Record Low O&G Volumes Hurt Vallourec in Q1

French steel pipe maker Vallourec (VAC.F) on Tuesday reported a net loss and fall in revenues in the first quarter as volumes plummeted to record lows mainly in the oil and gas businesses, but it said results will be better in the next quarter.

 

The company, which supplies the oil and gas industry, said revenues in the quarter fell 36.2 percent to 671 million euros ($771.99 million) compared with the same quarter in 2015, while its net loss was 284 million euros.

 

Oil, gas and petrochemicals contribute to about a third of Vallourec's business.

 

"As expected, the first quarter of 2016 was marked by a decrease in volumes. This new record low level illustrates the extent of the crisis the oil & gas markets are going through," said Philippe Crouzet, Chairman of the Management Board.


($1 = 0.8692 euros)

(Reporting by Bate Felix)