Vallourec reports
fourth quarter and full
year
2021
results
Meudon
(France), February
24th
2022 –
Vallourec, a world leader in premium tubular solutions, announces
today its results for the fourth quarter and full year 2021. The
Board of Directors of Vallourec SA, meeting on February 23rd 2022,
approved the Group's fourth-quarter and full-year 2021
accounts.
FY 2021:
Strong EBITDA
growth with margin up
over 600 bps
- €3,442 million
revenue, up 6.1% YoY
- €492 million
EBITDA, up 91% YoY, EBITDA margin increasing to 14.3% vs. 8% in
2020
- Positive net
income at €40 million
- Free cash flow
at €(284) million mainly reflecting working capital rebuild of
€172million and one-time charges, which include financial
restructuring costs
- Strong liquidity
position at €1,081 million as of December 31st, 2021
|
Q4 2021: solid
year-on-year revenue and EBITDA growth
- €1,064 million
revenue, up 28.1% YoY
- €136 million
EBITDA, up 79% YoY, margin increasing to 12.8% vs. 9.2% in Q4
2020
- Positive free
cash flow at €17 million
|
Operational
efficiency
- Focus on value
vs. volume to be implemented across the business enterprise
- Transformational
footprint actions announced in Q3 2021 are well on track, both for
the disposal process of German assets and for the preparation of
the transfer of their Oil & Gas activity to low-cost operations
in Brazil
- Good momentum on
savings in 2022, and evaluating potential additional cost savings
initiatives
- Reinforcing
Group priority of cash discipline, with focus on inventory
management
|
2022 Outlook
- In North
America, favourable market conditions leading to strong improvement
in financial performance
- In other
markets, overall increase in volumes and prices somewhat offset by
inflation headwinds
- Iron ore prices
as per consensus1
- Gradual restart
of iron ore mine is targeted for Q2 subject to finalization of
conditions precedent with the Brazilian mining authorities
- Based on these
assumptions, the Group is expecting a further improvement of its
full-year 2022 EBITDA relative to 2021
|
Edouard Guinotte,
Chairman of the Board of
Directors and Chief Executive
Officer,
declared:
“Vallourec has delivered a very robust Q4 with
strong revenue and profitability growth, leveraging the
fundamentals of a positive Oil & Gas market. In this context,
our Oil & Gas business improved significantly in North America,
while recovery in EA-MEA markets is progressing more slowly. Across
the Group, Vallourec has benefited from an increased order book at
year end 2021, to be delivered in 2022. Iron ore prices softened in
Q4, but our business remains solidly profitable given our low-cost
and flexible production model.
The transformational footprint action which the
Group announced last quarter continues. It will significantly
simplify the operations of the Group, lowering Vallourec’s
break-even point and allowing the Group to remain solidly
profitable through cycle.
Looking forward, the Oil & Gas market should
continue to develop positively, with high prices creating favorable
conditions for E&P operators. We expect such positive momentum
in most of our markets and particularly in North America, despite
the consequences of the incident at the mine. Inflation is starting
to affect some of our costs in every region, which will create some
offset to positive price movements but will ultimately support
higher finished product prices in the future.
Finally, we are proud that the Group has added
high-level ESG audited ratings to its track record. It
differentiates us from our peers and paves the way for future
growth opportunities.”
