by Scott Kanofsky
Investing.com – French steel pipe maker EPA: reported weaker-than-expected underlying revenue in the third quarter as prices and volumes from its North American oil and gas business rose. It was partially offset by a decline in iron ore mining activity.
EBITDA for the three-month period ended September 30 increased by 55% year-on-year to €198 million. Analysts polled by Bloomberg had expected this number to reach 232.2 million euros.
“Our pipeline business continues to improve quarter on quarter thanks to the favorable environment due to concern for energy security around the world,” CEO Philippe Guillemot said in a statement.
“Our third quarter results are positively impacted by the new pricing strategies implemented companywide since the second quarter and the strong volume momentum associated with new or existing contracts.”
It added that progress had been made in its efforts to restore normal operations at its Pau Branco iron ore mine in Brazil, which has slowly resumed after a temporary closure in January due to flood damage.
But this decrease in the level of iron ore exploitation in South America affected its industrial unit, whose turnover in the third quarter decreased by 0.5% to 346 million euros.
Rising energy costs have also affected their sites in Germany, Valoric It intends to close as part of a broader reform of the company’s structure.
Meanwhile, free cash flow is negative at -81 million euros, although an improvement from the level recorded in the third quarter of 2021.
Paris-listed shares of Valloric fell in morning trade on Monday.
However, the company confirmed its main annual profit target of between 650 and 750 million euros. Free cash flow is expected to be positive in the second half as well, thanks to strong revenue expectations in the fourth quarter.