Vallourec Shares Up 2.26%, Boosted by Brent Above $93
The seamless tube specialist benefits from the rise in oil prices and recent contracts with ExxonMobil, supporting the stock. The stock is nearing a technical threshold closely watched after several sessions of consolidation.
Two ExxonMobil Guyana Orders and the Brent Rise Support the Stock
Vallourec shares are up 2.26% at €24.46, among the strongest gains in the SBF 120 at midday. The stock follows the trajectory of Brent, which has risen above $93 per barrel (+1.48% in session), in anticipation of a military de-escalation in the Middle East. This movement comes after a consolidation phase that followed the six-year high of €27.67 reached in mid-May upon the release of first quarter results. The Paris session remains subdued, with the CAC 40 up 0.17%. Over three months, the stock has gained 23.79%, and 64% over one year. The declared net short positions reach 8.76% of the capital, spread over four funds, a stable level over the last thirty days according to the declarations consulted. This significant portion of the capital sold short reflects a persistent bearish positioning by some institutional investors, without recent acceleration, and calls for monitoring this parameter without drawing isolated conclusions.
The Stock Approaches Its 20-Day Moving Average at €24.81 After the Barrel's Rebound
Graphically, the price is slightly below its 20-day moving average (€24.81), a gap of 1.41%, which forms the first technical barrier to overcome to confirm the recovery. Conversely, the 50-day moving average at €23.53 and the 200-day moving average at €18.38 remain well below the current price, with a gap of 33% for the latter, indicating the strength of the underlying trend. The RSI at 47 indicates a balanced market, with no overbought or oversold signals, consistent with the digestion phase observed since the peak on May 14. The support remains identified at €23.25, tested during the drop on May 27. On the fundamentals side, during the first quarter earnings release on May 13, the group confirmed a revenue guidance between €175 million and €205 million for the following quarter, and its intention to distribute nearly €650 million to shareholders by August. The stock also recently benefited from two orders signed with ExxonMobil Guyana for 145 km of pipelines for the deepwater Hammerhead and Longtail projects. The next key date for investors remains the completion of the shareholder return program by August.