Key figures
|
Full year 2021 |
Full year 2020 |
Change |
In € million |
Q4 2021 |
Q4 2020 |
Change |
|
1,640 |
1,599 |
2.6% |
Production shipped (k tons) |
510 |
408 |
24.9% |
|
3,442 |
3,242 |
6.1% |
Revenue |
1,064 |
830 |
28.1% |
|
492 |
258 |
+€234m |
EBITDA |
136 |
76 |
+€60m |
|
14.3% |
8.0% |
+6.3p.p. |
(as a % of revenue) |
12.8% |
9.2% |
+3.6p.p. |
|
374 |
(1,002) |
na |
Operating income (loss) |
75 |
(495) |
na |
|
40 |
(1,206) |
na |
Net income, Group share |
89 |
(570) |
na |
|
(284) |
(111) |
-€173m |
Free cash-flow |
17 |
112 |
-€95m |
|
958 |
2,214 |
-€1,256m |
Net debt |
958 |
2,214 |
-€1,256m |
I - CONSOLIDATED
REVENUE BY MARKET
|
Full year 2021 |
Full year
2020 |
Change |
At constant exchange rates |
In € million |
Q4 2021 |
Q4 2020 |
Change |
At constant exchange rates |
|
2,056 |
2,207 |
-6.8% |
-4.8% |
Oil & Gas, Petrochemicals |
709 |
566 |
25.4% |
21.0% |
|
1,241 |
826 |
50.2% |
59.9% |
Industry & Other |
306 |
225 |
36.0% |
38.8% |
|
145 |
210 |
-30.7% |
-31.7% |
Power Generation |
48 |
39 |
22.4% |
14.8% |
|
3,442 |
3,242 |
6.1% |
10.0% |
Total |
1,064 |
830 |
28.1% |
25.5% |
In the
fourth quarter of
2021,
Vallourec had revenues of
€1,064
million, up
approximately
28%
compared with
the fourth quarter
of
2020
(+25.5%
at constant exchange
rates)
with:
- 25% volume increase mainly driven
by Oil & Gas in North America and Industry & Other
- 1% price/mix effect
- 3% currency conversion effect
mainly related to EUR/BRL.
Over the full
year of
2021,
revenue totaled
€3,442
million, increasing by
6% versus the
full year of
2020 (+10% at constant exchange
rate) with:
- 3% volume effect mainly driven by
higher deliveries in Industry and Other more than offsetting lower
Oil & Gas shipments in EA-MEA.
- 7% price/mix effect mainly driven
by higher iron ore prices and improved Oil &Gas prices in North
America.
- (4)% currency conversion effect
mainly related to EUR/BRL.
Oil & Gas, Petrochemicals
(66.7%
of Q4
2021
consolidated
revenue)
In Q4
2021, Oil & Gas
revenue reached
€647
million, increasing by
23% year-on-year
(+18.5%
at constant exchange
rates).
- In North
America, Oil & Gas revenue more than doubled thanks to
higher prices and volumes.
- In EA-MEA, Oil
& Gas revenue decreased; the higher deliveries were more than
offset by an unfavorable price/mix (Q4 2020 was positively impacted
by high alloy products deliveries).
- In South
America, revenue increased, driven by higher activity in
Oil & Gas and project line pipes.
Over the
full year of
2021,
Oil & Gas revenue
totaled
€1,859
million, decreasing by
7%
year-on-year
((5.3)%
at constant exchange
rates), the lower activity in
EA-MEA following the reduced order intake in 2020, was not offset
by higher revenue and deliveries in North America which picked up
in the second half the year, and in South America.
In Q4
2021, Petrochemicals
revenue was
€63
million, up 61% year-on-year (up
54.4% at constant exchange rates) notably due to a better price/mix
and to an increase in deliveries in South America and North
America.Over the full
year of
2021,
Petrochemicals revenue totaled €197
million, down 1.7% year-on-year (up 0.4% at
constant exchange rates).
In Q4
2021,
revenue for Oil & Gas and Petrochemicals
amounted to €709
million, up
25% compared with Q4 2020 (up 21%
at constant exchange rates).
Over the
full year of
2021,
revenue for Oil & Gas and Petrochemicals
totaled
€2,056
million, down
6.8% compared with the full year
of 2020 (down (4.8)% at constant exchange rates).
Industry & Other
(28.8%
of Q4
2021
consolidated
revenue)
In Q4 2021, Industry
& Other revenue amounted to
€306
million,
increasing by
36% year-on-year
(+39%
at constant exchange rates):
- In Europe, Industry revenue was up,
reflecting higher volumes.
