French steel pipe-maker Vallourec said its net loss deepened in the second quarter and warned of further deterioration in margins in the second half of the year in the face of falling demand from its oil and gas customers.
Vallourec now expects earnings before interests, taxes, depreciation and amortisation (EBITDA) to be negative over the full year. Analysts on average had expected 171 million euros of EBITDA in 2015, according to Thomson Reuters I/B/E/S.
For the second quarter the company posted a net loss of 199 million euros ($217 million), worse than the 76 million euros of the first quarter. The 275 million euro net loss over the first half compared to profits of 144 million euros in 2014.
In a statement on Thursday, it warned that the challenging environment in the oil and gas markets would lead to significantly lower margins and deliveries in the third and fourth quarters compared to that achieved in the second quarter.
($1 = 0.9152 euros)
(Reporting by Michel Rose)