Tubemaker Tenaris saw net revenues for its South America business rise 16 percent in Q1, year-on-year, to $330 million, the company said on Friday. When compared to the last quarter of 2018, the company’s net revenues for South America dropped 7 percent, quarter-on-quarter, from $356 million in Q4 2018.
The company attributed the weaker quarter-on-quarter results to lower sales of oil country tubular goods (OCTG) in Argentina. Additionally, Tenaris said the recovery of drilling activity in Mexico may be “tempered” by “financial constraints.” As for the rest of Latin America, drilling activity is expected to remain “relatively stable, with shale drilling activity in Argentina switching from gas to oil.”
Tenaris posted a total net profit of $243 million in Q1, 3 percent up, year-on-year.