- In South America, Industry &
Other revenue was stable. The lower iron ore contribution resulting
from price decrease and lower volume (1.7Mt versus 2.3Mt) was
offset by higher sales recorded in Industry markets mainly driven
by Mechanical Engineering and Automotive.
Over the
full year of
2021, Industry &
Other revenue totaled €1,241
million, up
50% year-on-year (up 60% at
constant exchange rates) as a result of a higher contribution from
the mine (reflecting higher iron ore prices and volumes at 8.1Mt
versus 7.9Mt in 2020) and of higher deliveries in Industry markets
in Europe and South America, despite an unfavorable currency
conversion effect.
Power Generation
(4.5%
of Q4
2021 consolidated
revenue)
In Q4 2021, Power
Generation revenue amounted to
€48
million, increasing
by 22%
year-on-year (+15% at constant exchange
rates).
For the
full year of
2021,
revenue totaled €145
million, down
31%
year-on-year ((32)% at constant
exchange rates), reflecting notably the disposal of Valinox
Nucléaire SAS on May 31, 2021.
II
– CONSOLIDATED RESULTS
ANALYSIS
Q4
2021
consolidated results analysis
In Q4
2021,
EBITDA reached
€136 million
(compared with €76 million in Q4 2020), and
EBITDA margin
increased to
12.8%
of revenue (versus 9.2% in Q4
2020), as a result of:
- An industrial margin of €219
million, or 20.6% of revenue, versus €157 million and 18.9% of
revenue in Q4 2020. Higher deliveries and prices in the Oil &
Gas market in North America as well as to a lesser extent in the
Oil & Gas and Industry markets in Brazil did largely more than
offset the lower contribution of the mine, the lower activity of
the Oil & Gas market in EA-MEA, and the increase in raw
material and energy costs.
- Sales, general and administrative
costs (SG&A) at €83 million or 7.8% of revenue (versus 9.0% in
Q4 2020) increasing by 11%, in line with the activity
recovery.
Operating
income was
positive at €75
million, compared to €(495)
million in Q4 2020 (which was negatively impacted by impairment
charges and restructuring provisions), resulting mainly from the
EBITDA improvement, lower restructuring costs and lower
depreciation of industrial assets.
Financial
income was negative at
€(25)
million, compared with €(48) million
in Q4 2020, reflecting the new balance sheet structure.
Income tax amounted
to a positive
€40 million
mainly related to the partial reversal of deferred tax asset
provisions and a positive one-off recovery of tax credit, compared
to €(45) million in Q4 2020.
This resulted in
a positive net
income, Group
share, of
€89
million, compared to €(570)
million in Q4 2020.
FY
2021
consolidated results analysis
Over the full
year 2021, EBITDA
reached €492
million, a
€234 million
increase
year-on-year,
at
14.3%
of revenue, including:
- An industrial margin of €837
million, or 24.3% of revenue, increasing by 38% year-on-year,
reflecting a higher contribution of the mine in prices and volumes,
a higher activity in the Oil & Gas market in North America and
in Industry markets along with savings more than offsetting lower
activity in the Oil & Gas market in EA-MEA and the raw
materials and energy costs increase.
- Sales, general and administrative
costs (SG&A) down 3% at €316 million representing 9.2% of
revenue versus 10% in 2020.
Operating
income was positive at
€374
million compared
to a loss of
€(1,002) million
in full year
2020 (which was negatively impacted by impairment
charges for €850 million and by restructuring charges), resulting
from the improvement in EBITDA, lower depreciation of industrial
assets and the positive effects from the sale of Reisholz buildings
and land as well as from the favorable Brazilian Supreme Court
decision on PIS/COFINS tax claim.
