VALLOUREC : VALLOUREC : Vallourec reports Q4 and Full Year 2012 results

   VALLOUREC : VALLOUREC : Vallourec reports Q4 and Full Year 2012 results

                                Press Release



Vallourec reports Q4 and Full Year 2012 results

Boulogne-Billancourt, 20 February  2013 - Vallourec,  world leader in  premium 
tubular solutions, today announced its results for the fourth quarter and full
year 2012.  The  consolidated financial  statements  were presented  today  by 
Vallourec's Management Board to its Supervisory Board.



Key figures



Q4 2012:

  oSales up 10% versus Q3 2012 at € 1,465 million
  oEBITDA up 13% versus Q3 2012 at € 235 million representing
    16.1% of sales



Full year 2012:

  oSales volume of 2,092 thousand tonnes (-7% versus 2011)
  oSales stable year on year at € 5,326 million (+1%)
  oEBITDA of € 786 million representing 14.8% of sales (-16% versus 2011)
  oNet income, Group share of € 217 million representing € 1.80 per share
  oProposed dividend of € 0.69 per share





Summary of results for fourth quarter (Q4) and full year (FY) 2012 

Comparison of Q4 2012 with Q3 2012 and Q4 2011; FY 2012 with FY 2011

                        Q4    Q3   Change  Q4   Change  FY    FY   Change
In € million            2012  2012   QoQ   2011   YoY   2012  2011   YoY
Sales Volume (k tonnes)   535   525  +2%     589    -9% 2,092 2,251  -7%
Sales                   1,465 1,334  +10%  1,553    -6% 5,326 5,296  +1%
EBITDA                    235   207  +13%    254    -8%   786   940  -16%
As % of sales           16.1% 15.5% +0.6pt 16.4% -0.3pt 14.8% 17.7% -2.9pt
Operating income          142   133  +6%     196   -28%   474   693  -32%
Net income, Group share    70    62  +13%    117   -40%   217   402  -46%
Earnings per share (€)    0.6   0.5         1.0         1.8   3.4   



Commenting these results, Philippe Crouzet, Chairman of the Management Board,
stated:

"2012 was  a year  of contrast  for Vallourec.  The Group  benefited from  its 
strong market position and enhanced premium offering to achieve a record level
of Oil  & Gas  sales,  which now  represent over  60%  of total  Group  sales. 
However, Vallourec's other markets faced  a challenging environment marked  by 
economic uncertainty, lower demand and increased competition.

Moreover, 2012  was  still a  year  of significant  capital  expenditure,  but 
Vallourec is now approaching the end of its major investments in key projects.
The Group made decisive  progress throughout the year  with the ramping up  of 
its new  mills  in  the USA  and  in  Brazil. Youngstown's  new  mill  is  now 
delivering its  first pipes  to  customers and  the qualification  process  of 
premium products at  VSB is advancing  well. The new  finishing mill in  Saudi 
Arabia has just been qualified.

At the same time, the Group has  kept on innovating and strengthening its  R&D 
efforts to deliver its customers the products they need to operate in the most
complex environments. The VAM21^® connection is now setting the reference for
the most  technically challenging  projects in  Brazil, the  Middle East,  the 
North Sea, West Africa and Asia. 

Looking forward, Vallourec  expects volume and  sales to grow  and the  EBITDA 
margin to  increase in  2013. Drilling  activity  in the  USA is  expected  to 
progressively pick-up from current levels, while indicators for the global Oil
& Gas  markets  are  positive.  The  Group  will  benefit  as  its  new  mills 
progressively  increase   production.   The   economic   environment   remains 
challenging for other markets, with limited visibility."



SALES VOLUME

In Q4 2012, sales volume of rolled  tubes amounted to 535 thousand tonnes,  up 
2% compared to  the previous  quarter and 9%  below prior  year. Sales  volume 
totalled 2,092 thousand  tonnes for the  full year 2012,  down 7% compared  to 
2011, primarily due to lower volumes in Europe.



CONSOLIDATED SALES

Consolidated sales in Q4 2012 amounted to € 1,465 million, up 10% compared  to 
Q3 2012, reflecting a positive price/mix effect driven by Oil & Gas sales  and 
the seasonal effect of Nuclear sales, and slightly higher volumes (+2%) offset
by a negative currency translation effect (-2%). Sales decreased by 6% versus
Q4 2011 reflecting lower sales volume.

