Vallourec cites strong US results

Vallourec, France, which produces steel used by the oil and gas sector, has reported first quarter 2022 revenue that was 30 percent higher year-over-year, with the increase “led by North America.” Its North American presence includes a scrap-fed electric arc furnace steel mill in Youngstown, Ohio.

In North America, where the company also operates downstream pipe threading and making facilities in Texas and Oklahoma, Vallourec says its oil and gas sector revenue “almost tripled thanks to higher prices and volumes” compared with the first quarter of last year.

In the outlook section of its earnings report, Vallourec says of North America, “The very favorable market conditions should continue and even improve in the second half of 2022, in both price and volume terms.”

The company also says, “After several years of underinvestment, a global increase in [oil and gas] exploration and production (E&P) capital spending is forecasted, driven notably by the tight OCTG [oil country tubular goods] market environment in North America.”

Philippe Guillemot, board chair and CEO of Vallourec, says “In the context of stronger E&P drilling fundamentals, Vallourec is ideally positioned to seize attractive growth opportunities ahead.”