly earnings at $0.03 per share on revenue of $105.08 million.
• Alibaba Gr Hldgs BABA is projected to report quarterly earnings at $2.10 per share on revenue of $33.95 billion.
• Spectrum Brands Holdings SPB is estimated to report quarterly earnings at $1.02 per share on revenue of $746.54 million.
Companies Reporting After The Bell
• Neurogene NGNE is likely to report earnings for its third quarter.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bitcoin Is Like Gunpowder And That Is Why Sovereign States Can't Refuse Its Adoption, Says Crypto Analyst
In a unique perspective, a cryptocurrency analyst equated Bitcoin BTC/USD to gunpowder, arguing that sooner or later sovereign nations would be compelled to adopt the leading cryptocurrency.
What Happened: Matt Huang, CEO of cryptocurrency-focused investment firm Paradigm, penned a blog post Thursday, highlighting Bitcoin’s growing prominence.
Huang argued that like gunpowder became indispensable after its discovery, the same would eventually pan out for emerging technologies like artificial intelligence, drones, and Bitcoin.
“Sovereigns can no longer afford to dismiss BTC. From a game theoretic perspective, BTC is like gunpowder, not the iPhone. Christopher,” the analyst remarked.
Huang highlighted how calls for the establishment of a Bitcoin strategic reserve have intensified since Donald Trump’s presidential victory, suggesting the opening of the Overton window for Bitcoin acceptance in America.
“Sovereigns that build BTC reserves early will benefit from significantly better entry prices. The race to build BTC reserves is on.”
Why It Matters: The Republican side vigorously promoted the idea of a Bitcoin reserve leading up to the elections, with none other than President-elect Trump vowing to establish one if voted to power.
A few days later, Senator Cynthia Lummis (R-Wyo.) proposed a bill, called the BITCOIN Act, aimed at creating a strategic Bitcoin stockpile to support America’s balance sheet.
The senator reiterated her pledge following the Republican Party’s electoral triumph last week, as Polymarket odds showed a 35% probability of this happening.
Moreover, emboldened by broader support, Pennsylvania introduced the Bitcoin Strategic Reserve Act, hoping to build its own state-held Bitcoin reserve.
Price Action: At the time of writing, Bitcoin was trading at $87,824.55, down 2.35% in the last 24 hours, according to data from Benzinga Pro
Read Next:
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Samsung Stock Rises Most in Nearly Four Years on Valuation Draw
(Bloomberg) — Samsung Electronics Co. shares are having their best day since January 2021, as perceptions grow that the South Korean tech company is starting to look like a bargain after a multi-month slump.
Most Read from Bloomberg
The world’s largest maker of memory chips and smartphones saw its stock surge as much as 8.6% Friday, snapping a five-day losing streak.
Despite the latest rally, Samsung remains down nearly 32% this year, pressured by worries over it missing out in the artificial intelligence boom and lately, the risk of falling victim to Donald Trump’s protectionist trade policy. With some traders attributing Friday’s surge to technical factors, it remains to be seen whether the gains will be sustainable.
Samsung’s share price increase is a “technical rebound from below 50,000 won ($35.70),” a move that is positive for investor sentiment, said Daiwa Securities analyst SK Kim.
Shares of South Korea’s biggest firm were at 53,800 won in mid-afternoon trade. The 50,000-won mark is a key psychological support level for the country’s retail investors.
The stock is trading at a discount of more than 10% to the consensus estimate for its one-year forward accounting book value, according to data compiled by Bloomberg.
Some investors remain cautious about the outlook.
“A lower valuation is justified given trade risks around Korea and also the catch-up in HBM, which will take time, and a weak memory environment,” said Sat Duhra, a fund manager at Janus Henderson Group, referring to high bandwidth memory. “There are better tech stocks to own here – most of them are in Taiwan.”
–With assistance from Abhishek Vishnoi and Winnie Hsu.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Stock Futures Slide as Fed Easing Bets Trimmed: Markets Wrap
(Bloomberg) — US and European equity futures fell after Jerome Powell indicated the Federal Reserve was in no rush to cut interest rates.
Most Read from Bloomberg
Contracts for the Euro Stoxx 50 Index were down 0.7%, while those for the S&P 500 extended losses after the benchmark closed 0.6% lower in the US. The moves contrast gains in Asia, where MSCI’s regional index headed for its first gain this week following signs of resilience in China’s economy.
A gauge of the dollar was set to rise more than 1.4% for the week despite edging lower on Friday. The greenback has rallied in the wake of Donald Trump’s election win, and the latest boost came from Chair Powell’s comments that the Fed may take its time easing policy. More clarity on the Fed’s path could emerge later Friday as the US releases retail sales data and a host of Fed officials are set to speak.
“Admittedly the US dollar is pricing in a lot of Trump policy without timing or implementation detail, meaning it’s more about embracing a sweeping ‘narrative’,” said Richard Franulovich, head of FX strategy at Westpac Banking Corp. in Sydney. “Markets risk over-egging this story. The rise in the US dollar and US yields is creating fresh restraint, tariffs might be imposed via Congressional legislation which can have a moderating impact, and the first-order hit could fall more on profit margins than final prices.”
US two-year yields steadied after surging in the previous session as traders pared back their expectations for an interest-rate cut in December. The yen reversed its losses after Japan’s Finance Minister Katsunobu Kato said authorities are monitoring the forex market.
In Asia, a closely-watched monthly activity report from China showed retail sales expanded at the strongest pace in eight months and property prices fell at a slower pace. The CSI 300 Index, a benchmark for onshore shares, fell despite the upbeat data. Focus is also on Alibaba Group Holding Ltd.’s earnings later Friday after another Chinese consumption bellwether JD.com Inc posted a moderate expansion in revenue.