Financial
income was negative
at
€(236)
million, compared to €(227) million
in full year 2020. Net interest expenses amounted to €147 million
versus €196 million in full year 2020. Other financial income was a
negative €(40) million, compared with €28 million in full year
2020, due largely to one-offs such as the €(70) million cost of
exercising the option of DBOT repurchase, partially offset by the
positive effects of the PIS/COFINS tax litigation in Brazil for €28
million. In addition, the financial restructuring had a negative
impact on financial income of €(42) million.
Income tax amounted to
€(101)
million mainly related to Brazil, including the partial
reversal of deferred tax asset provisions and a positive one-off
recovery of tax credit.
As a result, net
income,
Group share, amounted to
€40
million, compared to €(1,206)
million in full year 2020.
III
– CASH FLOW & FINANCIAL
POSITION
Cash flow from operating
activitiesIn
Q4
2021,
cash flow from operating activities
was positive at
€10
million, compared to €(18)
million in Q4 2020, reflecting mainly the improved EBITDA and
lower financial interests paid, partly offset by higher
tax.For the full year
2021,
cash flow from operating activities was
positive at €26
million compared to €(146) million in full year
2020, mainly due to higher EBITDA and lower interest expense, more
than offsetting an increase in tax expense. 2021 cash flow results
included one-offs such as debt restructuring fees €(56 million),
the repurchase cost of the DBOT in Brazil (€72 million) partially
offset by a positive tax litigation settlement receipt in Brazil
(€28 million).
Operating working capital
requirementIn Q4 2021,
operating working
capital requirement
decreased by
€61
million, versus a decrease of €178 million in
Q4 2020. Net working capital requirement, excluding the impact
of the IFRS 5, stood at 85 days of sales, compared to 78 days in Q4
2020. Quarterly average net working capital requirement decreased
at 100 days of sales compared to 108 days in 2020.For the
full year of
2021, operating working
capital increased by
€(172)
million versus a decrease of €173 million in full
year 2020, mainly as a result of recovering activity.
CapexCapital
expenditure was
€54
million in Q4
2021, compared with €48 million
in Q4 2020, and was
€138
million in full
year
2021,
in line with 2020.
Free cash flowAs a result,
in Q4
2021,
free cash flow was
positive at
€17
million versus €112 million in Q4
2020. Free cash flow for
the full year
2021 was
negative at
€(284)
million, compared with €(111) million in full-year
2020, impacted notably by the working capital rebuild along with
the activity recovery and one-off charges, which include financial
restructuring costs.
Asset disposals &
other itemsIn Q4 2021, asset
disposals & other items amounted to
€19
million. For the full
year of
2021,
asset disposals & other items
amounted to
€1,540
million mainly as a result of the financial
restructuring.
Net debt and
liquidityAs of December 31, 2021, net debt stood at €958
million, compared with €993 million on September 30, 2021. As of
December 31, 2021, gross debt amounted to €1,577 million including
€91 million of fair value adjustment under IFRS 9 (which will be
reversed over the life of the debt). Long-term debt amounted to
€1,387 million, and short-term debt totaled €190 million.
As of December 31, 2021, lease debt stood at €48
million, compared with €71 million on September 30, 2021 following
the application of IFRS 5 standards.
Liquidity position was strong at €1,081 million,
with cash amounting to €619 million and undrawn committed Revolving
Credit Facility equal to €462 million.
IV – UPDATE ON
MINE
On January 8, 2022, following the exceptionally
heavy rainfall in Minas Gerais State (Brazil), some material from a
waste pile associated with the operations of Vallourec’s Pau Branco
mine slid into a rainwater dam (“the Lisa Dam”) causing it to
overflow, and resulting in the interruption of traffic on the
nearby highway. The structure of the dam was not affected, and
there were no casualties.
As a result of this incident, the operations of
the mine have been temporarily suspended. Vallourec plans to
restart them in the coming weeks subject to receiving the necessary
consents, at first without using the waste pile. In the meantime,
Vallourec is preparing the report on the waste pile stability to be
validated by the mining authorities. The mine could therefore reach
its full capacity during Q2.
