December 04, 2008

Lupatech optimistic on performance in Q4

BNamericas reported that Brazilian metal parts producer Lupatech is upbeat on its business performance in the fourth quarter and beyond.

The report quoted Mr Nestor Perini president of Lupatech as saying that "The first two quarters of the year were marked by the unusual retraction in the level of our business in Brazil and to a lesser extent in Argentina. As we mentioned at the end of Q2 of 2007, based on the sales level at that time, there would be an evolution for the third quarter. We are confident that the signs for the fourth quarter of 2007 are equally positive."

Mr Perini believes that oil and gas sectors will bring the best upside for the company in coming years. He added that "The high level of investments worldwide, mainly due to the oil exploration programs in deep waters, offers us great potential for growth in this segment."

He further added that recent discoveries made by Brazil's federal energy company Petrobras in the country, such as Tupi will expand Lupatech's business perspectives for the future significantly. Petrobras estimates that its Tupi area in the offshore Santos basin holds 5 billion to 8 billion barrels of oil equivalent of recoverable light oil and natural gas.

Mr Perini said that "The impact of the discovery in the investment program of Petrobras and its suppliers will occur in the mid to the long term adding such impact would be noticeable after 2011 or 2012.”

Mr Perini without disclosing further details said that "Due to strong demand from this sector, we are concluding investments which will allow us to provide added alue products to our clients and higher volumes.”