China’s retail sales were “pretty good,” and a result of the central bank’s stimulus policy in late September, according to Jason Chan, senior investment strategist for Bank of East Asia. ““Fiscal stimulus is on the way, probably more details would be announced in December.”
Desert Control Releases Q3 2024 Report and Year-to-Date Company Update
SANDNES, Norway, Nov. 15, 2024 /PRNewswire/ — Desert Control AS (DSRT) announces its third-quarter report and interim financial results for the fiscal period ending 30 September 2024.
Desert Control continued its positive momentum in the third quarter of 2024, achieving milestones in market expansion, pilot progress, and initiation of licensing revenues in the Middle East. The quarter saw strong results from pilots in agriculture and landscaping, supporting negotiations for larger commercial projects in the United States. Growing traction in the Middle East further strengthens the foundation for sustainable growth under the company’s royalty-based licensed operator model.
Operational Highlights:
Solid Pilot Results Strengthen Validation and Support Negotiations for Larger Contracts in the United States
- Landscaping Success in the U.S.: Landscaping pilots in California achieved over 25% irrigation savings, with some clients reporting water reductions exceeding 50%. These results drive negotiations for larger contracts as high water costs continue to rise.
- First Contract for a Complete Golf Course: On November 8th, Desert Control signed an agreement with Berkeley Country Club with potential value exceeding NOK 6 million, marking the first commitment for full-course LNC deployment in the U.S.
- Agricultural Gains: Harvest data from an LNC-treated date farm in Arizona showed nearly double the yield, underscoring LNC’s economic impact on high-value permanent crops and supporting Desert Control’s agricultural market expansion.
First Licensing Royalties from the Middle East
- Revenue Milestone: Desert Control recorded its first licensing royalties from the Middle East. While modest, this revenue marks the beginning of a scalable revenue stream following the strategic shift to a royalty-based licensed operator model for the region.
- New Contracts and Expanding Pilots: A new contract for 1.8 million liters of LNC was secured for a UAE real estate project. Landscape nursery pilots in the UAE and Saudi Arabia demonstrate LNC’s effectiveness in the growing sustainable landscape management sector.
R&D and Technology Advancements Strengthen Delivery Capabilities for Current and Future Pipeline
- Syngenta Partnership Accelerates R&D: Collaboration with Syngenta has shown promising lab results of synergies with LNC. Field trials in the Middle East, set for Q4 2024, aim to further validate the impact on soil health, crop yields, and water efficiency.
- Next-Gen Production System Progress: Development of the next-generation LNC production system is on track, with capacity nearing 120,000 liters per hour. Achieving this targeted capacity will unlock large-scale opportunities that require high volumes within short time windows, enabling projects previously out of reach.
Financial Highlights:
In the first nine months of 2024, Desert Control reached a record number of installations, increased LNC deployment volumes, and more than doubled LNC revenue compared to the previous year. These achievements highlight enhanced operational efficiency driven by the new prototype LNC production system, streamlined integration with irrigation systems, and insights gained from pilots and prior projects.
- Revenue Increase: Year-to-date LNC revenue totaled NOK 1.88 million, more than doubling from the same period in 2023. Total revenue and other income for Q3 2024 was NOK 0.18 million, up from NOK 0.01 million in Q3 2023.
- EBITDA Improvement: For the first nine months of 2024, EBITDA improved to NOK -44.95 million from NOK -60.81 million in the same period last year. Q3 2024 EBITDA was NOK -14.16 million, an improvement from NOK -17.9 million in Q3 2023, driven by efficiencies from transitioning to the licensed operator model.
- Cash Position: The company ended the quarter with a cash balance of NOK 75 million, compared to NOK 35 million at the same time last year. The company continues to operate with no interest-bearing debt.
The growth in project volume and LNC deployment, combined with improved EBITDA figures, underscores the enhanced efficiency of operations. The ability to handle larger volumes at a reduced cost base positions Desert Control to maintain healthy margins as the company scales up.
Outlook:
With solid progress in the U.S. and Middle East, Desert Control is positioned to transition pilot projects into larger contracts and expand LNC adoption. The upcoming readiness of the next-generation LNC production system and strengthened R&D partnerships underscore the company’s commitment to scalable, sustainable solutions for soil health and water conservation globally.
Key Figures (in MNOK):
First nine months 2024 [first nine months 2023 in brackets]
- LNC Revenue: 1.88 [0.85]
- Licensing Royalties 0.07 [0.00]
- Total Revenue and Other Income: 1.95 [1.38]
- EBITDA: -44.95 [-60.81]
Third quarter 2024 [third quarter 2023 in brackets]
- LNC Revenue: 0.11 [0.00]
- Licensing Royalties 0.07 [0.00]
- Total Revenue and Other Income: 0.18 [0.01]
- EBITDA: -14.16 [-17.90]
Total cash balance 30.09.24 (bank deposits and funds): 75 [35]
Equity 30.09.24: 86.3 (equity ratio 95.4%) [52.5 (60.0%)]
Q3 Report 2024:
- The information enclosed is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act.
- The report can be downloaded from the company webpage: https://desertcontrol.com/investors/
- A webcast presentation for Desert Control Q3 2024 Report and Company Update is hosted on 15 November 2024 at 10.00 AM, Central European Time (CET). Register: https://go.desertcontrol.com/Q3-2024
Cautionary Note:
Disclaimer related to forward-looking statements. This release contains forward-looking information and statements relating to the business, performance, and items that may be interpreted to impact the results of Desert Control and/or the industry and markets in which Desert Control operates.
Forward-looking statements are statements that are not historical facts and may be identified by words such as “aims,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “predicts,” “projects,” “targets,” and similar expressions. Such forward-looking statements are based on current expectations, estimates, and projections, reflect current views concerning future events, and are subject to risks, uncertainties, and assumptions, and may be subject to change without notice. Forward-looking statements are not guarantees of any future performance, and risks, uncertainties, and other important factors could cause the actual business, performance, results, or the industry and markets in which Desert Control operates to differ materially from the statements expressed or implied in this release by such forward-looking statements.
