Vallourec said it now expects second-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at around 370 million euros ($415 million), up from 320 million euros announced before.
The company also said it expects total cash generation in the second quarter to be around 110 million euros, against cash generation around breakeven indicated previously.
Net debt at the end of the second quarter is predicted to stand at around 870 million euros, compared to 1 billion euros three months before.
Vallourec Chairman and CEO Philippe Guillemot said he expects lower earnings in the second half of the year due to weaker profitability at its U.S. Tubes division and larger losses in Germany caused by an ongoing wind-down of operations.
"We continue to expect that these losses from our German tubes production will cease at the end of 2023 with the closure of these assets," Guillemot said in a press release.
Vallourec also said it expects EBITDA for the full year to be in a range of 950 million euros-1.1 billion euros.
It had previously said only that it expected an improvement from the previous fiscal year. In March Vallourec reported EBITDA of 750 million euros for the full year 2022.
($1 = 0.8924 euros)
(Reporting by Michal Aleksandrowicz in Gdansk; editing by David Evans and Jan Harvey)