For the full year, consolidated sales amounted to € 5,326 up 1% year on  year, 
with strong growth in Oil & Gas and lower sales in other markets. Overall  the 
lower sales volume (-7%) was compensated by the positive effects of price  and 
mix (+6%), currency translation (+1%) and scope (+1%).



Sales by Market

Comparison of Q4 2012 with Q3 2012 and Q4 2011; FY 2012 with FY 2011

                     Q4    Q3   Change  Q4   Change  FY    FY   Change
In € million         2012  2012   QoQ   2011   YoY   2012  2011   YoY
Oil & Gas              901   816  +10%    880    +2% 3,233 2,841  +14%
Power Generation       228   138  +65%    220    +4%   644   707  -9%
Petrochemicals          88    95  -7%      93    -5%   358   373  -4%
Total Energy         1,217 1,049  +16%  1,193    +2% 4,235 3,921  +8%
% of total sales       83%   79%         77%         80%   74%   
                                                           
Mechanical             118   124  -5%     186   -37%   494   657  -25%
Automotive              49    57  -14%     82   -40%   231   359  -36%
Construction & Other    81   104  -22%     92   -12%   366   359  +2%
Total non-Energy       248   285  -13%    360   -31% 1,091 1,375  -21%
% of total sales       17%   21%         23%         20%   26%   
                                                           
Total                1,465 1,334  +10%  1,553    -6% 5,326 5,296  +1%



Energy

Oil & Gas sales rose by 10% in Q4 2012 versus the previous quarter to reach  € 
901 million, up 2%  compared to the  high level recorded in  Q4 2011. For  the 
full year 2012 sales reached a record level of €3,233 million, up 14% year  on 
year, to represent 61% of total sales compared to 54% of sales in 2011.  

In the USA,  the rig count^[1]  declined by 5%  during Q4 to  1,763 rigs.  The 
Group continued to record strong OCTG sales during the quarter and to  benefit 
from a good product mix. Throughout the year, OCTG demand was supported by the
combined effects of a  higher average rig  count, greater drilling  efficiency 
(more wells drilled per  rig) and longer laterals  of horizontal wells,  which 
represent over  60%  of  rigs.  Vallourec benefited  from  its  strong  market 
positioning,  its  premium  offering  and  its  long  term  partnerships  with 
distributors to serve the  fastest growing shale  oil plays. Furthermore,  the 
progressive increase in drilling activity in the Gulf of Mexico throughout the
year contributed to increased sales of VAM premium connections.

In the rest of the world, the  international rig count^[2] remained at a  high 
level during Q4  at 1,253  rigs. Vallourec  sales increased  in virtually  all 
regions during Q4, reflecting a high  level of deliveries to the Middle  East, 
the North Sea and Asia. Sales  increased in Brazil as Petrobras increased  its 
demand for premium grades and  connections. In 2012, Vallourec benefited  from 
stable prices and an improved product mix as demand grew for premium products.

Entering 2013, the rig count  in the USA is  expected to improve from  current 
levels, but nevertheless remain below the 2012 average level. Vallourec has  a 
good level of  orders. Prices have  been adjusted downwards  in line with  the 
market. The first deliveries  of pipe from the  new plant in Youngstown,  Ohio 
took place  before the  end of  the  year as  planned and  will  progressively 
increase throughout  the year.  The  finishing lines  are  on schedule  to  be 
commissioned in Q2 2013.

In the  rest of  the world,  the  Group is  benefiting from  a high  level  of 
bookings, reflecting strong  demand in  particular from the  Middle East.  The 
international backlog currently stands  at around 7months. Market  indicators 
point to sustained demand from the  international Oil & Gas market, with  high 
oil  prices  supporting  a  high  level  of  investment  for  exploration  and 
production. Vallourec's  capacity to  benefit from  this environment  will  be 
enhanced by the commissioning of new premium facilities: the finishing mill in
Saudi Arabia has been qualified, whilst the ramp up and qualification  process 
at VSB in Brazil is advancing according to plan.

Power Generation sales  amounted to €  228 million in  Q4 2012,  significantly 
above previous quarters, reflecting delivery of orders booked at the beginning
of the year. For the full year 2012  sales were down 9% versus 2011 at €  644 
million, which represent 12% of total sales. 

Sales for  conventional  power plants  increased  during Q4,  benefiting  from 
higher volumes and an  improved product mix, with  deliveries for projects  in 
India and the Far East and  maintenance activity in Europe. Despite a  number 
of new power plant projects in Asia, sales declined in 2012 versus 2011 as the
number of awarded projects decreased and  local competition for the supply  of 
pipes intensified. Furthermore, sales  through European distributors  declined 
due to the difficult economic environment.