No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecasted performance, capacities, or results will be achieved, and you are cautioned not to place any undue reliance on any forward-looking statements.
For more information, please contact:
Ole Kristian Sivertsen
President and Group CEO
Email: oks@desertcontrol.com
Mobile (NOR): +47 957 77 777
Mobile (USA): +1 650 643 6136
Leonard Chaparian
Chief Financial Officer
Email: leonard.chaparian@desertcontrol.com
Mobile (NOR): +47 90 66 55 40
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
View original content:https://www.prnewswire.com/news-releases/desert-control-releases-q3-2024-report-and-year-to-date-company-update-302306746.html
SOURCE Desert Control AS
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Billionaire David Tepper's China Puzzle: Appaloosa Cuts Alibaba Stake While Doubling Down On PDD
Billionaire investor David Tepper‘s Appaloosa Management reduced its stake in Alibaba Group Holding Ltd BABA by 5% in the third quarter, despite his recent public enthusiasm for Chinese investments, according to regulatory filings released Thursday.
What Happened: The reduction comes just months after Tepper declared that he would buy “everything” China-related amid Beijing’s stimulus efforts. Despite the trim, Alibaba remains Appaloosa’s largest holding, representing 15.75% of its $6.7 billion equity portfolio.
The hedge fund’s third-quarter moves reveal a complex strategy toward Chinese investments. While reducing positions in the iShares China Large-Cap ETF FXI, KraneShares CSI China Internet ETF KWEB, and Baidu Inc BIDU, Tepper more than doubled his stake in PDD Holdings Inc PDD and increased positions in JD.Com Inc JD and KE Holdings Inc BEKE.
The filing also revealed significant reductions in major U.S. technology holdings. Appaloosa sold 275,000 shares of Amazon.com Inc AMZN, representing an 8.59% reduction while cutting its Microsoft Corp MSFT position by 211,356 shares, or 21.89%. The fund also reduced its stake in Meta Platforms Inc META by 310,000 shares, a 49.6% decrease, and trimmed its position in Alphabet Inc Class C GOOG.
Why It Matters: Overall, Tepper’s exposure to Chinese stocks and ETFs increased to 38% of his equity portfolio in the third quarter, up from 26% in the previous quarter. This positions him, alongside Scion Asset Management‘s Michael Burry, as one of the few prominent hedge fund managers maintaining significant Chinese market exposure.
These portfolio adjustments come as Chinese stocks face headwinds from disappointing fiscal policies and persistent economic challenges, including weak consumer spending and an unstable property market. Market observers note that geopolitical tensions and potential tariff increases add further uncertainty to the investment landscape.
The details of these transactions were disclosed in a Form 13F filing, a quarterly report required by the Securities and Exchange Commission for institutional investment managers overseeing more than $100 million in qualifying securities.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Vallourec Third Quarter 2024 Results
Meudon (France), November 15th, 2024
Vallourec, a world leader in premium tubular solutions, announces today its results for the third quarter 2024. The Board of Directors of Vallourec SA, meeting on November 14th 2024, approved the Group’s third quarter 2024 Consolidated Financial Statements.
Third Quarter 2024 Results
- Q3 EBITDA of €168m, EBITDA margin remained strong at 19%
- Very strong total cash generation, with €130 million in Q3
- Net debt now €240 million, marking eighth consecutive quarter of deleveraging
- Group full year EBITDA guidance of €800 – €850 million confirmed; Q4 EBITDA to increase sequentially
- Vallourec confirms total cash generation in Q3 and future periods will be subject to its 80 – 100% payout ratio
- Vallourec plans to announce dividend proposal for 2025 AGM with Full Year 2024 results communicationa
HIGHLIGHTS
Third Quarter 2024 Results
- Group EBITDA of €168 million, down 22% QoQ as anticipated; EBITDA margin remained strong at 19%
- Tubes EBITDA per tonne of €556 was down (7%) sequentially and only (1%) year over year due to lower US OCTG prices, offset by robust international OCTG prices and cost savings
- Mine & Forest EBITDA of €22 million, up 43% sequentially due to improved cost performance and down (44%) year over year due to lower realized prices and volumes
- Adjusted free cash flow of €183 million; total cash generation of €130 million
- Further deleveraging during the quarter: net debt declined €124 million sequentially to €240 million
Fourth Quarter 2024 Outlookb
- Group EBITDA to increase versus Q3:
- In Tubes, volumes will increase sequentially driven by higher deliveries for both US and international markets
- In Mine & Forest, iron ore production sold will decline sequentially due to rainy season impact and soft export market conditions
- Net debt to be broadly stable versus Q3 2024, driven by sequentially higher EBITDA offset by sequentially higher capex, increased restructuring charges & non-recurring items, and higher financial cash out
Full Year 2024 Outlook
- Confirm full year Group EBITDA will range between €800 and €850 million
- Confirm second half total cash generation will be positive
- Confirm net debt will decline versus the Q2 2024 level in H2 2024
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
“Our third-quarter results were driven by healthy profitability in international OCTG markets, despite the anticipated weakness in the US OCTG market. In this context, the Group has proven its ability to control its costs, manage its working capital and ultimately to generate significant cash flow. This marks the Group’s eighth consecutive quarter of deleveraging which ended with the exit from the safeguard plan implemented in 2021.
