Notes from the Conference Call

Research evidence excerpt

Notes from the Conference Call

Update

July 30, 2026 09:05 AM GMT

Morgan Stanley & Co. International plc+MVallourec | Europe Guilherme Levy

Equity Analyst

Notes from the Conference Call Guilherme.Levy@morganstanley.comMartijn Rats, CFA +44 20 7425-6616

Equity Analyst and Commodities Strategist

Martijn.Rats@morganstanley.com +44 20 7425-6618

Key Takeaways Alice Bergier Winograd

Most questions today were on the logistical issues around the Strait, alternative Alice.Winograd@morganstanley.com +44 20 7425-0174

routes in the Middle East, and the costs associated with using them …

Vallourec (VLLP.PA, VK FP)

… and also on expectations of margins and volumes into 2H after a softer-than- Energy Services | France

expected guidance for 3Q in terms of EBITDA. Stock Rating Equal-weight

Industry View In-Line

We remain on the sidelines. Price target €22.30

Shr price, close (Jul 29, 2026) €21.20

52-Week Range €27.67-14.76

The key highlights from today's conference call are below: Mkt cap, curr (mn) US$6,010

Net debt (12/26e) (mn)* US$21

• Middle East deliveries and cost recovery: EV, curr (mn)* US$6,060

° Management expects volumes to increase in 3Q and 2H even if the Strait * = GAAP or approximated based on GAAP

of Hormuz remains closed, as alternative delivery routes are now in

place. There have been no order cancellations, only delays to deliveries.

° Additional freight, insurance, transportation and storage costs remain

elevated, with part of the 2Q impact shifting into 3Q. Recovery is being

negotiated customer-by-customer and will take place over the coming

quarters, with part potentially extending into 2027.

° Saudi Arabia is the least affected market given the localised supply

chain, while the UAE and Iraq carry higher logistics costs.

• 3Q mix and cash flow: