- Tenaris (TS -3.7%) is lower following downside guidance from French steel pipes maker Vallourec (OTCPK:VLOUF -8%), which reduced its 2014 EBITDA outlook by ~10% Y/Y due to soft orders in the Middle East, the North Sea and Brazil.
- Vallourec cites a significant temporary reduction in demand for its oil and gas operations in Brazil, as Petrobras (PBR +0.5%) has decided to eliminate most of its tube inventories by year end; it says PBR was still committed to its high-value deepwater oil projects, so the impact of the inventory run-down would be a one-off for Vallourec.