“Over the quarter, Vallourec has once again demonstrated its role as a key partner for offshore developments. Thanks to its unique offering of premium seamless tubes, accessories and associated services, Vallourec has secured a major contract with Petrobras for the technically-sophisticated Sepia 2 and Atapu 2 projects. Elsewhere in the deepwater market, the Group will be a key supplier for the development of TotalEnergies’ Kaminho deepwater project in Angola. We also announced an addition to our premium offshore product offering via the acquisition of Thermotite do Brasil (TdB). This transaction will add to our coating capabilities in our Project Line Pipe (PLP) business by allowing Vallourec to provide premium thermal insulation solutions for some of the most challenging offshore projects.
“Looking ahead, we continue to see strong demand across offshore and onshore international markets, with opportunities stemming from a large variety of geographies and customers. Market pricing therefore remains robust as premium tube mills are well-utilized. Meanwhile, after several quarters of negative market dynamics, the US OCTG market has improved recently. We have seen a notable uptick in demand from our core US customers, suggesting inventory levels across the industry have normalized. On the supply side, OCTG imports have decreased over the past several months and recent trade actions to preserve fair competition in the US will support domestic suppliers like Vallourec. As a result, market sources have reported an increase in spot pricing in both September and October.
“For 2024, we reiterate our full-year expectation of EBITDA ranging between €800 and €850 million, which will result in healthy total cash generation. At the end of the second quarter, we declared that our target capital structure had been achieved, and we are well ahead of our plan to reach net debt zero by year-end 2025. Accordingly, 80% to 100% of the total cash generation in the third quarter 2024 and future periods will be returned to shareholders. We are pleased to announce that we will provide a dividend proposal for our 2025 AGM with our Full Year 2024 results communication.c”
Key Quarterly Data
| in € million, unless noted | Q3 2024 | Q2 2024 | Q3 2023 | QoQ chg. | YoY chg. |
| Tubes volume sold (k tonnes) | 292 | 351 | 343 | (59) | (51) |
| Iron ore volume sold (m tonnes) | 1.3 | 1.4 | 1.8 | (0.1) | (0.5) |
| Group revenues | 894 | 1,085 | 1,142 | (190) | (248) |
| Group EBITDA | 168 | 215 | 222 | (46) | (54) |
| (as a % of revenue) | 18.8% | 19.8% | 19.5% | (1.0) pp | (0.7) pp |
| Operating income (loss) | 124 | 100 | 146 | 24 | (22) |
| Net income, Group share | 73 | 111 | 76 | (38) | (3) |
| Adj. free cash flow | 183 | 81 | 217 | 102 | (34) |
| Total cash generation | 130 | 41 | 150 | 89 | (20) |
| Net debt | 240 | 364 | 741 | (124) | (501) |
CONSOLIDATED RESULTS ANALYSIS
Third Quarter Results Analysis
In Q3 2024, Vallourec recorded revenues of €894 million, down (22%) year over year, or (18%) at constant exchange rates. The decrease in Group revenues reflects a (15%) volume decrease mainly driven by lower Industry volumes following the closure of the European rolling mills, a (1%) price/mix effect, a (2%) Mine & Forest effect, and a (4%) currency effect.
EBITDA amounted to €168 million, or 18.8% of revenues, compared to €222 million (19.4% of revenues) in Q3 2023. The decrease was largely driven by lower average selling prices in Tubes in North America as well as lower realized iron ore prices and production sold. This was partially offset by improved Tubes results outside of North America due to higher market pricing and the benefits of the New Vallourec plan.
Operating income was €124 million, compared to €146 million in Q3 2023.
Financial income (loss) was (€19) million, compared to (€22) million in Q3 2023. Net interest income (expense) in Q3 2024 was (€6) million compared to (€21) million in Q3 2023.
Income tax amounted to (€28) million compared to (€44) million in Q3 2023.
This resulted in positive net income, Group share, of €73 million, compared to €76 million in Q3 2023.
Earnings per diluted share was €0.30 versus €0.32 in Q3 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.
First Nine Month Results Analysis
In 9M 2024, Vallourec recorded revenues of €2,969 million, down (23%) year over year, or (21%) at constant exchange rates. The decrease in Group revenues reflects a (20%) volume decrease mainly driven by the decrease in Industry volumes following the closure of the European rolling mills and by lower volumes in Oil & Gas Tubes in North America, a (0.1%) price/mix effect, a (1%) Mine and Forest effect, and a (1%) currency effect.
EBITDA amounted to €618 million, or 20.8% of revenues, compared to €916 million (23.9% of revenues) over the first nine months of 2023. The decrease was largely driven by lower average selling prices in Tubes in North America, as well as lower iron ore production sold. This was partly offset by improved Tubes results in International markets due to higher market pricing and the benefits of the New Vallourec plan.
Operating income was €397 million, compared to €661 million in 9M 2023. Operating income was burdened by (€62) million of asset disposals, restructuring costs and non-recurring items, largely due to costs related to the closure of Vallourec’s German operations.
Financial income (loss) was positive at €18 million, compared to (€92) million in 9M 2023. Net interest income (expense) over the first nine months of 2024 was €17 million compared to (€74) million in 9M 2023. In Q2, Vallourec’s balance sheet refinancing had a net positive impact of approximately €70 million mainly related to the reversal of fair value accounting on the 2026 senior notes and State-guaranteed loan (PGE), of which €44 million impacted interest income.
Income tax amounted to (€114) million compared to (€167) million in 9M 2023.
This resulted in positive net income, Group share, of €289 million, compared to €391 million in 9M 2023.
Earnings per diluted share was €1.19 versus €1.66 in 9M 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
Third Quarter Results Analysis
Tubes: In Q3 2024, Tubes revenues were down (21%) year over year due to a (15%) reduction in volume sold and a (7%) decrease in average selling price. This decrease in volumes was largely attributable to the closure of Vallourec’s German rolling operations as a result of the New Vallourec plan. Tubes EBITDA decreased from €193 million in Q3 2023 to €162 million Q3 2024 due to lower profitability in North America offset by improvements in the rest of the world due to higher market pricing and the benefits of the New Vallourec plan.