Sales for nuclear power  plants are typically concentrated  during Q4 of  each 
year and are largely concentrated in  France, China and South Korea. Over  the 
full year they represented more than 20% of full year Power Generation sales.

Entering 2013, the  Group does  not see any  market indicators  pointing to  a 
change in trends for  the conventional power market.  Sales for nuclear  power 
plants will benefit from the recent orders received to supply steam  generator 
pipes for the nuclear power life-extension projects in France. Vallourec  will 
also benefit from  the approval  of the Nuclear  Safety Plan  and the  Nuclear 
Power Development Plan  by the Chinese  State Council, which  will enable  the 
approval process for new projects to resume.

Petrochemicals sales were € 88 million in Q4 2012, down 7% quarter on  quarter 
and down  5% versus  Q4 2011.  For the  full year  2012 sales  totalled €  358 
million to represent 7% of total sales, 4% below prior year (€ 373 million).

Sales are  largely  concentrated  in  the  Middle  East,  Asia  and  the  USA, 
offsetting lower  sales in  Europe, where  distributors continue  to  maintain 
their inventories at low levels.

Entering 2013, the Group is well positioned to supply a number of projects  in 
the USA, the Middle East, Asia and China, both directly to project engineering
companies and via distributors. Nevertheless,  the market is very  competitive 
and short lead times provide limited visibility.

   

Non-Energy

Non-Energy sales (Mechanical, Automotive, Construction and others) amounted to
€ 248 million in Q4 2012, down  13% sequentially and 31% below the prior  year 
level. For the full year 2012, non-Energy sales totalled € 1,091 million (20%
of total sales), down 21% compared to 2011 (26% of total sales).

Throughout the year, sales were impacted  by the global economic weakness  and 
specifically the decline in industrial production in Europe and Brazil.  Sales 
dropped in Europe following a year of strong growth in mechanical sales to the
German  manufacturing  industry,  affected   by  the  decline  in   industrial 
production in Europe and  the slow down  in China and the  rest of the  world. 
Prices came under pressure due to the low demand. In Brazil, non-energy sales
were primarily  impacted  by  the  decline in  the  automotive  market  (heavy 
vehicles). Iron ore sales  decreased during 2012 reflecting  the drop in  iron 
ore prices.

Entering 2013, economic conditions  in Europe continue  to be challenging  and 
visibility  for  industrial  sales  remains  limited.  In  Brazil,  industrial 
production is forecast to  improve thanks to  government initiatives to  boost 
growth. Iron ore spot  prices rebounded at  the end of  2012. After a  further 
decline in contract prices in Q1 2013,  this will have a positive impact  from 
Q2.

RESULTS

Summary consolidated income statement

Comparison of Q4 2012 with Q3 2012 and Q4 2011; FY 2012 with FY 2011

                         Q4    Q3   Change   Q4   Change   FY     FY   Change
In € million             2012  2012   QoQ    2011   YoY    2012   2011   YoY
Sales Volume (k tonnes)    535   525  +2%      589  -9%    2,092  2,251  -7%
Sales                    1,465 1,334  +10%   1,553  -6%    5,326  5,296  +1%
Cost of sales^[3]       -1,072  -985  +9%   -1,135  -6%   -3,940 -3,745  +5%
(as % of sales)          73.2% 73.8%        73.1%        74.0%  70.7%   
SG&A costs(3)             -146  -134  +9%     -149  -2%     -576   -577   -
(as % of sales)          10.0% 10.1%         9.6%        10.8%  10.9%   
EBITDA                     235   207 +134%     254  -8%      786    940  -16%
As % of sales            16.1% 15.5%        16.4%        14.8%  17.7%   
Operating income           142   133  +6%      196  -28%     474    693  -32%
Net income, Group share     70    62  +13%     117  -40%     217    402  -46%



Analysis of Q4 2012 Results

Sales increased  by  10% versus  Q3  2012 to  €  1,465 million,  reflecting  a 
positive price/mix effect driven by Oil & Gas sales and the seasonal effect of
nuclear sales, slightly  higher volumes  (+2%) offset by  a negative  currency 
translation effect.  The cost  of sales,  at 73.2%  of sales  in Q4,  improved 
compared to  Q3 (73.8%  of  sales). Sales,  general and  administrative  costs 
(SG&A) amounted  to  €  146 million,  up  9%  sequentially, but  stable  as  a 
percentage of sales at 10.0%. The  EBITDA for Q4 improved quarter on  quarter, 
up 13% to € 235 million, representing 16.1% of sales.