In addition, on January 21, 2022, Vallourec
signed an agreement with the Public Prosecutor's Office regarding
the consequences of the overflow of the Lisa Dam. The agreement
includes the implementation of emergency measures, many of which
have already been completed, and a commitment to the environmental
restoration of the affected area. It also includes the provision of
BRL200 million (approximatively €35 million) as a guarantee in a
bank account held by Vallourec. As previously disclosed, Vallourec
confirms that the BRL288 million (approximately €50 million) fine
announced in January is currently being challenged. These one-time
costs will be registered below EBITDA in Vallourec’s 2022
consolidated results.
The Group has not experienced any interruption
in supply to its Jeceaba blast furnace.
V –
STRENGHTENING
VALLOUREC’S
COMPETITIVENESS
The Group expects good momentum on savings in
2022. Vallourec is evaluating potential additional cost-savings
initiatives in 2022 and will deliver further bottom-line net
savings to continue to lower its break-even point. The Group has
also launched a project aiming to reduce its inventory across its
plant system and introduce sustainable and repeatable business
practices to continue to manage working capital going forward.
As a reminder, the Group announced a significant
rationalization of its footprint last November with the planned
disposal of its German operations. This project advances according
to plan, and the preparation for the transfer of the Oil & Gas
related sales to low-cost to Brazil is well on track. Once this
project is fully implemented, the Group will benefit from a €130
million run-rate improvement in EBITDA and a €20 million reduction
in capex.
VI –
2022 OUTLOOK
Oil & Gas
In North America, the very
favorable market conditions observed at the end of 2021 should
continue and even improve during the first half of 2022, both in
terms of prices and capacity utilization. Although visibility is
less certain for the second half of the year, a strong increase in
the region’s contribution is expected over the full year.
In EA-MEA, following the
resumption of the tendering activity in 2021, volumes to be
delivered in 2022 are expected to significantly recover. Costs
inflation, notably on energy and logistics, should weigh on margin,
notably at the start of the year.
In South America, Oil & Gas
volumes delivered in 2022 are expected to increase slightly.
Industry & Other
In Europe, both volumes and
prices are expected to increase.
In Brazil, after a very
positive year in 2021, volumes for Industry are expected to
decrease slightly due to distributor stock normalization and
election uncertainties. While the iron ore operations profitability
for the year will be affected by the January incident, Vallourec
targets a gradual restart of the mine in the second quarter as
described above in section IV. Consensus2 estimates for iron ore
average prices for 2022 are approximately $110/MT compared to the
average of $161/MT in 20213 and current spot price of approximately
$140/MT.
Based on these
market trends and
assumptions, Vallourec
targets a further improvement of its full-year
2022 EBITDA relative to
2021. Q1
will be impacted by the
incident at the iron ore
mine and some
inflationary
headwinds, and
Vallourec expects a rebound in
Q2.
OtherCapex is expected to be
slightly above €200 million, including approximately €50 million
for the preparation of the transfer of operations from Germany to
Brazil.
Information and Forward-Looking
Statements
This press release may include 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. 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
Registration Document filed with the AMF on March 29, 2021, under
filing number n° D.21-0226 and the amendment to the Universal
Registration Document filed with the AMF on June 2, 2021 under
filing number n° D.21-0226-A01. 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 press release. 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 press release, those results or
developments may not be indicative of results or developments in
subsequent periods.
Presentation of
Q4 &
FY 2021
results
Analyst conference call / audio webcast at 6:30
pm (Paris time) to be held in English.
- To listen to the audio
webcast:
https://channel.royalcast.com/landingpage/vallourec-en/20220224_1/
- To participate in the conference
call, please dial (password to use is “Vallourec”):
-
+44 (0) 33 0551
0200 (UK)
-
+33 (0) 1 70 37 71 66 (France)
- +1 212 999
6659 (USA)
- Audio webcast replay and slides
will be available on the website 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 17,000 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.
