BJ Services Moving Canadian Assets to LatAm
Houston-based oilfield services firm BJ Services (NYSE: BJS) is moving Canadian assets to Latin America, company chairman and CEO Bill Stewart said in a webcast.
The move is an example of moving assets to "better markets," said Stewart.
Mexico's state oil company Pemex recently awarded BJ services a three-year contract for a 60-well project in the country's south, said Stewart, adding this will be the first time BJ has worked in this part of Mexico.
The cementing, coiled tubing and acidizing services contract will mean roughly US$25mn in revenue, he said.
In Latin America, BJ Services also works in Argentina, Brazil, Colombia and Venezuela.
BJ Services saw consolidated revenue from its Latin American operations increase 26% in the second fiscal quarter ended March 31 compared to the year-ago period.
Companywide, BJ Services saw second fiscal quarter net profits dip 7.16% to US$189mn year-over-year. Revenue in the period rose 10% to US$1.19bn and operating profit fell 1.74% to US$290mn.
During the quarter, capex reached US$160mn and is expected to hit US$650mn in fiscal year 2007, Stewart said.
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