VALLOUREC : Margins on the move

研报英文原文证据摘录

VALLOUREC : Margins on the move

EQUITIES

OIL & GAS

VALLOUREC OUTPERFORMPRICE* EUR26.1  TARGET PRICE EUR31 (UPSIDE 19%)

VALLOUREC ADR OUTPERFORMPRICE* USD6.3  TARGET PRICE USD7.2 (UPSIDE 13%)

Margins on the move

Yesterday we hosted Vallourec’s CFO (Nathalie Delbreuve) for meetings with investors in London.19 MAY 2026

Securities Research Report Below we highlight the key messages from the day.

Production time: 05:18* (London time)

Research Analysts & Publishing Entities Confidence in a 2H26 recovery reinforced

Paul Redman Whilst margins and sales volumes are expected to be weaker sequentially, the positive outlook into

BNP Paribas London Branch 2H26 was reaffirmed. Delbreuve highlighted that even if the SoH remained closed all year, she

(+44) 203 430 8617 expects higher volumes as 1) pre-conflict order intake was already positive, 2) alternative SoHpaul.j.redman@uk.bnpparibas.com

supply routes are already in operation, and 3) demand risk/ supply constraints are more likely in

smaller markets (rather than Saudi and UAE which make up 2/3 of ME sales). Additionally, the US

market is firming with higher prices being offered to clients (3Q26 pricing $2-300/ton higher).

Further disruption to imports from tariffs and anti-dumping investigations (Austria, Taiwan, UAE)

are price supportive and can be serviced by the optionality of its 5-10% US spare capacity.

Geothermal supportive margins and terminal value.

Vallourec highlighted its exposure to a growing geothermal market and how this supports data

centre demand. Whilst conventional geothermal projects are lower margin, enhanced geothermal

requires premium tubes to meet the high temperatures involved (recently won the $800m FERVO

contract) and subsequently margins more align to group average. Further sales volume is possible