Cash flow constraints at Petroleo Brasileiro SA (PBR), the biggest producer in ultra-deep waters, has slowed output gains, curbing profit at Tenaris SA (TS), the oil equipment supplier said today.
Petrobras, as Brazil’s state-controlled company is known, has been using equipment on hand instead of buying new supplies, Tenaris Chief Executive Officer Paolo Rocca said in a conference call today. Rocca said he hopes sales to Petrobras will increase next year.
Luxembourg-based Tenaris is the world’s largest maker of seamless steel pipes. A combination of faster-than-expected decline rates at Rio de Janeiro-based Petrobras’s older fields and delays in getting production equipment installed at newer projects have caused the company to miss production targets in recent years.
The cash crunch comes as Petrobras is investing about $100 million a day to expand output at its oil fields and refineries. Petrobras fell 1.9 percent to 19.47 reais at 11:24 a.m. in Sao Paulo.
Tenaris’s American depositary receipts were down 3.4 percent to $43.30. Each ADR is worth two ordinary shares.
bloomberg.com
Petrobras, as Brazil’s state-controlled company is known, has been using equipment on hand instead of buying new supplies, Tenaris Chief Executive Officer Paolo Rocca said in a conference call today. Rocca said he hopes sales to Petrobras will increase next year.
Luxembourg-based Tenaris is the world’s largest maker of seamless steel pipes. A combination of faster-than-expected decline rates at Rio de Janeiro-based Petrobras’s older fields and delays in getting production equipment installed at newer projects have caused the company to miss production targets in recent years.
The cash crunch comes as Petrobras is investing about $100 million a day to expand output at its oil fields and refineries. Petrobras fell 1.9 percent to 19.47 reais at 11:24 a.m. in Sao Paulo.
Tenaris’s American depositary receipts were down 3.4 percent to $43.30. Each ADR is worth two ordinary shares.
bloomberg.com
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