Vallourec (Paris: FR0000120354 - news) jumps over 10 percent after the steel-tube maker's first-quarter results beat forecasts and management confirms the group's goal of increasing sales and improving the core operating margin in 2013.
The company, which last year was forced to downgrade its forecasts twice as markets outside the oil and gas sector shrank and two new plants faced delays, said earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 191 million euros ($251.99 million) in the quarter from 152 million a year earlier.
"With a third consecutive beat on numbers, the confirmation of trough earnings in the first quarter, a consistent improvement in margins since the second quarter of 2012 ... Vallourec is gradually rebuilding confidence among investors," Exane analysts write in a note to clients.World Steel Tube Dispatch
Vallourec is also benefiting from less upbeat comments by competitor Tenaris as investors switch investments, says a Paris-based analyst.World Steel Tube Dispatch
At 0815 GMT Vallourec, whose shares have lost around 10 percent of their value in the last twelve months, is the best performing stock on the CAC 40 (Paris: ^FCHI - news) index, up 8.8 percent at 39.14 euros, while the index is flat.
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