Thanks, Lorenzo.Operator Thank you. One moment for next question. And our next question coming from the line of Stephen Gengaro with Stifel. Your line is open.Stephen Gengaro Thanks. Good morning, everybody. Can you talk — I guess, two things as it relates to OFSE. Can you talk about just current pricing trends internationally? And then maybe as a follow-up, when you think about the 20% EBITDA margin target, how much of that is price versus sort of activity and self-help, et cetera.?Lorenzo Simonelli Yeah. Just in terms of the pricing environment, look, as you look at North America, it’s starting to level off, but we expect our pricing for our technology in North America to remain firm. Internationally, we’re gaining good traction given the strong activity levels and some of the tightness in the market.
That being said, it will take some time to flow through from an earnings standpoint. And as you look at the construction of the 20%, we’ve always said that it’s a combination of some of the pricing but a lot of self-help as well.Stephen Gengaro Thanks. And when you think about production chemicals, I think Nancy mentioned getting back to sort of historical levels by the end of the year. Can you just give us kind of an update on the traction there? And are those historical levels accretive to overall service margins? I think they are, but just checking.Lorenzo Simonelli Yeah, definitely. And I think we continue to see positive developments in our Chemicals business, improving margins. Chemical pricing has been favorable. Input prices have stabilized and we improved parts of our supply chain.
As you know, we’ve got a new facility that ramped up in Singapore. We’ve got another facility that ramps up in KSA later on this year.As you look at margins in the first quarter, they increased sequentially and are now up 500 basis points year-over-year. We’re still though 200 basis points to 300 basis points below the long-term average for this business. So we’ve still got some work to do to get back to the prior levels, but we expect that to be more normalized in the second half of 2023.Stephen Gengaro Great. Thank you for the color.Operator Thank you. One moment for our next question. And our next question coming from the line of Roger Read with Wells Fargo. Your line is open.Roger Read Yeah. Thank you. Good morning. I think most of the stuff has been hit.
I just have one question. It was a topic at the event back at the end of January on servicing and the maintenance for the LNG facilities that are already out there. I was just wondering if you’ve seen any change in that, any improvement in that as we think about kind of the impact on margins later I guess, really Q2 onwards for this year?Lorenzo Simonelli Yeah, Roger. And as we laid out also at the beginning of the year relative to the maintenance and the contractual service agreements we have, it’s pretty much trending the way we anticipated. And so no change from what we said in January. Again, as you know, there has been some pushout from 2022 and we’ll anticipate that, that starts to catch up in ‘23 and ‘24.Roger Read That’s it from me.
Thank you.Operator Thank you. And that was our last question. Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the program. You may all disconnect.
