French tube and pipe producer Vallourec said net revenues in South America rose 31 percent, year-on-year, in the full-year 2017, reaching EUR 612 million, compared to EUR 467 million in the full year of 2016.
The South American market accounted for 16.3 percent of Vallourec’s total net revenues of EUR 3.7 billion in 2017.
“Looking towards 2018, we expect to benefit from a … stable oil and gas activity in Brazil,” the company forecasted in a statement on its financial results.
“Drilling activity [in Brazil] is expected to remain stable, and we target to renew our frame agreement with Petrobras in the course of H1 2018,” Vallourec said.
Despite not disclosing revenues for Brazil specifically, Vallourec said full-year 2017 revenue in the country was up year-on-year, “essentially supported by higher sales to Petrobras in Q1 2017 for the drilling of exploratory wells in the Libra field.”
“In Brazil, 2017 Industry & Other revenue increased mainly due to higher prices and volumes in automotive and mechanical engineering. Revenue generated from the mine was up thanks to the increase in iron ore prices,” the company noted.