France-based tube and pipe producer Vallourec said net revenues in Q1 in South America declined 14.1 percent, year-on-year. Revenues reached EUR 140 million, down from EUR 163 million in the same quarter of the year prior.
South America was Vallourec’s third most important market in Q1 in terms of revenue. The region accounted for 16.2 percent the company’s total EUR 862 million revenues in Q1 this year.
“In Brazil, oil and gas revenue was down compared to Q1 2017, which benefited from higher than average OCTG deliveries to (state-owned oil producer) Petrobras for exploratory wells in the Libra field,” the company said while commenting its quarterly results.
“Revenue was also significantly affected by the weakening of the Brazilian Real. In April 2018, Vallourec reinforced its unique long-standing relationship with Petrobras by signing new long-term contracts for the supply of the most comprehensive range of premium products and services,” the company added.