Vallourec Cuts Investments Further After 2015 Net Loss
French steel pipe maker Vallourec (VAC.F) , which supplies oil and gas companies, reported a 2015 net loss, cut investments for the second consecutive year and said on Thursday that it expected adverse market conditions to persist throughout 2016.
Vallourec said it slashed 3,500 jobs in 2015 as revenue from its core oil, gas and petrochemicals business tumbled nearly 38 percent.
A sustained fall in oil prices, down around 70 percent since 2014, has forced oil and gas companies to make drastic cuts to project budgets, putting a squeeze on suppliers like Vallourec.
"In 2015, Vallourec faced an extremely difficult business environment, characterized by major exploration and production capex cuts by its customers," Chief Executive Officer Philippe Crouzet said in a statement.
(Reporting by Bate Felix)
