NEW YORK Bri-Chem Corp.
says it is hard to predict how the rest of the year will shape
up for the North American drilling market, although it does
expect a second-quarter decline in Canadian activity due to the
"Looking beyond (the second
quarter), it is difficult to determine if demand for oilfield
activity will increase as economic concerns are still impacting
the stability of commodity prices," the company said May
Bri-Chems first-quarter net income of Canadian $1.8
million ($1.77 million) fell 36.6 percent from C$2.9 million a
year earlier on sales that dropped 5.7 percent to C$49.7
million ($48.9 million).
The company saw some pullback
from customers in its steel pipe distribution segment.
The unit "experienced a decrease
in demand for seamless pipe in November 2012 and it continues
to be negatively affected by reduced demand from steel pipe
service suppliers into (the first quarter of) 2013," the
Bri-Chem also expects challenges
in its steel pipe making unit, even as it more than doubled its
sales year on year.
"The company continues to be
challenged by volatile crude oil prices, increasing crude oil
price differentials, and distribution and pipeline constraints.
These factors are contributing to exploration and production
companies deferring or curtailing 2013 capital spending
programs, which has deferred demand for large-diameter steel in
(the first quarter of) 2013," it said.