Mine & Forest: In Q3 2024, iron ore production sold was 1.3 million tonnes, a decrease of ~0.5 million tonnes year over year. In Q3 2024, Mine & Forest EBITDA reached €22 million, versus €39 million in Q3 2023, reflecting lower sales volumes and realized price.
First Nine Month Results Analysis
Tubes: In 9M 2024, Tubes revenues were down (22%) year over year mainly due to a (20%) reduction in volume sold, while average selling price was down only (3%) during the period. 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 volume sold in North America. Tubes EBITDA decreased from €802 million in 9M 2023 to €592 million 9M 2024 due to a decrease in profitability in North America partly offset by improvement in the rest of the world driven by higher market pricing and the benefits of the New Vallourec plan.
Mine & Forest: In 9M 2024, iron ore production sold was 4.1 million tonnes, decreasing by 1.1 million tonnes year over year. In 9M 2024, Mine & Forest EBITDA reached €68 million, versus €137 million in 9M 2023, largely reflecting lower sales volumes, realized price, and non-cash forest fair value revaluation effects plus higher costs.
CASH FLOW AND FINANCIAL POSITION
Third Quarter Cash Flow Analysis
In Q3 2024, adjusted operating cash flow was €117 million versus €171 million in Q3 2023. The decrease was attributable to lower EBITDA and higher financial cash out, only partly offset by lower tax payments.
Adjusted free cash flow was €183 million, versus €217 million in Q3 2023. Lower adjusted operating cash flow was partially offset by reduced capex versus the prior year period. Both periods saw significant working capital releases.
Total cash generation in Q3 2024 was €130 million, versus €150 million in Q3 2023.
First Nine Month Cash Flow Analysis
In 9M 2024, adjusted operating cash flow was €448 million versus €702 million in 9M 2023. The decrease was attributable to lower EBITDA, partly offset by reduced tax cash out.
Adjusted free cash flow was €436 million, versus €585 million in 9M 2023. Lower adjusted operating cash flow was partially offset by a higher release in working capital and lower capex versus the prior year period.
Total cash generation in 9M 2024 was €273 million, versus €419 million in 9M 2023.
Net Debt and Liquidity
As of September 30, 2024, net debtd stood at €240 million, a significant decrease compared to €570 million on December 31, 2023. Gross debt was €1,017 million, down from €1,470 million on December 31, 2023. Long-term debt was €736 million and short-term debt totaled €281 millione.
As of September 30, 2024, the liquidity position was very strong at €1,561 million, with €814 million of cash, availability on our revolving credit facility (RCF) of €550 million, and availability on an asset-backed lending facility (ABL) of €197 millionf. Both liquidity facilities were upsized and extended in Vallourec’s April balance sheet refinancing.
FOURTH QUARTER AND FULL YEAR 2024 OUTLOOKG
In the fourth quarter of 2024, based on our assumptions and current market conditions, Vallourec expects:
- Group EBITDA to increase versus Q3:
- In Tubes, volumes will increase sequentially driven by higher deliveries for both US and international markets
- In Mine & Forest, iron ore production sold will decline sequentially due to rainy season impact and soft export market conditions
- Net debt to be broadly stable versus Q3 2024, driven by sequentially higher EBITDA offset by sequentially higher capex, increased restructuring charges & non-recurring items, and higher financial cash out
For the full year 2024, based on our assumptions and current market conditions, Vallourec confirms and clarifies its outlook as follows:
- Confirm full year Group EBITDA will range between €800 and €850 million:
- In Tubes, the strong international OCTG market environment will persist, offset by the already-realized reductions in US demand and pricing
- In Mine & Forest, iron ore production sold is now expected to be slightly above 5 million tonnes (previously 6 million tonnes) and EBITDA is expected to be slightly below €100 million at current iron ore prices (€100 million previously), with the reductions resulting from weak export market conditions
- Confirm second half total cash generation will be positive
- Confirm net debt will decline versus the Q2 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 Q3 2024 Results
Conference call / audio webcast on November 15th at 9:30 am CET
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 14,000 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
| February 27th, 2025 May 15th, 2025 May 22nd, 2025 |
Publication of Fourth Quarter and Full-Year 2024 Results Publication of First Quarter 2025 Results Annual General Meeting |
For further information, please contact:
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
- Definitions of Non-GAAP Financial Data
