BJ Services Ups LatAm Revenues 10% in Fiscal Q1

Houston-based oil services company BJ Services (NYSE: BJS) increased its Latin America consolidated revenue 10% in the first fiscal quarter ending December 31 compared to the same period in 2004, the company said in a statement, without providing figures.

Sequentially the company's Latin American revenues increased 4% from the previous quarter, the statement said.

Revenues from pressure pumping services in Latin America were up 25% from 1Q05 while increasing 4% sequentially.

A 47% year-on-year revenue increase in the completion tools operations resulted from an improved sales mix in the Gulf of Mexico and screen sales in Brazil.

"Our Latin America region is benefiting from favorable activity in the primary markets within the region," the statement said.

"Latin America is improving and Venezuela is finally starting to show some positive contribution. I would expect Latin America to be a good nice solid contributor as we move forward," CEO James Stewart said in a conference call to discuss results on Tuesday. Venezuela is "doing a little better and could be doing a lot better, has to do a lot better. Venezuela's day of reckoning is getting close."

Onshore activity in Mexico along the Gulf of Mexico is strong and has potential for improved activity in the north as new contracts come online, but contractual issues are dependent on state oil company Pemex's budget, Stewart said.

Hurricane Katrina cost the company US$15mn in revenue in 4Q05 but the company recovered, with first quarter revenues mostly equal to 3Q05, he added.

Overall capital spending in the quarter was US$81.9mn and is forecast at US$450mn for 2006.

Companywide BJ Services reported total net income of US$160mn in 1Q06 compared to US$95mn in 1Q05.

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