Tenaris stung by Petrobras cash flow woes, CEO Rocca says

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Cash flow constraints at Petrobras (PBR -4.1%) has slowed output gains and hurt profit at Tenaris (TS -3.7%), CEO Paolo Rocca says.

Brazil's big deepwater producer has been using equipment on hand instead of buying new supplies, Rocca said today in a conference call after Q2 earnings at the Brazilian oil equipment supplier fell short of estimates.

PBR's cash crunch comes as it is investing ~$100M/day to expand output at its refineries and aging oil fields.