Tubes Sales Volume
| in thousands of tonnes | 2024 | 2023 | YoY chg. |
| Q1 | 292 | 431 | (32%) |
| Q2 | 351 | 396 | (11%) |
| Q3 | 292 | 343 | (15%) |
| 9M Total | 935 | 1,170 | (20%) |
| Q4 | – | 382 | – |
| Annual Total | – | 1,552 | – |
Mine Sales Volume
| in millions of tonnes | 2024 | 2023 | YoY chg. |
| Q1 | 1.4 | 1.5 | (9%) |
| Q2 | 1.4 | 1.9 | (25%) |
| Q3 | 1.3 | 1.8 | (26%) |
| 9M Total | 4.1 | 5.2 | (21%) |
| Q4 | – | 1.7 | – |
| Annual Total | – | 6.9 | – |
Foreign Exchange Rates
| Average exchange rate | Q3 2024 | Q2 2024 | Q3 2023 |
| EUR / USD | 1.10 | 1.08 | 1.09 |
| EUR / BRL | 6.09 | 5.61 | 5.31 |
| USD / BRL | 5.54 | 5.22 | 4.88 |
Quarterly Tubes Revenues by Geographic Region
| in € million | Q3 2024 | Q2 2024 | Q3 2023 | QoQ % chg. |
YoY % chg. |
| North America | 331 | 383 | 460 | (14%) | (28%) |
| South America | 136 | 169 | 198 | (19%) | (31%) |
| Middle East | 143 | 247 | 162 | (42%) | (12%) |
| Europe | 84 | 48 | 116 | 75% | (28%) |
| Asia | 108 | 108 | 80 | 0% | 35% |
| Rest of World | 40 | 76 | 52 | (47%) | (23%) |
| Total Tubes | 842 | 1,030 | 1,068 | (18%) | (21%) |
Year-to-Date Tubes Revenues by Geographic Region
| in € million | 9M 2024 | 9M 2023 | YoY % chg. |
| North America | 1,164 | 1,781 | (35%) |
| South America | 458 | 616 | (26%) |
| Middle East | 551 | 431 | 28% |
| Europe | 184 | 370 | (50%) |
| Asia | 284 | 208 | 37% |
| Rest of World | 164 | 200 | (18%) |
| Total Tubes | 2,805 | 3,605 | (22%) |
Quarterly Tubes Revenues by Market
| in € million | Q3 2024 | Q2 2024 | Q3 2023 | QoQ % chg. |
YoY % chg. |
YoY % chg. at Const. FX |
| Oil & Gas and Petrochemicals | 698 | 879 | 845 | (21%) | (17%) | (15%) |
| Industry | 85 | 100 | 175 | (15%) | (52%) | (45%) |
| Other | 60 | 52 | 48 | 14% | 25% | 30% |
| Total Tubes | 842 | 1,030 | 1,068 | (18%) | (21%) | (18%) |
Year-to-Date Tubes Revenues by Market
| in € million | 9M 2024 | 9M 2023 | YoY % chg. |
YoY % chg. at Const. FX |
| Oil & Gas and Petrochemicals | 2,338 | 2,905 | (20%) | (19%) |
| Industry | 304 | 597 | (49%) | (47%) |
| Other | 163 | 103 | 58% | 62% |
| Total Tubes | 2,805 | 3,605 | (22%) | (21%) |
Quarterly Segment KPIsh
| Q3 2024 | Q2 2024 | Q3 2023 | QoQ chg. | YoY chg. | ||
| Tubes |
Volume sold | 292 | 351 | 343 | (17%) | (15%) |
| Revenue (€m) | 842 | 1,030 | 1,068 | (18%) | (21%) | |
| Average Selling Price (€) | 2,888 | 2,937 | 3,115 | (2%) | (7%) | |
| EBITDA (€m) | 162 | 210 | 193 | (23%) | (16%) | |
| Capex (€m) | 25 | 23 | 44 | 8% | (44%) | |
| Mine & Forest |
Volume sold | 1.3 | 1.4 | 1.8 | (5%) | (26%) |
| Revenue (€m) | 66 | 69 | 88 | (5%) | (25%) | |
| EBITDA (€m) | 22 | 15 | 39 | 43% | (44%) | |
| Capex (€m) | 11 | 5 | 6 | 100% | 67% | |
| H&O |
Revenue (€m) | 50 | 49 | 47 | 3% | 6% |
| EBITDA (€m) | (14) | (13) | (10) | 5% | 33% | |
| Int. |
Revenue (€m) | (64) | (64) | (62) | 1% | 3% |
| EBITDA (€m) | (2) | 2 | 0 | – | – | |
| Total |
Revenue (€m) | 894 | 1,085 | 1,142 | (18%) | (22%) |
| EBITDA (€m) | 168 | 215 | 222 | (22%) | (24%) | |
| Capex (€m) | 36 | 30 | 51 | 22% | (30%) |
Year-to-Date Segment KPIsh
| 9M 2024 | 9M 2023 | YoY chg. | ||
| Tubes |
Volume sold | 935 | 1,170 | (20%) |
| Revenue (€m) | 2,805 | 3,605 | (22%) | |
| Average Selling Price (€) | 3,001 | 3,081 | (3%) | |
| EBITDA (€m) | 592 | 802 | (26%) | |
| Capex (€m) | 93 | 150 | (38%) | |
| Mine & Forest |
Volume sold | 4.1 | 5.2 | (21%) |
| Revenue (€m) | 215 | 274 | (21%) | |
| EBITDA (€m) | 68 | 137 | (50%) | |
| Capex (€m) | 25 | 19 | 33% | |
| H&O |
Revenue (€m) | 144 | 144 | (0%) |
| EBITDA (€m) | (40) | (20) | 102% | |
| Int. |
Revenue (€m) | (194) | (186) | 5% |
| EBITDA (€m) | (1) | (3) | – | |
| Total |
Revenue (€m) | 2,969 | 3,838 | (23%) |
| EBITDA (€m) | 618 | 916 | (33%) | |
| Capex (€m) | 121 | 170 | (29%) |
Quarterly Summary Consolidated Income Statement
| € million, unless noted | Q3 2024 | Q2 2024 | Q3 2023 | QoQ chg. | YoY chg. |
| Revenues | 894 | 1,085 | 1,142 | (190) | (248) |
| Cost of sales | (633) | (774) | (818) | 141 | 185 |
| Industrial margin | 262 | 311 | 324 | (49) | (62) |
| (as a % of revenue) | 29.3% | 28.6% | 28.4% | 0.6 pp | 0.9 pp |
| Selling, general and administrative expenses | (84) | (91) | (85) | 7 | 1 |
| (as a % of revenue) | (9.4%) | (8.4%) | (7.4%) | (1.0) pp | (2.0) pp |
| Other | (9) | (5) | (17) | (4) | 8 |
| EBITDA | 168 | 215 | 222 | (46) | (54) |
| (as a % of revenue) | 18.8% | 19.8% | 19.4% | (1.0) pp | (0.6) pp |
| Depreciation of industrial assets | (46) | (44) | (41) | (2) | (5) |
| Amortization and other depreciation | (8) | (8) | (9) | 0 | 1 |
| Impairment of assets | (5) | 3 | – | (8) | (5) |
| Asset disposals, restructuring costs and non-recurring items | 15 | (65) | (26) | 80 | 41 |
| Operating income (loss) | 124 | 100 | 146 | 24 | (22) |
| Financial income (loss) | (19) | 57 | (22) | (75) | 3 |
| Pre-tax income (loss) | 105 | 156 | 124 | (51) | (19) |
