The “highly favorable market conditions” in North America should continue into the second half both in price and volume terms, Vallourec predicted on Wednesday, when it released second-quarter earnings. The company, based near Paris, also said it will pass cost increases onto customers in Europe, the Middle East and Brazil.
“We’re transferring our costs to our clients, and this is true in all geographies,” Vallourec Chief Executive Officer Philippe Guillemot said on a conference call. “There’s no sign that demand for oil tubes is running out of breath. The embargo on Russian oil is only adding tensions on the market.”
Signs that inflationary pressures are feeding through the supply chain may dim investors’ medium-term expectations for oil and gas producers, which are set to post record profits in the second quarter.