Compared to Q4 2011, sales decreased by 6% reflecting the lower sales  volume. 
The cost  of sales  was in  line with  that of  Q4 2011  (73.2%), whilst  SG&A 
decreased by 2%. The EBITDA was 8%  below the Q4 2011 level (16.4% of  sales), 
mainly reflecting the lower year on year sales. Operating income amounted to €
142 million in Q4 2012, 28% below the prior year level due to the lower EBITDA
and higher  depreciation  and  amortization. The  depreciation  of  industrial 
assets amounted to €  71 million in Q4  2012, up € 20  million compared to  Q4 
2011, reflecting the progressive ramp up of the new capacities.  Amortization, 
other depreciation  of  assets and  restructuration  costs amounted  to  €  22 
million, versus € 7 million in Q4 2011. Net income, Group share amounted to  € 
70 million, 40% below prior year.



Analysis of Full Year 2012 Results

Sales increased by  1% in 2012  to reach  € 5,326 million,  benefiting from  a 
positive price/mix effect as strong growth in Oil & Gas offset lower sales  in 
other activities.

The cost of sales increased to 74% of  sales in 2012 compared to 71% of  sales 
in 2011. This increase mainly reflects the ramp-up costs of the two new mills,
lower volumes  in Europe,  and lower  contribution from  mining activities  in 
Brazil. The level  of SG&A costs  was stable at  € 576 million,  as the  Group 
reduced G&A costs while strengthening its R&D and commercial efforts.

In the second  year of the  3-year "CAPTEN+" cost  savings program, the  Group 
generated €103 million annual pre-inflation cost savings in addition to the €
83 million recorded  in 2011. Thanks  to the CAPTEN+  Safe program, the  Group 
recorded a reduction in the injury rate; the LTIR^[4] improved from 2.8 to 2.6
and the TRIR^[5] improved from 9.4 to 7.1. However, the Group was saddened  by 
two fatal accidents. Vallourec remains  actively engaged to reduce  accidents 
in the workplace and ensure the security of all employees.

The R&D expenses amounted to € 93 million in 2012, up 19% versus € 78  million 
in 2011. In 2012, Vallourec doubled the capacity of its VAM research  facility 
in Houston.  

The EBITDA, which  progressed quarter after  quarter in 2012,  totalled €  786 
million for the full year at 14.8% of sales, 2.9 points below the 2011 level.
Most of the difference was due to lower volumes in Europe, and the ramp-up  of 
the new mills.

Operating income amounted to € 474 million  in 2012, 32% below the prior  year 
level due  to  the  lower  EBITDA and  higher  depreciation  and  amortization 
relating to the ramp-up of  new capacities. Depreciation of industrial  assets 
totalled €  238 million  in  2012, up  19%  versus 2011.  Amortization,  other 
depreciation of assets and restructuration costs amounted to € 74 million.

Financial charges amounted to € 98  million versus €49 million in 2011.  This 
reflects the impact of the increase in net debt partially offset by a decrease
in the average cost of debt.

Income before tax amounted to  € 376 million in 2012  versus € 645 million  in 
2011. The effective tax rate amounted to 30%. 

Net income of equity affiliates  increased by € 3  million in 2012. Total  net 
income amounted to €271  million. After minority interests  of € 54  million, 
Net income, Group share totalled € 217 million, versus € 402 million in  2011. 
Earnings per share amounted to €1.80. 



Cash flow

Operations generated gross cash flow of € 174 million in Q4 2012 compared to €
164 million in  Q3 2012  and €  166 million in  Q4 2011.  Working capital  was 
reduced by € 99 million during the quarter.

For the full year, gross cash flow  from operations amounted to € 541  million 
compared to € 638 million in 2011. Working capital increased by € 66  million. 
At the end of the year, the net working capital requirement represented 25% of
annualised sales, comparable with the 2011 year-end level. In 2012, the  Group 
generated operating cash flow of € 475 million, versus € 301 million in 2011.

Gross capital expenditure for the year amounted  to € 803 million, down €  106 
million year on year as strategic projects are being completed. Capex for 2013
is expected to be around € 650 million.

Dividends paid amounted  to € 183  million in 2012.  Asset disposal and  other 
elements included the proceeds of the capital increase reserved for  employees 
for € 86 million.