| Income tax | (28) | (40) | (44) | 13 | 16 |
| Share in net income (loss) of equity affiliates | (0) | 0 | 0 | (0) | (0) |
| Net income | 78 | 116 | 81 | (39) | (3) |
| Attributable to non-controlling interests | 5 | 5 | 5 | (1) | (0) |
| Net income, Group share | 73 | 111 | 76 | (38) | (3) |
| Basic earnings per share (€) | 0.32 | 0.48 | 0.33 | (0.17) | (0.01) |
| Diluted earnings per share (€) | 0.30 | 0.46 | 0.32 | (0.16) | (0.02) |
| Basic shares outstanding (millions) | 230 | 230 | 230 | 0 | 0 |
| Diluted shares outstanding (millions) | 244 | 241 | 236 | 3 | 8 |
Year-to-Date Summary Consolidated Income Statement
| € million, unless noted | 9M 2024 | 9M 2023 | YoY chg. |
| Revenues | 2,969 | 3,838 | (868) |
| Cost of sales | (2,076) | (2,634) | 558 |
| Industrial margin | 893 | 1,204 | (311) |
| (as a % of revenue) | 30.1% | 31.4% | (1.3) pp |
| Selling, general and administrative expenses | (263) | (248) | (15) |
| (as a % of revenue) | (8.8%) | (6.5%) | (2.4) pp |
| Other | (13) | (40) | 27 |
| EBITDA | 618 | 916 | (298) |
| (as a % of revenue) | 20.8% | 23.9% | (3.1) pp |
| Depreciation of industrial assets | (135) | (126) | (9) |
| Amortization and other depreciation | (25) | (28) | 3 |
| Impairment of assets | 1 | (8) | 9 |
| Asset disposals, restructuring costs and non-recurring items | (62) | (94) | 33 |
| Operating income (loss) | 397 | 661 | (264) |
| Financial income (loss) | 18 | (92) | 110 |
| Pre-tax income (loss) | 415 | 569 | (154) |
| Income tax | (114) | (167) | 53 |
| Share in net income (loss) of equity affiliates | 1 | – | 1 |
| Net income | 302 | 402 | (100) |
| Attributable to non-controlling interests | 13 | 11 | 2 |
| Net income, Group share | 289 | 391 | (102) |
| Basic earnings per share (€) | 1.26 | 1.71 | (0.45) |
| Diluted earnings per share (€) | 1.19 | 1.66 | (0.47) |
| Basic shares outstanding (millions) | 230 | 229 | 1 |
| Diluted shares outstanding (millions) | 243 | 236 | 8 |
Summary Consolidated Balance Sheet
| In € million | |||||
| Assets | 30-Sep-24 | 31-Dec-23 | Liabilities | 30-Sep-24 | 31-Dec-23 |
| Equity – Group share | 2,303 | 2,157 | |||
| Net intangible assets | 34 | 42 | Non-controlling interests | 78 | 67 |
| Goodwill | 36 | 40 | Total equity | 2,381 | 2,224 |
| Net property, plant and equipment | 1,809 | 1,980 | Bank loans and other borrowings | 736 | 1,348 |
| Biological assets | 60 | 70 | Lease debt | 30 | 40 |
| Equity affiliates | 16 | 16 | Employee benefit commitments | 80 | 102 |
| Other non-current assets | 123 | 159 | Deferred taxes | 83 | 83 |
| Deferred taxes | 192 | 209 | Provisions and other long-term liabilities | 249 | 317 |
| Total non-current assets | 2,270 | 2,516 | Total non-current liabilities | 1,179 | 1,890 |
| Inventories | 1,231 | 1,242 | Provisions | 126 | 249 |
| Trade and other receivables | 586 | 756 | Overdraft & other short-term borrowings | 281 | 122 |
| Derivatives – assets | 42 | 47 | Lease debt | 14 | 17 |
| Other current assets | 247 | 251 | Trade payables | 812 | 763 |
| Cash and cash equivalents |
814 |
900 |
Derivatives – liabilities | 111 | 79 |
| Other current liabilities | 286 | 370 | |||
| Total current assets | 2,920 | 3,196 | Total current liabilities | 1,631 | 1,600 |
| Assets held for sale and discontinued operations | 1 | 1 | Liabilities held for sale and discontinued operations | – | – |
| Total assets | 5,191 | 5,713 | Total equity and liabilities | 5,191 | 5,713 |
Quarterly Key Cash Flow Metrics
| In € million | Q3 2024 | Q2 2024 | Q3 2023 | QoQ chg. | YoY chg. |
| EBITDA | 168 | 215 | 222 | (46) | (54) |
| Non-cash items in EBITDA | (14) | (0) | 11 | (14) | (25) |
| Financial cash out | (17) | (65) | (8) | 48 | (9) |
| Tax payments | (20) | (54) | (54) | 34 | 34 |
| Adjusted operating cash flow | 117 | 96 | 171 | 22 | (54) |
| Change in working capital | 102 | 15 | 97 | 87 | 5 |
| Gross capital expenditure | (36) | (30) | (51) | (6) | 15 |
| Adjusted free cash flow | 183 | 81 | 217 | 102 | (34) |
| Restructuring charges & non-recurring items | (73) | (71) | (63) | (2) | (10) |
| Asset disposals & other cash items | 19 | 31 | (4) | (12) | 24 |
| Total cash generation | 130 | 41 | 150 | 89 | (20) |
| Non-cash adjustments to net debt | (6) | 80 | (23) | (85) | 17 |
| (Increase) decrease in net debt | 124 | 121 | 127 | 3 | (3) |
Year-to-Date Key Cash Flow Metrics
| In € million | 9M 2024 | 9M 2023 | YoY chg. |
| EBITDA | 618 | 916 | (298) |
| Non-cash items in EBITDA | (4) | 3 | (7) |
| Financial cash out | (77) | (87) | 10 |
| Tax payments | (89) | (130) | 41 |
| Adjusted operating cash flow | 448 | 702 | (254) |
| Change in working capital | 109 | 53 | 56 |
| Gross capital expenditure | (121) | (170) | 49 |
| Adjusted free cash flow | 436 | 585 | (149) |
| Restructuring charges & non-recurring items | (210) | (169) | (42) |
| Asset disposals & other cash items | 47 | 3 | 45 |