Calendar
|
May
18th
2022May
24th 2022 |
Release of first quarter 2022 resultsShareholders’ Annual
Meeting |
For further information, please
contact:
| Investor
relations Jérôme FribouletTel : +33 (0)1 49 09 39
77Investor.relations@vallourec.com |
Press
relations Héloïse Rothenbühler Tel: +33 (0)1 41 03 77
50 eloise.rothenbuhler@vallourec.com |
| Individual
shareholdersToll Free Number (from France): 0 800 505 110
actionnaires@vallourec.com |
|
Appendices
Due to rounding, numbers presented throughout this and other
documents may not add up precisely to the totals provided and
percentages may not precisely reflect the absolute figures.
Documents accompanying this release:
- Sales volume
- Forex
- Revenue by geographic region
- Revenue by market
- Summary consolidated income
statement
- Summary consolidated balance
sheet
- Free cash flow
- Cash flow statement
- Definitions of non-GAAP financial
data
Sales volume
|
In thousands of tons |
2021 |
2020 |
Change |
|
Q1 |
358 |
450 |
-20.4% |
|
Q2 |
381 |
422 |
-9.7% |
|
Q3 |
391 |
319 |
+22.6% |
|
Q4 |
510 |
408 |
+24.9% |
|
Total |
1,640 |
1,599 |
+3.0% |
Forex
|
Average exchange rate |
|
Full year 2021 |
Full year 2020 |
|
EUR / USD |
|
1.18 |
1.14 |
|
EUR / BRL |
|
6.38 |
5.90 |
|
USD / BRL |
|
5.39 |
5.16 |
Revenue by geographic
region
|
In € million |
Full year 2021 |
As % of revenue |
Full year 2020 |
As % of revenue |
Change |
Q4 2021 |
As % of revenue |
Q4 2020 |
As % of revenue |
Change |
|
Europe |
529 |
15.4% |
533 |
16.4% |
-0.8% |
143 |
13.4% |
126 |
15.2% |
13.5% |
|
North America (Nafta) |
836 |
24.3% |
719 |
22.2% |
16.4% |
312 |
29.3% |
138 |
16.6% |
125.8% |
|
South America |
1,077 |
31.3% |
756 |
23.3% |
42.3% |
266 |
25.0% |
225 |
27.1% |
18.6% |
|
Asia and Middle East |
766 |
22.2% |
900 |
27.8% |
-14.9% |
253 |
23.8% |
236 |
28.4% |
7.4% |
|
Rest of the world |
234 |
6.8% |
334 |
10.3% |
-30.0% |
89 |
8.4% |
106 |
12.8% |
-15.7% |
|
Total |
3,442 |
100% |
3,242 |
100% |
6.1% |
1,064 |
100% |
830 |
100% |
28.1% |
Revenue by market
|
Full year 2021 |
As % of revenue |
Full year 2020 |
As % of revenue |
Change |
In € million |
Q4 2021 |
As % of revenue |
Q4 2020 |
As % of revenue |
Variation |
|
1,859 |
54.0% |
2,007 |
61.9% |
-7.4% |
Oil & Gas |
647 |
60.8% |
527 |
63.5% |
22.8% |
|
197 |
5.7% |
200 |
6.2% |
-1.7% |
Petrochemicals |
63 |
5.9% |
39 |
4.7% |
61.0% |
|
2,056 |
59.7% |
2,207 |
68.1% |
-6.8% |
Oil & Gas, Petrochemicals |
709 |
66.7% |
566 |
68.2% |
25.4% |
|
477 |
13.9% |
296 |
9.1% |
61.1% |
Mechanicals |
141 |
13.2% |
77 |
9.3% |
83.5% |
|
87 |
2.5% |
59 |
1.8% |
46.3% |
Automotive |
23 |
2.2% |
19 |
2.3% |
26.7% |
|
677 |
19.7% |
471 |
14.5% |
43.8% |
Construction & Other |
142 |
13.4% |
130 |
15.7% |
9.3% |
|
1,241 |
36.1% |
826 |
25.5% |
50.2% |
Industry & Other |
306 |
28.8% |
225 |
27.1% |
36.0% |
|
145 |
4.2% |
210 |
6.5% |
-30.7% |
Power Generation |
48 |
4.5% |
39 |
4.7% |
22.4% |
|
3,442 |
100% |
3,242 |
100% |
6.1% |
