Constellation Adds $1.1B Petrobras Backlog With 99% Uptime, Baker Hughes Wins Equinor Extensions
PBR•Constellation Oil Services renegotiated Petrobras contracts to add $1.1 billion backlog, delivered $97 million adjusted EBITDA with 99% uptime and secured 50% higher pricing in Q1. Baker Hughes secured two multi-year Equinor extensions in North Sea and Santos Basin, but its momentum indicators signal cooling upside.
1. Constellation Oil Services Q1 Performance
Constellation Oil Services delivered Q1 adjusted EBITDA of $97 million, more than double year-over-year, and achieved 99% fleet uptime. Current contracts were priced roughly 50% above legacy levels, and a renegotiated agreement with Petrobras added $1.1 billion to the company's backlog, coinciding with its uplisting to Oslo's main market. Despite this, operating cash flow fell to $29 million while CapEx reached $43 million, and guidance remains capped at a $385 million upper EBITDA range. Political and sanctions risks in Venezuela, along with potential idle time for the Atlantic rig post-contract, present future headwinds.
2. Baker Hughes Secures Equinor Extensions
Baker Hughes secured two multi-year contract extensions with Equinor to support offshore production in the North Sea and expanded operations in Brazil's Santos Basin. The extensions reinforce the company's presence in key markets, although momentum indicators on its stock suggest upside pressure may be cooling in the near term.