| Total cash generation | 273 | 419 | (146) |
| Non-cash adjustments to net debt | 57 | (30) | 87 |
| (Increase) decrease in net debt | 330 | 389 | (59) |
Summary Consolidated Statement of Cash Flows (IFRS)
| In € million | 9M 2024 | 9M 2023 | YoY chg. |
| Consolidated net income (loss) | 302 | 402 | (100) |
| Net additions to depreciation, amortization and provisions | (2) | 85 | (87) |
| Unrealized gains and losses on changes in fair value | 20 | 7 | 12 |
| Capital gains and losses on disposals | (12) | (3) | (9) |
| Share in income (loss) of equity-accounted companies | (1) | (1) | (0) |
| Other cash flows from operating activities | (33) | – | (33) |
| Cash flow from (used in) operating activities after cost of net debt and taxes | 274 | 491 | (217) |
| Cost of net debt | (17) | 74 | (91) |
| Tax expense (including deferred taxes) | 114 | 167 | (53) |
| Cash flow from (used in) operating activities before costs of net debt and taxes | 371 | 732 | (361) |
| Interest paid | (75) | (88) | 13 |
| Tax paid | (89) | (130) | 42 |
| Interest received | 29 | 20 | 8 |
| Other cash flow on financial income | – | – | – |
| Cash flow from (used in) operating activities | 237 | 534 | (297) |
| Change in operating working capital | 109 | 53 | 57 |
| Net cash flow from (used in) operating activities (A) | 346 | 587 | (241) |
| Acquisitions of property, plant and equipment and intangible assets | (121) | (170) | 49 |
| Disposals of property, plant and equipment and intangible assets | 40 | 25 | 15 |
| Impact of acquisitions (changes in consolidation scope) | 3 | (0) | 3 |
| Impact of disposals (changes in consolidation scope) | – | 2 | (2) |
| Other cash flow from investing activities | 0 | 0 | (0) |
| Net cash flow from (used in) investing activities (B) | (78) | (143) | 65 |
| Increase or decrease in equity attributable to owners | – | – | – |
| Dividends paid to non-controlling interests | (1) | (4) | 3 |
| Proceeds from new borrowings | 759 | 2 | 757 |
| Repayment of borrowings | (1,130) | (30) | (1,100) |
| Repayment of lease liabilities | (17) | (17) | 0 |
| Other cash flow used in financing activities | 21 | (3) | 24 |
| Net cash flow from (used in) financing activities (C) | (368) | (52) | (316) |
| Change in net cash (A+B+C) | (101) | 392 | (492) |
| Opening net cash | 898 | 547 | |
| Change in net cash | (101) | 392 | |
| Impact of changes in exchange rates | 10 | (0) | |
| Impact of reclassification to assets held for sale and discontinued operations | – | – | |
| Closing net cash | 808 | 938 |
Indebtedness
| In € million | 30-Sep-24 | 31-Dec-23 |
| 8.500% 5-year EUR Senior Notes due 2026 | – | 1,105 |
| 7.500% 8-year USD Senior Notes due 2032 | 714 | – |
| 1.837% PGE due 2027 (a) | 194 | 229 |
| ACC ACE (b) | 63 | 94 |
| Other | 46 | 42 |
| Total gross financial indebtedness | 1,017 | 1,470 |
| Cash and cash equivalents | 814 | 900 |
| Fair value of cross currency swap (c) | 36 | – |
| Total net financial indebtedness | 240 | 570 |
(a) Depending on the outcome of ongoing discussions with the PGE lenders, this remaining amount may be repaid by end of December 2024, as reflected in the financial statements, or by its original maturity in June 2027.
(b) Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil
(c) Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
Liquidity
| In € million | 30-Sep-24 | 31-Dec-23 |
| Cash and cash equivalents | 814 | 900 |
| Available RCF | 550 | 462 |
| Available ABL (a) | 197 | 177 |
| Total liquidity | 1,561 | 1,539 |
(a) This $350m 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 $230m. 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 plus the fair value of the cross-currency swaps related to the EUR/USD hedging of the principal of the $820 million 7.5% senior notes. 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 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 fourth 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 would also be subject to shareholders’ approval.
d Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
e Short-term debt includes €194 million of remaining PGE (prêts garantis par l’État) outstanding. Depending on the outcome of ongoing discussions with the PGE lenders, this remaining amount may be repaid by end of December 2024, as reflected in the financial statements, or by its original maturity in June 2027.
f As of September 30, 2024, the borrowing base for this facility was approximately $230 million, and $9 million in letters of credit and other commitments were issued.
g In all cases, total cash generation and net debt guidance excludes the potential positive impact of major asset sales.
h Volume sold in thousand tonnes for Tubes and million tonnes for Mine & Forest. H&O = Holding & Other; Int = Intersegment Transactions. Values for percentage changes not shown where not meaningful.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.