VK CMD: no game-changer, but clear path to distributions and mid-cycle earnings outlined Vallourec at its CMD earlier this week showcased the mid-cycle earnings power of the business post-transformation, pointing to group EBITDA of EUR850m including 10-15% from geothermal, CCUS and H2 end-markets. A planned second extension phase of the iron-ore mine, further optimisation of assets, potential sales of its newly unveiled underground vertical H2 storage solution and valorisation of a novel charcoal manufacture process could lead to upside. Overall, while there was little on the day to move near-term numbers beyond a small downward adjustment to the mine''s output, we think the mid-cycle scenario should help to inform how management are viewing the shares'' valuation. At 3.5x EV/EBITDA mid-cycle, management believe the shares are significantly undervalued and we''d expect the mechanism to distribute the 80-100% of total cash generation as early as 2025 to include both dividend and buyback. Feedback and key takeaways attached overleaf. Project news: Suriname studies launched, Safaniyah awards nearing and PFC submits low bid In project news this week, TotalEnergies announced the launch of development studies for its c$9bn Block 58 project off Suriname while Upstream reports that initial flow tests at its Venus wildcat off Namibia have ''not disappointed the partners''. Eni has reportedly issued a letter of intent for the mooring system on its planned Coral Norte FLNG project off Mozambique, where a Technip Energies-led consortium is likely to be selected for the EPC of the vessel. In Brazil, Petrobras is in the final stages of selecting contractors to construct two all-electric FPSOs for deployment on the Atapu and Sepia fields. In the Middle East, Aramco is expected to place up to nine major offshore EPCI contracts with LTA partners (including Subsea 7 and Saipem) ''within a month or two'' related to its Safaniyah field, while the bid deadline for works on...