VALLOUREC: Vallourec updates its 2014 guidance

                VALLOUREC: Vallourec updates its 2014 guidance   Press Release  June 2014  www.vallourec.com  Vallourec updates its 2014 guidance    oSignificant temporary adjustments due to key Brazilian customer Petrobras     deciding to eliminate most of its tube inventories, and to reduced level     of Oil & Gas orders in EAMEA   oActions taken to adjust to the temporary demand shortfall   o2014 EBITDA is now targeted to be down by approximately 10% relative to     2013   oCapex reduction by €100 million to protect Free Cash Flow  Boulogne-Billancourt (France),  10  June 2014  -  Vallourec, world  leader  in  premium tubular solutions,  today announces  an update of  its 2014  guidance,  following a  significant temporary  reduction  in demand  for  its Oil  &  Gas  operations in Brazil and in EAMEA^[1].  In Brazil, Petrobras has decided to eliminate most of its tube inventories  by  year end,  while maintaining  its  drilling plans.  This  will be  a  one-time  adjustment. It will heavily weigh on Vallourec's sales in the second  semester  of 2014,  with  an  estimated net  EBITDA  impact  of circa  €60  million.  In  addition, the Brazilian non Oil & Gas activities are impacted by the continued deterioration in the local macroeconomic  environment, and declining iron  ore  prices.  In EAMEA, the  level of  orders has  strongly reduced  resulting from  E&P^[2]  operators adjusting their  inventories and delaying  some tenders for  premium  products. This will impact deliveries through the  end of the year and in  the  first half  of  2015.  It  does not  change  the  positive  structural  trends  resulting from major  E&P capex  programs in  the region,  required to  offset  depletion and support growing demand.  The Group has taken several actions on the operational front to mitigate these temporary negative impacts:    oIn Brazil, Vallourec is adapting its mills to the lower load.   oTo adjust to a lower demand in EAMEA, Vallourec is adapting its industrial     operations servicing those markets, in addition to the recently announced     measures aiming at structurally improving its European cost base.  As a result, the Group now targets EBITDA to be down by approximately 10% when compared to 2013.  The Group remains focused  on Free Cash Flow  generation, and has  accordingly  decided to  reduce its  capital expenditures  by €100  million (down  from  an  initial target of €500 million for 2014).  Philippe Crouzet, Chairman of the Management Board, said: "The Group is facing  a more challenging environment  mainly due to  temporary  adjustments by selected large customers,  and has taken immediate measures  to  adjust to this new  situation. Management remains  convinced of the  long-term  attractiveness of  the global  Oil &  Gas  end markets  the Group  serves  and  committed to implementing its strategy aimed at taking full advantage of these favorable structural trends."  About Vallourec  Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.  With over 24,000 employees, integrated manufacturing facilities, advanced  R&D  and a  presence in  more than  20 countries,  Vallourec offers  its  customers  innovative global solutions to meet the energy challenges of the 21st century.  Listed on Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and  eligible  for the  Deferred  Settlement  System  (SRD), Vallourec  is  included  in  the  following indices: MSCI World Index, Euronext 100, SBF 120 and CAC 40.  In the United States, Vallourec has  established a sponsored Level 1  American  Depositary Receipt  (ADR) program  (ISIN code:  US92023R2094, Ticker:  VLOWY).  Parity between ADR and a Vallourec ordinary share has been set at 5:1.  www.vallourec.com Follow us on Twitter @VallourecGroup  Conference call details  Tuesday 10   oAnalyst conference call / audio webcast at 6:30 pm (CET) to be June 2014      held in English.             To participate in the call, please dial:            0800 279 4835 (UK), 0805 636 389 (France),            1877 280 3459 (USA), +44 (0)20 3427 1926 (Other countries)            Conferencecode: 9092501               oAudio webcast will be available on the website at:             http://www.vallourec.com/EN/GROUP/FINANCE               oA replay of the conference call will be available until 17 June                2014.             To listen to the replay, please dial:            0800 358 7735 (UK),0800 989 597(France),            1 866932 5017 (USA), +44 (0)20 3427 0598 (Other countries)            Access code: 9092501  Information and Forward-Looking Reflections  This press release  contains forward-looking reflections  and information.  By  their nature, these  reflections and information  include financial  forecasts  and estimates as well as the  assumptions on which they are based,  statements  related to projects, objectives and expectations concerning future operations, products and services or  future performance. Although Vallourec's  management  believes  that   these  forward-looking   reflections  and   information   are  reasonable, Vallourec  cannot guarantee  their  accuracy or  completeness  and  investors  in  Vallourec  are   hereby  advised  that  these   forward-looking  reflections and information  are subject to  numerous risks and  uncertainties  that are difficult to foresee and generally beyond Vallourec's control,  which  may mean that the  actual results and  developments differ significantly  from  those expressed, induced or forecasted in the forward-looking reflections  and  information. These risks include those  developed or identified in the  public  documents filed by Vallourec with the AMF, including those listed in the "Risk Factors" section of the  Registered Document filed with  the AMF on April  14,  2014 (N° D.14-0358).  Calendar  07/30/2014 Release of second quarter and first half 2014 results 11/06/2014 Release of third quarter and first nine months 2014 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 etienne.bertrand@vallourec.com   caroline.philips@vallourec.com  -------------------------  [1] EAMEA: Europe, Asia, Middle-East, Africa  [2] E&P: Exploration and Production  140610 - Press Release Vallourec - Guidance 2014 in PDF  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: VALLOUREC via Globenewswire HUG#1791823