UPDATE 1-Vallourec's first-quarter profit rises on higher US prices
Adds details on US and Middle East performances in paragraphs 4-6, CEO quote in paragraph 7
By Mathias de Rozario
May 13 (Reuters) - French steel tubes maker Vallourec VLLP.PA on Wednesday reported a 4% rise in its first-quarter core profit that landed within its previously given guidance range, boosted by rising market prices in the United States.
Vallourec's earnings before interest, taxes, depreciation and amortization (EBITDA) reached $220 million in the January-March quarter. It had guided for them to come between 165 million and 195 million euros ($194 million and $229 million) when it reported fourth-quarter results.
The company changed its reporting currency from the euro to the U.S. dollar from the start of January.
Vallourec, which provides tubing for oil and gas, low-carbon energy and industrial markets, reported stable volumes in North America, but higher U.S. market prices more than offset increases in energy and raw material costs.
The impact of the situation in the Middle East was contained, the company said, as it saw resilient customer activity in its key markets in the region.
Vallourec made more than 25% of its revenue in the Middle East, with Aramco in Saudi Arabia and ADNOC in the UAE being its main clients.
"These customers have pipelines that enable them to continue exporting oil without having to pass through the Strait of Hormuz, so their business remained buoyant in the first quarter and is expected to remain so in the second quarter," CEO Philippe Guillemot said in a call with journalists.
($1 = 0.8522 euros)
