Please find our model here. 

Vallourec is moving out of our sphere with the bonds call constrained and the Company heading towards an investment grade rating. Vallourec continues to outperform

Please find our updated model here.

The equity market reaction to this morning’s Q3 financials is negative but credit inventors should look past that and focus on the continued momentum in FCF before Working Capital and the lowering restructuring charges. We see the increasing inventory and increasing investment in Working Capital as an overall positive as the business continues to see positive momentum in its operations. We have not adjusted our projections this morning, although mid point of Company guidance is slightly higher than we anticipate. We are happy to maintain our position.

Please find our updated model here.

We are taking a 5% long position in Vallourec bonds at 94%. We acknowledge there is limited upside in the current environment, but with the business

The recent Dallas Fed Energy Survey points to more difficulties for OIL & Gas drillers in the US, as inflationary pressure, shortage of equipment and lack of

Please find our Vallourec model here. We will update the model further when Vallourec post their full H1 numbers in August.
Can Vallourec do a refinancing prior to completion of the cost savings? Vallourec’s Q1 results came with a large asterisk attached and Q2 is similar. However, alongside the fact that

Please find our updated analysis here.

Although Vallourec’s Q1 results comes with a large asterisk attached it does not change the fundamental story behind the Company. Vallourec has came through a large financial restructuring, and with the recent changes in management further

SVP, one of the main creditors during the restructuring of Vallourec last year, is placing c.50% of their shares via Goldman Sachs and Barclays. This will reduce their holdings from 12.3% to c. 6%. Given the share performance this year,

Main takeaway from Vallourec’s Q1 release last night is the emphatic statement that FY22 EBITDA now expected to be significantly above FY21, despite the mine shut down in Q1. The mine has restarted operations on May 4th, with restrictions for a

Further management changes at Vallourec were announced this morning, with a new CFO appointed. Mr Sacha Bibert, who was previously CFO of the

Vallourec has completed its selection process and has appointed Philippe Guillemot as Chairman and CEO. Mr Guillemot was f

Please find our updated model on Vallourec here.

Vallourec’s balance sheet is typical of a post restructured Company - an ill-fitted debt structure. Vallourec’s main bond has a coupon of 8.5%, which, for a business that is