Total |
1,064 |
100% |
830 |
100% |
28.1% |
Summary consolidated income statement
|
Full year 2021 |
Full year 2020 |
Change |
In € million |
Q4 2021 |
Q4 2020 |
Change |
|
3,442 |
3,242 |
6.1% |
Revenue |
1,064 |
830 |
28.2% |
|
(2,605) |
(2,634) |
-1.1% |
Cost of sales |
(845) |
(674) |
25.4% |
|
837 |
608 |
37.7% |
Industrial Margin |
219 |
157 |
39.5% |
|
24.3% |
18.8% |
+5.5p.p. |
(as a % of revenue) |
20.6% |
18.9% |
+1.7p.p. |
|
(316) |
(325) |
-2.8% |
Sales, general and administrative costs |
(83) |
(75) |
10.7% |
|
(29) |
(25) |
-€4m |
Other |
(0) |
(6) |
-€6m |
|
492 |
258 |
+€234m |
EBITDA |
136 |
76 |
+€60m |
|
14.3% |
8.0% |
+6.3p.p. |
(as a % of revenue) |
12.8% |
9.2% |
+3.6p.p. |
|
(160) |
(213) |
-24.9% |
Depreciation of industrial assets |
(39) |
(55) |
-29.1% |
|
(42) |
(54) |
-22.2% |
Amortization and other depreciation |
(10) |
(17) |
-41.2% |
|
(5) |
(850) |
na |
Impairment of assets |
(5) |
(409) |
na |
|
89 |
(143) |
na |
Asset disposals, restructuring costs and non-recurring items |
(7) |
(90) |
na |
|
374 |
(1,002) |
+€1,376m |
Operating income (loss) |
75 |
(495) |
+€570m |
|
(147) |
(196) |
-€49m |
Net interest expense |
(21) |
(48) |
-€27m |
|
(89) |
(30) |
+€59m |
Other financial income and expenses |
(4) |
0 |
+€4m |
|
(236) |
(227) |
4.0% |
Financial income/(loss) |
(25) |
(48) |
-47.9% |
|
138 |
(1,229) |
+€1,367m |
Pre-tax income (loss) |
50 |
(543) |
+€593m |
|
(101) |
(96) |
5.2% |
Income tax |
40 |
(45) |
na |
|
(5) |
(3) |
na |
Share in net income/(loss) of equity affiliates |
(1) |
(1) |
na |
|
32 |
(1,328) |
+€1,360m |
Net income |
89 |
(589) |
+€678m |
|
(8) |
(122) |
na |
Attributable to non-controlling interests |
- |
(19) |
na |
|
40 |
(1,206) |
+€1,246m |
Net income, Group share |
89 |
(570) |
+€659m |
|
0.3 |
(105.4) |
na |
Net earnings per share (in €) * |
0.4 |
(49.8) |
na |
na = not applicable* FY and Q4 2020 figures adjusted for new
number of shares following reverse stock split effective on May 25
2020
Summary consolidated balance sheet
| In €
million |
|
|
|
|
|
|
Assets |
12/31/2021 |
12/31/2020 |
Liabilities |
12/31/2021 |
12/31/2020 |
|
|
|
|
Equity - Group share * |
1,763 |
(187) |
| |
|
|
Non-controlling interests |
45 |
321 |
|
Net intangible assets |
45 |
50 |
Total equity |
1,808 |
134 |
|
Goodwill |
38 |
25 |
Shareholder loan |
- |
9 |
|
Net property, plant and equipment |
1,666 |
1,718 |
Bank loans and other borrowings (A) |
1,387 |
1,751 |
|
Biological assets |
38 |
30 |
Lease debt (D) |
33 |
84 |
|
Equity affiliates |
35 |
42 |
Employee benefit commitments |
14 |
203 |
|
Other non-current assets |
162 |
128 |
Deferred taxes |
29 |
20 |
|
Deferred taxes |
239 |
187 |
Provisions and other long-term liabilities |
140 |
142 |
|
Total non-current assets |
2,223 |
2,180 |
Total non-current liabilities |
1,603 |
2,200 |
|
Inventories |
856 |
664 |
Provisions |
40 |
104 |
|
Trade and other receivables |
541 |
468 |
Overdraft and other short-term borrowings (B) |
