Vallourec Shares Rebound to €24.64 After Two Contracts with ExxonMobil in Guyana
Vallourec's stock price has risen by 2.67% to €24.64 midday on the SBF 120 following the announcement of two new orders from ExxonMobil Guyana. This rebound comes after a correction session (-7.17%) that followed a six-year high of €27.67. Concurrently, the CAC 40 has increased by 0.61% during the session.
Two New Orders from ExxonMobil Guyana for 145 km of Deep-Water Pipelines
The seamless tube specialist announced this Wednesday that it had secured two orders from ExxonMobil Guyana Limited for 145 km of pipelines. These contracts are part of the deep-water Hammerhead and Longtail projects, following a framework agreement signed in 2021 between the two companies. This news provides a concrete signal regarding offshore order intakes, as the company had mentioned a high level of tendering for offshore projects among its opportunities during the Q1 2026 release on May 13. The guidance provided on that date forecasts revenue between $175 million and $205 million in the following period, with a distribution to shareholders of about 650 million euros by August. The sectoral context remains favorable. Brent crude was above $110 a barrel at the start of the week, amid ongoing tensions in the Strait of Hormuz. This energy environment supports offshore oil projects, which are a commercial focus for the company.
Following its decline the previous day, the stock price is now below its 20-day moving average (€25.09), a difference of -1.79%. The RSI at 47 indicates a return to a neutral zone after the bullish exhaustion that followed the peak on May 14 at €27.67. In the longer term, the stock maintains a 36% lead over its MM200 (€18.06), reflecting the nearly 46% rally gained over a year. From the analysts' perspective, BNP Paribas Exane raised its price target from €21 to €31 on May 18, maintaining its outperformance rating. The new target offers a theoretical potential of about 25.8% relative to the current price. Based on consensus, the stock is trading at about 15.4 times the earnings expected for the current fiscal year and 11.6 times those of the next fiscal year, with the sector average for 'Energy' at 11.6 times. According to reviewed statements, the cumulative net short positions amount to 8.77% of the capital, declared by four funds, a level that is almost stable over a month. Next event: the general meeting scheduled for May 21, 2026.
