Sept 26 French steel-tube maker Vallourec SA
said a weak Brazilian real and reduction in demand for
new oil and gas wells in Brazil could dent growth in revenue and
EBITDA margin this year.
Vallourec had attributed its higher profits in the last two
quarters to higher sales in the oil and gas sector in Brazil and
the Middle East, which offset low gas drilling activity in the
The company said in a statement that it saw no signs of
recovery in shale gas drilling in the United States, but was
positive it could take advantage of shale oil drilling. ()
North American energy companies have been focusing on
drilling for oil as gas prices remain depressed.
"... The product mix driven by shale oil drilling is
evolving towards lower-margin semi-premium connections,"
Vallourec said in a statement after an investor conference in
Vallourec makes seamless steel tubing used in oil and shale
gas drilling, the automotive industry as well as building