Oilfield service firms’ Q1 LatAm revenue reaches US$3.4bn

Combined revenue from Latin America in the first quarter for three of the world’s top oilfield service providers totaled US$3.4bn.

Financials for Baker Hughes, Halliburton and SLB show that that the companies’ revenue from the region in the first three months of 2024 reached US$637mn, US$1.108bn and US$1.654bn, respectively.

Revenue varies when comparing the latest numbers with sequential and year-on-year results, with revenue down from previous figures for Baker, up for Halliburton and mixed for SLB.

Source: Company financials

During Baker’s 1Q24 results call, CEO Lorenzo Simonelli commented on delays in rigs coming out of maintenance in Mexico.

Nevertheless, he pointed to two contract awards from Brazil’s Petrobras in the quarter.

Simonelli added that Baker expects continued upstream spending growth beyond 2024, led by offshore markets in Latin America, among others, and his presentation highlighted “appetite” for LNG projects in the region.

Halliburton attributed increased Latin America revenue “primarily due to higher drilling-related services and increased software sales in Mexico, improved pressure pumping services and fluid services in Argentina, and increased activity in multiple product service lines in Brazil and Ecuador.

“Partially offsetting these improvements was lower fluid services in Brazil and the Caribbean,” it said.

When asked about his outlook for the region during Halliburton’s Q1 conference call, CEO Jeff Miller said “it’s broad-based growth in Latin America.”

He added: “I think it also demonstrates how oil and gas is critical to economies. Those are economies that require oil and gas, that view oil and gas as critical to both security and economic growth, things that are important in Latin America, so I expect there’s more to come.”

For SLB, sequential revenue from Latin America slid due to lower drilling revenue in Mexico and reduced asset performance solutions revenue in Ecuador.

Year-on-year growth was driven by higher sales of production systems in Brazil and “robust” drilling activity in Argentina, partially offset by reduced drilling revenue in Mexico.