Q1 20 revenues were in line but the outlook is quite uncertain with the combination of the pandemic and very low oil prices (the former accelerating the latter). Cash is needed to avoid breaching covenants given the negative free cash flow we expect for the full year, which explains why the group intends to proceed with the €800m capital increase as soon as market conditions allow. We expect the share price to remain volatile.
14 May 2020
Another tough year ahead


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Another tough year ahead
Vallourec (VK:EPA) | 0 0 1.1% | Mkt Cap: 2,202m
- Published:
14 May 2020 -
Author:
Fabrice Farigoule -
Pages:
2 -
Q1 20 revenues were in line but the outlook is quite uncertain with the combination of the pandemic and very low oil prices (the former accelerating the latter). Cash is needed to avoid breaching covenants given the negative free cash flow we expect for the full year, which explains why the group intends to proceed with the €800m capital increase as soon as market conditions allow. We expect the share price to remain volatile.