190 |
1,853 |
|
Derivatives - assets |
4 |
37 |
Lease debt (E) |
15 |
24 |
|
Other current assets |
133 |
203 |
Trade payables |
457 |
426 |
|
Cash and cash equivalents (C) |
619 |
1,390 |
Derivatives - liabilities |
19 |
21 |
|
Other current liabilities |
242 |
241 |
|
Total current assets |
2,153 |
2,762 |
Total current liabilities |
963 |
2,669 |
|
Assets held for sale and discontinued operations |
372 |
107 |
Liabilities held for sale and discontinued operations |
374 |
37 |
|
Total assets |
4,748 |
5,049 |
Total equity and liabilities |
4,748 |
5,049 |
|
|
|
|
|
|
|
|
* Net income (loss), Group share |
40 |
(1,206) |
|
|
|
|
|
|
|
|
|
|
|
Net debt (A+B-C) |
958 |
2,214 |
|
|
|
|
|
|
|
|
|
|
|
Lease debt (D+E) |
48 |
108 |
|
|
|
Free cash flow
|
Full year 2021 |
Full year 2020 |
Change |
In € million |
Q4 2021 |
Q4 2020 |
Change |
|
26 |
(146) |
+€172m |
Cash flow from operating activities (A) |
10 |
(18) |
+€28m |
|
(172) |
173 |
-€345m |
Change in operating WCR [+ decrease, (increase)] (B) |
61 |
178 |
-€117m |
|
(138) |
(138) |
na |
Gross capital expenditure (C) |
(54) |
(48) |
-€6m |
|
(284) |
(111) |
-€173m |
Free cash flow (A)+(B)+(C) |
17 |
112 |
-€95m |
Cash flow statement
|
Full year 2021 |
Full year 2020 |
In € million |
Q4 2021 |
Q4 2020 |
|
26 |
(146) |
Cash flow from operating activities |
10 |
(18) |
|
(172) |
173 |
Change in operating WCR [+ decrease, (increase)] |
61 |
178 |
|
(146) |
27 |
Net cash flow from operating activities |
71 |
160 |
|
(138) |
(138) |
Gross capital expenditure |
(54) |
(48) |
|
1,540 |
(72) |
Asset disposals & other items |
19 |
3 |
|
1,256 |
(183) |
Change in net debt [+ decrease, (increase)] |
36 |
115 |
|
958 |
2,214 |
Financial net debt (end of period) |
958 |
2,214 |
Definitions of non-GAAP financial data
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.
Free cash flow: Free cash-flow
(FCF) is defined as cash flow from operating activities minus gross
capital expenditure and plus/minus change in operating working
capital requirement.
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.
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: defined as the
present value of unavoidable future lease payments
Net debt: consolidated net 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: 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.
Operating working capital
requirement: includes working capital requirement as well
as other receivables and payables.
Working capital requirement:
defined as trade receivables plus inventories minus trade payables
(excluding provisions).
1 Capital IQ: $110/MT 2 Capital IQ Consensus
3 The impact of a variation in the iron ore price of 10 USD/t on
average over the year, based on an annual normalized production of
approximately 8.7Mt, would be approximately $40 million on the
mine's EBITDA
- Vallourec-press-release-Q4 FY 2021 results
Vallourec (EU:VK)
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