In 2012, net debt increased  by € 420 million to  reach € 1,614 million at  31 
December 2012, representing 31%  of equity (€ 5,213  million). At 31  December 
2011, net debt amounted to €1,194 million (23% of equity).

In line with its financial  policy, Vallourec pursued the diversification  and 
optimization of its financial resources,  including the renewal and  extension 
of bilateral banking facilities, the widening of its commercial paper  program 
and the completion of two long term bonds. As a result, at 31 December  2012, 
Vallourec had  around €  3.2 billion  of committed  financings, which  include 
undrawn confirmed  credit  lines of  €  1.6 billion.  Close  to 70%  of  these 
committed financings have a maturity in excess of 3 years (December 2015).



OUTLOOK

Entering into 2013, the demand for premium  seamless tubular in the Oil &  Gas 
segments is robust while  demand from other markets  remains subdued with  low 
visibility.

Exploration and production spending  is expected to  increase in 2013,  mostly 
driven by international markets, notably in Braziland in the Middle East.  In 
the USA, the  rig count  is expected to  improve from  current levels.  These 
elements, together with the ramp-up  of its new mills  in the USA and  Brazil, 
will drive growth of Vallourec's Oil & Gas sales

The Group continues actively with its program to generate cost savings and  to 
improve its operating efficiency.

Overall, based on the  current market conditions, the  Group expects sales  to 
increase and the EBITDA margin to improve in 2013.

PROPOSED DIVIDEND

The General Meeting of Shareholders will be  held on Thursday, 30 May 2013  at 
2:30  pm  at  the  Palais  Brongniart,  Place  de  la  Bourse,  75002   Paris. 
Shareholders will be asked to approve the payment of an ordinary dividend of €
0.69 per share for the  financial year 2012, payable in  cash or in shares  at 
the shareholders' option. The dividend payment in cash or in shares will  take 
place on 25 June 2013, (the record date and ex-date is fixed on 6 June  2013). 
This proposed dividend corresponds to a  payout ratio of 39.7% of Net  income, 
Group share.



ABOUT VALLOUREC

Vallourec is a world leader in premium tubular solutions primarily serving the
energy markets, as well as other industrial applications.

With over 22,000 employees, integrated manufacturing facilities, advanced R&D,
and presence in more than 20 countries, Vallourec offers its customers
innovative global solutions to meet the growing energy challenges of the 21^st
century.

Listed on NYSE  Euronext in  Paris (ISIN  code: FR0000120354,  Ticker VK)  and 
eligible for  the Deferred  Settlement System,  Vallourec is  included in  the 
following indices: MSCI World Index,
Euronext 100 and CAC 40.

In the United States,  Vallourec has a sponsored  Level 1 American  Depository 
Receipt (ADR) program (ISIN code:  US92023R2094, Ticker: VLOWY). The ratio  of 
Vallourec ADR to ordinary shares is 5:1.



www.vallourec.com



PRESENTATION OF Q4 AND FULL YEAR 2012 RESULTS

Wednesday 20 February 

  oAnalyst conference call and webcast at 6:30 pm (CET) to be held in English

To participate in the call, please dial:

0800 279 4841 (UK), 0805 631 579 (FR), 1877 249 9037 (USA),

+44 20 7784 1036 (other countries)

Conference code: 4931875

http://www.vallourec.fr/en/finance/investor-relations/

A replay of the conference call is available until 26 February 2013

To listen to the replay, please dial:

0800 358 7735 (UK), 0800 989 597 (FR), 1866 932 5017 (USA)

+44 20 3427 0598 (other countries)

Access code: 4931875#

CALENDAR 2013

  o2 May: Release of Q1 2013 Results
  o30 May: Shareholders' General Assembly
  o30 July: Release of Q2 and Half-Year 2013 Results
  o7 November: Release of Q3 2013 Results

FOR FURTHER INFORMATION, PLEASE CONTACT



Investor Relations Press Relations

Etienne BERTRAND     Caroline PHILIPS

Tel: +33 (0)1 49 09 35 58   Tel: +33 (0)1 41 03 77 50

E-mail: etienne.bertrand@vallourec.fr   E-mail: caroline.philips@vallourec.fr

                                       

                                        



APPENDICES

                                      

Documents accompanying this release:

  oSales volume (metric tonnes)
  oSales by geographic region
  oSummary consolidated income statement
  oSummary consolidated balance sheet
  oSummary consolidated cash flow statement



                                      

Sales volume



Sales volume corresponds to  the volume in metric  tonnes of hot-rolled  tubes 
produced and delivered by Vallourec's rolling mills.



