(Reuters) – Vallourec said on Thursday it expects operating profit to rise further in 2023, driven by its Tubes, Mining and Forestry segments, even as it pursues a restructuring plan that includes site closures and job cuts. jobs.
The company reported earnings before interest, tax, depreciation and amortization (Ebitda) of 715 million euros for the full year, up 43% from 492 million in 2021.
The Vallourec title climbed 6.1% to 13.40 euros at 08:03 GMT on the Paris Stock Exchange.
In the fourth quarter, Ebitda jumped 129% to 312 million euros thanks to the improvement in the industrial margin, Vallourec said in a press release.
The tube maker also said it was aiming for positive free cash flow this year, despite higher than usual capital expenditure of around 220 million euros, and one-time cash outflows of around 350 million related to its restructuring plan.
Vallourec announced last year that it would close its German manufacturing sites, the Saint-Saulve tube mill in France, and a site in Scotland as part of a reorganization.
“The workforce affected by the closure of sites or their reduction began to leave the group in the first quarter of 2023, with a final wave of departures in 2024”, indicates Vallourec.
The group also said it plans to further reduce its net debt this year.
(Report Olivier Sorgho and Vittorio Maresca di Serracapriola in Gdansk; Lina Golovnya, edited by Kate Entringer)
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