ADR Report: Shares Lower As Price Of Oil Tumbles

May 04, 2012

NEW YORK (Dow Jones)--International companies trading in New York closed lower Friday, in line with the broader market, following a weaker-than-expected reading on U.S. employment in April.

The Bank of New York index of ADRs dropped 1.6% to 123.47 as oil futures tumbled to their lowest level in three months.

Energy company stocks closed lower.

Brazil's Petroleo Brasileiro (PBR, PETR3.BR, PETR4.BR), or Petrobras, lost 4.9% to $22.15. In Europe, Royal Dutch Shell (RDSA, RDSB, RDSA.LN, RDSB.LN) declined 2% to $69.31, BG Group PLC (BRGYY, BG.LN) tumbled 4.1% to $22.08 and BP PLC (BP) shed 2.5% to $40.96.

The European index fell 1.6% to 113.35.

Alstom SA (ALO.FR), the French engineering group best known as a maker of high-speed trains and heavy-duty power equipment, Friday said it expects only modest rises in revenue and profitability over the next three years despite a bulging order book. Rivals ABB Ltd. (ABB, ABB.SK, ABBN.VX) and Siemens AG (SI, SIE.XE) both traded down, off 1.3% to $17.68 and 2.7% to $88.05, respectively.

The Asian index slipped 1.2% to 123.29.

Origin Energy Ltd. (ORG.AU) and Santos Ltd. (SSLTY, STO.AU) moved to reassure investors Friday that their multibillion dollar Australian gas-export joint ventures remain on schedule and within budget after BG Group PLC announced a massive cost blowout at a nearby development Thursday. Shares of Santos's stock still fell 1.3% to $14.28.

The Latin American index dropped 2.4% to 341.47 and the emerging markets index declined 1.9% to 289.78.

Brazil's government has won the latest round in a legal dispute with Brazilian mining giant Vale SA (VALE, VALE3.BR, VALE5.BR, VALE5.FR) over the payment of taxes on overseas profits. This could significantly dent Vale's balance sheet, according to Barclays. Shares of the miner tumbled 3.2% to $21.54.

-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com

(END) Dow Jones Newswires

May 04, 2012 16:30 ET (20:30 GMT)