In thousands of tonnes    2012    2011 2012 / 2011
Q1                       504.3   500.7       +0.7%
Q2                       527.7   561.2       -6.0%
Q3                       525.0   600.8      -12.6%
Q4                       534.8   588.6       -9.1%
Total                  2,091.8 2,251.3       -7.1%





Sales by geographic region



                   FY    FY   Change
In € million       2012  2011   YoY
Europe             1,195 1,426  -16%
North America      1,533 1,372  +12%
South America      1,169 1,138  +3%
Asia & Middle East   979 1,006  -3%
Rest of World        450   354  +27%
                              
Total              5,326 5,296  +1%





Summary consolidated income statement

                                      



                                                                        
VALLOUREC                            Q4 2012  Q3 2012 Change  Q4 2011  Change
(in € million)                                      Q4'12 /         Q4'12 /
                                                    Q3'12           Q4'11
                                                                       
Sales                                 1,464.6 1,334.1  +9.8%   1,552.5  -5.7%
                                                                       
                                                                       
Cost of sales^[6]                    -1,072.3  -984.6  +8.9%  -1,134.8  -5.5%
Selling, general and administrative    -145.8  -134.4  +8.5%    -148.7  -2.0%
costs^[6]
Other income (expense), net             -11.2    -7.7           -14.7    
                                                                       
EBITDA                                  235.3   207.4 +13.5%     254.3  -7.5%
EBITDA as % of sales                    16.1%   15.5%           16.4%    
                                                                       
Depreciation of industrial assets       -71.1   -56.6 +25.6%     -51.2 +38.9%
Other (amortization, impairment &       -22.5   -17.5            -6.7    
restructuring)
OPERATING INCOME                        141.7   133.3  +6.3%     196.4 -27.8%
FINANCIAL INCOME                        -27.0   -23.0 +17.4%     -12.1 +123.1%
INCOME BEFORE TAX                       114.7   110.3  +3.9%     184.3 -37.8%
Income tax                              -33.7   -33.2           -53.9    
Net income of equity affiliates           2.2    -1.3             2.9    
CONSOLIDATED NET INCOME                  83.2    75.8  +9.8%     133.3 -37.6%
Minority interests                      -13.3   -14.1           -16.2    
NET INCOME, GROUP SHARE                  69.9    61.7 +13.3%     117.1 -40.3%



Summary consolidated income statement

(in € million)

                                      





[1] Baker Hughes USA Rig Count - 28 December 2012

                                                                     
VALLOUREC                           FY 2012   as a %  FY 2011   as a %  2012 /
(in € million)                              of sales         of sales  2011
                                                                     

Sales                                5,326.0           5,295.9         +0.6%
                                                                        
                                                                     
Cost of sales^[7]                   -3,940.4   -74.0% -3,744.7   -70.7% +5.2%
Selling, general and administrative   -575.6   -10.8%   -576.5   -10.9% -0.2%
costs^[7]
Other income (expense), net            -24.3    -0.5%    -35.0    -0.7%   
                                                                    
EBITDA                                 785.7    14.8%    939.7    17.7% -16.4%
                                                                       
Depreciation of industrial assets     -237.5     4.5%   -200.5     3.8% +18.5%
Other (amortization, impairment &      -74.2            -46.0           
restructuring)
OPERATING INCOME                       474.0     8.9%    693.2    13.1% -31.6%
FINANCIAL INCOME                       -97.6            -48.5           
INCOME BEFORE TAX                      376.4     7.1%    644.7    12.2% -41.6%
Income tax                            -112.4           -191.6           
       Net income of equity             6.5              3.7           
        affiliates
       CONSOLIDATED NET INCOME        270.5     5.1%    456.8     8.6% -40.8%
       Minority interests              53.7             55.2           
       NET INCOME, GROUP SHARE        216.8            401.6         -46.0%

[2] Baker Hughes International Rig Count excluding the USA and Canada -
December 2012

[3] Before depreciation and amortization

[4] Lost time injury rate (per million hours worked)

[5] Total recorded injury rate (per million hours worked)

[6] Before depreciation and amortization

[7] Before depreciation and amortization

Information

Quarterly statements are unaudited. Audit procedures have been carried out
for the full year consolidated financial statements. Final certification will
take place before the Registration Document is filed with the AMF, mid-April
2013.
Unless otherwise specified, the changes indicated are expressed in comparison
with the previous year.



200213 Vallourec Q4 2012 Results press release (PDF)

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