This Company, founded 35 years ago, manufactures oil and gas equipment for upstream operations (with API 6A, API 6D, API 16A and 11W Certifications). It is a corporation with two shareholders (brothers), who are founders of the Company. Both are approaching retirement without heirs to continue the business. Company turnover in 2012 was about 43mn, and EBITDA was 14mn.
The Company’s main products are the following:
- Wellhead assemblies and X-mas trees up to 10000 psi;
- Independent threaded wellheads, 1000 through 3000 psi;
- Forged ball valves API 6D up to 30″;
- Ball valves, fused, floating and trunnion mounted, up to 12″;
- Flanged ball valves API 6A up to 30”;
- Blowout preventors (B.O.P.);
- Hydraulic power tongs;
- Tubing and Casing hydraulic power tongs;
- High pressure swivel joints;
- Activators.
Approximate Company sales by product line are as follows:
- API 6A Wellheads 60% – 70%
- API 6D Spherical Valves 30% – 40%
Equipment sales by pressure rating:
| 2012 | 2013 | |
| Independent WH | 23% | 20% |
| Mid Pressure 3K | 21% | 16% |
| Mid Pressure 5K | 29% | 21% |
| High Pressure 10-15K | 27% | 43% |
An important factor in the business is that 95% of raw materials and components used by the Company are domestic sourced.
The Company has a very modern manufacturing plant with 230,000 sq.ft. of covered area on 500,000 sq.ft. of land. It is located 25 miles from Buenos Aires.
Important machinery and equipment at the plant include:
- 12 vertical CNC lathes
- 18 parallel CNC lathes
- 15 horizontal CNC machining centers
- 10 vertical CNC machining centers
- Drills, rectifiers, boring machines, conventional machines
- ENP plant
- Welding equipment
- Metrology rooms
- Painting and blasting cabins
- Testing equipment
The Company also has a complete foundry facility, independent from the main manufacturing plant.
The plant has additional capacity that would permit increased production in the future with practically no limitation since currently only 35% of its production capacity is being used.
The Company employs 300 people. The Company has a staff of engineers and technicians for the in-house development of new products or the improvement of present technologies.
The CEO (one of the shareholders) is willing to remain in his position for a couple of years after sale of the business.
Domestic customers include Apache Energía, Capex, Chevron, Odebrecht, Lockwood, Pan American Energy, Petroandina, Petrobras, PlusPetrol, Sipetrol, Skanska, Total Austral, YPF, TGN and TGS. Customers outside Argentina, which represent 15% of total sales, are oil companies in Brazil, Chile, Peru and Bolivia.
Additional information about the Company:
- has multi-bowl systems available;
- produces independent wellheads for shallow wells;
- produces metal-to-metal sealing technology for API 6A valves & casing & tubing hangers;
- has the ability to make its own tools;
- can make several metal coatings;
- its own modern ENP plant;
- makes its own hanger segments;
- manufactures all the valves;
- manufactures Fracc valves that can handle “sand” in high volume;
- manufactures composite blocks and dual completions;
- manufactures HP surface equipment (10K – 15K) whose market is gradually increasing based on the development of Vaca Muerta shale field.